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DataLogic International Reports Financial Results for Third
Quarter of 2004
- Revenues Increase 10% from Last Year's Third Quarter -
IRVINE, Calif., Nov. 19 /PRNewswire-FirstCall/ -- DataLogic International,
Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612) a
technology and professional services company providing a wide range of
consulting services, telecommunications products such as VoIP equipment, and
GPS vehicle tracking devices, today announced its financial results for the
third quarter of 2004.
Net sales for the third quarter of 2004 increased 10% to $3.0 million, compared
to $2.8 million for the same quarter in 2003. Gross profit for the third
quarter of 2004 increased 24% to $0.4 million compared to $0.3 million in the
third quarter of 2003. Gross margin was 13.6% for the third quarter of 2004,
up from 12.0% for the third quarter of last year.
For the third quarter of 2004, net loss was $0.3 million, or $0.009 per diluted
share. This compares to net income of $0.1 million, or $0.003 per diluted
share, for the third quarter a year ago. The loss this quarter was primarily
due to higher general and one-time operating expenses. During the third quarter
of 2004 DataLogic undertook several strategic initiatives, including an
expansion of its VoIP business into the consumer market and expanding
functionality for its M2M products.
Prior to this quarter, the Company had been selling its VoIP products primarily
to distributors and resellers. In an attempt to capture more of the burgeoning
VoIP market, DataLogic adopted a plan offering the products directly to the
general consumer via direct sales through the to-be-launched IPN e-commerce web
site as well as through strategic alliances with various domestic and
international retail channels.
In an effort to increase market share, the Company reduced its VoIP licensing
prices. This resulted in lower revenues and margins for server sales during
the quarter. Derek Nguyen, DataLogic's Chief Executive Officer, commented, "As
a trade off, we expect to capture more sales in our turn-key servers, which we
expect will eventually result in additional sales in phone equipment."
The Company has also been in test with its GPS product, Panther TrakTM, and has
expended significant effort to expand the device's capability to include the
microLan and Wi-Fi support. It is the Company's belief that these technologies
will allow Panther TrakTM to capture expanded M2M vertical markets.
Keith Nguyen, DataLogic's President, commented, "This increased functionality
has been well received by Panther Trak's potential customers and although the
sales cycle for Panther Trak(TM) was found to be longer than expected, the
reasons for this are that these accounts often require additional customization
of hardware and software, as well as longer test time. However, sales to these
types of large customers are potentially material and come with frequent
follow-up sales. We believe these types of accounts hold enough significant
upside benefits to warrant the Company's continued efforts in this area."
Some of the Company's distributors' purchase commitments have not materialized
as expected, which has resulted in lower booking, than projected, of sales for
the period ended September 30, 2004. The Company continues to work with these
distributors to address any issues they may have and expects that this will
lead to additional sales in the near future.
For the nine months ended September 30, 2004, net sales increased 42% to $11.1
million, compared to $7.8 million for the same period in 2003. Gross profit
increased more than 260% to $2.6 million in the nine months of 2004 compared to
$0.7 million in the first nine months of 2003. For the nine months of 2004,
gross margin was 23.9%, up from 9.4% for the same period last year.
Net income for the nine months ended September 30, 2004 grew by $1.1 million to
$0.6 million, or $0.017 per diluted share, when compared to a net loss of $0.5
million, or $0.015 loss per diluted share, for the nine months ended September
30, 2003.
About DataLogic International, Inc.
DataLogic International, Inc. is a technology and professional services company
providing a wide range of consulting services and telecommunications products
such as VoIP phones, videophones, communications servers and GPS vehicle
tracking devices. The company also provides Information Technology outsourcing
and consulting services. DataLogic's customers include U.S. and international
governmental agencies as well as a variety of international commercial
organizations. For more information, please visit DataLogic International's
web site 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 and 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 or a person
acting on its behalf are expressly qualified in their entirety by this
cautionary language.
Contact Information:
Donna Dolan
Investor Relations
949-260-0120 ext 204
DATASOURCE: DataLogic International, Inc.
CONTACT: Investor Relations - Donna Dolan of DataLogic International,
Inc., +1-949-260-0120 ext. 204,
Web site: http://www.dlgi.com/