Boulder City, NV, March 26, 2013 (GLOBE NEWSWIRE) -- As Amerityre Corporation (OTCBB:AMTY) enters the fourth quarter of our fiscal year, we felt it timely to report on our progress year to date. Needless to say, we had a slow first half of fiscal 2013. A shift in seasonality within our industrial products line coupled with significant reduction in export sales negatively impacted the business. Going forward Amerityre is implementing a strategy to diversify the customer base. We are currently well into our third quarter and are pleased to report sales have improved and should continue to do so for the remainder of fiscal 2013. The following information will update our progress by product group.
Low duty cycle foam tires - Current marketing efforts are focused on building distribution to expand our business and product sales. A new dealer/distributor development program was rolled out in October 2012. This program is designed to build sales volume and add value to the Amerityre brand. Results are encouraging as we have established new distribution channels in the Midwest, East and Southwest regions of the U.S. market. In tandem, high volume original equipment manufacturers (OEM) are being pursued. Currently, potential OEM customers are testing Amerityre products for use on their equipment. The Company received a significant "test order" from a leading US wheelbarrow OEM. This order was delivered in February. A second order is now in the pipeline. Our goal is to receive approval as production supplier for the next business cycle which begins in July 2013. In addition, several major medical mobility and lawn & garden companies are scheduled to complete their testing of Amerityre products during the 3rd quarter of fiscal 2013. These new customers are expected to increase revenues as the lawn & garden season begins. During the 2nd quarter of fiscal 2013, we experienced a 14% increase in the number of sales orders over the previous year. From Canada we have been notified that current "open cell" tires purchased from China are not performing as expected. Amerityre has been asked to prepare the factory for a large influx of demand as this business will be transitioned back to the US from China. We estimate this will require Amerityre to transform an additional 250,000 pounds of material into finished product. Due to these developments, we believe that sales revenues during the 3rd and 4th quarters will increase significantly over the first half of the fiscal year.
Solid forklift tires - Manufacturing process improvements were implemented during the 4th quarter of fiscal 2012. As a result, all forklift tires are being consistently produced at a high quality level. Sales and marketing efforts are underway to rebuild customer confidence in the product. Forklift tire sales volumes for during the first half of fiscal 2013 are close to levels attained during the same period in the prior year. Furthermore, no warranty claims have been received since the implementation of the new process improvements. In addition, capital investments have been made to eliminate production bottlenecks in curing and rim blasting. The result is a lower cost to produce forklift tires through increased productivity. It is anticipated that sales of forklift tires will exceed fiscal 2012 levels as we have more than doubled the dealer network over the previous year. In retrospect, the closing of the forklift production line during the 3rd quarter of fiscal 2012 was warranted as all process issues have been addressed and the product performance is now up to standard. Currently, production is running well and inventory is available Boulder City, NV and Revenna, OH. We expect sales volumes to begin increasing in fiscal Q4.
Agricultural tires - We are currently pursuing two segments of the agricultural tire market (irrigation and planting). The Company completed a redesign of its agricultural products in the 4th quarter of fiscal 2012. The newly designed tires are now entering the market and sales are growing as expected. We have received an initial "test orders" for over 80 pivot tires used in irrigation. Two irrigation OEMs will test the Amerityre pivot tire solution during the upcoming irrigation season. These developments set the stage for significant growth in this product segment. Product design for new seeder tire dimensions has been completed and initial order from a significant customer is in hand. This product will be ready for shipment in March 2013. Agricultural tire sales volumes during the 3rd and 4th quarters of fiscal 2013 are projected to grow significantly over prior year.
Growth activity for any business requires adequate funding. During fiscal 2012 this funding was not in place and set the company's growth path off course during the fourth quarter. Unfortunately this carried over into the first quarter of fiscal 2013 as well. During the past eight months management has been working hard to secure financing that will support the business long term. Although we have not completed this task, we feel there is reasonable belief that it will be in place before the end of our fiscal year. In the meantime we are reviewing all short-term financing options available.
In closing, we believe Amerityre has a bright future as a U.S. manufacturing company providing cutting edge urethane technologies and products to niche markets. Currently these markets use rubber products which do not always meet customer expectations. Amerityre's opportunities become more evident with each passing day as we move forward into our markets. As all of you know, Amerityre is moving in a new direction. The journey will be hard and will require commitment and time to reach the intended destination. With your help and support we will be successful.
Notice Regarding Forward-Looking Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
CONTACT: John Goldberg, Director Amerityre Corporation firstname.lastname@example.org (702) 835-7669