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CEO Comments on Status of IA Global, Inc. Operations
Saturday July 26, 01:15 AM
IA Global, Inc. (Amex:IAO) Derek Schneideman, CEO, released the following statement: "Management strongly believes that the strength of IA Global continues to grow and that our key fundamental business indicators are moving in a positive direction. We have diversified our investments to lessen the reliance on any single investment and have executed our strategy of diversifying into industry sectors and geographies that offer increased cash flow and profits. Our acquisition strategy has been to use our common stock as currency in order to preserve cash for internal growth and expansion. The result of this plan is evidenced by the nearly doubling of our year-on-year revenues from $39 million in FY 2007/8 to $76 million in FY 2008/9. While this element of our overall strategy has resulted in dilution to our shareholders, it has significantly improved our shareholder equity position, an issue that had in the past been of concern to the company. We expect to see cost efficiencies at our largest Japanese subsidiary, Global Hotline, Inc., and improved results at the holding company level. Effective July 1, 2008, our annual costs are reduced by approximately $2,400,000 from the elimination of the convertible debentures and the amortization costs associated with our 2005 acquisition of Global Hotline.
IA Global maintains no operational business functions in the US and is largely insulated from general economic conditions in the US market. Our entire operational activities take place in the Asian region, an area that is demonstrating vigorous growth compared to that of US and European economies and is a region that has generally lower operating costs. We see this strategy as a balance between providing excellent shareholder security while also enabling aggressive exploitation of the growth opportunities in offshore markets.
The US economy is suffering a significant downturn, driven by numerous factors including unprecedented fuel prices and negative forward looking economic sentiment. IA Global has a sound strategy and management sees no reason to change that strategy. We will continue to build upon our core businesses, by cash funded acquisition transactions, as and when those transactions are considered to be accretive to our stated growth and expansion strategies.
IA Global is a strong and growing business and we will continue to focus on our key financial metrics, measured by our income statements and balance sheet. Management's commitment to the company has been indicated by the decision to modify compensation packages so that approximately 50% of potential individual compensation is now received in company common stock.
As CEO, it is my firmly held belief that the current market price of IA Global stock does not reflect the true value of the company."
About IA Global, Inc.
IA Global, Inc. ("IA Global") is a broadly based Services Company with a dedicated focus on growth of existing business, together with expansion through mergers and acquisitions in the Pacific Rim region. Our mission is to identify and invest in business opportunities, apply our skills and resources to nurture and enhance the performance of those businesses across key business metrics, and to deliver accelerating shareholder value.
To realize this plan, the Company is actively expanding investments in the business process outsourcing (which includes human resources elements necessary to recruit and train the very large numbers of people), B2B and financial services sectors. These sectors demonstrate long-term growth prospects in which we, by applying our skills and resources can add significant value to our investments. Beyond Japan, the Company is expanding its reach to encompass, the Philippines, Hong Kong/China, Singapore, and India and the outstanding growth opportunities and synergies these markets present.
In Japan, IA Global is 100% owner of Global Hotline, Inc., a Business Process Outsourcing organization, operating several major call centers providing outbound telemarketing services for telecommunications and insurance products. Since our acquisition of Global Hotline in June 2005, this business has expanded rapidly with the signing of significant multi-year contracts with major corporations.
In the Asia Pacific region, IA Global is the 100% owner of Asia Premier Executive Suites Inc. and Shift Resources Inc., companies who have now been merged into a single Business Processing Outsourcing organization named Global Hotline Philippines Inc. The Company has equity investments of 25.0% in GPlus Media Co Ltd, 20.25% in Slate Consulting Co Ltd, 36.0% in Australian Secured Financial Limited and 20% in Taicom Securities Co., Ltd.
For further information, contact: Investor Relations IA Global, Inc. 101 California Street, Suite 2450 San Francisco, CA 94111 415-946-8828 (t) 415-946-8801 (f) ir@iaglobalinc.com www.iaglobalinc.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements (within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934) regarding us and our business, financial condition, results of operations and prospects. Forward-looking statements in this report reflect the good faith judgment of our management and the statements are based on facts and factors as we currently know them. Forward-looking statements are subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. The comments concerning the profitability, revenue and revenue growth, target markets and sectors, the Asia Global B2B strategy and the potential IPO status are forward looking statements. Actual results could differ materially from those projected in the forward-looking statements, as a result of either the matters set forth or incorporated in this report generally or certain economic and business factors, some of which may be beyond the control of IA Global. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital to support our operations and projections of revenues and profitability. Readers are urged not to place undue reliance on these forward-looking statements which speak only as of the date of this press release. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of the press release.
Contact:
Investor Relations of IA Global, Inc. 415-946-8828 (t) 415-946-8801 (f) ir@iaglobalinc.com www.iaglobalinc.com
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