VIRTEK ANNOUNCES YEAR END RESULTS
Profitable Q4 Highlights Turnaround Year
WATERLOO, Ontario, March 24, 1996 - CDN-VRTK - Virtek Vision international Inc. today reported results for its fourth quarter and for the year ending January 31st, 1997.
For the fourth quarter, Virtek reported sales of $1,932,442 and net income of $64,236, or $0.01 per share, as compared to sales of $501,250 and a loss of ($1,201,253), or ($0.08) per share, for the comparable period of the prior year. Strong sales to aircraft and international truss fabricators, as well as improving sales to leather goods manufacturers, contributed to the substantial improvement in fourth quarter performance.
For the year ended January 31st, 1997, Virtek reported sales of $5,616,212 and a net loss of ($1,167,609) or ($0.08) per share, as compared to sales of $4,132,550 and a loss of ($2,363,327), or ($0.18) per share, for the prior year.
Gross margin for the fourth quarter increased to 66% from 36% for the comparable period of the prior year. The gross margin for the comparison period was unusually low, primarily as a result of averaging the fixed manufacturing costs over the substantially lower level of sales for that quarter. Gross margin for the year ended January 31, 1997 was 58%, unchanged from the prior year.
"Fourth quarter results continued the turnaround trend that began in Q2" said Rick Delogu, Virtek's President and CFO. "Over the final three quarters of this year we experienced a 78% increase in sales and reduced our losses by over $1.8 million as compared to the same period last year. Achieving profitability in Q4 is a significant accomplishment".
In November 1996, the Company appointed Jim Crocker as CEO. Crocker said "Many people in this company deserve a lot of credit. Achieving this turnaround was not easy. Now we must build on it."
Added Crocker "We are changing from an engineering to a marketing driven company. Moving to business units has helped clarify what's required to build the business. We're addressing fundamental issues in sales, marketing and product development. Our plans call for significant growth again this year."
Virtek Vision International Inc., through its wholly-owned subsidiaries, Virtek Vision Corp. in Canada and Virtek Vision Inc. in
the United States, is a world leading supplier of 3D laser projection technology and machine vision systems, primarily to the leather goods, aerospace and housing construction industries. Virtek is based in Waterloo, Ontario, Canada, with offices near Boston, Massachusetts, London, England and Munich, Germany, as well as international channel distribution. Virtek currently trades on the Canadian Dealing Network and has approximately 14.4 million shares outstanding.
For more information please contact:
Barry Hildred or Jay Hussey
Investor Relations
Virtek Vision International Inc.
(416) 620-6961 ext.225 (416) 620-4025 fax
Internet: www.virtek.ca
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