MVSI Announces Record Year End Results
VIENNA, Va., Dec. 31 /PRNewswire/ -- MVSI Inc announced today record results for its fiscal year ended 1996.
Revenue for the year ended September 30, 1996 ("FY 1996") was $15,987,636, a 584 percent increase compared to the $2,337,797 reported for the year ended September 30, 1995 ("FY 1995"). Net income for the FY 1996 was $1,012,764 compared to a loss of $(5,481,453) for the prior year. Earnings for FY 1996 were $.11 per share compared to a loss of ($1.10) per share for FY 1995. Considering the dilutive effect of warrants outstanding, earnings per share for FY 1996 were
$.09 per share. Net income and earnings per share for 1996 were negatively impacted by fourth quarter charges incurred in
restructuring the Company's Canadian operations. The effect of these charges was to reduce net income by approximately $650,000 ($.05 per share).
Year ended September 30, 1996 1995
Revenues $15,987,636 $2,337,797
Net Income 1,012,764 (5,481,453) (b)
Average shares 14,728,603 (a) 5,000,833
Earnings per share
Primary .11 (a) (1.10) (b)
Fully diluted .09 (a) (1.1O) (b)
Figures in parentheses are losses.
(a) Includes the dilutive effect of approximately 5.1 million warrants and earnings per share reflects a net income adjustment permitted by generally accepted accounting principles.
(b) Includes charge of $3.5 million on bridge financing before the Company's public offering.
Edward Ratkovich, chairman, president and chief executive officer of MVSI, stated, "We are very pleased to announce
record sales for the year ended September 30, 1996. MVSI is also on track for a record first quarter ending December 31,
1996 with approximately $8.3 million in revenue as compared to $3 million in revenue for the previous first quarter ending
December 31, 1995."
On December 5, 1996, the National Association of Securities Dealers ("NASD") expelled Stratton Oakmont Inc., the Company's former underwriter and former principal market maker in the Company's securities, from the securities industry. The expulsion of Stratton Oakmont materially and negatively impacted the price and trading volume of the Company's securities. However, as of December 31, 1996, the Company has attracted approximately 16 market makers, and is actively striving to enlist an established or major securities firm to be its principal market maker and investment banker. The Company
believes that based on its business performance additional securities firms will become market makers in the Company's securities in the future.
MVSI and its management may, from time to time, purchase MVSI's securities in the open market. The Company believes that the securities of MVSI are currently undervalued based on the company's business performance. The Company has not determined the number of shares or value of its proposed open market purchases of its securities.
This press release contains a forward-looking projection of revenues for the first quarter ending December 31, 1996, which projection and statements are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. |
