TEMPE, AZ, Jul 30, 2012 (MARKETWIRE via COMTEX) — VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, today reported financial results for the first quarter of 2012, ended March 31. The unaudited financial statements are available on VirTra’s website and here.
During this period, VirTra realized a net profit of $246,046 compared to a net loss of $692,761 for the full year ended December 31, 2011 (audited).
VirTra recorded gross revenue of $2.6 million in first quarter 2012 compared to $7.9 million earned during the entire 2011 fiscal year. The company also improved its gross profit margin during the first three months of the current year. Cost of goods sold for the quarter was $0.8 million yielding a 68 percent gross profit margin, contrasted with 2011 annual results of $3.8 million in cost of goods sold and a 52 percent gross profit margin. VirTra’s profit margin fluctuates from quarter to quarter and is influenced by a number of factors such as vendor pricing, improved production methods, composition of customer orders, international orders and exchange rates.
VirTra’s general and administrative expenses during the first quarter of 2012 were $1.5 million compared to $4.8 million for full year 2011. General and administrative expenses as a percentage of revenue declined slightly during the quarter to 59 percent from 60 percent during 2011. These expenses were comprised of investments into support and new scenarios for current customers and development work for new products, software and simulator content as well as targeted sales and marketing efforts to attract new customers and distributors in various market segments.
Mark Skidmore, VirTra’s Director of Finance – Corporate Controller, commented, “The company is happy to report positive financial results for the first quarter of 2012. Also, in the two-and-a-half months I have been in charge of accounting, I have worked with the senior management team to bring the company current in its financial reporting. I am pleased that with the completion of the 2011 certified audit recently and now the unaudited first quarter 2012 financials, we are on target to release second quarter results on time on or before August 14.”
Mr. Skidmore continued, “I personally look forward to applying my experience and expertise to implement new methods to augment VirTra’s existing accounting and financial reporting systems. We will strive to develop significant metrics to assist management in leading the business to greater achievements.”
About VirTra Systems
VirTra is a global leading provider of the world’s most realistic and effective small arms 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(TM) 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.
Investor Relations Counsel
Rudy R. Miller Chairman
President & CEO The Miller Group