Tempe, Arizona (May 15, 2013) — VirTra Systems (OTC Pink: VTSI), a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, today reported unaudited financial results for its first quarter of 2013, ended March 31. The unaudited financial statements are available on VirTra’s website and here.
The Company posted first quarter revenue of $2.49 million along with a net income of $0.53 million. Last year’s first quarter revenue was $2.61 million and net income for that period totaled $0.25 million. Revenue is down slightly for the first quarter of this year by about 5 percent, due in part to timing of deliveries, while net income increased 115 percent.
VirTra’s cost of goods sold for the quarter was $0.75 million representing a 70 percent gross profit margin compared to 68 percent for the same quarter last year. VirTra’s profit margin does fluctuate from quarter-to-quarter and is influenced by a number of factors such as: revenue recognition, volume, vendor pricing, improved production methods and composition of customer orders.
The Company’s general and administrative expenses during the first quarter of 2013 were $1.20 million compared to $1.53 million for the first quarter, 2012. VirTra has continued to control spending while investing in the development of multiple new products and sales initiatives in order to promote long-term growth along with support and new scenario development for current customers.
Mark Skidmore, Vice President – Chief Accounting Officer of the Company, stated, “VirTra’s management team, and all of the Company’s employees, has worked extremely hard at improving financial and operational efficiencies. This ongoing, committed effort by our team had a direct financial impact on the net operating results for the first quarter.”
Bob Ferris, Chief Executive Officer of VirTra, commented, “The Company’s first quarter 2013 financial performance demonstrates strong gains in profitability. VirTra remains focused on growing its annual revenue and bottom line results through an expanding worldwide customer base.”
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.