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SOURCE Southern Products, Inc.
Deal Introduces High Margin, Non-OEM Product Sales to SNPD Revenue Lines
ORANGE COUNTY, Calif., March 11, 2013 /PRNewswire/ -- Southern Products (OTCBB: SNPD), a manufacturer of flat-panel televisions, tablets, and electronic picture frames, is pleased to announce an agreement with Meidi Electronics to distribute its Westinghouse Digital Electronics factory refurbished televisions. The agreement calls for sales to several national and international online resellers and effectively expands the Southern Products product line into a new higher margin product category.
"The opportunity to distribute the Westinghouse refurbished television line not only provides us with an opportunity for new revenues, it also introduces a higher margin product to our revenue line," said Edward Meadows, CEO, Southern Products. "Refurbished televisions, especially those with the respected Westinghouse name, offer margins as high as 30% as opposed to the 8-12% available to us in the market for our new Sigmac branded televisions. Based on the indication of interest from the retailers we have contacted so far, we expect these refurbished televisions to add $2 to $4 million in new revenue to Southern Products over the next year, which, in the aggregate, may add as much as $600,000 to our bottom line by the end of the first quarter of 2014."
Mr. James Chow, the company's new Director of Asian Operations, added, "We expect to be able to widely distribute the refurbished Westinghouse televisions internationally, not only to our retailers in the U.S. and Asia, but also extensively in Latin America. We currently have indications of interest from several online retailers, including Newegg and Tiger Direct."
"Perhaps most importantly, this agreement further establishes Southern Products as a significant player in the vast consumer demographic that is television sales," added Meadows. "With our core Sigmac line and new penetration into related, high margin arenas such as in today's agreement for refurbished televisions, Southern Products has taken a significant step toward becoming a market leader. We plan to remain opportunistic in leveraging our brand and relationships for other revenue opportunities."
Southern Products expects to start shipping The Westinghouse refurbished product line within 30 days.
About Southern Products, Inc.
Southern Products, DBA Sigmac USA, is a manufacturer of quality, mid-priced flat-panel televisions and peripherals for distribution through big-box retailers in the US as well as the major Etailers. The Company currently has a product line of over 20 flat-panel models in production, and has entered into large-scale distribution agreements with Target, K-Mart, Costco.com, Tiger Direct, Newegg and Walmart.com for the sale of Sigmac-branded flat-panel televisions, Tablets, Picture Frames and accessories in North America. The Company is a fully-reporting public consumer electronics company incorporated in the state of Nevada and trading on the Over-the-Counter Bulletin Board in the US (OTCBB: SNPD).
For further information please visit www.sigmacusa.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those identified under "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q and in other filings made with the Securities Exchange Commission. Actual results may differ materially from those contemplated by these forward-looking statements and the Company does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this press release.
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