“Your big opportunity may be right where you are now.” -Napoleon Hill
Message From NIHK CEO - Worth a Look!!!
With Our profile coverage of Nighthawk Systems Inc. about to hit the press, today we bring you some very interesting commentary from company CEO Doug Saathoff. Doug has graced us with his insight regarding the breakdown of NIHK’s past relationship with Verizon Wireless and the rise of the new agreement with American Messaging. This is great stuff!!! Take a look. Although a few naysayers kicked NIHK when it was down a few months back, we have always believed in the companay’s products and business plan. This could be the turnaround story of 2007!!!
From NIHK CEO Doug Saathoff:
Good afternoon!
I wanted to take this opportunity to briefly discuss our agreement with American Messaging that we announced last month. Early in 2006, we announced that we had signed two agreements with Verizon Wireless – a network reseller agreement that allowed us to utilize their nationwide paging network, and a collaborative marketing agreement, which was supposed to give us access to their nationwide sales staff. We were excited about both, as were our customers and shareholders. We developed pay per use pricing (PayPerPingTM) based on the first agreement, and then began training their sales staff to rep our products to their customers. We expected our sales reach to multiply many times over through our relationship.
Fairly quickly, we realized that things were not moving as quickly as we wanted them to. Verizon was not giving their reps any incentives to sell Nighthawk equipment, and then we heard that Verizon might be selling the paging business/network to someone. That made sense, as things with Verizon had basically ground to a halt. We found out fairly quickly that they were selling it to American Messaging, and through Nighthawk’s GM Rex Lee we knew both the CEO and President of American Messaging. So we contacted them, and they told us that we had to be quiet and wait for the deal to go through. Once the deal went through, we immediately flew to Dallas and started working with them to resume activity and even strengthen the relationship. American Messaging had agreed to only limited use of the Verizon Wireless logo, and during this time we actually removed Verizon Wireless as a partner from our website for a while. Several of you contacted me about this, but I was not able to comment on it at that time.
In mid-September, we issued a joint announcement concerning the new relationship. The great news is that we have a stronger deal now with a company that is more focused on providing value added services to its existing customers by selling Nighthawk products. Their network is bigger than the original Verizon Wireless network, and they have more sales people. Best of all, there are real economics behind the deal now – American Messaging sale reps are incentivized to rep Nighthawk products. The release from earlier this week about our sale to El Paso Electric is a great example of how Nighthawk can benefit from team selling to customers along with American Messaging. It took longer than I wanted it to, but I believe we’re now in a relationship that is stronger than the one we thought we had at the beginning of the year. American Messaging has existing customers that are in our target markets, and we are focusing on team selling to those customers. We’ve already been to two trade shows with them and are going to an Oil & Gas show with them soon. They extend our reach and ability to get in front of customers that need our products.
I hope this provides some helpful background information to you. Have a great weekend!
Doug
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