Apr. 21, 2010 (Business Wire)
Aura Systems, Inc. (OTCBB: AUSI) announced today that its CEO, Melvin Gagerman presented an overview and business status of Aura Systems Inc. at the Accredited Members Inc. conference on the afternoon of April 20, 2010 at the Green Valley Ranch resort in Anderson Nevada.
Mr. Gagerman presented a brief summary of the company and its technology followed by a description of Aura’s business opportunities. The economic impact of energy costs, environmental sensitivity and governmental tests of the technology were amongst the factors presented that are having an impact on driving the sales potential of the company’s products. The Business opportunities were divided into military and commercial segments.
The military segment of the presentation focused on 3 case studies (a) the U.S. Coast Guard; (b) the U.S. Army; and (c) the South Korean army. The military segment was summarized by the description of the approximately $7.9 million of backlog and definable pipeline for the current fiscal year and the longer-term possibilities of future year business from these programs.
In the commercial segment, the presentation described the All-Electric Transport Refrigeration (“AETRU”) opportunities in terms of the market and monthly operating cost savings of approximately $400 per truck to the end users due to reduced fuel consumption, emissions and lower maintenance costs. The presentation also provided an analysis of operating savings of approximately $300 per truck to the end users acquiring the AETRU under a capital lease program. The presentation provided a summary of the recently announced North America Strategic Alliance between Aura and Zanotti. The Alliance requires Aura to provide the AETRU solution using exclusively Zanotti’s refrigeration systems and in return Zanotti will guarantee to Aura no less than 1,000 AETRU sales during the first 24 months followed by 750 systems per year thereafter. The 70 domestic Zanotti dealers will provide service, installation and commission sales of Aura’s AETRUs. The opportunity does not include potential business development from the international sales of Zanotti systems.
The presentation also focused on opportunities in the cell phone segment of the telecommunications market. An economic analysis of the benefits of the AuraGen solution to Cells on Wheels (“COW”) as well as potential cost savings in applications of the AuraGen architecture to Diesel based cell sites was presented.
The presentation was concluded with the Company’s strategy for growth over the next few years. While the potential business opportunities for the current year (two month into the year) add up to approximately $22.5 million, management believes that revenues could potentially be as high as $40 million for the year. No assurances can be given as to the timing and amounts of future business awards if any. The definable pipeline, based on the continuation of existing projects, could result in revenues of approximately $150 million and $290 million in fiscal 2012 and 2013 respectively. While the current year projects have been started, they are in their initial state and therefore no assurances could be given as to the final size and timing of future year projections. Actual results in future years could be materially different from the presented projections. Finally the presentation showed a comparison of cost per watt for the AuraGen and other mobile power solutions.
For more information on Aura Systems Inc. visit www.aurasystems.com.