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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
FILED BY THE REGISTRANT [X] FILED BY A PARTY OTHER THAN THE REGISTRANT [ ]
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[ ] Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
STORAGE COMPUTER CORPORATION
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
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To Our Shareholders,
Although 1999 was a very good year for storage markets, Storage Computer
was not able to participate fully. A major reason for this was the heavy bank
debt and restrictions we labored under during most of the year. This mandated
severe budget cuts, reduction in personnel and the re-allocation of research and
development expenditures. By the end of 1999, we were able to bring our
operating losses under control, retain our best and most productive employees,
and managed to reduce our bank debt to more acceptable levels.
The most notable event of 1999 was the stock markets initial recognition of
the potential value of the Company's intellectual property rights (IPR). The
rights are embodied in six issued US patents based upon original pioneering
research begun by the Company in 1984. We believe that the allowed claims are
being infringed by many of the products currently sold in the computer storage
industry. In February 2000, we reached agreement with a nationally recognized
and respected law firm to represent us on a contingency basis in pursuing an
extensive patent enforcement program against infringing products and companies.
The Company's new product development focused on the delivery of advanced
versions of OmniRAID, OmniFORCE and Storage Administrator, storage management
software products. We also introduced and successfully installed the RAID 7
fiber channel extended storage area network (SAN). Our technology continues to
be a robust competitor, and we remain confident that we can maintain and expand
the technology lead in intelligent software-driven, multi host storage
solutions.
After two years of attempting to sell direct into the computer storage
marketplace, we have committed our sales focus on the re-development of our
resellers sales channel in the United States and Europe. In support of that
effort, in May 2000, we signed an agreement with a sales and marketing
organization to assist us in our efforts with their network of over 2500
resellers. All of our sales personnel have been realigned to focus their efforts
in support of the resellers.
In positioning ourselves to be able to take timely advantage of the many
business opportunities in today's computer storage marketplace, the Company has
made several changes to accommodate its redirection. In the first half of our
2000 fiscal year, the Company had completed private placement of preferred stock
to help relieve the pressure of the Company's debt, named a new President and
Chief Operating Officer, Chief Financial Officer and added two new members to
the Board of Directors. These events will permit me to focus on building sales
momentum in our core business, pursue strategic alliances, and support the
intellectual property rights program.
In closing, I would like to personally thank each and everyone of our
employees, resellers, customers, vendors and fellow investors, for your support,
loyalty, and encouragement, enabling us to get through a difficult period in the
Company's history.
Sincerely,
Theodore J. Goodlander
Chairman of the Board
Chief Executive Officer
