Monday August 11 1:55 PM EDT
Company Press Release
Source: Firetector Inc.
Firetector Inc. Announces Third Quarter and Nine Months Results And
Improved Income from Operations
HICKSVILLE, N.Y., Aug. 11 /PRNewswire/ -- Firetector Inc. (Nasdaq:FTEC) announced that income from operating activities
(excluding special items) increased to $152,694 and $654,093 respectively, during the three and nine month periods ended June 3O,
1997 compared to $125,385 and $299,388, respectively during the comparable 1996 periods. The Company's strategic plan to
expand the products and services sold, while implementing strict cost controls, formed the basis for this quarter's improved
margins. The demonstrated results allowed the company to negotiate a favorable amendment and extended credit facility and
positions the company for future profitable growth. The nine months ended June 30, 1997 have been impacted by approximately
$100,000 of non-recurring expenses relating to payment of unemployment insurance from prior periods, final royalties due on the
1996 sales of service contracts and installation and training costs for a new management information system. During the
comparable nine month period ended June 30, 1996 (last year), Firetector realized additional pre-tax income from special items
aggregating $664,571 from the initial settlement of litigation, sale of service contracts and statutory insurance refunds.
Revenues decreased 1O% during the three months ended June 30, 1997 to $3,261,793 as compared with $3,659,158 for the
comparable third quarter of 1996. Firetector reported that the revenues for the fiscal quarter were consistent with Management's
forecasts and scheduling of the performance of Firetector's backlog. The 1996 quarter included approximately $500,000 of billing
as a general contractor, essentially as a pass-through, with marginal profit. Without this item in 1996, product revenues for the
three months ended June 30, 1997 would have increased slightly. For the nine month period ended June 30, 1997, revenues
increased 21% to $12,292,859, from $10,196,552 in the comparable 1996 period.
Net income after tax was $138,694 or $0.02 per share, during the three month, and $582,093 or $0.09 per share during the nine
month periods ended June 30, 1997 compared with $172,885 or $0.03 per share and $1,106,459 or $0.17 per share during the
comparable 1996 periods. Net income during the three and nine month periods ended June 30, 1997 was impacted by an income
tax provision of $14,000 and $72,000, respectively; while 1996 results were positively impacted by the special items discussed
above as well as utilization of tax loss carryforwards as a tax benefit in the amount of $47,500 and $142,500, respectively during
the three and nine month periods ended June 30, 1996. Per share data reflects the weighted average shares outstanding including
shares issuable upon exercise of options and convertible securities at various exercise prices.
Three Month Period Nine Month Period
Ended Ended
June 30, June 30,
1997 1996 1997 1996
Revenues $3,261,793 $3,659,158 $12,292,859 $10,196,552
Operating Income
before special items 152,694 125,385 654,093 299,388
Special Items n/a n/a n/a 664,571
Operating Income
before provision (Credit) 152,694 125,385 654,093 963,559
for Tax
Provision (Credit) for Tax 14,000 (47,500) 72,000 (142,500)
Net Income 138,694 172,885 582,093 1,106,459
Per Share $0.02 $0.03 $0.09 $0.17
Weighted Average Shares
Outstanding 6,958,430 6,546,209 6,965,460 6,546,209
Firetector is engaged in the design, manufacture, marketing and service of a variety of data communication products and systems
with applications in the fire alarm, life safety, transit, security and communication industries.
SOURCE: Firetector Inc. |
