Amerityre Corporation Provides Corporate Update
Boulder City, NV, March 26, 2013 (GLOBE NEWSWIRE) -- As Amerityre Corporation (OTCBB:AMTY) enters the fourth quarter of our fiscal year, we felt it timely to report on our progress year to date. Needless to say, we had a slow first half of fiscal 2013. A shift in seasonality within our industrial products line coupled with significant reduction in export sales negatively impacted the business. Going forward Amerityre is implementing a strategy to diversify the customer base. We are currently well into our third quarter and are pleased to report sales have improved and should continue to do so for the remainder of fiscal 2013. The following information will update our progress by product group.
Low duty cycle foam tires - Current marketing efforts are focused on building distribution to expand our business and product sales. A new dealer/distributor development program was rolled out in October 2012. This program is designed to build sales volume and add value to the Amerityre brand. Results are encouraging as we have established new distribution channels in the Midwest, East and Southwest regions of the U.S. market. In tandem, high volume original equipment manufacturers (OEM) are being pursued. Currently, potential OEM customers are testing Amerityre products for use on their equipment. The Company received a significant "test order" from a leading US wheelbarrow OEM. This order was delivered in February. A second order is now in the pipeline. Our goal is to receive approval as production supplier for the next business cycle which begins in July 2013. In addition, several major medical mobility and lawn & garden companies are scheduled to complete their testing of Amerityre products during the 3rd quarter of fiscal 2013. These new customers are expected to increase revenues as the lawn & garden season begins. During the 2nd quarter of fiscal 2013, we experienced a 14% increase in the number of sales orders over the previous year. From Canada we have been notified that current "open cell" tires purchased from China are not performing as expected. Amerityre has been asked to prepare the factory for a large influx of demand as this business will be transitioned back to the US from China. We estimate this will require Amerityre to transform an additional 250,000 pounds of material into finished product. Due to these developments, we believe that sales revenues during the 3rd and 4th quarters will increase significantly over the first half of the fiscal year.
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