Virtek Vision reports 82% sales increase over fiscal 2000
- Biotech sales increase 832%
- Year-to-date pre-tax income increases 489%
WATERLOO, ON, Nov. 28 /CNW/ - Virtek Vision International Inc. (TSE:
VRK), a leading developer of precision laser technology, today announced
results for the third quarter and nine months ended October 31, 2000.
Sales for the quarter were $8.0 million, up 82% from $4.4 million for the
comparable period last year. Earnings before interest, taxes, depreciation,
and amortization (EBITDA) for the quarter increased to $1.2 million, compared
with a loss of $790,573 for the third quarter of fiscal 2000. Net income
before tax was $476,735, or $0.02 per share, compared with $494,291, or $0.02
per share, in the third quarter of fiscal 2000 (which included a one-time gain
of $1.5 million from the disposition of a non-core asset). The Company is
taxable this year, whereas it was not taxable in fiscal 2000; net income for
the quarter was $371,363, or $0.02 per share on a fully diluted basis.
Sales for the nine months ended October 31, 2000 were $20.3 million, up
88% from $10.8 million for the comparable period last year. EBITDA for the
period increased to $4.0 million, compared with a loss of $554,955 for the
first nine months of fiscal 2000. Net income before tax increased 489% to $2.3
million, or $0.09 per share, from $388,660, or $0.03 per share, in the same
period of fiscal 2000. Net income for the nine months was $1.5 million, or
$0.06 per share on a fully diluted basis.
"The results of the quarter reflect our focused strategy to deliver
continued profitable, top-line growth," said Jim Crocker, President and Chief
Executive Officer of Virtek Vision International Inc. "The acquisition and
integration of ESI's biotech division had a significant impact during this
quarter and our existing products continued to penetrate their respective
markets at increasing rates. Additionally, our diversified product approach
continues to have excellent long-term growth potential."
Quarterly sales increased in all business units, with particular strength
in the Company's biotechnology section, in which sales increased 464% to $2.1
million, representing 26% of total sales.
Sales of biotechnology products during the first nine months of fiscal
2001 increased 832% to $3.6 million compared with the same period the previous
year, representing 18% of total sales. Virtek did not have biotechnology
revenues in fiscal 1999.
Following the integration of ESI's biotech product lines in Virtek's
Waterloo facility, the entire backlog of ESI arrayer units (now called Virtek
ChipWriters(TM)) was shipped during the quarter. In early November, the
Company began shipments of its new DNA colony picker, a device that selects
samples of human genes or other DNA fragments for use in micro-array imaging,
and possible extraction and cloning.
Quarterly sales of products to the precision manufacturing sector
increased 49% overall to $5.9 million, representing 74% of total sales. Sales
during the first nine months increased 61% to $16.8 million, or 82% of total
sales.
In early November, the Company announced the launch of its Virtek
QuickInspec(TM), a scaled-down version of the successful CAD-driven LaserQC(R)
for flat part quality control and reverse engineering. The QuickInspec
includes Virtek Geo(TM), the low-cost CAD software developed through the
Company's strategic technology partnership with JETCAM, announced in October.
Also during the quarter, Virtek developed and shipped the first beta version
of a new precision glass-marking device, which the Company believes has
significant potential in the automotive and building markets.
"Through market-driven research and development, we remain committed to
high-margin applications and to exploring new industries with significant
market potential," said Mr. Crocker. "Our active growth strategy continues to
be focused on organic growth driven by demand for our leading precision
instruments and on acquisitions. By developing and purchasing technologies
that complement our laser core competency, Virtek can deliver more complete
solutions to further increase our customers' productivity and cost savings."
Gross margins in the third quarter of fiscal 2001 were 59%, down from 62%
a year ago. This decline was anticipated and is primarily due to the
integration of the ESI product line into Virtek's Waterloo manufacturing
operation. Virtek expects that gross margins will trend upwards again as the
integration proceeds. Gross margins in the nine months ended October 31, 2000
were 62%, the same level as in the previous year.
The Company has maintained a solid financial position with working
capital of $16.4 million and no long-term debt as of October 31, 2000.
Virtek Vision is a global leader in the development of precision laser
and automation applications for the biotechnology, aerospace, metal
fabrication and construction industries. The Company's products provide
compelling customer benefits including significantly increased throughput and
cost savings. The majority of sales are to the US and Europe. The Company
maintains offices in Waterloo, Toronto, Boston, and Brussels.
Financial statements are attached. |
