TEMPE, AZ--(Marketwire - Mar 28, 2013) - VirTra (
VirTra has released the report of its independent registered public accounting firm, BDO Seidman Alliance member Semple, Marchal & Cooper, LLP, on the corporate financial statements for the fiscal year ended December 31, 2012. The company reported record high annual gross revenue of $8.8 million a 12% increase over 2011 gross revenue. This gain was due to increased market acceptance of VirTra as the new standard in use of force training simulators and sales department improvements implemented before and during 2012.
Also, VirTra's gross margin improved by 22%, moving from 52% of sales in 2011, up to 63% of sales during 2012. This increase was partially attributed to the increase in VirTra's pricing. Also, in 2011 operations implemented a new production and inventory management system designed to improve material, labor, installation, and overhead costs of goods sold.
To increase opportunities for future expansion, VirTra did expand its overall spending on research and development during 2012. VirTra's General and Administration expense remained constant as a percentage of sales during 2012.
As a result of these efforts, VirTra made a profit during 2012 of $.1 million as compared with a loss of $.7 million in 2011.
During 2012 and continuing into 2013, VirTra is pursuing aggressive growth strategies, to include sustained investment into its business to lay the foundation for expected expansion. As part of this process, VirTra is working alongside world class companies on several large domestic and international expansion opportunities. In addition, the Company continues to build on its best-in-class product and service reputation with military, law enforcement and commercial customers throughout the world.
Bob Ferris, Chief Executive Officer of VirTra, stated, "VirTra not only reached a record high in 2012 revenue and produced a profit, it did so while investing money and time into major growth opportunities in North America and selected world-wide markets. The management team is committed to building the Company's business, which is fundamental to long-term shareholder value. In addition, the Board of Directors is examining the implications of becoming a Securities and Exchange Commission (SEC) reporting company as well as reviewing a potential stock reversal and possible exchange listing."
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, exclusive realistic simulation software, 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.