Business UpdateSCS Solars Computing Systems Inc Head Office Solars USA TourTek
108 – 1st Street West 100 -11140 SW Barbur Blvd 218 – 8901 Woodbine Ave
North Vancouver, BC Portland, OR Markham, Ontario
Canada V7P 3N4 USA 97219 Canada L3R 9Y4
Toll Free: 800-234-5695 503-245-2112 800-234-5695
Business Update – 11/04
2004 has been a year of struggle for SCS Solars, without a doubt, but as the fiscal year comes to a close, the results of these efforts are now showing some very positive results.
TourTek is now showing some solid booking numbers; the software is being steadily and aggressively put through its paces and continues to come through with flying colours. And in the final quarter, TourTek signed a significant, high-profile web-based airline that will establish TourTek as a major player in the wholesale travel software business, both as an in-house call centre application, but also as a web-driven travel management alternative.
Solars USA continues to impress with its continuing efforts on enhancing its technology – web technology that can deliver transaction-based revenue - and is now a consistent money-maker.
SolarNet, also continues to improve its offerings and the two new revenue-generating verticals, Net Cars and Net Insurance are delivering solid results.
S 2004 Activity
TourTek
• Daily traffic on the Service Bureau model is now solid. With the winter season for Tour Operators now upon us, we will see a substantial increase in daily bookings, over and above the norm.
• The signing of the web-based airline will create new opportunities in the wholesale travel management software industry. Now other web-based airlines will see the ability and added revenue that can be gained by adding land and car to their airline seat sales. OpenSky subscribers alone could bring numerous prospects to TourTek.
• At least half dozen strong prospects are knocking at the door via our US Company, Solars USA, for implementation of TourTek. Numerous other prospects are in negotiations with the Solars/TourTek Sales team.
• We have purposely moved cautiously on our existing and future implementations. Our staff is making certain that the existing client base is fully implemented and satisfied. They are also completing further, unique & complex enhancements – enhancements requested by our customers - to ensure that we remain ahead of our competition.
• Work will begin soon on a web application for a major GDS. This project will allow TourTek customers (Tour Operators) to be displayed on the GDS travel Agency desktop via a browser-based methodology. TourTek will be one of the first Tour Operator Software houses to be invited to do this. TourTek will become a preferred supplier to this GDS and we think that this will bring a substantial number of opportunities to TourTek in the immediate future.
Solars USA
• Solars USA continues to derive steady income from their 28 Tour Operator clients via their quarterly maintenance program.
• Custom software development for almost 50 clients keeps the revenue generation consistent and the opportunities for upgrades, or TourTek conversions, a reality.
• With 4 Tour Operator web sites running, there is a clear opportunity to increase the transaction based revenue over the winter season. As the current client list upgrades to the latest release of SpeedRes, there will be more web sites being developed and significant click-fee revenue added.
• Along with the developments of the recent TourTek sale and its related technology requirements, a major GDS has begun negotiations for connectivity and display functionality with current SpeedRes clients. Revenue would be gained on a per transaction basis.
• Costco continues to add software enhancement work; projects related to their credit card interface and other smaller projects.
• Two new clients (this year) are in another round of training and should be live by late January or early February 2005.
• Work is continuing on the development of an integrated booking capability with Sabre, another solid revenue generator when it is completed.
• There are several prospects currently looking at the SpeedRes product.
SolarNet
• SolarNet continues to generate revenue in spite of the ever changing, erratic nature of the airline and airline consolidator industry.
• The two new web applications - NetCar from Global Cars and Net Insurance has also helped, with increased agency exposure and its related increase in click-fee revenue.
• The improvement in web site functionality has also helped attract new users.
Most of the Solars’ business initiatives are based on a per-transaction revenue stream. This revenue model is continuous, as long as the client remains in business, and will improve in volume as the related web sites become more popular and the client and users become more adept with the application. There are also up-front installation-related revenues generated, and revenues from custom software work. Solars will continue to sell licenses outright and maintenance contracts also.
SCS Solars’ Immediate Direction
• Continue to add to our technology staff to allow us to improve the speed with which we do our implementations.
• Further improve the cross functionality of the each of the divisions.
• Further develop third party integration.
• Our sales campaign will specifically target those clients that will need little or no modifications to the software, this approach will allow a fast turn around in revenues.
• Continue to add the Web module for SpeedRes clients and increase the transaction volume.
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It’s been a long haul for SCS Solars over the last year. Getting some of our applications up and productive, with the limited resources and manpower; and given the unusual enhancements that were requested – and delivered - by our client base, has taken us much longer than we ever expected. But we’ve done it and the applications that were under development are now tried, tested and true. Each division is now generating good revenue. SCS Solars is ready, willing and able to take a significant step forward over the next 12 months.