DataLogic International Reports 25% Revenue Increase for Q1
22 Mayo 2006 - 6:54PM
PR Newswire (US)
IRVINE, Calif., May 22 /PRNewswire-FirstCall/ -- DataLogic
International, Inc., (OTC:DLGI) (BULLETIN BOARD: DLGI) (Berlin,
Frankfurt Stock Exchange: 779612), a provider of consulting
services, GPS-based mobile resource management, secured mobile
communications and network security, today announced financial
results for the fiscal 2006 first quarter ended March 31, 2006. Net
sales for the first quarter ended March 31, 2006 were $4,224,302 as
compared to net sales of $3,368,268 for the quarter ended March 31,
2005. The 25% increase in revenue was primarily attributable to the
Communications segment sales growth of 1,200% to $1,096,000 as
compared to net revenues of $83,000 for the same period in 2005.
Gross profit for the quarter ended March 31, 2006 was $438,989, or
10% of net revenue, as compared to gross profit of $434,768, or 13%
of net revenue, for the same period in the prior year. The decrease
in the Company's gross profit margin was primarily due to an
increase in workers compensation and unemployment tax rate in the
Consulting Services segment. Operating expenses for the quarter
ended March 31, 2006 were $1,680,141 as compared to $674,561 for
the same period in the prior year. The 149% increase in operating
expenses were primarily attributable to an increase in compensation
costs associated with the expensing of stock options pursuant to
SFAS 123(R), an increase in employee benefits, workers
compensation, unemployment insurance, professional fees, bad debt
and other one time costs associated with the restatement of the
companies financial statements in the Consulting segment and
acquisition cost of CBSi, as well as increases in sales and
marketing costs in the Communications segment. Interest expense for
the quarter ended March 31, 2006 was $87,470 as compared to
$235,364 for the same period in the prior year. The 63% decrease in
interest expense was primarily due to a decrease in interest
expense associated with the amortization of the debt discount on
the convertible term note issued to Laurus which was paid in
January 2006. Loss from debt extinguishment was $1,337,859 as a
result of the repayment of the Laurus convertible term note. The
change in the fair value of derivative and warrant liabilities was
($218,868) as compared to $680,976 for the quarter ended March 31,
2005. The increase was due to the write-off of the derivative
warrant liabilities as a result of the repayment of the Laurus
convertible term note. Realized gain from the sale of property and
equipment was $9,962 due to a sale of property. As a result of the
above, the net loss for the quarter ended March 31, 2006 was
$2,876,187, or a loss of $0.06 per share, as compared to the net
profit of $202,619, or a profit of $0.01 per share, for the same
period in the prior year. "The majority of the loss for the quarter
was attributable to costs related to the CBSi acquisition,
including (non-cash) amortization of intangibles, an increase in
sales and marketing expenses related to our Communications segment
and several one time costs, including the costs related to the
redemption of the Laurus convertible note and costs and
professional fees related to the re-statement of our financial
statements. Securing a term note to redeem the convertible note was
an important strategic step to position our company to execute our
growth initiatives going forward," stated Keith Moore, CEO. "We're
seeing healthy results in the Communications segment and confident
that the trend will improve as we're now bidding for more wireless
projects as well as receiving more market acceptance of our
BounceGPS product. We have also re-aligned our operating segments
and reduced redundancy and other expenses and will see the benefit
of those changes in the later half of this year," said Moore. 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. DataLogic also
provides secure mobile communications, network security, video
communications as well as Information Technology and consulting
services. For more information about DataLogic International, Inc.
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, Inc. or a
person acting on its behalf are expressly qualified in their
entirety by this cautionary language. Media Contact: David K.
Daniels, Vice President of Marketing +1-602-614-8025 Investor
Relations Contact: Keith C. Moore, Chairman and CEO DataLogic
International, Inc. +1-949-260-0120, ext. 106 DATASOURCE: DataLogic
International, Inc. CONTACT: Media, David K. Daniels, Vice
President of Marketing, +1-602-614-8025, , or Investor Relations,
Keith C. Moore, Chairman and CEO, +1-949-260-0120, ext. 106, both
of DataLogic International, Inc. Web site: http://www.dlgi.com/
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