Invisa Fourth Quarter 2004 Results: Revenues Up 53%, Gross Profit Up 159% SARASOTA, Fla., Feb. 7 /PRNewswire-FirstCall/ -- Invisa, Inc. (OTC:INSA) (BULLETIN BOARD: INSA) , an electronic life safety and security company that commercializes patented presence-sensing technologies, today announced financial results for the fourth quarter and year ended December 31, 2004. Revenues for the fourth quarter 2004 were $90,265, the highest quarterly revenue in the Company's history and an increase of 52.9% over the comparable period in 2003. Gross Profit for the fourth quarter 2004 was $53,480, the highest in the company's history: an increase of 159.2% compared to fourth quarter 2003. The improved gross profit suggests that the Company's efforts to reduce recurring costs and the manufacturing costs of 4th generation devices have been successful. Income from continuing operations improved in fourth quarter 2004 as compared to fourth quarter 2003, to a loss of $593,308 vs. a loss of $2,374,119. In addition to the stronger gross profit position, the improvements in income from continuing operations are the result of lower overhead and operating costs. While full year 2004 revenues of $197,484 were 7.1% below 2003, fourth quarter 2004 sales ran at a record level as the Company introduced customers to new products. Loss per share, basic and diluted, for the year 2004, was $0.22, representing an improvement from the 2003 loss per share of $0.73. Selected highlights of the fourth quarter of 2004: * Commenced sales to two new manufacturer/distributors: DC Solutions Inc. (part of the Chamberlain Group) and Zeag (UK) Ltd. * Hired new Chief Financial Officer (CPA with public accounting experience), David Benedetti * Awarded U.S. Patent No. 6,819,242 in November 2004 "The improved financial performance of the fourth quarter, along with the market's acceptance of our 4th generation safety sensor, is gratifying," said Herb Lustig, president and CEO of Invisa. "We believe that our efforts to build relationships with major manufacturers in the powered closure sector are beginning to pay off. We look forward to continued growth over the next year, both organic, and via partnership or strategic acquisition." Invisa CFO David Benedetti stated, "The results of tight control over expenses, a focus on cash flow, and a third quarter 2004 $2.2 million equity infusion are beginning to show. In addition to the much-improved Statement of Operations, Invisa's year-end Balance Sheet shows a company stronger and better positioned for financial success." Balance Sheet highlights as of December 31, 2004 vs. 2003 show: * A decrease in total assets of $582,773 (mostly due to $788,235 amortization of patents) * A decrease in total liabilities of 72.1% to $796,177 * An increase in cash and cash equivalents of 126.7% to $590,588 * An increase in current assets of 30.9% to $715,992 * A decrease in current liabilities of 80.2% to $496,177 * An increase in working capital to $219,815 from $(1,961,329) Selected financial highlights are below. The 2004 10-KSB for Invisa may be viewed at http://www.invisa.com/aboutUs_investor.html . Select "Invisa SEC Filings - All Forms." SELECTED FINANCIAL HIGHLIGHTS - INVISA, INC. 4th Qtr 4th Qtr Increase/ YE 12-31 YE 12-31 2003 2004 (Decrease) 2003 2004 Statement of operations Net sales $59,045 $90,265 $31,220 52.9% $212,679 $197,484 Cost of goods sold 38,410 36,785 (1,625) -4.2% 128,971 102,162 Gross profit 20,635 53,480 32,845 159.2% 83,708 95,322 Research and development costs 192,911 61,012 (131,899) -68.4% 558,277 510,133 Selling, general and adminis -trative expenses 2,201,843 585,776 (1,616,067) -73.4% 5,179,864 3,027,369 Income from continuing opera- tions (2,374,119) (593,308) 1,780,811 -75.0% (5,654,433) (3,442,180) Debt extinguish- ment gain -- -- -- n/a -- (360,000) Impairment of patent 5,517,808 -- (5,517,808) -100.0% 5,517,808 -- Income / (Loss) from opera- tions (7,891,927) (593,308) 7,298,619 -92.5% (11,172,241) (3,082,180) Interest expense, net 39,626 (2,020) (41,646) -105.1% 565,864 (15,360) Net loss (7,931,553) (591,288) 7,340,265 -92.5% (11,738,105) (3,066,820) Non-cash constructive dividend related to beneficial conversion features of convertible preferred stock -- -- -- n/a -- (1,296,640) Net loss applicable to common stock- holders (7,931,553) (591,288) 7,340,265 -88.5% (11,738,105) (4,363,460) Net loss per share applicable to common stockholders: basic and diluted -- -- -- -- $(0.73) $(0.22) Weighted average common stock shares outstanding: basic and diluted -- -- -- -- 16,173,841 19,899,052 Balance sheet YE 12-31 Increase/ YE 12-31 data 2003 (Decrease) 2004 Cash and cash equivalents $330,052 126.7% $260,536 $590,588 Current assets 169,167 30.9% 546,825 715,992 Current liabilities (2,011,977) -80.2% 2,508,154 496,177 Working capital 2,181,144 n/m (1,961,329) 219,815 Total assets (582,773) -7.9% 7,336,860 6,754,087 Total liabilities $(2,062,311) -72.1% $2,858,488 $796,177 About Invisa: Invisa delivers presence-sensing solutions for safety and security applications. InvisaShield(TM) enabled devices build an invisible zone of detection to make powered closures (such as gates and garage doors) safer and monitored objects (such as museum displays) more secure. This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Factors which may cause such differences include, but are not limited to, risks disclosed in the Company's SEC filings. The company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information covered in this press release, including such forward-looking statements. For information on Invisa technology and products, visit http://www.invisa.com/ or call (941) 355-9361 ext. 101. For Invisa Investor Relations, contact Dave Gentry, Aurelius Consulting Group, 541 S. Orlando Avenue, Suite 206, Maitland, FL 32751, (407) 644-4256; or http://www.runonideas.com/ DATASOURCE: Invisa, Inc. CONTACT: Dave Gentry, Aurelius Consulting Group, +1-407-644-4256, or , for Invisa, Inc. Web site: http://www.invisa.com/

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