MVSI Reports Results for First Quarter
PR Newswire - February 13, 1998 15:10
MVSI %CPR %ERN %PER V%PRN P%PRN
VIENNA, Va., Feb. 13 /PRNewswire/ -- MVSI, Inc. (Nasdaq: MVSI) announced today record quarterly revenues for the first quarter of FY 1998 of $13.7 million, a 63% increase over revenues of approximately $8.4 million for the comparable period in FY 1997. Due to declining sales in the Far East and the capital intensive nature of its Canadian subsidiary, MVS Modular Vision Systems, Inc. (MVS), the Company suffered a net loss of $563,561 for the first quarter of FY 1998, or $(.04) per share, compared to net income of $600,128, or $.06 per share, for the comparable quarter in FY 1997. The Company's
assets grew to $42.8 million in the first quarter of FY 1998 from $25.5 million at the end of FY 1997. The Company has no long term debt and had approximately $20.5 million in cash reserves as of the end of the calendar year 1997.
1st Quarter, December 31, 1997 1996
Revenues: $13,677,252 $8,379,933
Net Earnings (Loss) $(563,561) $600,128
Average Diluted Shares: 12,926,606 13,692,732
Earnings per Share:
(Basic) $(.04) $.06
(Diluted) $(.04) $.04
Edward Ratkovich, Chairman and Chief Executive Officer of the Company, said: "The fundamentals of the Company have never been stronger and we are optimistic about the future prospects of our software development and Information Technologies (IT) business lines. Operating losses at MVS accounted for 88% of our Company's loss in this quarter and 63% of the Company's loss in the fourth quarter of FY 1997. The Company's Board of Directors has concluded that its resources would be more profitably used in expanding its growing software development and maintenance business line, including Year 2000 (Y2K) remediation work, and supporting its IT businesses
than in supporting the capital-intensive machine vision operations of MVS, especially in light of the ongoing financial crisis in the Far East and the negative impact of that crisis on MVS' sales of computer chip inspection systems to its main customer base in the Far East, mainly Korea, and the long sales cycle being experienced by MVS for all of its machine vision products.
The Company is currently and actively exploring several solutions to MVS' ongoing, negative impact on Company earnings."
After winning two Y2K orders in January 1998, the Company anticipates winning additional Y2K orders during the current quarter of FY 1998 and is aggressively bidding on specific Y2K contracts for large corporations and governments. The Company's two IT subsidiaries, Socrates, Inc. and Expert, Inc., are cooperating to establish Socrates computer training, products and
services centers in the greater New York City area with emphasis on Manhattan and Wall Street. The Company is also exploring the possibility of expanding the IT subsidiaries' markets through acquisitions of other IT companies. There can be no assurances that the Company will be able to win any further Y2K orders in the near future or that the Company will succeed in expanding its IT business, either by expanding into new markets or acquiring other IT
companies.
The Company has created a new executive team at MVSI's headquarters to work with the presidents of the Company's subsidiaries to expand the software development and IT business lines in FY 1998 and beyond. Effective February 7, 1998, Paul Richter was appointed President and Chief Operating Officer of the Company and Mr. Craig Harrison was appointed the Company's Director of Business Development.
Mr. Richter, age 42, has prior experience managing operations at
subsidiaries of 3 Fortune 1000 companies and 1 multi-billion dollar
international conglomerate and has over 10 years of experience as a practicing corporate and securities lawyer. Mr. Harrison, age 46, is a 12-year veteran in the high-tech industry. His experience includes developing new lines of business and handling marketing and sales for large hi-tech projects for international companies to include Bechtel Corporation and Fluor Daniel Telecommunications.
Except for the historical information herein, certain matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties, which projections and statements are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual risks and results may vary significantly based on a number of factors, including, but not limited to: risks in products and technology
development; market acceptance of new products and continuing product demand; the impact of competitive products and pricing; and other factors mentioned in the Company's current and future filings with the Securities and Exchange Commission.
For additional public information on MVSI, Inc., please contact the
company at its principal executive offices at 8133 Leesburg Pike, Suite 750,
Vienna, Virginia 22182, telephone (703) 356-5353 and (703) 356-5354,
facsimile. MVSI, Inc.'s Web site is located at www.mvsiinc.com.
SOURCE MVSI, Inc.
/CONTACT: MVSI, Inc., 703-356-5353, or fax, 703-356-5354/
/Web site: mvsiinc.com
(MVSI) |
