The future profitability of the Company will therefore depend on increased sales levels. In March 1999, the Company opened a marketing office in Taiwan. This office will provide marketing and customer service for the Asian market. The cost and related expenses of this office has been minimal since the Company is utilizing the same office space used by its supplier management group. The Company has been advised that this facility suffered only minor damage in the September 1999 earthquake.
Future is a world wide authorized distributor of passive components.
Management anticipates that this relationship with Future will introduce Surge's products to many new potential customers. The Company has updated its equipment, procedures and personnel in the hopes it will better enable itself to attract new customers as well as increase the sales volume with its existing customers, and is seeking to expand sales to its existing customer base by offering a broad range of complementary products. In 1997, the Company established a Website, giving the engineering community exposure and access to any and all information about the Company and its products, which they would consider to include in their design. The Company is currently updating its Website capability. These programs were designed and developed without considering the impact of the upcoming change in the century.