Zaio has released their second quarter financial results for 2008 and opened with a positive statement by their CEO, Douglas Vincent:
"The Company reported record revenues and made significant progress with its proprietary technology development during the quarter," stated Douglas Vincent, CEO. "Zaio was pleased to announce the successful implementation of this technology in July as initial Zones were brought to "Live" status. The Company is now focused on leveraging this leading-edge technology across the more than 1,700 zones which we have sold to date, providing a national footprint for Zaio's Z products."
However, all is not a bed of roses for the company. According to their press release:
Zone sales have been lower than expected this year due to adverse conditions. The lower than expected zone sales have had an impact on the Company's cash resources available for its national database expansion. As a result, the Company has made strategic decisions to concentrate its cash resources largely in the areas where zones have been purchased and paid for in accordance with the terms of the applicable license agreement.
In addition, the Company has been taking measures to reduce overall selling, general and administrative costs by taking advantage of operating efficiencies achieved as a result of advances in technology over last several months as well through the elimination of any redundancies which have been identified relating to the five acquisitions made over the past fifteen months.
"Readers are cautioned that the total remaining costs to bring a substantial number of the sold zones to live status over the next 12 months exceed the Company's current available cash resources. "
Continued operations are dependent upon the Company raising the necessary funds in the senior debt markets, subordinated debt markets and equity markets, and increasing sales and achieving profitability, but there is no assurance that this will occur.
"Accordingly, there is uncertainty regarding the Company's ability to continue as a going concern. " Source: Zaio / Yahoo
The Company continues to actively pursue all various financing alternatives available to it. Management also continues to explore opportunities to align with potential strategic partners in the valuation industry and will consider further acquisitions that allow us to penetrate our various markets sooner.
According to Ann O'Rourke's http://www.AppraisalToday.com news letter:
Former Appraisal Institute CEO John W. Ross has joined the RICS (Royal Institute of Chartered Surveyors) Americas team as Senior Advisor. Ross will work with RICS Americas to expand membership in diverse real estate industry segments, develop research programs, and implement training programs for real estate professionals affiliated with RICS Americas member firms.
Ross recently served as Managing Director of Corporate Development for Zaio, Inc, and will continue to work with Zaio on building its innovative business model for residential real estate valuation and data management. In addition, he served as CEO of the Appraisal Institute for nine years, and was Executive Vice President for the American Society of Farm Managers and Rural Appraisers for seven years.
RICS (Royal Institution of Chartered Surveyors), with headquarters in London, is the largest organization for professionals in property, land, construction and related environmental issues worldwide. Over 145,000 members in more than 146 countries operate across 17 disciplines, from development, brokerage and construction to environmental issues, valuation and fine arts appraisal. www.rics.org .
RICS Americas, based in New York and covering North, Central and South America and the Caribbean, has over 2,800 members in commercial and residential development, ownership, construction management, brokerage, planning and finance. For further information visit www.ricsamericas.org or e-mail RICS Americas at firstname.lastname@example.org.