Thanks. The way I figure it, even though I've only been in the manufacturing business for only 2 years, this company has potential. And since currently it is losing money I can get discounted shares. To turnaround the company into profitability I plan to reorganize the management and the sales dept which I feel is the main problem.

There are two bread and butter customers that comprises around 80-90% of our revenue and they have been buying from us for 5-6 years. One of the thing is that after analysis of the costing we are underquoting on every product we are selling. So it's not the lack of business, and by raising the price our company can be profitable. Of course the risk is if you raise prices your customer may buy from somewhere else. But in this case, I think it's an undercost issue rather than a competiveness issue. So basically, it's artificial.

Of course, there are other issues in every department which attributes to the inefficiency, but is salvagable as long as we start making a little positive cashflow.

The product itself is common. Transformers has been around since they invented electronics and discovered magnetism. But despite competition, there are still a lot of customers especially in the US where everyone is looking to outsource for lower labor costs. I also feel we can can expand our engineering department to offer developement services instead of just focusing on cheap labor assembly. The main product lines are in transformers, coils, and inductors (ferrite based) and the factory has 8 vertical injector machines, 1 wave solder, varnish oven, and some other capital equipment. There are a total of around 400 employees at the moment.

EDIT: Aron... change my avatar! This one makes me look I have some skin rash or disease.