Trading at 2.25/2.50...this from 10k filed Dec 29, 1999:
RESULTS OF OPERATIONS:
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During 1999 shipments of $2,708,000 were down 28% or $1,039,000 from fiscal
1998. Domestic shipments of $1,846,000 for fiscal 1999 were down 19% or $424,000
from fiscal 1998. Export shipments for fiscal 1999 were $862,000 down 40% or
$576,000 from fiscal 1998. Due to customer delivery and inspection requirements
and their need for equipment required for training at Sunair facilities, we were
unable to ship a portion of our order input for 1999. This resulted in lower
shipments with a backlog of $5,100,000, the majority of which will be shipped in
the first quarter of fiscal 2000. This compares to a backlog at September 30,
1998 of $246,000.
Selling, general and administrative expenses increased $219,000 or 18% from
fiscal 1998 due primarily to increased marketing efforts associated with our new
position as a Systems Integrator. Interest income remained lower due to lower
interest rates.
A development program requiring a sizeable investment over the past several
years was undertaken for the development of software and systems capabilities.
As a result, we are now experiencing more product inquiries of greater potential
than at any time in the past five years. This development program was
instrumental in receiving three contracts valued at over $5.0 million. We
delivered our first "Pathfinder" system this year with the majority of these
contracts scheduled for fiscal 2000.
The scope of this new market requires extensive planning and coordination on the
buyer's part to define his requirements with more direct marketing and
engineering involvement by the seller. Procurement cycles continue to be
extremely long due to the complexity of design of the system requirements
experienced in the market today. New market opportunities continue to be pursued
in new geographical areas not previously covered and the Company continues to
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realize some business from these areas. The Company continues to be optimistic
for increased business in the future. |
