NuTech Digital, Inc. today announced measures to reduce expenses as a result of an in house cost analysis program which began in October and which has resulted in a streamlining of cost efficiencies.
The Company anticipates a significant reduction in professional fees for its accountants, attorneys and consultants as a result of the Company's decision to re-bid certain items, such as insurance services, as well as negotiate fee reductions with its professional service providers. Other expense reductions include aggressive cost cutting in discretionary spending such as outside services, public relations and marketing expenses.
"Our internal expenses should also be reduced due to the greater emphasis on our Platinum Music Concert Programs," said Lee Kasper, President of NuTech Digital, Inc. "We are moving into key areas of premium product which should cause an expense reduction in our internal work. The best way to explain this process is that rather than develop five titles which can be expected to sell 25,000 units, we will develop two premium titles which have significantly greater public demand and can generate sales of 400,000 units. The result being an increase in revenue on product which is costing less to develop."
As a result of these measures the Company expects to produce operating expense savings in the range of $100,000 to $150,000 per quarter.
"We are taking these steps because we are determined to show our shareholders, and the investment community in general, that our growth in revenues can translate to a bottom line profit from these cost cutting measures as well as improve our operating position," stated Mr. Kasper.
About NuTech Digital
NuTech Digital is a leader in the home entertainment arena offering original and licensed content via a worldwide network of distributors, retailers and Internet entities. The Company recently launched its Platinum Concert Series with plans to produce and distribute 12 or more concert DVDs annually featuring the biggest names in music today. The Company also enjoys a significant competitive advantage with its proprietary DRM technology which enables the secure distribution of high-resolution digital content via the Internet. NuTech's DRM platform allows its feature films, concerts, children's animated films, video games, karaoke software, Japanese animation and late night programming to be accessed via secure downloads, rented through pre-delivered DVDs, and included in online subscription services. The Company also facilitates authoring services and production to content providers in the entertainment industry. Our Company's public financial information and filings can be viewed on our web site at http://www.nutechdigital.tv.
Cautionary Statement
This press release contains forward-looking statements that involve risks, uncertainties and assumptions that if they never materialize or prove incorrect, could cause NuTech Digital, Inc.'s results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in NuTech Digital, Inc.'s reports filed with the Securities and Exchange Commission.