Guardian Technologies InternationalPosts Record Profits for Second Quarter
July 29, 1998 09:07 AM
DULLES, Va.--(BUSINESS WIRE)--July 29, 1998--Guardian Technologies International Inc. GRDN , The Life-Saving Company, reported today gross profit of $135,977 for the second quarter ended June 30, 1998, as compared to a gross loss of $1,418 for the same period in 1997.
Net income was $27,139 (diluted earnings per share was $0.02) versus a net loss of $220,686 for the comparable year period (diluted loss per share was $0.20). Sales for the second quarter ended June 30, 1998 were $630,338 an increase of 134% compared to $269,239 for the same period in 1997.
For the six months ended June 30, 1998, Guardian's gross profit was $214,145 compared to a gross loss of $86,132 during the same six month period of the prior year. A net loss of $133,685 (diluted loss per share was $0.12) was reported for the first six months ended June 30, 1998, as compared to a net loss of $555,081 (diluted loss per share was $0.50) during the equivalent six month period in the prior year. Sales for the six months ended were $1,192,360 as compared to sales of $455,813, an increase of 162%.
"Led by management's focus on profitability, the operational changes and production enhancements initiated in the first six months of the year have greatly improved our manufacturing efficiencies resulting in higher margins and a profit for the second quarter," said Oliver L. North, chairman of the board, president and chief executive officer. "The challenge ahead is to continue the implementation of our broader strategic plan of growing the company through a combination of internal growth and synergistic acquisition."
J. Andrew Moorer, chief operating officer of Guardian noted, "The Company's pending acquisition of News/Sports Microwave Rental Inc. of San Diego, Calif. (N/S Microwave) is anticipated to close in the fourth quarter of this year subject to shareholder approval. N/S Microwave is a leading designer and manufacturer of microwave-controlled video, monitoring and communications systems that target the law enforcement, security and broadcast industries. They are currently providing microwave broadcast capability and security monitoring for the world-wide broadcast of the Goodwill Games in New York."
Guardian Technologies International Inc., "The Life-Saving Company," is a manufacturer of high-end ballistic protective equipment for the law enforcement, military and security industry.
Certain statements contained herein with respect to factors which may affect future earnings, including management's beliefs and assumptions based on information currently available, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements that are not historical facts involve risks and uncertainties. For more details on risk factors, see the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Guardian Technologies International Inc.
The Life-Saving Company
Financial Highlights (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Sales $630,338 $269,239 $1,192,360 $455,813
Cost of goods sold 494,361 270,657 978,215 541,945
Gross profit (loss) 135,977 (1,418) 214,145 (86,132)
General and administrative
expenses 107,554 148,893 314,898 350,241
Selling expenses 25,709 64,595 65,859 132,822
Total operating expenses 133,263 213,488 380,757 483,063
Operating profit (loss) 2,714 (214,906) (166,612) (569,195)
Rental income 49,964 27,419 91,763 45,190
Financing expense 25,539 33,199 58,836 31,076
Net profit (loss) $27,139 $(220,686) $(133,685) $(555,081)
Net profit (loss)
per common share $0.02 $(0.20) $(0.12) $(0.50)
Net profit (loss)
per dilutive share $0.02 $(0.20) $(0.12) $(0.50)
Average common and
common equivalent shares
outstanding $1,114,201 $1,114,201 $1,114,201 $1,114,201
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