J. Collier Sparks, the president and CEO of San Antonio-based MDI Inc. delivered a "state of the company" address recently. In the address, Sparks discussed his aversions to moving the company's stock value artificially, as well as the importance that creating a dealer network would have to MDI. Though he noted that the company was not profitable, he cited new products and dealer relationships that would, he hopes, bring new business to the company.
Sparks' full remarks are published below, as released by the company via Business Wire.
On behalf of MDI, Inc., I would like to extend my sincere gratitude for your continued support of the Company.
It has been a year since my last public address to our shareholders, partners, vendors and members of our distribution channel. Since that presentation, there have been many changes within MDI. I feel it is the right time for me to provide an update of our Company's activities over the last year and what lies ahead. I provide this update with the understanding that there are many significant challenges that we have yet to overcome.
Our overriding vision for the Company is to become a leading provider of integrated security management solutions and comprehensive video security products. To fully realize this, we are focused on building an organization that delivers high-value innovative solutions for our customers, provides enrichment to our employees and creates positive returns for our shareholders.
Profitability -- Our Overriding Goal
During the first half of this year, the Company implemented various reforms. These reforms were executed with one goal in mind -- to position the Company for profitability. To do so, several strategic changes were made in our corporate structure and employee base. By continuing to properly adjust the size of our work force through reassignments and "smart-sizing" the organization, the Company has established a smaller and more efficient team of core employees. The hard-working and innovative spirits of this team will no doubt contribute towards our achievements as we move forward into the second half of 2005 and beyond. I would like to take this opportunity to thank them for their dedicated efforts.
State-of-the Art Products
In addition to our current product offering, SAFEnet, iTRUST, VIEWpoint and nTEGRITY, we will unveil at the ASIS Show in Orlando later this month our new Integrated Intelligent Video Solution. I would like to invite all of you to join us at booth #4043 for a demonstration on the power of this capability, as it is where much of our research and development efforts have been focused.
At the ASIS show, we will demonstrate how our intelligent video solution performs intelligent analysis that fully automates video monitoring. The system automatically identifies objects, tracks objects, analyzes motion, extracts video intelligence and issues real time alerts via the SAFEnet platform.
The system also analyzes and mines video data and outputs results as real-time events, storing them in a database for future review. Modules include intrusion detection, unaccompanied baggage detection, asset protection, object detection and tracking, exit-entry direction monitoring, motion analysis and behavior analysis. I am sure that you will not be disappointed with its capabilities.
New Business Initiatives
UPGRADES TO OUR INSTALLED CUSTOMER BASE -- Because we were not pleased with our mid-year financial performance, we have made some major changes in July and August, primarily within our newly formed Federal Systems Division. With Jim St. Pierre as President of this division, the team has managed to solidify upgrades from a number of legacy client locations. This is a significant accomplishment because these were customers that had a decision to make...either to keep our systems installed or replace them with the system of a competitor. We worked hard to correct any problems that existed with our installed systems and the result was that we were able to upgrade several of our current systems.