Press Release Source: SoftNet Technology
STTC Subsidiary, WholesaleByUs, Makes Adjustments to Technology - Increases Profitability Thursday December 16, 10:00 am ET
BERNARDSVILLE, N.J.--(BUSINESS WIRE)--Dec. 16, 2004--SoftNet Technology (OTCBB Symbol: STTC - News; German WKN#: A0B7RZ) announced today that, Wholly-owned Subsidiary, WholesaleByUs, LLC (WBU) reworks technology to drastically increase profit margins. This major development in the growth of WBU will lead to overall profitability much sooner for SoftNet Technology as a company. Through adjustments in the technology and programming, improved placement and pricing of client products on Internet portals has been achieved. WBU will generate significantly higher profitability with fewer sales than previously needed going forward. WBU still expects to meet and possibly exceed 2005 projections. But now, these revenue figures will be achieved with much greater profitability. Further advancements will be made to the technology and the process of product placement, pricing and shipping as WBU goes through the coming year.
SoftNet Technology management had expected to make major adjustments to shipping in late 2005 as products sales in different regions reached certain levels. This is when a big jump in profitability was originally expected to occur. Softnet Technology will now hire new personnel sooner to further expand the operations of WBU. This will lead to expansion to foreign markets, more portals with more products. These new developments should lead to profitability for the overall Company much sooner. Additionally, a new WBU website with more efficient processes can now be added into the equation sooner.
"I continued my purchases of STTC stock this past week because of what I see as possible going into 2005 and 2006," said Mr. James M. Farinella, CEO/President of SoftNet Technology. "While we were trying to grow sales quickly, we have always had our eye on profitability. To know that we have so many procedures to add in to the process as we grow just gets me so excited for the future of this Company."
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