"Consolidated Net Income for the six months ending 30th September, 2001 is down to $4,983,239 from $6,678,720 for the same period last year. Increased operating expenses and amortization, coupled with reduce investment income, account for the lower net income.
The KeyTech subsidiaries have worked hard on improving service and bringing additional value to customers. A number of new services have been offered and promoted. However, at this stage, we have yet to see a commensurate increase in revenues for the additional expenditure.
BTC's new DSL (Digital Subscriber Line) was launched in September with strong customer demand. Residential customers will be able to utilize high bandwidth for faster Internet access, and also simultaneously use the same line for regular telephony services.
BTC Mobility has improved customer service with the introduction of its voice-activated service, WILDFIRE. Roaming service is now well advanced across most of North America, although the events of September 11 have severely curtailed tourist travel and, hence, roaming traffic.
To enable the Company to compete on a level playing field with other wireless providers, BTC Mobility has made application for its own telecommunications license. Wireless telecommunications is a rapidly evolving business and, with its own license, BTC Mobility will be favourably positioned to grow its business.
Logic Communications continues to grow market share in its dial-up Internet and international voice calling services. Recently Logic received approval to interconnect directly with BTC and other local carriers to provide international voice service. Customers will appreciate this more convenient and cost effective way of making international calls.
As KeyTech expands its horizons, it will look to other overseas destinations to leverage its local knowledge base and grow new ventures. One such venture has just begun in Curacao. Our joint venture in that country offers international voice calling. Market share gain has been slower than anticipated but renewed marketing efforts are now underway to grow the business.
The KeyTech share price has held steady during the last six months by trading just over the $40.00 mark. The shares still trade well below the book value of $45.84."
Signed, Dr. James A. C. King, Chairman