Legend Power’s journey of corporate renewal continues. We launched our new business plan in January and we are encouraged that our plan and the implementation of our sales strategies are working. There have been some hurdles but they are now addressed. We have a new Leadership Team, a corporate vision, operating style and an enhanced sales group.
We continue to take the necessary steps and actions required to ensure that our turnaround plan leads to a sustainable, compelling and successful long term enterprise that rewards all stakeholders. We are not cutting corners and focusing on short term results. The Legend Team has a plan, is unified and absolutely focused on making Legend Power a long term successful company. The market feedback on our new positioning and approach has been very positive.
At the end of Q2 2011, we released a Q&A format update based on the most common questions asked by our shareholders. The following questions and answers are intended to update you on our progress.
How are things going? Are you making progress?
- We, the Legend Power Team, have made great progress executing our business plan. We have cash well into Q1 2012 without sales and with forecasted sales, sufficient cash to see us through another year.
- We continue to improve the business by managing our costs and developing a strong sales model:
- We have reduced our total monthly cash expenses to about $ 140K/month. This is a 30% reduction from January 2011 ($200K/month) and 50% from October 2010 ($280K/month).
- Our team is building a repeatable sales process that identifies a prospect’s energy problems and presents a proven risk free solution to help our customer achieve its energy conservation goals. Opportunities in the sales funnel are growing.
- We have strengthened our sales team with experienced and proven industry sales professionals. We have added top level talent to execute our improved sales process.
LPS is 6 months into a turnaround, what have you learned and are you still a believer?
- Yes absolutely, more than ever!
- I am very encouraged by the team’s achievements six months into this turnaround. We installed several units during 2011 and we have exceeded the targeted energy savings. This is great news.
- Our value proposition is strong and will continue to be refined based on market feedback.
- We have secured and are in discussions with several large prospects that have either provided Legend with start up orders or committed to pilot our products and roll out Legend solutions based on meeting agreed parameters.
- We are confident that our order book will continue to grow and we expect to achieve a consistent order flow by the fall.
Why is the stock price so low since going public?
- Legend Power did not deliver on the original business plan and investor confidence faded.
- Our 2011 new Leadership Team’s turnaround efforts are appreciated but the market is waiting for continued tangible results to confirm that our turnaround plan is effective.
- As we deliver on our plan, we will earn the trust of investors and our stock price will reflect that confidence.
Why do you believe Legend will achieve sales success now?
- Legend Power has developed a strong product that is relevant to market demands. Over the past 6 months we have worked hard towards repositioning Legend as an innovative and proven energy conservation solution. By reducing our product cost, increasing margins and implementing a strong sales process with proven sales leaders, our chances of success are great.
- We have had a good productive first six months. I am personally excited about our progress and the significant opportunity available to us. We are confident that we will continue to show tangible progress quarter by quarter.
- We can significantly grow our business without incurring much additional overhead costs. We are scalable.
- Legend Power is now ready for success. We have identified clear goals and have implemented a business plan that will allow Legend Power to develop into a successful organization.
Again, we appreciate all of our stakeholders’ support and we look forward to building Legend Power into a successful and sustainable energy conservation company.
President & COO