Syscan Imaging, Inc. Reports Third Quarter 2005 Results and the Completion of the Nanodisplay Acquisition
23 Noviembre 2005 - 9:54AM
PR Newswire (US)
SAN JOSE, Calif., Nov. 23 /PRNewswire-FirstCall/ -- Syscan Imaging,
Inc. (OTC:SYII) (BULLETIN BOARD: SYII) the world leader in USB
powered portable image scanners and developer of HDTV (High
Definition TV) technology solutions through its SysView Technology
group announces results for the third quarter ended September 30,
2005 of $2,207,083 in sales revenue compared to $1,954,684 reported
for the comparable period in 2004. For the nine months ended June
30, 2005 the Company reported sales revenue of $5,402,306 as
compared to $4,435,632 for the comparable period in 2004
representing a 21.7% increase in sales revenue. The increase in
revenue is primarily attributed to increased product sales and
marketing efforts and better-than-expected sales in the Company's
new duplex scanner products that were introduced during the quarter
ended. For the third quarter ended September 30, 2005, gross profit
increased to $789,766, from $651,060, for the comparable period in
2004. The increase in gross profit is a direct result of increased
sales of higher margin, new products. The net loss for the third
quarter ended September 30, 2005 was $238,801 as compared to a net
gain of $53,374 in the comparable period in 2004 and for the nine
months ended September 30, 2005 the Company reported a net loss of
$3,220,950 as compared to a net loss of $56,920 during the same
period in 2004. It is important to note that the Company registered
a non-cash charge of $2,812,000 during the quarter ended June 30,
2005, which is reflected in the net loss amount for the nine month
period ended September 30, 2005. The non-cash charge that is
reported on the statement of operations under stock-based
compensation cost is a result of the Company's grant of certain
stock options to employees at less than the fair market value of
the Company's common stock on the date of grant. The change in net
earnings barring the non-cash charge from the second quarter 2005
is primarily the result of a substantial increase in selling,
general and administrative expenses. "We see these increased
expenditures as being critical to meet future revenue growth and
expansion in our HDTV Technology group," commented Darwin Hu,
Chairman and CEO. The Company also announced today that it has
completed its acquisition of Nanodisplay, Inc. "We are excited
about the potential that Nanodisplay adds to our line up of HDTV
technologies in development," said Darwin Hu, Chairman and CEO of
Syscan Imaging, Inc., he continues, "We are very happy with the
advancements Nanodisplay has made since the announcement of our
intent to join forces." About Syscan Imaging, Inc. Syscan Imaging,
Inc. designs and manufactures imaging technology solutions for a
worldwide customer base. The company currently manufactures and
delivers 20 plus proprietary mobile image-scanning products, which
has allowed it to become the largest OEM - private label
manufacturer of USB driven mobile scanning systems in the world.
Syscan Imaging's intellectual property portfolio in the imaging
area consists of 20 patents with an additional 4 patents pending.
Recognizing the potential to leverage its years of imaging
technology experience and manufacturing efficiencies Syscan began
developing new technologies targeted towards the HDTV display
market under SysView Technologies, Inc. These products are in
various stages of development and are expected to begin reaching
the marketplace in 2006. The products are designed to significantly
enhance picture quality, decrease power consumption, and greatly
reduce the manufacturing costs associated with High Definition
televisions. All trademarks and copyrights contained herein are the
property of their respective holders. Note on Forward-Looking
Statements: Statements contained in this press release, which are
not historical facts, are forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based largely on current
expectations and are subject to a number of known and unknown
risks, uncertainties and other factors beyond our control that
could cause actual events and results to differ materially from
these statements. These statements are not guarantees of future
performance, and readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this release. Syscan undertakes no obligation to update
publicly any forward-looking statements. DATASOURCE: Syscan
Imaging, Inc. CONTACT: David P. Clark of Syscan Imaging, Inc.,
+1-408-436-9888, Ext. 200
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