DataLogic International Reports Profitable Third Quarter on Record Revenues
November 03 2005 - 3:10PM
PR Newswire (US)
Fifth Sequential Quarterly Revenue Increase Reflects Initial
BounceGPS(TM) Sales and Increased Sales in Both Communications and
Consulting Segments IRVINE, Calif., Nov. 3 /PRNewswire-FirstCall/
-- DataLogic International, Inc., (OTC Bulletin Board: DLGI;
Berlin, Frankfurt Stock Exchange: 779612) a provider of consulting
services and communication solutions including GPS-based mobile
asset tracking, secured mobile communications and VoIP, today
announced its return to profitability among many other significant
financial results for the fiscal 2005 third quarter ended September
30, 2005. DataLogic International's net sales for the third quarter
were $4.9 million, a 61.6% increase as compared to net sales of
$3.1 million for the quarter ended September 30, 2004. This marked
the highest quarterly revenues in the Company's history, a 10%
sequential increase over second-quarter 2005 revenues of $4.5
million, and the fifth consecutive sequential revenue increase
quarter over quarter. Both the Company's Communications and
Consulting business segments registered gains, with Communications
net revenues increasing by $1.3 million, or over 500%, to $1.6
million, as compared with $258,000 for the third quarter of 2004.
Consulting net revenues increased $556,000, or 19.9%, to $3.3
million versus approximately $2.8 million in the prior-year
quarter. Communications segment increases reflected primarily new
BounceGPS-related revenues and increased sales of video
communications products and services, while the Consulting segment
grew on increases in consulting contracts received this year. Gross
profit for the quarter ended September 30, 2005 was $545,000, or
11% of net revenues, as compared to gross profit of $416,000
million, or 13.6% of net revenues, 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 and expenses related
to launching new product lines. Operating expenses for the third
quarter were $373,000, a 40.9% decline from $631,000, reflecting
adjustments made to re-classify certain operating expenses as cost
of goods sold. The Company recorded net income of $25,000 for the
quarter ended September 30, 2005 as compared to a net loss of
$338,000 in the prior-year quarter, despite an increase in interest
expense to $147,000 from $106,000 in the prior-year quarter. At
September 30, 2005 the Company's assets totaled $5.1 million as
compared with $5.7 million at September 30, 2004. "We are pleased
by both the net revenue performance of our two operating segments
and also the profitability of the Company overall for the fiscal
2005 third quarter," commented Keith Moore, DataLogic
International's Chairman and CEO. "These results are a testament to
the progress we are making in executing our strategic business
plan. Our new BounceGPS mobile asset tracking solution is making
exciting market inroads that we believe are just the beginning.
We've also registered new business wins during this year for video
communications contracts and in our Consulting segment, adding up
to a fifth straight quarterly revenue increase." "We believe that
some significant new business initiatives we've launched this year
are beginning to pay off. We continue to seek and exploit vertical
markets in which we can deploy our tracking and communications
technology, and remain on alert for additional accretive
acquisition opportunities with revenue-enhancing and
market-building potential." About DataLogic International, Inc.
DataLogic International, Inc. provides communications solutions and
consulting services to a wide range of U.S. and international
commercial enterprises and governmental agencies. DataLogic
provides complete GPS and location based services to rapidly
growing markets such as vehicle and asset tracking, public safety
and homeland security. The Company offers a cost-effective, fully
integrated tracking system for a wide range of markets. DataLogic
also provides secure mobile communications, VoIP and video
communications solutions as well as Information Technology and
consulting services. 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, the market performance of acquired business
entities and assets and other factors such as, but not limited to,
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. ISIN: US23804Q1022 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 310-477-9800,
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, CCG Investor
Relations and Strategic Communications, +1-310-477-9800, ext. 202,
for DataLogic International, Inc. Web site: http://www.dlgi.com/
Copyright