TEMPE, AZ--(Marketwired - Aug 15, 2013) - VirTra Systems (
During the second quarter 2013, VirTra received a record amount of purchase orders totaling $5.33 million. Some of these sales orders require customization and reaching milestones over the course of many months. VirTra expects to recognize the majority of the revenue from these projects in the future.
The Company posted second quarter revenue of $1.57 million along with a net loss of $0.13 million. For the first two quarters of 2013, revenue was $4.06 million and net income was $ 0.40 million. The lower second quarter revenue is due largely to the fact the Company commenced some large projects during the quarter, but the dollars are not yet recognized as revenue.
VirTra's cost of goods sold for the quarter was $0.51 million representing a 68 percent gross profit margin compared to 69 percent for the same quarter last year. Year to date gross profit margin is 69 percent compared to 68 percent for the same time last year. VirTra's profit margin may 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 second quarter of 2013 were $1.19 million compared to $1.40 million for the second 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 world class customer support and new scenario development for current customers.
Mark Skidmore, Vice President - Chief Accounting Officer of the Company, stated, "The fluctuation in revenue from quarter to quarter is due to the nature of our business and our standard procedures of recognizing revenue. I am encouraged by how well we are managing our expenses and our cash." Mr. Skidmore continued, "The Company has achieved positive shareholder equity of $0.12 million, an increase of $0.45 million as compared with one year ago. In addition, we had no draws on our line of credit, compared to draws of $0.61 million during the second quarter 2012."
Bob Ferris, Chief Executive Officer of VirTra, commented, "The Company's record sales orders during second quarter is encouraging news and attributable to persistent efforts over a long period of time. VirTra's goals continue to be expanding our product offerings, gaining new customers, and building the overall value of the firm."
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.