After a close to a two-month stretch of dead air and a dwindling price per share, Execute Sports Inc. (OTCBB: EXCS) is back with news this morning that should have investors licking their chops as 2008 rapidly approaches.

$2.4 Million in New Sales

The company announced today that its marketing agent, Challenger Powerboats Inc., has received orders for Execute's recently acquired Sugar Sand boat line totaling 114 boats or $2.4 million. Based on the company's press release issued on 9/04/07 entitled "Execute Sports Purchases Sugar Sand Jet Boat Division From Subsidiary of Challenger Powerboats" the deal works like this:

1. Challenger Powerboat Inc. (OTCBB: CPWB) manufactures and sells Sugar Sand boats to Execute Sports Inc. at wholesale price. CPWB is also responsible for marketing the boats on behalf of Execute.

2. Execute Sports Inc. rakes in the retail markup on the boats which provides diversification to the company's revenue streams and also a nice boost to current sales levels.

From a September press release:

"In conjunction with the transaction, Execute and Challenger entered into an Agreement for Exclusive Right of Supply, through which Challenger will manufacture and sell (at wholesale) Sugar Sand boats to Execute, and an Exclusive Sales and Marketing Agreement through which Challenger will market Sugar Sand boats on behalf of Execute. These agreements are for periods of ten years each, with similar renewal terms. Sugar Sand generated $7.7 million in revenue on net sales of 381 boats in 2006."

This Deal is a Plus by any Metric

Today's release explicitly states that the order resulting from the annual dealer show totaled 114 boats and that these meetings typically deliver between 30%-35% of annual sales.

For the sake of today's discussion, let's use 15% and 30% as arbitrary, yet somewhat verified, estimates of the typical retail markup on powerboats that a company such as Execute could potentially charge a customer. Allow me to also hypothesize that the 114 boats mentioned in today's announcement account for one third of total Sugar Sand sales in 2008. Please keep in mind that this would represent zero growth over 2006.

At a 30% markup, unit sales of 342 boats would yield incremental revenue of approximately $2.2 Million. 15% would yield about $1.1. For a company that logged just over $2M in 2006 revenues and has not surpassed that level yet in 2007, this type of incremental inflow would be quite positive for the company's health and future growth.

Don't Forget Water Sports

Remember, Execute's product placement & brand recognition have never been better for its watersports offering. For starters, Kawasaki has recently re-ordered and Execute products have been prominently featured on major television outlets including MTV, ESPN, and the E channel.

In addition, the company now sells products online with leading retailers including: The Sports Authority, Dick's Sporting Goods, Joe's Outdoors, Sport Chalet, Modell's and MC Sports. This bodes extremely well for future growth as the world is just getting their first taste of Execute Sports products.

With an all-star cast of sales executives including President Celeste Berouty, who spent 20 years as sales director at industry leader Body Glove Wetsuits (in its prime), shopping the new-look brand around the world, I like the chances of this business segment bringing in some serious revenue during 2008 and beyond.

Today's news should come as a breath of fresh air to the hoards of investors waiting anxiously to hear what has been developing over the past few months. Only time well tell how the market will react, but a potential 50%-100% incremental revenue increase for EXCS sure sounds positive to us