Dow Jones 10491.86 -58.38 11:55 am PST, November 16, 2004  NASDAQ 2078.75 -15.34 For info, visit access.smallcapnetwork.com S & P 500 1176.06 -7.75 Change your subscription status here Russell 2000 620.62 -3.24 VOLUME 04: ISSUE 92  Feature: C-Chip's Q1 Numbers. A Good Year Already. In Q1 of fiscal 2004, security products firm C-Chip (OTCBB: CCHI) had virtually no revenues. By the end of fiscal 2004 (ended June04), the company had posted revenues of $1.04 million.  For the first quarter of fiscal 2005, (release here: http://biz.yahoo.com/bw/041116/165564_1.html) announced today, the company's stated revenue of $640,000 represents a sequential (Q1 2005 over Q4 2004) increase of 35 percent--or 62 percent of all of fiscal 2004's revenue, already. The vision of a few short months ago is quickly becoming reality. C-Chip shares appear to have bottomed in mid October at 65 cents. Volumes have been growing and the chart has been posting higher lows--always a good technical sign. As the shares progress, a decisive move above 85 cents would likely herald a new up-leg. Obviously we continue to like the company and its progress and continue to suggest accumulation for risk-oriented investors. C-Chip has low debt and net free cash of just over $1 million. We'll show you ours... As the share price rises, it appears that the market has been waiting for the company to put together some decent back-to-back quarters. Today's announcement evidences that the efforts, deals and joint ventures announced over the last year are beginning to bear profitable fruit. While earlier in the year we felt that corporate activity and growth would be further ahead by this juncture, we are certainly not concerned or disappointed. It's better in our view that the company took more time and has obviously done things right. We look for further significant growth in the second quarter. It appears too, according to the release, that significant revenues should begin flowing nicely in early to mid calendar 2005 from previous deals with the likes of the US's Northland Auto Enterprises, Canada's PageNet and in Europe with Broadfield Partners, once that association consummates. We suspect that other deals will ink in the interim.  The company continues to market, sell and promote its cutting edge security products through such venues as the recent Specialty Equipment Market Association (SEMA) show in Las Vegas. SEMA is the premier auto parts show in the world and CCHI marketed its products next to behemoth and partner Northland Auto, generating significant interest among potential partners. CCHI will display at five more shows throughout North America between now and February 2005. From C-Chip's SEMA press release: Stephane Solis, President & CEO, said: "Our team accomplished significant milestones at the SEMA show. First, we succeeded in attracting the attention of very large retail organizations for our security solutions. Second, we were able to secure the interest of quite a few agents to increase our coverage of car dealers in the United States. We were also able to initiate fruitful discussions with a number of financial institutions interested on our credit management solutions within the security sector. Looking at the actions that we undertook at the SEMA show, we expect that these steps will soon translate into significant revenue for our company." While investors have been, and will need to be, patient, fiscal 2005 is shaping up as an extremely interesting period for C-Chip and its shareholders.   We Value Your Feedback Got comments, questions or suggestions? 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