Global Payment Technolog... (CE) (USOTC:GPTX)
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Global Payment Technologies, Inc. (Over the Counter Bulletin Board
Symbol: GPTX.OB) (“GPT”),
a leading manufacturer and developer of currency acceptance systems used
in the worldwide gaming, beverage and vending industries, discusses its
fiscal 2008 First Quarter results.
GLOBAL PAYMENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN OOOs EXCEPT SHARE AND PER SHARE DATA)
(unaudited)
THREE MONTHS ENDED
DECEMBER 31,
2007
2006
NET SALES
$
2,511
$
3,964
GROSS PROFIT
517
712
OPERATING EXPENSES
1,453
1,950
LOSS FROM OPERATIONS
(936
)
(1,238
)
NET LOSS
(944
)
(1,249
)
PER SHARE INFORMATION:
BASIC
($0.15
)
($0.20
)
DILUTED
($0.15
)
($0.20
)
William McMahon, GPT President and CFO stated, “The
first quarter for Fiscal 2008 signaled significant change for the
Company. We settled into our new, smaller manufacturing facility and
continued to reduce costs. We paid the borrowings under our credit
facility with Laurus Master Fund in full on the maturity date of
November 15, 2007 and we continued our efforts to find additional
capital. Subsequent to the end of the quarter we entered into a
Securities Purchase Agreement with Global Payment Technologies Australia
PTY Ltd. (“GPTA”)
and Exfair Pty Ltd (“Exfair”),
companies controlled by Andre Soussa. GPTA is our largest customer. We
consummated the transaction with two closings, the first of which took
place on January 15, 2008 where we issued a $440,000 one-year secured
term note to GPTA and the second of which took place on February 5, 2008
where we issued a Convertible Note in the amount of $400,000 to Exfair
(Please refer to our Form 10-Q for the period ended December 31, 2007
for more details).
Concurrently with the second closing, Andre Soussa was named Chairman of
the Board and Chief Executive Officer and all current directors except
Richard Gerzof resigned and new directors were appointed.”
Mr. McMahon continued, “While our sales were
negatively impacted by financial constraints and a shortage of raw
materials to complete our customers’
requirements, the demand for GPT’s products
during the quarter was strong and remains strong. We have a lot of work
ahead of us and we look forward to working with Andre and our new
directors.”
Net sales decreased by 36.6%, or $1,453,000, to $2,511,000 in the three
months ended December 31, 2007 as compared with $3,964,000 in the
comparative prior-year period. This sales decrease was due to $1,228,000
decreased sales in our gaming market and $225,000 decreased sales in our
beverage and vending market. Last year’s
sales included special incentives to customers in order to reduce
inventory levels in our Aurora product.
Gross profit decreased to $517,000, or 20.6% of net sales, in the three
months ended December 31, 2007 as compared with $712,000, or 18% of net
sales, in the comparative prior-year period. A favorable sales mix
provided slightly better margins in our validator and parts sales.
Operating expenses decreased to $1,453,000, or 58.0% of sales, in the
three months ended December 31, 2007 as compared with $1,950,000, or
49.2% of sales, in the comparative prior-year period. This decrease of
$497,000 is primarily the result of lower payroll, travel, and
consulting expenses. In July 2007, we also reduced our operating
expenses by moving to a smaller facility, which is more appropriate to
the size of our business. We charged $19,000 to operations during the
three months ended December 31, 2007 as compared to $58,000 in the prior
year representing the fair value of stock options granted to employees,
officers and directors.
Net loss for the quarter ended December 31, 2007 was ($944,000), or
($0.15) per share, as compared with ($1,249,000), or ($0.20) per share,
in the comparative prior-year period.
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. Please visit the GPT web site
for more information at http://www.gptx.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.