FTEC...Tuesday February 9, 11:21 am Eastern Time
Company Press Release
SOURCE: Firetector Inc.
Firetector Inc. Announces First Quarter Results With Improved Earnings and a 25% Increase in Revenues
HICKSVILLE, N.Y., Feb. 9 /PRNewswire/ -- Firetector Inc. (Nasdaq: FTEC - news) announces that during its first fiscal quarter ended December 31, 1998, revenues increased 25% to $3,560,316 from $2,847,353 in the comparable period last year. Income before provision for income tax, net income and net income per share increased to $150,486, $100,486 and $0.06 per share, respectively, in the fiscal quarter ended December 31, 1998 compared with $10,132, $6,132 and nil per share in the comparable period last year. Diluted per share calculations reflect the impact of approximately 343,000 shares of Common Stock issuable upon exercise of options and convertible securities at various exercise prices. While Firetector retains $730,000 in net operating loss carry forwards, which will reduce the tax to be paid by the Company, it cannot record the accounting benefit of same as it was reflected in prior periods.
Management reports that the revenue increase resulted from a 49% increase in product sales derived from certain large New York City projects where the Company acted as prime contractor, increased audio projects and increased business in the Dallas market area. Service revenues declined 10% during the period as a result of reduced pricing due to competition and Management's diversion of personnel from service to certain installation projects which should yield additional service revenues in future periods.
Management commented that the strong revenue growth is a direct result of our 1998 Marketing Plan which has increased costs somewhat but has yielded greater increases in revenues and order position ($9.3 million at December 31, 1998 compared to $5.1 million at the same time last year).
''Safe Harbor'' statement under the Private Securities Reform Act of 1995: This release contains forward-looking statements which reflect management's current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to product pricing, competitive market conditions, financial data, and other risks or uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgment as of the date of this release and any changes in the assumptions or external factors could produce significantly different results.
Firetector is engaged in the design, manufacture, marketing and service of a variety of data communication products and systems with applications in the fire alarm, life safety, transit, security and communication industries.
|
