VIRTEK ANNOUNCES SECOND QUARTER RESULTS
>
>
> - Company Reports Record Sales -
>
> Canadian Dealing Network: VRTK
>
> WATERLOO, Ont., Sep. 1 /CNW/ - CDN - VRTK Virtek Vision International
>Inc., a leading supplier of laser projection technology, today reported
sales
>of $2,634,691 and a net profit of $506,813 or $0.03 per share for the
second
>quarter ended July 31, 1998. This compares to sales of $1,647,556 and a net
>profit of $58,404 ($0.00 per share), for the corresponding period last
year.
> ''We are meeting the objectives that we set at the beginning of the
>year,'' said Jim Crocker, Virtek's President and CEO. ''Increasing revenues
>and delivering strong bottom line results are our key priorities.''
> Revenues were positively impacted during the quarter by several factors
>including a resurgence in Aerospace activity. The company received several
>orders from Boeing including a first time order from the company's Canadian
>facility in Winnipeg. Subsequent to the end of the quarter, it also
received
>an order from Boeing in Australia, an account previously held by Virtek's
>primary competitor.
> Sales for the six months ended July 31, 1998, increased by 53% to
>$4,861,454 up from $3,174,469 reported in the same period a year earlier.
>Resulting net income improved by a factor of 20, growing to an impressive
>$1,016,867 or $0.07 per share versus net income of $50,840 or $0.00 per
share
>for the corresponding period ended July 31, 1997.
> As at July 31, 1998, working capital had grown to $4,087,595 with a
cash
>balance of $940,389.
> Operating expenses increased during the quarter as the Company
continued
>to invest in marketing its existing technology and in developing new
>technology. ''By year end, we expect to be deriving revenue from 3 new
>business units,'' said Crocker. ''At the same time that we are bringing
these
>new business units on line, we are successfully finding ways to penetrate
>deeper into our core pre-fabricated construction and aerospace markets.''
> Early in the quarter, the Company announced the addition of Stewart
>Conway and Herman deWeerd to the Virtek organization. Mr. Conway previously
>held the position of Marketing Manager, Regional Jets with Bombardier
>Aerospace Inc. and is heading up the company's Aerospace business unit. Mr.
>DeWeerd, a nine year veteran of General Scanning with significant
experience
>in optical-mechanical design and engineering is leading a team in Boston
>responsible for developing some of the company's new projection technology.
> Beginning in June, Virtek initiated an aggressive marketing and sales
>campaign to promote its LaserQC inspection system. Press releases
announcing
>the product lead directly to the product being featured on the front cover
of
>the August issue of Industrial and Equipment News. LaserQC will be
>demonstrated in several key North American trade shows, including the
>International Machine Tools Show which runs for 8 days in Chicago this
month.
>Additional activities designed to create awareness and stimulate customer
>demand are also underway. The LaserQC inspection system provides accurate,
>high-speed scanning of flat metal parts for reverse engineering and
>sophisticated quality control processes.
> Finally, Virtek received several prestigious awards during the quarter.
>In May, the Company was named the 26th fastest growing company in Canada
>according to Profit Magazine's, ''Profit 100'' list. This is the fourth
year
>in a row that Virtek has placed in the Profit 100 and as a result, the
company
>was presented with the Royal Bank Premium Growth Award. The Company also
>received the Federal Express Export Award, which is given to the Profit 100
>company with the greatest percentage of business outside of Canada.
> 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 laser templating, and inspection 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 14.7 million shares outstanding.
>
> THE CANADIAN DEALING NETWORK HAS NOT REVIEWED AND DOES NOT ACCEPT
> RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE.
>
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> Virtek Vision International Inc.
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