DataLogic International Reports Financial Results for the First Quarter 2005
24 May 2005 - 1:11AM
PR Newswire (US)
DataLogic International Reports Financial Results for the First
Quarter 2005 IRVINE, Calif., May 23 /PRNewswire-FirstCall/ --
DataLogic International, Inc., (OTC Bulletin Board: DLGI; Berlin,
Frankfurt Stock Exchange: 779612) a provider of consulting services
and communication solutions including VoIP, GPS based mobile asset
tracking, and secured mobile communications, today announced its
financial results for the quarter ended March 31, 2005. In the
first quarter of 2005, the Company achieved significant strategic
milestones, such as: * Hiring of a new CEO, Keith Moore, who has
built several successful technology companies; * Acquisition of the
assets of New Mexico-based IS Solutions, LLC (ISS), now DataLogic
New Mexico, Inc.; * Shipments of Panther Trak(TM), the Company's
GPS-based mobile asset tracking device, which provides a complete
range of customer-defined options for keeping track of valuable
vehicular assets; * The market launch of EncrypTAC(TM), a
next-generation encryption and two-factor authentication product
that provides law enforcement agents using mobile communications
efficient access to FBI databases without compromising security; *
An April 20, 2005 award win in the Device category for Panther Trak
from the Orange County Chapter of the AeA, the nation's largest
technology trade organization; * Formation of the Company's
Communications Group, which includes VoIP (Voice over Internet
Protocol) equipment and services, GPS vehicle and asset management
products and services, secured mobile communications and video
communications solutions; * Reducing notes payable by over $250,000
in the quarter ended March 31, 2005. Financial Results DataLogic
International's net sales for the quarter ended March 31, 2005 were
$3,368,268 million as compared to net sales of $4,001,587 million
for the quarter ended March 31, 2004. The 16% decrease in net sales
was primarily due to decreased VoIP sales in the quarter compared
to the same period in the prior year. Gross profit for the quarter
ended March 31, 2005 was $434,768, or 13% of net sales, as compared
to gross profit of $997,263, or 25% of net sales, for the same
period in the prior year. The decrease in the Company's gross
profit margin was primarily due to decreased VoIP license sales.
Operating expenses for the quarter ended March 31, 2005 were
$674,561 as compared to $272,756 for the same period in the prior
year. The increase is attributable to financing fees, financing
related legal fees, general R & D investments, product
development costs, and increases in operational, administrative and
marketing costs. Interest and factoring expense for the quarter
ended March 31, 2005 was $146,913, as compared to $78,195 for the
same period in the prior year. The increase in interest expense was
primarily attributable to the Company's notes, debt issuance, and
beneficial conversion factor expenses related to the Laurus Master
Fund financing facility established in June, 2004. As a result of
the above, the Company's net loss for the quarter ended March 31,
2005 was $389,906, or a loss of $0.01 per share, as compared to a
net profit of $479,532, or earnings of $0.01 per share in the same
period of the prior year. For the quarter ended March 31, 2005 the
Company's assets consisted of cash and cash equivalents of
$377,468, $1,712,401 in accounts receivable, $7,500 in marketable
securities, and $231,862 in inventory, as compared with $514,653 in
cash and cash equivalents, $2,226,853 in accounts receivable,
$61,000 in marketable securities and $61,986 in inventory in the
same period in the prior year. For the quarter ended March 31, 2005
the Company's current liabilities consisted of $1,688,742 in
accounts payable and accrued expenses and $1,133,516 in short-term
debts, as compared with $1,180,117 in accounts payable and accrued
expenses and $1,293,454 short-term debts in the same quarter in the
prior year. Management Analysis "For the remaining of fiscal 2005,
we have exciting plans for the commercialization and marketing of
our innovative communications technologies. The fulfillment of our
$3M Panther Trak order has begun. We are expanding our marketing
efforts of our cost-effective VoIP telephony solutions in populous
developing nations. We have also enhanced our sales and marketing
team for supporting EncrypTAC, our secured mobile communications
technology. We are also briefing our current and past clients with
expanded service offerings. Finally, we will continue to explore
acquisition opportunities that show the potential to increase our
market share in target markets and provide recurring revenues
streams," commented Keith Moore, DataLogic International's Chairman
and CEO. About DataLogic International, Inc. DataLogic
International, Inc. is a technology and professional services
company providing a wide range of consulting services and
communication solutions such as VoIP, GPS based mobile asset
tracking, and secured mobile communications. The company also
provides Information Technology outsourcing and private label
communication solutions. DataLogic's customers include U.S. and
international governmental agencies as well as a variety of
international commercial organizations. For more information about
DataLogic International, please visit http://www.dlgi.com/. This
news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended, regarding, among other
things, our plans, strategies and prospects, both business and
financial. Although we believe that our plans, intentions and
expectations reflected in or suggested by these forward-looking
statements are reasonable, we cannot assure you that we will
achieve or realize these plans, intentions or expectations.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions. Many of the forward-looking
statements contained in this news release may be identified by the
use of forward-looking words such as: believe, expect, anticipate,
should, planned, will, may, intend, estimated, and potential, among
others. Important factors that could cause actual results to differ
materially from the forward-looking statements we make in this news
release include market conditions and those set forth in reports or
documents that we file from time to time with the United States
Securities and Exchange Commission. All forward-looking statements
attributable to DataLogic International or a person acting on its
behalf are expressly qualified in their entirety by this cautionary
language. Contact Information: Keith C. Moore, Chairman and CEO
DataLogic International, Inc. 949-260-0120, ext. 106 Sean Collins,
Partner CCG Investor Relations and Strategic Communications
310-231-8600, ext. 202 DATASOURCE: DataLogic International, Inc.
CONTACT: Keith C. Moore, Chairman and CEO of DataLogic
International, Inc., +1-949-260-0120, ext. 106; or Sean Collins,
Partner, of CCG Investor Relations and Strategic Communications,
+1-310-231-8600, ext. 202, for DataLogic International, Inc. Web
site: http://www.dlgi.com/
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