Global ePoint Announces Second Quarter Results
Second Quarter Revenue Increases 13% Company Has Record Current Backlog of $18 Million
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Aug. 22, 2005--Global ePoint, Inc. (NASDAQ: GEPT - News), a developer of innovative security solutions for the aviation, homeland security and law enforcement markets, announced today second quarter results for the period ended June 30, 2005. The financial results include operations from the Company’s Digital Technology, Aviation and Contract Manufacturing operations.
The Company reported revenue of $5.2 million compared to the same period in 2004 when Global ePoint had revenue of $4.6 million. Higher sales of security products, as well as an increase in revenue from its contract manufacturing division, contributed to the increase in sales. The Company currently has a backlog of orders of $18 million, the highest in its history. Most of the backlog is expected to be realized as revenue during the second half of the year.
The Company’s continued investment in research and development and sales, marketing and infrastructure costs related to the recently launched Perpetual Digital product line and the Aviation division resulted in a net loss of $1.8 million in the second quarter of 2005, compared to a net loss of $1.5 million for the 2004 second quarter. Global ePoint had a net loss applicable to common stockholders of $(2.7) million or $(0.22) per share, compared to a net loss applicable to common stockholders of $(1.5) million or $(0.13) per share for the same period in 2004. The 2005 net loss applicable to common stockholders is inclusive of the net loss and a non-cash dividend on preferred stock of $880,000.
For the six months ended June 30, 2005, Global ePoint had revenue of $10.7 million, compared to $9.0 million in the first six months of fiscal 2004. The increase in revenue was due to higher revenue from the Company's Perpetual Digital and Aviation businesses, along with higher contract manufacturing revenue.
Increased costs for research and development and higher sales, marketing and infrastructure costs related to the Perpetual Digital product line and the Aviation division resulted in a net loss of $3.5 million for the first six months of fiscal 2005, compared to $1.8 million for the same period in fiscal 2004. The Company had a net loss applicable to common stockholders of $(4.9) million, or $(0.39) per share, compared to a net loss applicable to common stockholders of $(1.8) million, or ($0.17) per share for the six months ended June 30, 2004. The 2005 net loss applicable to common stockholders is inclusive of the net loss and a non-cash dividend on preferred stock of $1.4 million.
"During the second quarter, we continued to make the transition from lower margin contract manufacturing sales to higher margin state-of-the-art security products," said Toresa Lou, Global ePoint’s Chief Executive Officer. "Recently, this has begun to yield tangible results, as our AirWorks and Perpetual business units have received several significant new contracts, from which we will recognize significant revenue during the second half of the year. The recent bombings in London highlight the need for video as a key component in homeland security. We believe there exists numerous opportunities for growth in our video surveillance product lines, which have broad applicability across a range of industries including financial, law enforcement, hospitality and aviation. Finally, we continue to focus on completing the acquisition of Astrophysics and further expanding our portfolio of security-related products."
About Global ePoint’s Aviation Division
The Company’s Aviation Division includes Global AirWorks, whose primary communications and security products include the Cockpit Door Surveillance System (CDSS), a digital electronic “flight bag” of all flight and on-board manuals and records for pilots and a Laptop Computer Power System for passengers and flight crews. AirWorks customers include airline major OEMs, such as AT&T; Aviation, BAE Systems, In-flight Phone, L3 Communications, and Rockwell Collins; all major U.S. airlines; and all major international carriers, including ATA, Air China, Bombardier, Finnair, Varig, KLM, Lufthansa, and Cathay Pacific. AirWorks holds more than 40 supplemental type certificates (STC) certifying AirWorks as a Federal Aviation Administration (FAA)-approved manufacturer and installer for a range of interior equipment and systems for a variety of commercial aircraft flying worldwide.About Global ePoint, Inc.
Global ePoint’s growth catalyst, through its wholly-owned subsidiaries, is the design, manufacturing, sales and distribution of digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology and seeking to expand its product line, Global ePoint is developing new compression technologies and next-generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. As a solid recurring revenue stream, the Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration -- from design and manufacturing to sales and distribution -- allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit http://www.globalepoint.com.Global ePoint, Inc.
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