Year end results
Virtek Vision International Inc VRTK
Shares issued Mar 27 close $1.70
Mon 30 Mar 98 News Release
Mr Jim Crocker reports
For the year ended January 31 1998, Virtek Vision International had sales
of $7,543,459 and a net profit of $1,042,432 or $0.07 per share. This
compares to sales of $5,616,212 and a net loss of $1,167,609 or ($0.08 per
share), for the corresponding period last year.
Gross margin for the year was approximately 63% compared to 58% for the
year ended January 31 1997. This increase in gross margin is the result of
improved operating efficiencies and manufacturing cost reductions
implemented during the year.
The year ended with sales in the fourth quarter of $2,543,360 with a net
profit of $735,504 or $0.05 per share. This compares to sales of $1,932,442
and a net profit of $64,236 or $0.01 per share, in the fourth quarter ended
January 31 1997.
Cash at the end of the year totalled $1,064,937. Working capital increased
to approximately $3.3 million from $1.9 million in fiscal 1997, while
operating expenses for the year declined over 15% from the same period last
year.
Financial success in fiscal 1998 was accompanied by several other notable
achievements including the break through success of Virtek's pre-fabricated
construction business, important validation of Virtek's aerospace
technology, and development of an important new business initiative.
During the year, the company experienced unprecedented market demand in the
Prefabricated Construction Industry (PCI). In addition to the growth in
PCI's wood roof truss sales, Virtek introduced and received orders for
systems that target the prefabricated wall and floor paneling and steel
roof truss segments of this industry.
In October, Virtek had received orders in excess of $2 million from the
Building Components and Manufacturers Conference (BCMC) held in Nashville,
Tennessee. The success from the show is a result of combined marketing
efforts by Virtek and MiTek Industries, Virtek's exclusive global
distributor.
Fiscal 1998 also saw the creation of a new imaging business initiative.
Similar to the company's traditional templating businesses in aerospace and
pre-fabricated construction, imaging applications use proprietary software,
and the company's standard eye-safe laser hardware. However, the imaging
laser system is unique in its ability to provide accurate, high-speed data
from scanned objects for reverse engineering and sophisticated quality
control processes. The initial market for this technology is 2D parts
inspection in the metal stamping business. Metal stamped parts are used in
a huge array of products including automobiles and electronic equipment
like computers.
Virtek recently began placing beta test units into metal stamping companies
in the US. This test phase is expected to last through the spring, followed
by the commercial rollout of the product by a distributor in the summer.
STATEMENT OF EARNINGS
Three months ended January 31
1998 1997
Sales $2,543,360 $1,932,442
Cost of goods
sold 862,561 660,894
---------- ----------
Gross margin 1,680,799 1,271,548
---------- ----------
Expenses
General & admin 314,586 433,143
Sales & marketing 460,636 388,141
R & D 187,925 383,474
Less: tax credits
& grants (147,673) (152,931)
Interest income (4,649) (5,846)
Interest expense 13,205 22,347
Depreciation &
amortization 121,265 158,984
---------- ----------
945,295 1,207,312
---------- ----------
Net income
(loss) $ 735,504 $ 64,236
========== ==========
Earnings per
share $0.05 $0.01
STATEMENT OF EARNINGS
Year ended January 31
1998 1997
Sales $7,543,459 $5,616,212
Cost of goods
sold 2,753,856 2,361,701
---------- ----------
Gross margin 4,789,603 3,254,511
---------- ----------
Expenses
General & admin 1,136,643 1,266,990
Sales & marketing 1,584,425 1,736,352
R & D 1,129,356 1,380,171
Less: tax credits
& grants (604,703) (587,815)
Interest income (48,118) (70,992)
Interest expense 63,852 88,079
Depreciation &
amortization 485,716 609,335
---------- ----------
3,747,171 4,422,119
---------- ----------
Net income
(loss) $1,042,432 ($1,167,609)
========== ==========
Earnings per
share $0.07 ($0.08)
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