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  AVT, Inc. (AVTC.PK)

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by IPOdesktop.com
AVT, Inc. (AVTC.PK)
Stock symbol: AVTC.PK……………….....…………………Common shares: 3/31/10: 30.5mm

Stock price 5/25/10: $1.07……....……...……………..…………….…………..Float 5.2mm (est)

52-week price range: $ 0.51 - 1.50……..………..……….Equity market capitalization: $33mm

Recent News…..Stock Price…..Chart…..SEC Filings

Twitter -- http://twitter.com/AutomatedStores

Blog -- http://automatedstores.blogspot.com/

Video, audio, article in "The Press-Enterprise"

NEW NEWS

POP N GO Completes Facilities Expansion With AVT May 26 read more

BUSINESS

Technology-driven, integrated product dispensing centers (PDCs), easily customized using proprietary software and hardware.

Features large touch screen displays, receipt printers, cashless payment options and advertising displays

Emerging market leader
In the emerging automated retailing market for ‘themed product dispensing’ solutions, including but not limited to food -- we believe AVTC is a low price, high quality leader offering technology solutions at 50% less, than the best known competitor

MISSION

Become the standard for intelligent self-service vending systems deployed throughout the US and world markets

Especially ‘themed product dispensing centers’ which produce higher margins for both retailers & manufacturers

100% INCREASE IN SALES

for the quarter ended March 31, 2010

Sales increased 100% to $1.3 million from $677,000

Total assets exceeded $19 million, with $16.9 million of stockholder equity

MARKET CAPITALIZATION POTENTIAL

AVT is an emerging company that has maintained profitability during a vigorous growth phase. Sales doubled from 2007 to 2009, and were up 100% for the quarter ended March 31, 2010.

The most important and largest revenue segment, product dispensing centers, increased sales 357% and generated a 60% gross margin, which is consistent with high multiple, high technology companies.

IPOdesktop believes that AVTC is on the cusp of receiving very large orders this year form major product dispensing customers and that a valuation of 3X book value is reasonable, which equates to a market capitalization of $51mm, and a price per share in the $1.67 range.

As the large, expected orders materialize it seems reasonable that the price per share would increase accordingly

Financials

For the quarter ended March 31, 2010 product dispensing centers sales increased 357%, relative to the March 09 quarter, with a 60% gross margin

Dec 31, fiscal year

2007

2008

2009

March 10qtr

Rev ($mm)

$2,218,991

$2,956,645

$4,431,154

$1,357,257

Net after-tax income

$103,005

$35,728

$117,068

$21,445

Net income %

4.6%

1.2%

2.6%

1.6%

Quarterly comparison

March 09

March 10

% Sales

Gross

increase

Margin

Total revenues

$677,460

$1,357,257

100%

Segments

Product dispensing centers

$202,661

$925,282

357%

60%

Vending product/participation

$261,987

$253,477

-3%

53%

Non-vending

$212,812

$178,498

-16%

71%

Book value as of September 30, 2009: $17mm. $.57 per share undiluted

 

PRODUCT LINES

Themed systems

Include tee-shirts, promotional items, perfumes, contact lenses and just about any product customers have a location and market for. "Themed" systems are of exceptional interest to direct end customers as the products these systems dispense result in higher profit margins.

Products

Includes a variety of snack items and non-food items such as cell phones, MP3 players, digital cameras, DVDs, consumer electronics and accessories.

NEWS

AVT Partner POP N GO and FastFliks Launch Canadian Distribution May 12, 2010 read more

AVT Partner Pop N Go Receives Record Orders for N9000 April 28 read more

Pop N Go Launches N9000 Production March 25 read more

AVT FOUNDER INTERVIEWS

Pop N Go & AVT Begin N9000 Launch, targeting retailers, institutions & schools, The interview explains that 50 – 100 Pop N Go units will be placed nationwide soon in a pilot program on a targeted basis with potential national accounts. The two companies believe significant revenues, $10,000 a unit, from the product are achievable in 2011. March 5 listen now

AVTC founder reveals to IPOdesktop.com that AVT is the preferred vendor in this multi million dollar contract and that the technologies it brings to the marketplace give it a significant competitive edge, Jan 19 listen now

AVT & Wal-Mart, Nov 16 listen now
"In my recent visit to company headquarters and the plant, I found that AVT is currently developing prototypes for Wal-Mart, Sam’s Club and other major retailers," said Francis Gaskins, an analyst for IPOdesktop.
"AVT creates fully integrated world class solutions for large well-known retailers. The company’s solutions generate additional top line revenue, reduce inventory and also cut costs," Gaskins said

"We utilize proprietary 4th generation technology to increase profits for our large retail strategic partners," said Shannon Illingworth, AVT founder.

OTHER NEWS

AVT Meets Congressional Requirements on Calorie Counts March 25 read more

AVT To Distribute Vending and Product Dispensing Systems Through Samsclub.com, Feb 22 read more

AVT, Inc. to Provide Product Dispensing Units for New York City School System, Jan 20 read more

AVT and Pop N Go Complete N9000 Prototype, Jan 5 read more

AVT Acquires Vend Perfect, Dec 22 read more

Strategic Partner Ships Sample Machine to Blockbuster, Dec 10 read more

Analyst note: AVTC expands operations near Wal-Mart headquarters. IPOdesktop believes that is a very significant development – stay tuned for further updates.

AVT Expands Operations Into Bentonville, Arkansas, Nov 9 read more

Pop N Go & AVT Open Midwest Region Office in Bentonville, Nov 3 read more

Pop N Go & AVT Launch Strategic Alliance. Sept 2 read more

LARGE EMERGING MARKET

Buoyant market growth

‘Themed product dispensing centers’ produce higher margins for retailers & manufacturers

The self service retailing market is forecasted to grow exponentially, according to industry sources
. Large retailers need to reduce pilferage and reduce sales, through self-service retailing
. Manufacturers want to increase brand awareness, sales and points of distribution by installing automated product dispensing centers

Current industry market estimates

(does not include ‘themed product dispensing centers’ for non-food items

The vending industry is a $42 billion domestic market as reported by The Vending Times Census of the Industry 2004. This figure represents the revenues generated by vending owners/operators and excludes office coffee and manual food service.

Manual food service represents an additional $10 billion in annual demand for convenience food. Vended Food Products, which include refrigerated, frozen, can/bowl pack, and other meal items represents a $3.1 billion segment.

AVTC DRIVES INDUSTRY INNOVATION

AVTC drives industry innovation by focusing on ‘themed product dispensing centers’

Competitive overview

It appears that AVTC currently does not have any significant competition capable of integrating current technologies in the form of PC based operation, RF wireless control or similar technologies seamlessly into ‘product dispensing’ solutions, other than Zoom Systems.

AVTC appears to offer more cost efficient technology solutions for 50% less money than the only technology competitor, Zoom Systems, based on IPOdesktop’s competitive analysis

Industry locations, primarily food

According to the Vending Times, there are an estimated 1.4 million vending locations throughout the United States situated in manufacturing plants, factories, offices, government buildings, schools, colleges, hospitals and other public locations.

These are served by approximately 9,000 vending operators. In addition, there are approximately 52,000 hotels in the United States and 300,000 worldwide according to the American Hotel & Lodging Association (www.ahma.com).

There are approximately 6,000 business-oriented hotels with more than 150 rooms, and approximately 14,000 hotels with 75 to 150 rooms. The growth rate for the overall vending market is 5% annually.

AVTC INNOVATES

Harnessing technology for cost & efficiency

‘Themed product dispensing’ systems technology leader. Employs proprietary & patent pending technologies

. For 4th generation networks of interactive vending machines, based on systems of highly integrated PCs.
. Includes wireless connections to the consumers/users and to other AVT product dispensing centers -- all controlled through a secure wireless network. Provides advanced methods for text messaging, cashless payment, credit card & debit card use plus dynamic advertising with remote tracking and inventory management

Based on real world experience

Operates 1,000 operating vending systems throughout the Los Angeles, Orange and Riverside, California counties

OTHER AVTC NEWS

  • AVT Expands Operations Into Bentonville, Arkansas, Nov 9 read more
  • Pop N Go & AVT Open Midwest Region Office in Bentonville, Nov 3 read more
  • Pop N Go & AVT Launch Strategic Alliance. Sept 2 read more
  • Pop N Go and AVT Launch Strategic Alliance, Sept 2 read more
  • Quiksilver and The Standard Hotel Utilize AVT's Automated Dispensing Solution, Aug 5 read more
  • US Patent Office notifies AVT of patent publication of "System and Method for Interactive Advertising " as AVT creates a new industry, July 28 read more
  • In partnership with $25bb market cap company, AVTC is placing "baby stations" custom vending machines in Westfield Malls Throughout California, June 18 picture -- read more
  • Innovative Patent Pending Technology, June 16 read more
  • Wireless Technology Replaces Printed Coupons, May 16 read more

    AVT, Inc. High-Tech Product Dispensing Means More Ways to Make Retail Companies More Profitable, April 13 read more

    Launches Interactive SMS Technology On Its Product Dispensing Systems, March 17 read more

  • Mobil-Tee-Vending Signs Exclusive Agreement to Purchase AVT, Inc. Vending Machines, March 3 read more
  • ANALYST COMMENTS

  • Nov 9 -- AVTC expands operations near Wal-Mart headquarters. IPOdesktop believes that is a very significant development – stay tuned for further updates.
  • July 7: AVTC technology appears to leapfrog that of Redbox, which as quickly grown to 15,000 locations. Redbox machines facilitate DVD rental, in competition with Netflix Redbox web site
    . Major AVTC patent-pending breakthrough – enables the transference of digital content such as movies or video games to a USB memory stick for limited time playback, thereby creating the perfect digital content rental system
    . AVCT’s unique USB memory stick technology appears to be more cost effective and appears to provide a much better user experience than the competition
  • INTELLECTUAL PROPERTY

    Combination of patents, licenses and other intellectual property arrangements

    Five pending patents

    . These assets include AVT developed proprietary software, product dispensing systems and multiple designed or developed products which are currently in the state of "patent pending."

    . Developed products include inventory control software, progress monitors, service logs, purchase order, data base management, generators, touch screen vending, cashless payment systems, and digital signage.

    . Hardware assets include AVT’s 24 hour Vend Mart, Tech Store, Automated Express Market, vend and Vend Sensor System.

    Five pending patents

  • (Multimedia System, Method for Controlling Vending Machines
  • Serial Number 11-588,422, (Filed: October 27, 2006)

    AVT’s invention of Touch Screen Vending or TSV has redefined the conventional method of vending machine control.
    Benefits

    The system can generate virtually any type of report to combat money or product shrinkage while providing exact control of inventory. The LCD provides a means of generating additional revenue through advertising displayed products or other services while the system in idle mode.

    Features

    . TSV empowers the use of a multimedia PC and a color touch LCD display to virtually control the complete operation of the vending machine. The PC stores a data base software program of all desired products to vend with an associated color digital image of each item.
    . A second application program displays the color image of the intended items to vend in the exact format as seen through the glass front of the vending machine.
    . The PC also controls the collection of currency (i.e. bill acceptor, coin acceptor, credit card reader) in place of the vending machines control board. I/O (input/output) ports from the PC are used to interface to the vending machine control board and all aspects of operation of the vending machine is under complete control by a multimedia PC coupled with the touch screen LCD.

    Vend Operating System update/amendment

    Claims to be amended to the Multimedia System, Method forControlling Vending Machines – Serial Number 11-588,420

    (Filed: October 27, 2006)

    Benefits

    . With AVT’s Vend OS the user can: manipulate product prices; turn the machine off and on, turn the compressor off and an, manipulate the change returned, manipulate the system clock, and read the machine’s state from the MDB interface and motor/auger control.
    . AVT’s Nano-ITX computer includes an optional 7" touch wide screen LCD, a flash ROM that runs Microsoft Embedded System, a MDB to RS-232 interface board that connects from a VMC board to the PC serial port, motor driver printed circuit board and a PCMCIA modem that allows wireless internet connection as a typical system but control for any variety of input or out put devices are part of the scalable system.

    Features

    AVT’s Vend OS is broken up into two sections hardware and software.
    . The hardware consists of the following devices: Virtual Sensing System (VSS), a USB Omni-pattern scanner, a USB Magtek Card Reader, a USB Pyramid Bill Acceptor, a MDB Coinco coin machine, a 7 inch LCD screen built-in with the Nano-ITX PC, and a portable mpeg player (allowing static media files to play in a continuous loop).
    . The software consists of the following applications: Vending Management System (VMS), Touch Screen Vending (TSV) and AVTI Digital Signage Media.

  • Wireless Management of Remote Vending
  • Serial Number 60-730,369, (Filed: October 27, 2005)

    Benefits

    . Remotely and effectively control and managed their vending operations from a single PC located at the home office.
    . Remote VMS management controls money and product shrinkage, manages inventory by letting the vending operator know exactly what has sold and what needs to be replaced
    . Monitors and transmits systems critical information such as machine temperature, system errors and failure modes and alerting the vending operator instantly for expeditious disposition on any vending system in the field equipped with a VMS telemetry module.

  • Vend Sensing System
  • Serial Number 11-976,311, (Filed: October 23, 2007)

    Benefits

    . The VSS is calibrated to "look" across the entire cross-sectional area of the delivery bin. This is a primary advantage over the conventional narrow light beam detection method.
    . The AVT detection system is compatible in cost to that of traditional vending detection systems and because it is self calibrating, it can readily retrofited into other vending systems with minimal modifications

  • System and Method for Interactive Advertising
  • Serial Number 60-935,045, (Filed: July 24, 2007)

    Benefits

    . Customers using the system may be rewarded either with discounts and/or promotional deals
    . Depending upon the touched advertisement
    . After responding to simple instructions displayed on the screen.

    Features

    . Smart technology integrated into each system telephone may also be fitted with the appropriate hardware to make that specific location a "Hot-Spot."
    . Each Hot-Spot provides customers with another means of interacting with the ATV network through free of fee-based connectivity using the customer’s portable device such as a smart phone or laptop computer, or any other portable electronic device capable of linking to the Hot-Spot by means of cable, wireless, or infrared radio frequency.
    . Each Hot-Spot location allows customers to use wireless internet within the location’s range to aid them in acquiring their discounts and/or rewards more quickly and specific advertisements may be downloaded and displayed on the phone touch screen.
    . Ideally, customers may form a dependency for the Hot-Spot’s use and become a habitual user of the AVT technology and services.

    COMPETITION

    . Crane: also owns Dixie Narco, AP (Auto Products) and National Vendors. Is the largest manufacture of traditional baseline vending systems.

    . USI: a seasoned vending manufacture having many years in the manufacturing of traditional baseline vending systems.

    . AMS: a large manufacturer which designs its own traditional baseline systems and has been in the vending business for many years.

    . Zoom Systems: a manufacturer which designs vending systems which integrate high levels of technology. Because Zoom Systems integrates high levels of technology into its systems, it can be considered one of AVT’s primary competitors. Zoom Systems products are typically priced much higher than AVT’s

    OFFICERS

    James Winsor – Chief Executive Officer and Director

    Mr. Winsor is primarily responsible for manufacturing operations and research and development having over 20 years of experience in manufacturing, project management and engineering. Mr. Winsor has been with AVT since 2006. Prior to working for AVT, Mr. Winsor was employed with Pixel Touch Inc. from February 2003 to April 2006 and for Arral Industries from February 1992 to April of 2006. Mr. Winsor has a Bachelor of Science degree from California State Polytechnic University, Pomona.

    Natalie Russell – Secretary, Chief Financial Officer and Director

    Natalie Russell joined the AVT in 2001 as corporate secretary and office manager, bringing over 15 years of accounting and business operations experience. Ms. Russell currently serves as Secretary, Chief Financial Officer, Chief Executive Officer and one of the directors. Prior to AVT she was general office manager and accounting manager at Thompson Building Materials. She was responsible for the overall company’s finance, administration, and payroll for over 150 employees. Natalie also has assisted in raising over 5 million dollars for Nu Gas Technologies in the private venture capital. Natalie holds a BS in Business Management at the American International University of CA.

    Loretta Vermette – Director

    Ms. Vermette has been a successful real estate agent for more than 30 years. She established her real estate career with the prestigious real estate broker Seven Gables Real Estate in Tustin, California. At that time, she specialized in private golf communities of Orange County and established herself by consistently placing in the top 10 percent of California Realtors every year. Ms. Loretta then joined REMAX Real Estate marketing downtown condominiums in Orange County, California and became nationally recognized as one of the nation’s top five percent of Realtors as a Certified Residential Specialist in 2003, 2005, 2006 and 2007

    Address: 341 Bonnie Circle, Suite 102, Corona, CA 92880
    Telephone: (951) 737-1057
    CEO: James Windsor
    Web Site:
    http://www.avtinconline.com/
    State or other jurisdiction of incorporation or organization: Nevada
    Transfer Agent: Action Stock Transfer, Salt Lake City, Utah
    Investor contact:: James Winsor, 951-737-1057

     

    IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

    DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up to eight thousand five hundred dollars from a third party or the company for preparation and posting of this report, audio interview, virtual road show and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.

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