SOURCE: CoroWare, Inc.

November 17, 2011 08:30 ET

CoroWare Announces Quarterly Sales Update and Debt-Equity Restructuring Plans

Business Unit Streamlining and G&A Cost Reductions Begin to Deliver Results in 4th Quarter

KIRKLAND, WA--(Marketwire - Nov 17, 2011) - CoroWare, Inc. (OTCBB: COWI) announced that the Company is projecting improved sales in the fourth quarter and has begun planning to address its legacy convertible debt through a debt-to-equity restructuring process.

In early 2011, CoroWare embarked on streamlining and improving many aspects of its business, ranging from changes in management, reorganizing its sales force, and General & Administration (G&A) cost reductions -- including a reduction in auditor expenses through the appointment of Lake & Associates, CPA's LLC. As a result of these reorganization plans, CoroWare is beginning to see results in the form of increased revenues and profits in the 4th quarter of 2011.

"By streamlining our operational expenses and improving our sales processes, we anticipated improved sales and gross margins in the fourth quarter," said Shanna Gerrard, Enhanced Collaboration Solutions business unit manager at CoroWare. "The Enhanced Collaboration Solutions and Robotics & Automation business units have especially begun to achieve significant growth as a result of our restructuring efforts."

Mobile robots and HD videoconferencing booked sales have increased more than $200,000 during the 4th quarter, which includes mobile robots for universities and engineering labs in Asia, Europe, and North America, and HD videoconferencing equipment for telecommunications and enterprise customers in North America.

The CoroWare Business Solutions (CBS) business unit has expanded the range and breadth of its services to include operational business intelligence (OBI) consulting services, which help organizations manage and optimize their daily business processes. CoroWare began delivering OBI consulting services to worldwide leaders in software development, online services and online retail customers in early 2011.

"Our customers are looking for business intelligence solutions that can help them quickly and precisely understand the areas in their infrastructure requiring improvement," said Rob Raymond, CBS business unit manager at CoroWare. "Our business intelligence solutions help our clients recognize significant savings in their overall operating costs, most notably with some of our online retail marketplace customers based in the Seattle area."

CoroWare also announced that the Company has begun planning to address its legacy convertible debt through a debt-to-equity restructuring process. As disclosed on CoroWare's Form PRE-14C filed with the SEC on November 16, 2011, the Company plans to authorize an additional 2.1 billion shares of common stock in order to lay the groundwork for converting and eliminating debt in cooperation with investment banking firms and advisors.

"By achieving its sales and operational profit objectives, CoroWare is in a better position to work with investment banking firms in order to reduce and extinguish its legacy convertible debentures," said Lloyd Spencer, president and CEO of CoroWare. "By continuing to improve the Company's sales and operational efficiency, I am confident that our restructuring and recapitalization plans will be successful, creating the best terms for the Company and its shareholders."

About CoroWare

Headquartered in Kirkland, Washington, CoroWare is a solutions integrator with expertise in affordable HD videoconferencing, service oriented business applications, and mobile robotics. CoroWare delivers products, solutions and services to customers worldwide in Europe, Asia, and North America. For more information on CoroWare's products and services, please visit www.coroware.com.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners. This press release is written using forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995: http://www.sec.gov/about/laws/sea34.pdf (Sec. 21E p. 223). CoroWare undertakes no duty to update these forward-looking statements.

Contact Information

  • Investor Relations Contact:
    Lloyd Spencer
    CoroWare
    Email Contact
    (800) 641-2676, option 3