Thursday May 21, 11:59 am Eastern Time
Company Press Release
SOURCE: Saf T Lok, Inc.
Saf T Lok Reports Improved First Quarter Earnings
TEQUESTA, Fla., May 21 /PRNewswire/ -- Saf T Lok Incorporated (Nasdaq: LOCK - news) reported yesterday that revenues for the first quarter of 1998 were $277,436 compared with $27,415 in the first quarter of 1997. The net earnings for the quarter ending March 31, 1998 were ($76,715), resulting in a loss of $.01 per share; a significant improvement compared to ($245,799) in the first quarter of 1997 which resulted in a loss of $.04 per share. As of March 31, 1998 the Company had $2,359,999 of cash on hand compared to $15,465 on March 31, 1997, reflecting the Company's capital-raising efforts and the prepayment of $1,000,000 on the $6,000,000 order from a wholesaler. Cost of goods sold as a percentage of revenues was 27% resulting in a gross margin of approximately 73% for the first quarter of 1998. The selling, general and administrative expenses for the first quarter of 1998 were $227,431 compared to $214,694 in first quarter of 1997 with the depreciation staying pretty constant at $51,942 in the first quarter of 1998 compared to $45,123 in the first quarter of 1997.
In the first quarter of 1998, the Company entered into an exclusive distribution agreement with United Safety Action, Inc., in which United Safety Action, Inc. will place a minimum of $20 million in orders over a 24-month period. The Company is currently on schedule and in accordance with agreements to fill the first $1,000,000 of a $6 million order by mid-June of this year. After the Company has shipped $1,000,000 of gun locks to the wholesaler, the Company will receive another $1,000,000 prepayment on this order. Thereafter, shipments will be made on the basis of net 30 days. In light of this, John Gardner, President and CEO, anticipates that the Company will be profitable in the next quarter.
Saf T Lok manufactures the Saf T Lok grip locks for revolvers and magazine locks for semi-automatic handguns. It is the only gun lock on the market that can become an integral part of a firearm, can safely lock a loaded firearm, yet can be unlocked in seconds -- only by an authorized user. The lock is completely mechanical and requires no keys, batteries, computer chips or rings to operate. The Company currently holds 8 patents on the Saf T Lok device.
The statements made in the press release which express the Company's for management's intentions, hopes, beliefs, anticipations, expectations or predictions of the future, as well as other statements which are not historical fact, are forward-looking statements. Actual results may vary materially from those projected in such forward-looking statements. Factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the Company's filings with the Securities and Exchange Commission, which filings may be obtained by contacting the Company or the SEC.
SOURCE: Saf T Lok, Inc.
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