ARHT to build out distribution channels to drive recurring revenues
Management targets EBITDA profitability starting in 2019
Company to host investor and analyst call on April 9, 2018
TORONTO, CANADA – April 4, 2018 – ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), a global leader in the development, production and distribution of high quality hologram content through its patented Augmented Reality Holographic Telepresence technology, is pleased to provide an update on the Company’s corporate strategy encompassing recent sales and marketing activities, as well as financial outlook and planning process for the remainder of fiscal 2018.
Sales & Marketing:
During the course of the past 90 days, the Company has been aggressively marketing its technology offering to a global list of Fortune 500 companies in various verticals including entertainment, education, convention centres, hotels & meeting rooms, retail, media, sports, and corporate-use verticals. The positive feedback from this growing group has been encouraging and a robust and growing pipeline of opportunities is emerging, which management intends to convert to significant revenue growth in the upcoming quarters.
Historically, the Company has been focused on the sale of its products and services on a pure one off event-driven basis. In recent months and going forward, ARHT’s business model will consist of upfront hardware sales, complemented by recurring revenues associated with the use of the Company’s proprietary software either through broadcast or subscription use fees and an annual license fee for access to the network and software upgrades. This shift in the business model is expected to significantly increase the Company’s revenues, providing operating leverage as the network of revenue generating display and capture locations roll out globally which will contribute to EBITDA and net earnings growth. Based on recent transactions and preliminary discussions, as well as demonstrations of the technology there is meaningful interest from a variety of parties and this new business model appears to resonate well within key target verticals.
As a result of the above mentioned sales and marketing activities, level of interest, and change in the business model, ARHT’s management team is targeting for the Company’s revenues to double in the coming fiscal year, to break-even inside of the next twelve months, with an objective to be profitable in fiscal 2019.
“On the heels of strengthening our balance sheet, we have hit the ground running on a global basis and our new business models have been well received,” stated ARHT CEO Larry O’Reilly. “We have a world-class technology and a great opportunity to deploy it globally. The strength and appeal of our product is perfectly suited for many vertical markets and applications, which I expect will strengthen our financial growth and augment our shareholder value creation for the future.”
Investor and Analyst Call:
The Company will host an investor and analyst call at 11:00 am ET on Monday, April 9, 2018 to discuss its corporate strategy update.
To access the call, please dial 1-800-281-7973 or 1-323-794-2093. A replay of the conference call will be available from 2:00 pm ET on April 9, 2018, until 11:59 pm ET, May 9, 2018. To access the replay, call 1-844-512-2921 or 1-412-317-6671, followed by passcode 3806206.
About ARHT Media
ARHT’s patented Augmented Reality Holographic Telepresence technology is the world’s first complete end-to-end solution for the creation, transmission, and delivery of lifelike digital human holograms. The Company’s technology is protected by U.S. Patent No. 9,581,962.
Connect with ARHT Media:
ARHT Media trades under the symbol “ART” on the TSX Venture Exchange.
ARHT Media Investor Contact:
ARHT Media Press Contact
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the intention to exercise convertible securities of the Company; disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company’s technology; and interest from parties in ARHT’s products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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