IRVINE, CA, August 15, 2006 – DataLogic International, Inc.,(OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612), a provider of consulting services and advanced communications solutions, today announced financial results for the second quarter ended June 30, 2006.
Net sales for the second quarter ended June 30, 2006 were $5,072,279 as compared to net sales of $4,484,178 for the quarter ended June 30, 2005. The 13% increase in revenue was primarily attributable to the Communications segment sales growth of 44% to $1,683,000 as compared to net revenues of $1,171,000 for the same period in 2005.
Gross profit for the quarter ended June 30, 2006 was $552,218, or 11% of net revenue, as compared to gross profit of $526,091, or 12% of net revenue, for the same period in the prior year. The decrease in the Company’s gross profit margin was primarily due to an increase in workers compensation and unemployment tax rate in the Consulting Services segment.
Operating expenses for the quarter ended June 30, 2006 were $1,020,334 as compared to $696,917 for the same period in the prior year. The 46% increase in operating expenses were primarily attributable to an increase in compensation costs associated with the expensing of stock options pursuant to SFAS 123(R), an increase in employee
benefits, workers compensation, unemployment insurance, and professional fees, as well as increases in sales and marketing costs in the Communications segment.
Interest expense for the quarter ended June 30, 2006 was $89,136 as compared to $207,852 for the same periodin the prior year. The 57% decrease in interest expense was primarily due to a decrease in interest expense associated with the amortization of the debt discount on the convertible term note issued to Laurus which was paid in January 2006. The change in the fair value of derivative and warrant liabilities was $416,955 as compared to $451,974 for the quarter ended March 31, 2005. Realized gain from the sale of property and equipment was $14,868 due to a sale of property.
As a result of the above, the net loss for the quarter ended June 30, 2006 was $125,429, or a loss of $0.00 per share, as compared to the net loss of $122,704, or a loss of $0.00 per share, for the same period in the prior year.
“We continue to make improvements in our revenue growth as well as expense reductions” stated Keith Moore, CEO. “Our efforts to re-align our operating segments and reduce redundancy and other expenses are ongoing and we look to build upon our revenue growth for the second half of the year.” Said Moore.
About DataLogic International, Inc.
DataLogic International, Inc. provides communications solutions and consulting services to a wide range of U.S. and
international commercial enterprises and governmental agencies. DataLogic provides GPS services to rapidly growing
markets such as public safety and homeland security. DataLogic also provides secure mobile communications, network
security, video communications as well as Information Technology and consulting services. For more information about
DataLogic International, Inc. please visit 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, the market performance of acquired business entities and assets and other factors such as, but not limited to, 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, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
Investor Relations Contact:
Keith C. Moore, Chairman and CEO
DataLogic International, Inc.
+1-949-260-0120, ext. 106
keithmoore@dlgi.com |
