8.0. EDSR 08-08-1995 - Laserfiche WebLink

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T L Feeding designs, engineers, and manufactures feeders and systems for a wide range of • companies including: • Electronics • Pharmaceutical • Food Processing • Communications • Toys • Industrial • Cosmetics • Ordinance • Automotive • Medical • Premiums • Pouches Working in conjunction with T L Systems, the company achieved profitability on sales of approximately $1,500,000 $1,800,000 during the early 1990s. The decision to seek the sale of T L Systems by the company's principals, resulted in a "lack of attention" to the growth and success of T L Feeding. Most recently, sales have fallen into the $700,000 - $900,000 per year range with net operating losses. The principals however intend to reverse this trend and substantially grow the business. Project Description P The company has identified its needs into two distinct projects. The relocation of the company is intended to focus principally on a metro or near metro location. The current employees at • T L Feeding are highly trained and very difficult to replace. A location out of the metro area would be difficult and costly due to the high employee relocation costs. Company Relocation -T L Feeding Systems currently has approximately 8 - 10 employees with $700,000-$900,000 in sales and will require a new location within the next 90 - 180 days to continue operations. T L Feeding will require approximately 5,000 7,000 square feet of office showroom type space which will include both the administrative office and lab area. Proprietary Product Development and Manufacturing - This phase of the project which, potentially could occur simultaneously, would include a capitalization plan to encourage the reformulation of T L Feeding's business into a high technology company with a product and manufacturing orientation. The company has identified the potential to develop a variable control system which could be applied to retrofit existing machinery throughout the country. This product would be a relatively low cost product, but represents a significant market potential, given the potential retrofit of +100,000 machines throughout the country. A second, more sophisticated product, would be to develop a sophisticated "pouch feeding" device. This product is more "research and development" intense but it is consistent with previous projects at T L Feeding Systems. This product, once developed, would be marketed as a $35,000 - $50,000 piece of machinery which, would be in demand for most of the more sophisticated pouch feeding systems developed throughout the country. •