DESCRIPTION: Using Their Own Proprietary Designs, Xyz Company (Company) Develops And Manufactures Electronic Avionic Components For Today’s Pc Flight Simulator Market. Several Basic Modules, Simulating Virtually All Major Cockpit Functions, Are Distributed Through Representatives In The Us And Worldwide, As Well As Sold Direct. The Modules Are Offered In Easily Mountable Components For Complete Customization. Flip Real Switches To Start Engines. Push Real Buttons To Engage And Disengage Autopilot. Turn Real Knobs To Tune Your Radios, And See The Frequencies On Real Led Displays. Adjust Pitch Trim Using A Wheel, Control Landing Gear With The “Clunk” Of A Gear Lever. The Gf-Ac Cockpit Control System From The Company Is Designed To Be The Most Affordable And Expandable Way To Create A Home Simulator Cockpit Ever Created. The User Can Choose From Over 300 Cockpit Functions To Create The Ultimate Flight Deck Right On His Or Her Desk Or In Their Custom Cockpit.
All Components Are Assembled In-House Using Standard Distributed Parts. Local Shops Perform Flow Soldering, As Well As Pc Board And Metal Fabrication.
The Company Operates In Leased Space Month-To-Month. There Is Nothing Unique Or Permanent About The Present Site.
Both Owners Have, In The Past, Established A Number Of New Companies. The Company Was Founded In Late 1999 As A Hobby And As A Way For The Energetic Owners, Both Engineers And Avid Flight Simulator Enthusiasts, To Put Their Many Talents To Work. They Now Wish To Focus On Creating And Developing New Products, For Which They Hold Us Patients, And Desire To Turn The Company Over To Someone Who Values The Work Completed To Date And Who Is Capable Of Using Existing And Establishing New Marketing And Sales Channels To Take The Company To The Next Level Of Success.
Financial History
Although Under Development Much Of The Time, The Company Has Shown Solid Sales Over Its History. Sales For The Year 2001 Were Approximately $100,000, However, It Should Be Noted That Most Sales Growth Developed After June 2001 Because Of The Introduction Of New Products In July And Increased Distribution. Up To That Point In Time, Sales Had Averaged Approximately $3,000 Per Month. Rounded To The Nearest $100, Sales For The Year 2002 Were $405,300, 2003 $593,400, 2004 $639,200 2005 $578,400, 2006 $653,200 And For 2007 $611,600.
It Should Be Noted That 80% Of The Company’s Sales Are Through A Single Distributor Who Receives A 45% Discount Off Retail Prices. The Figures Reported Here Are Net Of This Discount. Gross Sales, Therefore, Are Calculated At $977,700 In 2004, $886,900 In 2005, $1,080,900 In 2006 And $1,011,900 For 2007. The Year 2005 Dipped Because Of A Sagging Economy And Because Microsoft, Uncharacteristically, Did Not Release A 2005 Update To Its’ Flight Simulator Program. Microsoft Finally Released An Update In Late September 2006, But This Release Was In Vista, A Program That Was Not Yet Widely Used. Proprietary Income For 2007 Was A Healthy $211,200.
All Figures Reflect Heavy Investment In New Product Development And Employment Of Family Members. One Can Immediately See The Possibilities. Assets, To Be Sold With The Company, Are Comprised Of Mainly Accounts Receivable, Inventory And Equipment Totaling About $333,000. That Value, The Strong Cash Flow Produced In 2007, And The Opportunity To Reduce Marketing Costs, Make This A Potentially Very Lucrative Opportunity. A New Owner With The Vision To Expand Into New Markets Has A Very Strong Prospect Of Escalating Growth.
New Products Continue To Be Introduced. Among New Offerings Will Be A Yoke/Rudder Control Combination, Perhaps In The Fourth Quarter Of 2006, Replacing The Rudder Control Product That Appeared About Eighteen Months Ago. |
