PCS Corporate Update
Dear Shareholders and Friends,
Greetings from PCS and welcome to our fiscal year 2014! This past quarter has been a busy one with a number of improvements and positive changes going on in the company. First a look back at our continued positive trends in Q1-3 of this year. You may recall these numbers we reported at our annual shareholder’s meeting regarding progress made in FY2012
Revenues $2.3M – 27% increase over FY2011
Gross Profit $1.2M – 10% increase over FY2011
Operating Expenses $2.9M – 7% decrease over FY 2011
As of December 31, 2012, our FY2013 numbers continue to trend in a positive direction:
Revenues (as of Q3) 2.47MM
Gross Profit (as of Q3) 1.32MM
Operating Expenses (as of Q3) $1.56MM
I am pleased to point out that our revenues as of the end of Q3 have already passed our revenues for the entire previous fiscal year. You will also note continued decreases in operating expenses as we refine operations to become more efficient. Although some of these efficiencies are painful to implement, the overall company is much healthier as we head towards profitability. In the final quarter of FY2013 I implemented a staff reduction and reorganization that as we go into FY2014 will reduce our annual salary burden by more than $160,000. These changes and others will help get us to our highly focused goals of revenue generation and profitability.
Some other fresh changes as we go into FY2014 include:
- Tom Kicmol, a highly skilled e-commerce expert has joined us as of March. You will be seeing some remarkable changes in our online presence in the coming weeks and we are all very excited to have his expertise on board. Welcome Tom!
- A new and improved performance driven sales structure that I feel will better incentivize our sales people to new levels of success as they focus on more “big fish” orders while we direct the low touch, low-cost orders to our website. We are also actively recruiting additional sales staff, reorganizing territories, and putting all funding streams under a microscope.
- A fine tuned lead generation process generating more leads than ever for our sales people.
- A Customer Relationship Management (CRM) system that is providing executive management with end-to-end visibility in our business processes. This includes visibility from the initial sales lead to the sales pipeline to final fulfillment. Getting this project across the finish line is a triumph for us as we enter this new fiscal year.
- A tightly focused sales effort around key product lines that have the highest growth potential and best margins for the company. One of these focused efforts continues to be PCS Robotics – the robotics industry and educational opportunities within it are exploding. We’re excited to be heavily involved in robotic education for the future.
- A matching focused effort by our educators supporting these key product lines. A narrowing focus allows them to continue to improve and develop our best products and support for our customers.
- A successful Learning Center pilot program that is now ready for expansion to new locations. For those of you who live in the Boise area, we’re having several open house events this week celebrating National Robotics Week. Details are below, come see for yourself the excitement this program generates.
Wednesday, April 10
6:00 – 8:00 pm
Sage International Charter School
601 S. 9th St. Boise, ID 83702
Thursday, April 11
Riverstone International School
5493 Warm Springs
Boise, ID 83716
Although there is a great deal more I could tell you about, I’ll stop for now. If possible, we’ll be releasing our preliminary numbers on revenues for Q4 and FY2013 (unaudited) so you can see where we’re going. Thanks for your continued support and enthusiasm for PCS, and if you are local to Boise, I’ll look forward to seeing you at one of our open house events this week.
Robert Grover, CEO
PCS Edventures, Inc.