PASADENA, Calif., Dec. 6, 2006 (PRIME NEWSWIRE) -- Axium Technologies, Inc. (Pink Sheets:AXGI) is pleased to announce its entry into the public market, as it begins trading under the symbol AXGI.PK. Axium Technologies, Inc. ("Axium or the "Company") (www.axiumtech.net) is a provider of stand alone products and integrated systems technology directed at the commercial electronic security and surveillance market. This market size in which Axium participates is $26 billion of sales per annum growing at a minimum of 8% per year. Originally formed in 2002 as World Wide Eyes, Inc., the Company's growth and diversity into new products and markets dictated a change not only in the structure of the company, but also in a name more befitting its vision. To address these needs, World Wide Eyes Inc. changed its name to Axium Technologies, Inc. in 2004. Axium presently has 14 employees, divided between its executive and sales office in Pasadena California and its research and development office in South Korea.
Axium Technologies, Inc. has developed a very powerful software program named Maximum, which is the key solution used in various digitalized security and surveillance products. Maximum is the world's only software to solve the compatibility problem among DVRs (digital video recorders) for large security installations. Since the DVR replaced the VHS tape recorder, compatibility between different branded DVRs or even between same brand but different model DVRs has been an unbreakable barrier to most dealers and end-users. Over 1,000 DVR manufacturers in the world are using their own proprietary file system to record images into a DVR. With Maximum software these compatibility and interoperability issues have been overcome.
The TaggerTrap(tm) is a product that has been developed to detect and notify law enforcement agencies that graffiti is in progress. The TaggerTrap(tm) is an array of acoustical sensors that listens to frequencies and patterns that a spray paint can emits. Once a spray can is detected, the digital video camera can automatically focus on the "tagger" (based upon a detection zone), and send the video image to a local law enforcement agency or central monitoring center within seconds. The system is integrated to a DVR, which records the event for future review and prosecution evidence.
There are currently NO active prevention products or solutions to detect and stop graffiti. Studies indicate that the combined annual cost to private industry, as well as local, state and federal government in the U.S. for graffiti removal is approximately $80 million dollars.
The TaggerTrap(tm) utilization of ultrasonic graffiti detection is based upon a patent held by Traptec Corporation. Axium currently holds an Exclusive License to this Patent. The system has been tested by the City of Inglewood, California, who has purchased the system, and the Company will begin commercial distribution of the product to law enforcement offices throughout the United States in the first quarter of 2007. A major test of the system is scheduled for January in a major Southern California city.
This same ultra-sonic surveillance can be used to detect aerosol emissions related to the deployment of a terrorist biochemical attack. Further development of digital video coupled with listening devices will include detection of gunshots and categorizing them by the caliber of the weapon and whether it is automatic or semi-automatic gunfire. Axium has already demonstrated early versions of this technology to the California Office of Homeland Security, and the Company expects a significant order from them in the near future.
Another product that Axium has developed is integrating Point of Sale Systems into their DVR products. According to the 2001 Supermarket Shrink Survey, conducted by The National Supermarket Research Group, shrink (inventory loss) accounts for 2.26% of sales. On average, that equals an average of $363,642 annually per grocery store. Of that amount, cashier dishonesty accounts for 26% or $94,546.92. The Company's products provide Point of Sale (POS) integration, creating a "Virtual Receipt" attached to the transaction video allowing managers to view transaction date and time, SKU numbers, cashier's employee number, customer's credit card number, the price of the purchase and so forth. This allows management to quickly and easily identify employees who are stealing at the cash register. Typically, a grocery store can implement a CCTV/POS integrated system for $20,000 and realize a Positive Payback on their investment within 3 months of the system installation. In addition to supermarkets, the CCTV/POS integrated system is the perfect answer to "shrinkage" for restaurants, bars, nightclubs, convenience stores or any other business that handles cash.
The Company spent most of 2006 finalizing the development of the above described products. Since commercial rollout of the products has now begun, with the Company projecting recognizing over $1,100,000 of gross sales in 2006, the Company is projecting reaching $8.8 million of gross sales in 2007 and $15,500,000 of gross sales in 2008. Gross margins should exceed 57% in both 2007 and 2008, with the Company realizing net profits of $3,243,965 in 2007 and $7,346,672 in 2008.
Axium CEO, WonSoo Chung in discussing the Company's entry into the public marketplace stated: "2006 was a year of transition from being a DVR reseller and service provider to being a provider of proprietary and patented software products that integrate various DVRs manufactured by diverse suppliers, and providing unique software and hardware solutions to all aspects of the corporate and governmental security industry. Now that we have launched three distinct products which are proprietary to our company, we realized that our growth expectations gave rise to the necessity to enter the public market in order to lower our cost of capital, increase our corporate awareness in the industry, and to provide a stock currency that we could utilize for strategic acquisitions in the near future. The Company is unique in that it has a presence in South Korea, the leading country producing cutting edge DVR hardware and software products, and the United States, which is by far the largest market for surveillance security systems software and hardware. We will use this unique position to exploit our products and services, which will result in a substantial return to our public shareholders."
About Axium Technologies, Inc.
Axium Technologies, Inc is a leading provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea.
The Company's primary products include Maximum Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers. The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the Security and Surveillance segment of the gaming industry. The Company's newest product "TaggerTrap" is a state of the art graffiti detection product which detects and alarms local police of graffiti activity. The estimated cost of graffiti clean-up in North America is projected at $1.0 billion annually. Millions of dollars have been budgeted in the past year by large metro police departments to detect and apprehend graffiti taggers.
During 2006, Axium Technologies redeployed much of their resources, both fiscal and headcount, to complete development of its current suite of products. In doing so, its 2006 revenue projections are $1.04 million, with revenues for 2007 projected to be $8.8 million, with gross margins of approximately 57% of revenues.
Forward Looking Statement: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.
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