Global Payment Technolog... (CE) (USOTC:GPTX)
Historical Stock Chart
From Jul 2019 to Jul 2024
Global Payment Technologies, Inc. (Over the Counter Bulletin Board
Symbol: GPTX.OB) ("GPT"), a leading manufacturer and innovator of
currency acceptance systems used in the worldwide gaming, beverage, and
vending industries, today announced its fiscal 2008 third-quarter
results.
Summary of Financial Highlights
(Dollar amounts in 000s, except per share data)
Three Months Ended 6/30
Nine Months Ended 6/30
2008
2007
Change
2008
2007
Change
Net Sales
$
3,809
$
3,103
22.8
%
$
9,242
$
9,869
(6.4
%)
Net Loss
( $561
)
( $1,606
)
65.1
%
($2,565
)
($4,187
)
38.7
%
Net (Loss) Per Share
Basic
($0.08
)
($0.26
)
$
0.18
($0.37
)
($0.67
)
$
0.30
Diluted
($0.08
)
($0.26
)
$
0.18
($0.37
)
($0.67
)
$
0.30
Net Sales
Net sales increased by 22.8% or $706,000, to $3,809,000 in the three
months ended June 30, 2008 as compared with $3,103,000 in the
comparative prior-year period. This sales increase was due to increased
sales in the gaming market.
Net sales decreased by 6.4% or $,627,000, to $9,242,000 in the nine
months ended June 30, 2008 as compared with $9,869,000 in the
comparative prior-year period. This sales decrease was due to $270, 000
decreased sales to the gaming market and $357,000 decreased sales to the
beverage and vending market and was incurred in the first quarter of
this fiscal year, prior to current management.
Gross Profit
Gross profit increased to $743,000 or 19.5% of net sales, in the three
months ended June 30, 2008 as compared with $285,000, or 9.2% of net
sales, in the comparative prior-year period. The most significant factor
affecting the Company's gross profit percentage is the unit sales levels
achieved and their relationship to manufacturing costs.
Gross profit increased to $1,845,000 or 20.0% of net sales, in the nine
months ended June 30, 2008 as compared with $1,623,000, or 16.4.8% of
net sales, in the comparative prior-year period. The most significant
factor affecting the Company's gross profit percentage is the unit sales
levels achieved and their relationship to manufacturing costs.
Operating Expenses
Operating expenses decreased to $1,228,000, or 32.2% of sales, in the
three months ended June 30, 2008 as compared with $1,863,000, or 60% of
sales, in the comparative prior-year period. This decrease of $635,000
is primarily the result of lower payroll, travel, and consulting
expenses. The Company also reduced its operating expenses by moving to a
smaller facility, which is more appropriate to the size of the business
in July 2007. The Company charged $22,000 to operations during the three
months ended June 30, 2008 and $58,000 during the three months ended
June 30, 2007 representing the fair value of stock options granted to
employees, officers and directors.
Operating expenses decreased to $4,264,000, or 46.1% of sales, in the
nine months ended June 30, 2008 as compared with $5,752,000, or 58.2% of
sales, in the comparative prior-year period. This decrease of $1,488,000
is primarily the result of lower payroll, travel, and consulting
expenses. The Company also reduced its operating expenses by moving to a
smaller facility, which is more appropriate to the size of the business
in July 2007. The Company charged $99,000 to operations during the nine
months ended June 30, 2008 as compared to $173,000 in the prior year
representing the fair value of stock options granted to employees,
officers and directors.
Interest Expense
Interest expense increased to $74,000 as compared to interest expense of
$14,000 in the comparable prior-year period. The increase was primarily
associated with the issuance to GPTA of a one-year secured term note in
the principal amount of $440,000 that bears interest at a rate equal to
the prime rate plus 3.0% and the amortization of the warrants issued in
connection with the convertible note of $400,000. The convertible note
converted to 2,000,000 shares of preferred stock. As a result there will
be no additional amortization of the warrants issued in connection with
the convertible note.
Interest expense increased to $136,000 as compared to interest expense
of $40,000 in the comparable prior-year period. The increase was
primarily associated with the issuance to GPTA of a one-year secured
term note in the principal amount of $440,000 that bears interest at a
rate equal to the prime rate plus 3.0% and the amortization of the
warrants issued in connection with the convertible note of $400,000 The
convertible note converted to 2,000,000 shares of preferred stock. As a
result there will be no additional amortization of the warrants issued
in connection with the convertible note.
Income Taxes
With respect to the provision for income taxes, the effective rate was
0.9% as compared with 0.1% in the prior-year period. The Company
provided a full valuation allowance against its deferred income tax
assets in the fourth quarter of fiscal 2003 and continues to provide a
full valuation allowance at June 30, 2008. The valuation allowance is
subject to adjustment based upon the Company’s
ongoing assessment of its future taxable income and may be wholly or
partially reversed in the future.
With respect to the provision for income taxes, the effective rate was
0.9% as compared with 0.1% in the prior-year period. The Company
provided a full valuation allowance against its deferred income tax
assets in the fourth quarter of fiscal 2003 and continues to provide a
full valuation allowance at June 30, 2008. The valuation allowance is
subject to adjustment based upon the Company’s
ongoing assessment of its future taxable income and may be wholly or
partially reversed in the future.
Net (Loss)
Net loss for the quarter ended June 30, 2008 was $561,000, or $0.07 per
share, as compared with $1,606,000, or $0.26 per share, in the
comparative prior-year period.
Net loss for the nine months ended June 30, 2008 was $2,565,000, or
$0.36 per share, as compared with $4,187,000, or $0.67 per share, in the
comparative prior-year period.
Andre Soussa, GPT’s Chairman of the Board and
CEO stated, “Our progress is in keeping with
the Company’s plan to return to profitability.
We have successfully implemented cost reduction measures during the
quarter resulting in reduced operating expenses and the elimination of
two senior level positions. Subsequent to the third quarter we further
reduced headcount by an additional 11 employees or 16% of the Company’s
total employee based which has resulted in cost reductions of
approximately $800,000 annually. In addition our two top senior
executives took a voluntary pay cut totaling $100,000 annually. These
reductions continue the effort to bring the Company’s
expenses to an appropriate level as we work toward moving the Company to
profitability.
“In the past twelve months, GPT has reduced
headcount globally by approximately 30%, reduced expenses in Moscow and
London, moved to a smaller production facility in Bohemia, NY and
reduced other operating expenses which total nearly $3,000,000 annually.
“These reductions were necessary steps and
consistent with the plan I outlined in June to bring GPT to
profitability. They have been further supplemented by internal programs
to help create greater margins and expand our sales Our goals remain the
same and we have our dedicated employees working hard and focused on
bringing GPT back as an innovative industry leader. We have continued
with our development of new products and will be announcing the details
of these in the near future.”
Global Payment Technologies, Inc. is a United States-based designer,
manufacturer, and marketer of automated currency acceptance and
validation systems used to receive and authenticate currencies in a
variety of payment applications worldwide. GPT's proprietary and
patented technologies are among the most advanced in the industry.
Please visit the GPT web site for more information at http://www.gpt.com.
Special Note Regarding Forward-Looking Statements: A number of
statements contained in this release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995 that involve risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
applicable statements. These risks and uncertainties include, but are
not limited to: Statements regarding the Company’s
strategy, future sales, future expenses and future liquidity and capital
resources; dependence on a limited base of customers for a significant
portion of sales; GPT's dependence on the paper currency validator
market and its potential vulnerability to technological obsolescence;
the risks that its current and future products may contain errors or
defects that would be difficult and costly to detect and correct;
possible risks of product inventory obsolescence; regulatory approval;
potential manufacturing difficulties; potential shortages of key parts
and/or raw materials; potential difficulties in managing growth;
dependence on key personnel; the possible impact of competitive products
and pricing; and other risks described in more detail in GPT's
Securities and Exchange Commission filings.
GLOBAL PAYMENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(000s)
unaudited
6/30/2008
9/30/2007
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
$
648
$
879
ACCOUNTS RECEIVABLE, NET
1,103
1,030
INVENTORY, NET
3,409
3,768
PREPAID EXPENSES AND OTHER CURRENT ASSETS
101
178
TOTAL CURRENT ASSETS
5,261
5,855
PROPERTY AND EQUIPMENT, NET
541
822
CAPITALIZED SOFTWARE COSTS, NET
55
89
OTHER ASSETS
-
36
TOTAL ASSETS
$
5,857
$
6,802
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
BORROWING UNDER DEBT FACILITY
$
-
$
353
CURRENT PORTION OF LONG-TERM DEBT
-
40
NOTE PAYABLE, RELATED PARTY
440
-
ACCOUNTS PAYABLE
2,596
2,003
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
1,088
936
TOTAL CURRENT LIABILITIES
4,124
3,332
SHAREHOLDERS' EQUITY:
PREFERRED STOCK
20
-
COMMON STOCK
78
68
ADDITIONAL PAID-IN CAPITAL
14,679
13,912
RETAINED (DEFICIT) EARNINGS
(11,588
)
(9,024
)
ACCUMULATED OTHER COMPREHENSIVE INCOME
43
13
3,232
4,969
LESS: TREASURY STOCK
(1,499
)
(1,499
)
TOTAL SHAREHOLDERS' EQUITY
1,733
3,470
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
5,857
$
6,802
GLOBAL PAYMENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN OOOs EXCEPT SHARE AND PER SHARE DATA)
(unaudited)
(unaudited)
THREE MONTHS ENDED
NINE MONTHS ENDED
JUNE 30,
JUNE 30,
2008
2007
2008
2007
NET SALES
$
3,809
$
3,103
$
9,242
$
9,869
GROSS PROFIT
743
285
1,845
1,623
OPERATING EXPENSES
1,228
1,863
4,264
5,752
LOSS FROM OPERATIONS
(485
)
(1,578
)
(2,419
)
(4,129
)
OTHER EXPENSE:
INTEREST EXPENSE, NET
(74
)
(14
)
(136
)
(40
)
TOTAL OTHER EXPENSE
(74
)
(14
)
(136
)
(40
)
LOSS BEFORE PROVISION FOR INCOME TAXES
(559
)
(1,592
)
(2,555
)
(4,169
)
PROVISION FOR INCOME TAXES
2
14
10
18
NET LOSS
$
(561
)
$
(1,606
)
$
(2,565
)
$
(4,187
)
PER SHARE INFORMATION:
BASIC
$
(0.08
)
$
(0.26
)
$
(0.37
)
$
(0.67
)
DILUTED (1)
$
(0.08
)
$
(0.26
)
$
(0.37
)
$
(0.67
)
COMMON SHARES USED IN COMPUTING
PER SHARE AMOUNTS:
BASIC
7,443,201
6,264,355
6,878,238
6,233,586
DILUTED (1)
7,443,201
6,264,355
6,878,238
6,233,586
(1) FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007 AND THE
NINE MONTHS ENDED JUNE 30, 2008 AND 2007, THE WEIGHTED AVERAGE
SHARES OUTSTANDING USED IN THE CALCULATION OF NET LOSS PER COMMON
SHARE DID NOT INCLUDE POTENTIAL DILUTIVE SHARES OUTSTANDING
BECAUSE THEY WERE ANTI-DILUTIVE.