Elinear (AMEX:ELU)
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eLinear, Inc. (AMEX:ELU) announced today its financial
results for the first quarter ended March 31, 2006. Revenue for the
first quarter ended March 31, 2006 was $6.5 million, an increase of
18.4% compared to revenue of $5.5 million for the first quarter of
2005. Gross profit was $1,367,979, an increase of 50% compared to
$912,518 for the first quarter of 2005. Gross margin in the first
quarter of 2006 was nearly 21%, a significant improvement over the 17%
earned in the first quarter of 2005 and the 11% earned in the first
quarter of 2004. The net loss for the quarter was $1,108,375, a 39%
reduction from the loss of $1,802,954 realized in the same period of
2005.
Tommy Allen, CEO of eLinear, stated, "In spite of the challenges
we have faced in relation to restating our financial results dating
back to 2004, our first quarter in 2006 was in line with what we
expected. Our revenues grew steadily while our margins showed even
better improvement. Achieving 21% gross profit margins is proof that
eLinear has successfully made the transition from a value added
reseller to a comprehensive solutions integrator. We believe this
accomplishment should reward shareholders as average market valuations
for integrated solutions providers are higher than where eLinear is
valued today. As we have trimmed costs to better align our company
with the market environment, our losses have narrowed and management
remains confident and excited about our goal of reaching operating
profitability during 2006."
Mike Hardy, CFO of eLinear, added, "As of this filing today,
eLinear is now current with all the filings required of the company by
the American Stock Exchange per the Amex Company Guide. We have worked
diligently to maintain our listing status with the American Stock
Exchange and our hope is that with today's filing, we have fulfilled
all that is required for eLinear to regain compliance."
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Results of Operations for the First Quarter March 31, 2006 and 2005
2006 2005
-------------------------
Revenue $6,526,417 $5,512,275
Cost of revenue 5,158,438 4,599,757
-------------------------
Gross profit 1,367,979 912,518
Selling, general and administrative
expenses 2,412,658 3,983,155
Depreciation and amortization 84,264 133,051
-------------------------
Loss from operations (1,128,943) (3,203,688)
Other income (expense) 20,569 1,400,734
------------ ------------
Net loss $(1,108,375) $(1,802,954)
=========================
Net loss per share - basic and diluted $(0.04) $(0.08)
=========================
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About eLinear, Inc.
eLinear, Inc. is a communications, security and compliance company
providing integrated technology solutions including information and
physical security, IP Telephony and network and storage solutions
infrastructure. Typically, the company's customers are Fortune 2000
and small to medium sized business organizations. eLinear's services
are offered to companies seeking to increase productivity or reduce
costs through investing in technology. eLinear has a national and
international footprint (based in Dubai) and has its headquarters in
Houston, Texas. For more information, see http://www.elinear.com.
Safe Harbor Statement
This press release contains statements that may constitute
forward-looking statements, including the company's ability to realize
the projected revenues from the newly announced project orders and the
future strength of the company's business and industry. These
statements are based on current expectations and assumptions and
involve a number of uncertainties and risks that could cause actual
results to differ materially from those currently expected. For
additional information about eLinear please visit www.elinear.com or
www.sec.gov. eLinear undertakes no obligation to update any
forward-looking statement that may be made from time to time by or on
behalf of the company, whether as a result of new information, future
events or otherwise.