Q1 RESULTS - 130% Sales Increase Leads to Break-Even Quarter
WATERLOO, Ontario, May 29, 1997 - CDN - VRTK - Virtek Vision International Inc., a world leader in laser projection technology and machine vision systems, today reported sales of $1,526,913 for the first quarter ended April 30, 1997. This represents a 130% increase over the same period last year.
The net loss for the period declined to $7,564 ($0.00 per share), compared to a net loss of $869,011 ($0.06 per share) in the corresponding period ended April 30, 1996.
"We've developed a strong sales focus in the company which is beginning to pay off" said Jim Crocker, Virtek's President and CEO. "This provides a good start to the year. Following up a profitable fourth quarter with a strong first quarter is important. It reinforces the positive changes we are making."
Sales of TrussLine systems to the Prefabricated Construction Industry (PCI) led the first quarter growth at over $1 million. According to Cec Archibald, Virtek's Vice President, PCI "we're getting results from the key account strategy that has been in place since November coupled with strong support from MiTek". MiTek is the Company's distributor of laser systems to truss manufacturers globally.
Other important milestones included the sale of a demonstration system for building floor panels to Fleetwood Enterprises of Riverside, California. Fleetwood is one of the world's leading manufacturers of modular homes. "We're working hard to prove the usefulness of our system to such an important customer", added Archibald.
The quarter also saw the first sale of a system for manufacturing steel roof trusses. Steel trusses are a growing segment of the Prefabricated Construction Industry in North America and around the world. Their increasing popularity stems from concerns about wood prices and demand for greater strength. "We believe there are many ways our systems can be adapted well beyond their standard application for truss building" added Crocker.
During the quarter, working capital remained virtually unchanged at $2.5 million while operating expenses fell by 23% to $949,000 versus $1,237,110 in the prior period. Gross Margins for the period were recorded at 62% up from 55% a year earlier.
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 housing construction, aerospace and leather goods 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) 620-6961 fax.
Internet: virtek.ca
THE CANADIAN DEALING NETWORK HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE. |
