Business News

American TonerServ Moves to Increase Its Own Compatible Cartridge Manufacturing by Expanding Into New Florida Facility

Tuesday 02. November 2010 - Increased Revenue Growth Foreseen

American TonerServ Corp. (OTC Bulletin Board: ASVP) (ATS), a leader in the highly fragmented $6.0 billion printer supplies and services industry, reports it has expanded to a new facility in its Tonertype division in Tampa, Florida.
The move expands Tonertype’s square footage from 13,500 to nearly 30,000 and is set up to manufacture up to 15,000 compatible toner cartridges per month. Tonertype had been manufacturing a small amount of cartridges specifically for the local markets in Florida. The decision to expand production centered on a change in the economic environment in the compatible cartridge market and the continued revenue growth of ATS. The Company recently announced a 23 percent increase in revenues for the first six months of 2010 to $16.9 million.
Chuck Mache, CEO of American TonerServ, commented: “When we acquired Tonertype in 2007, the economics in the industry favored outsourcing to remanufacturers versus building cartridges in-house. With the prices of cores rising so dramatically in 2010, causing wholesale cartridge prices to rise and putting margin pressures on the company, we’ve opted to expand our expertise of manufacturing compatible toner cartridges.”
“Our quality from Tonertype has always rivaled that of the OEM’s and compatible manufacturers, and while we will continue to make significant additional purchases from our selected strategic vendors, our expanded facility and increased manufacturing is designed to increase our margins on certain select sku’s. This is all made possible by our continued revenue growth,” Mr. Mache said.