3Q results - 250K profit
Phil, you anticipated considerable surprise on the upside when the next quarter sales were reported. How do you feel about these ?
Virtek Announces Third Quarter Results
- Company Reports Profit In Excess of $250,000 -
WATERLOO, Ontario, November 24, 1997 - CDN - VRTK Virtek Vision International Inc., a leading supplier of laser projection technology systems, today reported sales of $ 1,825,630 and a net profit of $256,087, $0.02 per share, for the third quarter ended October 31, 1997. This compares to sales of $1,248,439 and a net loss of $313,649, ($0.02 per share), for the corresponding period last year.
Gross margins in the quarter were approximately 62% versus 55% for the third quarter ended October 31, 1996. This significant increase in gross margins is the result of improved operating efficiencies and manufacturing cost reductions implemented earlier this year.
"This is a very different company from 12 months ago," said Jim Crocker, Virtek's President and CEO. "We're lean and focused. Our products have become the industry standard and we are experiencing unprecedented market demand, particularly in the Prefabricated Construction segment. The activity level across our business, including aerospace, is very high and should ensure that we achieve our growth objectives for the year. A backlog is already developing for next year."
Sales for the nine months ended October, 1997, totaled $5,000,099 representing a 36% increase over sales of $3,683,770, in the same period last year. The net income also improved dramatically from a loss of $1,231,845, ($0.09 per share), for the nine months ended October 31, 1996, to a net income of $306,927, $0.02 per share, for the corresponding period this year.
Virtek recently announced that it had received orders in excess of $2 million from the Building Components and Manufacturers Conference (BCMC) held in Nashville, Tennessee during the quarter. The Prefabricated Construction Industry business unit (PCI) which sells laser projection systems to manufacturers of prefabricated roof trusses and modular homes has seen a dramatic increase in sales during the fiscal year. "Recent trade shows displaying new opportunities for Virtek are yielding levels of interest that go far beyond our earlier expectations," said Cec Archibald, VP of Virtek's PCI business unit, " we are steadily increasing our market penetration with our current products and strong marketing focus. New products in advanced stages of development will allow further penetration into the prefabricated industry."
In addition the Company sold three full AutoCutr leather systems during the quarter, a direct result of Virtek's new approach to the leather business which was implemented earlier this year.
Cash at the end of the quarter totaled $820,532. Working capital increased to approximately $2.7 million while operating expenses for the quarter declined 12.5% from the same quarter last 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 leading supplier of 3D laser projection systems. Virtek is based in Waterloo, Ontario, Canada, with offices near Boston, Massachusetts, London, England and Munich, Germany. Virtek currently trades on the Canadian Dealing Network and has approximately 14.4 million shares outstanding.
For more information please contact:
Jay Hussey
Investor Relations
(416) 815-0700 ext 225
(416) 815-0080 fax
Internet: virtek.ca |
