VirTra Reports Financial Results for Third Quarter 2012
TEMPE, AZ--(Marketwire - Nov 14, 2012) - VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, today reported unaudited financial results for its third quarter of 2012, ended September 30. The unaudited financial statements are available on VirTra's website and here.
During third quarter 2012 the company reported revenue of $1.42 million along with a net loss of $0.63 million. There were several factors that contributed to less revenue being recorded for the period and in turn the net loss. VirTra's revenue recognition methods require orders to be fully delivered prior to revenue being recognized and during the third quarter there were a number of product orders that were pre-delivery. Another factor attributable to lower revenue during the quarter was seasonality in sales. Through three quarters of the year VirTra has realized $6.96 million of revenue and $0.22 million of net income, which exceeds 2011 results on a pro rata basis.
VirTra's cost of goods sold for the quarter was $0.75 million representing a 47 percent gross profit margin. Year-to-date, the company's gross margin stands at 64 percent compared to 52 percent gross margin (audited) for the full year 2011 period. 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 third quarter of 2012 were $1.29 million. VirTra has continued to invest 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.
Bob Ferris, VirTra's Chief Executive Officer, stated, "Although reported numbers for the quarter did not meet our internal objectives due to a variety of factors, we are optimistic that our current sales pipeline will yield positive results in the near term. We also believe that the investments we have made will benefit shareholders and generate profitable growth into the future."
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™ 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.
Forward-looking Statements
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.
