| Innovative Product Design |
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New products have been the major catalysts for growth at A.T. Cross and represented 30% of our Quality Writing Instrument (QWI) business in 2001. |
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Cross Matrix™, a modular, multi-function writing
instrument combining dual ball-point pens, gel rolling ball or fountain pen, with a PDA stylus tip, was launched
in January of 2002. Cross Matrix is an industry first for a multi-functional writing instrument to include a
fountain pen option.
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The Morph˛ Rollerball was recently launched in January of 2002 and features Cross' specially formulated
gel ink refills. The product recently received the prestigious reddot award for outstanding product design
in the 2002 international competition.
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The palm-sized, gel ink Cross Ion™ pen was officially launched in the first quarter of 2001. Gel ink technology
is the latest innovation in writing instruments and is available in an array of colors that has mass appeal among
teens, young adults and the corporate casual market. |
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The Morph™ line of pens, which can be adjusted to the user's grip, was launched globally in 2000.
The Morph DigitalWriter® Duo, which includes a Polymeric Stylus tip, was introduced in the fall of 2000,
as a natural line extension. |
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The sleek ATX® product line containing four
technologies was launched in 2000 in Europe to a very receptive market. ATX became available in all global
markets during 2001. |
| The MicroPen, a PDA stylus tip and conventional
ball-point pen combination, was launched in the third quarter of 2001. This product is sold through numerous
channels, including the carriage trade, office mega stores and CompUSA, a new distribution channel for A.T.
Cross' quality writing instruments.
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Diversification of Product Lines
We see opportunity for the Cross brand in the marketplace
to evolve into a personal accessories company. Initial steps include the launch of an outstanding line of
watches for our corporate gift division and
distinct business accessories for both retail and corporate gift customers. The watch line was introduced in
January of 2002. Business accessories are also expected to be launched this year. Our work over the past
several years has shown us that consumers respond favorably to new products and ideas from Cross. We have also
shown that we have the expertise to deliver high quality, distinctly designed products to the market. In 2002,
we are accelerating these efforts.
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New Merchandising Tools
In conjunction with A.T. Cross' transformation that began
two years ago, new merchandising displays were rolled out in the latter half of 2001 and have been instrumental
in gaining shelf space in European and Asian markets. The rollout in the Americas region began in the first
quarter of 2002 and is expected to be completed by mid-year. The sleek, futuristic theme that has come to
represent Cross is evident in everything from our packaging to various display showcases.
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Expanding Distribution Channels
Over the past year, A.T. Cross has augmented its
distribution channels for quality writing instruments both in the United States and abroad. Notable U.S.
additions include Franklin Covey and CompUSA.
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A.T. Cross - Original Equipment Manufacturer (OEM)
In 2001, A.T. Cross established relationships with several
additional OEM clients that are expected to contribute revenue in 2002. One new client contributed approximately
$1 million in first quarter revenue. OEM is a profitable area for the Company,
and we continue to view it as an opportunity for future growth.
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Cross.com
Cross.com continues to contribute to company revenue and
profitablity. Growth of 25% was achieved in 2001 resulting in approximately $1 million of revenue. Marketing
efforts continue in this channel. |
