DataLogic International Reports Financial Results for Third Quarter of 2004
20 November 2004 - 9:48AM
PR Newswire (US)
DataLogic International Reports Financial Results for Third Quarter
of 2004 - Revenues Increase 10% from Last Year's Third Quarter -
IRVINE, Calif., Nov. 19 /PRNewswire-FirstCall/ -- DataLogic
International, Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt
Stock Exchange: 779612) a technology and professional services
company providing a wide range of consulting services,
telecommunications products such as VoIP equipment, and GPS vehicle
tracking devices, today announced its financial results for the
third quarter of 2004. Net sales for the third quarter of 2004
increased 10% to $3.0 million, compared to $2.8 million for the
same quarter in 2003. Gross profit for the third quarter of 2004
increased 24% to $0.4 million compared to $0.3 million in the third
quarter of 2003. Gross margin was 13.6% for the third quarter of
2004, up from 12.0% for the third quarter of last year. For the
third quarter of 2004, net loss was $0.3 million, or $0.009 per
diluted share. This compares to net income of $0.1 million, or
$0.003 per diluted share, for the third quarter a year ago. The
loss this quarter was primarily due to higher general and one-time
operating expenses. During the third quarter of 2004 DataLogic
undertook several strategic initiatives, including an expansion of
its VoIP business into the consumer market and expanding
functionality for its M2M products. Prior to this quarter, the
Company had been selling its VoIP products primarily to
distributors and resellers. In an attempt to capture more of the
burgeoning VoIP market, DataLogic adopted a plan offering the
products directly to the general consumer via direct sales through
the to-be-launched IPN e-commerce web site as well as through
strategic alliances with various domestic and international retail
channels. In an effort to increase market share, the Company
reduced its VoIP licensing prices. This resulted in lower revenues
and margins for server sales during the quarter. Derek Nguyen,
DataLogic's Chief Executive Officer, commented, "As a trade off, we
expect to capture more sales in our turn-key servers, which we
expect will eventually result in additional sales in phone
equipment." The Company has also been in test with its GPS product,
Panther TrakTM, and has expended significant effort to expand the
device's capability to include the microLan and Wi-Fi support. It
is the Company's belief that these technologies will allow Panther
TrakTM to capture expanded M2M vertical markets. Keith Nguyen,
DataLogic's President, commented, "This increased functionality has
been well received by Panther Trak's potential customers and
although the sales cycle for Panther Trak(TM) was found to be
longer than expected, the reasons for this are that these accounts
often require additional customization of hardware and software, as
well as longer test time. However, sales to these types of large
customers are potentially material and come with frequent follow-up
sales. We believe these types of accounts hold enough significant
upside benefits to warrant the Company's continued efforts in this
area." Some of the Company's distributors' purchase commitments
have not materialized as expected, which has resulted in lower
booking, than projected, of sales for the period ended September
30, 2004. The Company continues to work with these distributors to
address any issues they may have and expects that this will lead to
additional sales in the near future. For the nine months ended
September 30, 2004, net sales increased 42% to $11.1 million,
compared to $7.8 million for the same period in 2003. Gross profit
increased more than 260% to $2.6 million in the nine months of 2004
compared to $0.7 million in the first nine months of 2003. For the
nine months of 2004, gross margin was 23.9%, up from 9.4% for the
same period last year. Net income for the nine months ended
September 30, 2004 grew by $1.1 million to $0.6 million, or $0.017
per diluted share, when compared to a net loss of $0.5 million, or
$0.015 loss per diluted share, for the nine months ended September
30, 2003. About DataLogic International, Inc. DataLogic
International, Inc. is a technology and professional services
company providing a wide range of consulting services and
telecommunications products such as VoIP phones, videophones,
communications servers and GPS vehicle tracking devices. The
company also provides Information Technology outsourcing and
consulting services. DataLogic's customers include U.S. and
international governmental agencies as well as a variety of
international commercial organizations. For more information,
please visit DataLogic International's web site
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: Donna Dolan Investor Relations
949-260-0120 ext 204 DATASOURCE: DataLogic International, Inc.
CONTACT: Investor Relations - Donna Dolan of DataLogic
International, Inc., +1-949-260-0120 ext. 204, Web site:
http://www.dlgi.com/
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