TEMPE, Ariz., Aug. 14, 2015 (GLOBE NEWSWIRE) — VirTra Systems (OTC Pink:VTSI), a leading provider of use-of-force and firearms simulators to military, law enforcement agencies and other organizations, today announced its results for the second quarter ended June 30, 2015. The financial statements are available on VirTra’s website and here.
Second Quarter 2015 Financial Summary:
- Net sales were $3.1 million for the quarter ending June 30, 2015, up 48% compared to $2.1 million in the second quarter of 2014. Year-to-date net sales were $5.7 million through June 30, 2015, an increase of 40% compared to $4.1 million for the year ago period.
- Gross margin for the second quarter of both periods was 54%.
- SG&A expenses were $1.4 million, an increase of $0.3 million from $1.1 million in the same period last year. The higher expenses were primarily due to an increase in our workforce to support our increased business and potential future growth. In addition, the Company also increased its sales and marketing activity in both the U.S. and internationally compared to the second quarter of 2014.
- Net income was $0.2 million for the second quarter 2015, compared to $0.1 million for the second quarter 2014.
- Stockholders’ equity increased to $3.2 million, up $0.5 million from $2.7 million at December 31, 2014. The Company had no outstanding debt as of June 30, 2015.
- Cash and cash equivalents were $1.2 million at June 30, 2015, compared to $1.9 million at December 31, 2014.
- In September 2014 the Department of Homeland Security selected VirTra for an approximate $6.0 million award. As of the end of the second quarter of 2015 approximately $2.3 million of revenue has been recognized under this contract. The Company expects to complete the remainder of the contract, but the exact timing is dependent on when the remaining customer locations are ready to receive the equipment.
Bob Ferris, Chairman and Chief Executive Officer of VirTra, commented: “We generated $3.1 million in net sales for the second quarter and $5.7 million for the first half of 2015, our highest level of revenue for the first six months of the year in the Company’s history. Our continued strong results reflect the increasing demand for our simulation solutions in the law enforcement and military marketplaces. Our revenues increased by $1.0 million from the second quarter of 2014, and our net income increased by $0.2 million, as we continue to invest in our infrastructure, leverage our proprietary and superior technology and execute on our goal to increase our market penetration. We are well positioned to deliver on our existing projects and to accommodate new business going forward.”
Mark Skidmore, Vice President – Chief Accounting Officer for VirTra, said: “We have nearly $2.0 million of liquidity between our cash balances and our undrawn line of credit as we are focused on maintaining a strong balance sheet that will support our growth plans. We continue to be on track for a very strong 2015.”
About VirTra Systems
VirTra is a global leading provider of the world’s most realistic and effective shooting simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company’s common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “proposed,” “planned,” “potential” and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about VirTra’s beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward-looking information, readers and prospective investors in the Company’s securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward-looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.