Statmon Technologies Provides December 31, 2008 3rd Quarter Earnings Guidance & Announces $1.25M Round of Secured Convertible Debentures including $500,000 from Existing Debenture Holders

Friday February 27, 2009, 12:26 pm EST

CHICAGO--(BUSINESS WIRE)--Statmon Technologies Corp. (OTCBB:STCAE - News), an emerging wireless and remote site infrastructure management solution provider advises the Company will be late filing its FYE March 31, 2009 3rd Quarter Form 10Q for the nine months and three months ending December 31, 2008. In the meantime the majority of the Company’s secured convertible debenture holders have agreed to invest a minimum of $500,000 as the cornerstone piece of an additional $1,250,000 of the new round of secured convertible debentures and warrants, demonstrating their confidence, support and satisfaction with the progress of the Company. The closing of the $500,000 minimum subscription triggers a reset of the existing $2.5M debenture conversion price from $0.98 to $0.25 per share plus, adjustments including warrant conversion terms. Full details of the conversion price reset will be disclosed at closing and in the 3rd Quarter Form 10Q to be filed with the SEC as soon as possible.

In the interim the Company provides the following unaudited earnings guidance for the periods ending December 31, 2008, subject final audit review: Revenues for the nine months ended December 31, 2008 came in at $2,496,291, up 5.23% over the $2,372,190 in the prior year period generating an operating loss of $1,247,512, a 13.57% improved result over the $1,443,458 reported in the same prior year period. Net loss for the nine months ended December 31, 2008 is $2,655,221 which is a 48.53 % improvement over the $5,158,273 net loss in the same period last year. Revenue for the three months ending December 31, 2008, were $444,933, a decrease of 39.13% over the $730,960 for the same period in the prior year generating an operating loss of $679,932 compared to an operating loss of $498,469, a 36.40 % increase over the same prior year period. The net loss for the three months ended December 31, 2008 of $1,182,181 is an improvement of 27.52% compared to the $1,630,984 net loss in the same period last year.

Statmon’s Chairman and CEO, Mr. Geoffrey Talbot, commented: “Prior to the tumultuous financial market collapse in October 2008 and resultant severe recession taking hold, Statmon was building long term momentum with a growing sales pipeline in excess of $30M. The pipeline remains in tact and will continue to grow as additional infrastructure projects are given the green light including lucrative government funded projects. The top line revenue run rate for the 2nd Quarter ending September 30, 2008 was $1.2M. Short term implementation purchase orders and revenues dried up midway through the 3rd Quarter as the network broadcasters capital expenditure budgets across the board were put on temporary hold without notice. At the same time the imminent delay by the federal government of the HD TV switch over date out to June 12, 2009 dramatically impacted the short term capital expenditure from our customers. The HDTV delay postponed the switch off of analog television transmission preventing the broadcasters from exiting the air wave spectrum sold by the government primarily to Qualcomm and the wireless carriers, pushing the mobile TV turn on and implementation of digital infrastructure projects in key markets back over six months costing tens of millions of dollars with no benefit. This scenario caused a trickle down impact on all parties involved in these substantial digital infrastructure projects which will eventually get back on track beyond June 12, 2009.”

Mr. Talbot went on to say: “In the meantime network TV broadcasters are absorbing the unexpected additional costs associated with transmitting duplicate analog free to air and HD TV signals to the public and forced to keep their superseded and redundant analog transmission sites on the air and remain in compliance with regulatory requirements including the civil EAS (emergency alert system). This is all happening at a time when deep cost reductions and more efficient operating models are critical in the industry in response to the plummeting advertising revenues.”

Mr. Talbot concluded: “The Statmon platform used for network-wide automation and remote control capabilities is designed to rapidly achieve improved operating efficiencies. Substantial cost reduction is an integral part of the Statmon value proposition to its clients.”