DataLogic International Reports Fiscal 2004 Financial Results
Revenues Increase 33% From Fiscal 2003 IRVINE, Calif., May 9
/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 year
ended December 31, 2004. In fiscal 2004 and continuing in Fiscal
2005, the Company has 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 its competitively priced Panther Trak(TM)
device, which harnesses wireless connectivity and the Global
Positioning System to allow a complete range of customer-defined
options in keeping track of valuable vehicular assets; *
Development 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. EncrypTAC is being
prepared for full commercial roll-out; * An April 20, 2005 award
win in the Device category for Panther Trak from the Orange County
Chapter of 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. Financial
Results DataLogic International's net revenues for the year ended
December 31, 2004 were $14,255,054 million as compared to net
revenues of $10,702,715 million for the year ended December 31,
2003. The 33% increase in revenues year over year was primarily due
to the growth of the Company's consulting services and VoIP
business segments. Gross profit for the year ended December 31,
2004 was $2,661,991, or 19% of revenues, as compared to gross
profits of $649,572, or 6% of revenues, for the prior year. The
increase in the Company's gross profit margin was primarily due to
improved efficiencies. Operating expenses for the year ended
December 31, 2004 were $3,707,938 as compared to $1,294,434 for the
prior year. The increase in operating expenses was attributed to
costs associated with the growth of the Company's consulting
services and $1.3 million bad debt write-off due to its VoIP
clients inability to execute their business plans. Interest expense
for the year ended December 31, 2004 was $295,064, as compared to
$73,896 for 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 year ended December 31,
2004 was $1,403,837, or a loss of $0.04 per share, as compared to a
net loss of $911,582, or a loss of $0.03 per share in the prior
year. For the year ended December 31, 2004 the Company's assets
consisted of cash and cash equivalents of $643,847, $1,630,570 in
accounts receivable, $16,000 in marketable securities, and $53,526
in inventory, as compared with $253,517 in cash and cash
equivalents, $1,533,544 in accounts receivable, $61,000 in
marketable securities and $66,225 in inventory in the prior year.
For the year ended December 31, 2004 Company current liabilities
consisted of $1,447,353 in accounts payable and accrued expenses
and $1,244,184 in short-term debts, as compared with $815,000 in
accounts payable and accrued expenses and $1,633,276 short-term
debts in the prior year. In preparing the financial statements for
the year ended December 31, 2004 management performed a detailed
analysis of the operations, records and estimates used in all
business segments and as a result wrote off various non-performing
assets and reclassified transactions. This effort was necessary to
provide the operating foundation upon which to build and support
the Company's anticipated growth in 2005 and beyond, and return the
Company to profitability. Management Analysis "We achieved solid
revenue growth in 2004 across all our business segments and have
made significant strides to returning the Company to profitability.
We have a solid operating foundation and have built considerable
growth momentum for DataLogic in 2005," stated Keith Moore,
Chairman and CEO. "Looking ahead, we are continuing the
development, testing and commercialization of innovative
communications technologies and revisiting current and past clients
with expanded service offerings. We have begun marketing Panther
Trak, our GPS based mobile asset tracking device as well as our
cost-effective VoIP telephony solutions in populous developing
nations that lack communications infrastructure. We are also
launching EncrypTAC, our secured mobile communications technology,
nationally. Additionally, we continue to explore acquisition
opportunities to increase market share and provide our company
recurring revenues streams." 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
818-789-0100, 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,
+1-818-789-0100, ext. 202, for DataLogic International, Inc. Web
site: http://www.dlgi.com/
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