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Microcap & Penny Stocks : Videolabs Inc (VLAB): A turnaround? -- Ignore unavailable to you. Want to Upgrade?

To: Ann Rand who wrote (18)	5/4/1998 6:36:00 PM
From: ajd/mba	Respond to of 56

Is it possible that Joe Copia has another winner with VLAB? Below is a cut and paste of an announcement from VLAB that is just a starting place for their DD- VideoLabs, Inc. Announces a Nine Percent Increase in 1st Quarter Earnings and the Closing of an Acquisition PR Newswire - April 21, 1998 18:23 VLAB %CPR %ERN %TNM V%PRN P%PRN ------------------------------------------------------------------------ MINNEAPOLIS, April 21 /PRNewswire/ -- VideoLabs, Inc. (Nasdaq: VLAB) reported today revenues for the first quarter of 1998 of approximately $1.2 million compared to $1.6 million in 1997. This decrease in sales is directly related to the decision in late 1996 to abandon computer related distribution channels that were not profitable which began in the first quarter of 1997. Gross profit in the first quarter decreased from $653,661 in 1997 to $542,040 in 1998. Gross profits as a percentage of sales increased from 41% in 1997 to 45% in 1998. Selling, general and administrative expenses decreased from $607,157 for the first quarter of 1997 to $512,569 for 1998. Net income increased 9% to a profit of $50,399 in the first quarter of 1998 versus a profit of $46,047 in 1997. Chairman and CEO James Hansen said, "We are disappointed in our total sales volumes, but sales in our target markets increased during the quarter as we continue to make progress in increasing market share in niches where we can be profitable." Hansen continued, "Fully diluted earnings per share were unchanged as the approximately doubling in per share price since a year earlier resulted in the diluted shares outstanding growing from 3.1 million to 4.2 million primarily representing warrants that could result, if exercised, in substantial new cash resources for the company over the next nine months." The Company also announced today the completion of its acquisition of the assets of Video Dynamics, Inc., a Florida corporation. James Hansen said, "The Florida operations will be conducted as the Company's healthcare products division. We are pleased with this acquisition because it strengthens the Company's position in the healthcare and medical product market niches." The former principals of Video Dynamics, Richard Cane and Wayne Byard, will continue as employees of the Company. Hansen added, "Their collective experience adds important depth to the Company's research and development capabilities." VideoLabs, Inc. is a publicly traded provider of image capture, transmission and manipulation based solutions for professionals in education, audio-visual, identification and medical markets. The company is located at 5960 Golden Hills Drive, Golden Valley, MN 55416 and can be reached at 612-542-0061 or by fax at 612-542-0069. Internet address is videolabs.com Certain matters discussed in the press release are forward looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the Company's expectations regarding 1997 profit, the timing of the new product introductions and the expectation of lowered costs or materials. All forward looking statements involve risks and uncertainties. In addition to the factors discussed above, other factors could cause actual results to differ materially from those described, including market acceptance of existing and new products; the receipt or cancellation of orders and timing of the Company's ability to recognize revenue from those orders; the timely development and market introduction of new products; the growth and timing of new applications; the successful expansion of distribution channels; changes in general economic conditions; cost and availability of components; and fluctuations in foreign exchange rates. In addition, the markets for the Company's products are characterized by significant competition, and the Company's results may be adversely affected by the actions of existing and future competitors, including the development of new technologies, the introduction of new products, and the reduction of prices by such competitors to gain or retain market share.