CARROLLTON, Texas -- GVI Security Solutions, Inc. (OTCBB:GVSS), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, today announced its third consecutive quarter of record profits for the quarter ending September 30, 2007.
"With almost a million dollars of profits so far this year and three straight quarters of rising profits, we have clearly demonstrated that we've accomplished significant changes and put the company on the right track," stated GVI CEO Steven Walin. "In the quarter just ended we drove profit growth while simultaneously making major changes to enhance our representative partner network. Looking ahead, we expect positive results from our enhanced sales partner network. We have also seen an increase in sales from our School Video Security Initiative with Samsung."
Net income for the third quarter of 2007 was $474,000, almost $0.02 per share compared to a loss of $3.0 million or $2.81 per share in the third quarter of 2006. Excluding results from discontinued operations, the net loss a year ago was $3.6 million, or $3.35 per share. The increase in income reflects continuing improvement in product mix, effective cost controls and the company's concentration on its core business.
"We are pleased to report our third consecutive quarter of record profits," stated GVI COO/CFO Joe Restivo. "Since the start of 2007 we have delivered steady profit growth, with net income rising from $160,000 in the first quarter to $308,000 in the second quarter and now growing to a new record of $474,000 yielding total net income over $942,000 so far this year. Our 2007 results reflect a company that has transitioned from losses to profits and from negative to positive cash flow."
Revenues for the first nine months of 2007 were $34.1 million, compared to revenues of $32.9 million during the same period a year ago. Net income for the first nine months of 2007 was $942,000 or over $0.03 per share compared to a net loss of $10.0 million, or $9.66 per share, in the first nine months of 2006. Excluding results from discontinued operations, the net loss for the first nine months of 2006 was $7.3 million, or $7.08 per share. Gross profit for the first nine months of 2007 was $9.5 million, up over 100% as compared to $4.6 million in the first nine months of 2006.
Revenue for the three months ended September 30, 2007 was $10.8 million versus $10.1 million in the comparable period in 2006. The increase in revenue as compared to the comparable quarter in the prior year was attributable to sales growth in both the United States and Latin America.
Selling, general and administrative expenses for the third quarter were $2.4 million down from $2.8 million during the prior quarter and substantially lower than the $3.8 million in the third quarter of 2006. The results reflected continued effective cost controls across the company's operations.
Conference Call
The company will host a conference call at 4:15 p.m. Eastern Standard Time on Thursday, November 8, 2007, to discuss earnings for the third quarter ended September 30, 2007. To participate in the event by telephone, please dial (877) 397-0250 five to 10 minutes prior to the start time (to allow time for registration). The conference call will be broadcast live over the Internet and can be accessed by all interested parties at http://investor.shareholder.com/media/index.cfm?c=GVSS&e=1&mediakey= DAA54AE4E4D0324A06C5BD82562B0557. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Enter conference ID# 8477012. To listen to the call, please visit this Web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live webcast, an audio replay of the conference call will be archived at this site for one year enter conference ID# 8477012. A digital replay of the call will be available on Thursday, November 8 at approximately 7:15 p.m. Eastern Standard Time through Thursday, November 15 at 11:59 p.m. Eastern Standard Time. Dial (888) 203-1112 and enter access code 8477012.
About GVI Security Solutions, Inc.
GVI Security Solutions Inc. is a leading provider of video surveillance security solutions to the homeland security, institutional and commercial market segments.
Forward-Looking Statements:
Some of the statements made by GVI Security Solutions, Inc. in this press release are forward looking in nature. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may differ materially from those expressed or implied by the statements herein. GVI Security Solutions, Inc. believes that its primary risk factors include, but are not limited to: ability to continue as a going concern; uncertainty of profitability; reliance on primary supplier; credit limits imposed by primary supplier; effective integration of recently acquired operations and personnel; expansion risks; effective internal processes and systems; the ability to attract and retain high quality employees; changes in the overall economy; rapid change in technology; the number and size of competitors in its markets; outstanding indebtedness; control of the Company by principal stockholders; law and regulatory policy; the mix of products and services offered in the company's target markets; and other factors detailed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2006 currently on file, as well as the risk that projected business opportunities will fail to materialize or will be delayed.
[TABLE OMITTED]
No comments:
Post a Comment