Dear shareholders,
Spectral Capital Corporation, (FCCN.QB)
Spectral has achieved groundbreaking milestones in 2013 and built
tremendous enterprise value for our shareholders. I would like to take
this opportunity to share these achievements with you as well as specify
our goals over the remainder of the year and through 2014.
Our core business strategy is to identify promising young technology
companies with explosive growth potential, acquire large equity stakes
in them at an attractive valuation and then help those companies to
maximize their growth potential through the strategic application of an
array of financial and non-financial resources. This is a bold strategy,
however, it is one that provides an opportunity for exceptional capital
appreciation. We seek to partner only with those small companies whose
big innovations can scale to market-leading businesses. We believe our
experience and resources can help to bend the growth curve for these
companies, greatly enhancing the prospect that they can scale to their
full potential.
2013 brought Spectral, front and center, into two high-growth areas in
technology. Two exceptional companies have become a part of the Spectral
team: Noot and Kontexto. Both teams exemplify our core business strategy
(1) they solve complex problems in high growth market segments; (2) they
incorporate industry-leading proprietary technology; (3) they can grow
rapidly on minimal investments in sales and marketing. Inherent to
building an emerging growth company dependent on industry-leading
technology is the risk of building such products. The last decade is
littered with the debris of companies with promising ideas who failed to
execute on delivering cost-effective implementations of complex and
intricate technological solutions. We are very proud to say that both
Noot and Kontexto have delivered precisely these sorts of complex and
intricate technical achievements on time, worked under budget and
produced industry-leading products. Each company is also serving high
growth markets with huge upside potential: Kontexto in data analytics or
big data and Noot in mobile search.
Noot is still in its infancy, however, we are very encouraged by its
initial reception. Following a few more planned updates, the product
will be ready for expansion into additional markets. We know that 50% of
mobile users use mobile as their primary Internet source and that 80% of
time on mobile is spent inside apps and all these usage rates are
expected to continue to be strong. Adaptive mobile search is amongst the
highest growth potential markets in technology and Noot is at the
technological leading edge of this market.
Over the course of the past 12 months, which have seen unique market
volatility and global instability, the share price of Spectral has
remained relatively stable. We are proud of our ability to maintain a
consistent performance baseline while making significant asset gains and
we have laid a foundation for promising future growth. We are pleased to
see that the trading volume has increased, which provides our
shareholders with assurance that Spectral is on the radar screen of many
more people. We do, however, believe that this increased attention may
provide a means for our share price to reflect our recent activities and
growth potential as we head into a year that should provide increased
market stability and is becoming increasingly friendly to high-growth
technology companies, as evidenced by the recent Twitter IPO.
Spectral's aim is to continue adding to our asset base with highly
capable and talented teams in growth markets over the next 12 months. We
are in late-stage negotiations, and have reached a verbal agreement,
with another firm and we hope this may result in another asset
acquisition for the company in a short time. This is not definitive
until a formal agreement has been signed, but we have every expectation
that the transaction will come to fruition.
There are a number of avenues in which Spectral can monetize the growth
of its portfolio companies. These include the sale of a strategic stake
in one of our companies at a moment of value inflection, such as the
achievement of a critical number of persistent users or the validation
of an advertising based revenue model. We are evaluating a number of
these strategies and look forward to monetizing the growth of our
portfolio companies and having such growth reflected in the share price
for Spectral over the coming months.
Thank you for your continued loyalty and belief in the underlying
high-growth strategy that makes Spectral so attractive to the emerging
growth investor community. We look forward to rewarding that trust and
confidence in the coming months and remain committed to maximizing value
for you, our Spectral shareholder community.
Warmest regards,
Jenifer Osterwalder
President and CEO
PRESS RELEASE FORWARD LOOKING STATEMENT: This press release contains
forward-looking statements (as defined in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended) concerning future events and the Company's growth
and business strategy. Words such as 'expects,' 'will,' 'intends,'
'plans,' 'believes,' 'anticipates,' 'hopes,' 'estimates,' and variations
on such words and similar expressions are intended to identify
forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove
to have been correct. These statements involve known and unknown risks
and are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies, many
of which are beyond the control of the Company. Actual results may
differ materially from those expressed or implied by such
forward-looking statements.
Factors that could cause actual results to differ materially include,
but are not limited to, changes in the Company's business; competitive
factors in the market(s) in which the Company operates; risks associated
with operations outside the United States; and other factors listed from
time to time in the Company's filings with the Securities and Exchange
Commission. The Company expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company's expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Copyright Business Wire 2013