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(COMTEX) B: VIRTUAL TECHNOLOGY (VTCO) NET SALES UP MORE THAN 28-FOLD
B: VIRTUAL TECHNOLOGY (VTCO) NET SALES UP MORE THAN 28-FOLD
as Company Looks for Continuing Growth in 1999
MINNEAPOLIS, May 4 /PRNewswire/ -- Virtual Technology Corporation (OTC
Bulletin Board: VTCO) today reported net sales of $4,945,907 for the
fiscal year ended January 31, 1999, a better than 28-fold increase over
the $174,669 in net sales recorded for the fiscal year ended January
31, 1998. The Company noted that the just completed year's operating
results include just one day of Graphic Technology's operations (GTI
was acquired January 29, 1999).
GTI recorded profits of $896,000 on net sales of $65,156,000 for the
year ending December 31, 1998. With consolidated revenues totaling $70,
102,000, management reports the acquisition is transitioning nicely and
expects a strong quarter as a result of increased web sales and
recently announced GTI distribution agreements.
Greg Appelhof, Virtual's President and CEO attributed the Company's
dramatic growth to its multiple strategic relationships, a successful
expanded advertising campaign across all channels, new back office
systems and, most importantly, the accelerating growth of E-commerce to
a projected trillion dollar plus level by 2002.
"Key marketing agreements with CNET/AOL, Ziff Davis, Microsoft's MSN
Sidewalk, in addition to affiliates Amazon.com, War Zone, DVD Express,
Auction Universe et al are proving to be invaluable as our operating
numbers soar," said Appelhof. "Web orders have increased to over 4,000
per month, page views have increased over 10-fold to 10 million per
month and we are up to an estimated 250,000 visitors monthly, doubling
previous estimates. Our TV infomercials are contributing significantly
and our product line has expanded to over 62,000 hardware items and
over 100,000 software titles. VTC will keep on adding new alliances
and develop new marketing programs as we continue to grow sales. Along
these lines, improved back office systems have considerably enhanced
our sales growth capability."
Virtual's net loss for the fiscal year ended January 31, 1999 amounted
to $4,357,088, or a loss of $0.26 per share, as compared to a loss of
$2,539,161, or a loss of $0.36 per share, for the prior fiscal year.
Established in 1996, VTC is an E-Commerce Company specializing in
computer hardware and software. With its recent acquisition of
Graphics Technologies, Inc. (GTI), it is a leading specialty
distributor of premium computer and graphics products software and
peripheral products to sophisticated computer resellers. VTC
properties include www.vtcoauctions.com, www.virtual-world.com and
www.graphicstech.com
Statements in this Press Release that are not purely historical
are "forward looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding VTC's expectations, hopes, beliefs, intentions or strategies
regarding the future generally, VTC's growth strategy, future sales and
anticipated trends in VTC's business. All forward looking statements
included in this Press Release are based on information known to VTC on
the date hereof, and VTC assumes no obligation to update any such
forward looking statements.
Virtual Technologies and Subsidiaries
Consolidated Statement of Operations
Year Ended Year Ended
January 31, 1999 January 31, 1998
NET SALES $4,945,907 $174,669
NET LOSS ($4,357,088) ($2,539,161)
NET LOSS PER COMMON ($0.26) ($0.36)
SHARE-BASIC
WEIGHTED AVERAGE 16,958,284 7,068,687
COMMON SHARES
For more information, please contact: Greg Appelhof, CEO,
612-915-1122, greg@vamail.com, or Herbert Lanzet or DeeDee Lanzet,
212-687-0061, lanzet@aol.com, or Robert Sullivan of Compass Point
Group, 619-525-0800 ext. 108, all for Virtual Technology Corporation.
SOURCE Virtual Technology Corporation
-0- 05/04/99 /CONTACT: Greg Appelhof, CEO,
612-915-1122, greg@vamail.com, or Herbert Lanzet or DeeDee Lanzet,
212-687-0061, lanzet@aol.com, or Robert Sullivan of Compass Point
Group, 619-525-0800 ext. 108, all for Virtual Technology Corporation/
/Web site: graphicstech.com /Web site:
virtual-world.com
/Web site: vtcoauctions.com (VTCO)
CO: Virtual Technology Corporation; Graphics Technologies, Inc. ST:
Minnesota IN: CPR MLM SU: ERN
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