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DataLogic International, Inc. DLGI; Berlin, Frankfurt Stock
Exchange: 779612), a provider of GPS-based mobile asset management, secured
mobile communications and network security, today announced its financial
results for the year ended December 31, 2005.
Financial Results
DataLogic International net revenues for the year ended December 31, 2005
were $17,522,795 as compared to net revenues of $14,255,054 for the year ended
December 31, 2004. The 22.9% increase in revenues year over year was
primarily due to the growth of the Company's communications business segments.
Gross profit for the year ended December 31, 2005 was $2,153,348, or 12%
of revenues, as compared to gross profits of $2,661,991, or 19% of revenues,
for the prior year. The decrease in gross profit was due primarily to the
change in the composition of cost of goods sold as a result of differing types
of contracts between 2005 and 2004 and due to the changing composition of
costs of goods sold and operating expenses as a result of acquisitions in
2005.
Operating expenses for the year ended December 31, 2005 were $2,764,072 as
compared to $3,653,430 for the prior year. The decrease in operating expenses
was mainly due to the large bad debt write-offs in 2004 and secondarily due to
the changing composition of costs of goods sold and operating expenses as a
result of acquisitions in 2005. As noted above, cost of goods sold increased
accordingly.
Interest expense for the year ended December 31, 2005 was $899,985 as
compared to $538,827 for the prior year. The increase in interest expense was
primarily attributable to the inclusion of a full 12 months of cost associated
with the Company's notes and debt issuance related to the Laurus Master Fund
financing facility established in June, 2004.
As a result of the above, the Company's net loss for the year ended
December 31, 2005 was $420,271, or a loss of $0.01 per share, as compared to a
net loss of $1,482,456, or a loss of $0.04 per share in the prior year.
For the year ended December 31, 2005 the Company's assets consisted of
cash and cash equivalents of $456,780, $1,886,505 in accounts receivable,
$7,200 in marketable securities, and $1,068,575 in inventory, as compared with
$643,847 in cash and cash equivalents, $1,630,570 in accounts receivable,
$16,000 in marketable securities and $53,526 in inventory in the prior year.
The increase in inventory levels at December 31, 2005 as compared with
December 31, 2004 results primarily from acquisitions in 2005. For the year
ended December 31, 2005 Company current liabilities consisted of $2,189,688 in
accounts payable and accrued expenses and $1,532,651 in short-term debts, as
compared with $1,447,353 in accounts payable and accrued expenses and
$1,069,560 short-term debts in the prior year.
In preparing the financial statements for the year ended December 31, 2005
management performed a detailed analysis of the operations, records and
estimates used in all business segments and as a result wrote off various non-
performing assets and reclassified transactions. This effort was necessary to
provide the operating foundation upon which to build and support the Company's
anticipated growth in 2006 and beyond, and return the Company to
profitability.
Management Analysis
"We are very pleased with our results for 2005 and the reduction in our
net loss for the year. We grew revenues in excess of 22% and made significant
gains across both our business segments. We look forward to 2006 and
continuing on the path to returning the Company to profitability," stated
Keith Moore, Chairman and CEO. "We are also dedicating more resources to
acquisition opportunities to increase market share and provide additional
services, revenue and cash flow."
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 complete GPS and
location based services to rapidly growing markets such as vehicle and asset
tracking, 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, 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 and 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 or a person acting on its behalf are expressly qualified in
their entirety by this cautionary language.
Contact Information:
Keith C. Moore, Chairman and CEO
DataLogic International, Inc.
949-260-0120. ext. 106
SOURCE DataLogic International, Inc.


Contact Information:
Keith C. Moore, Chairman and CEO of DataLogic International, Inc., [phone], ext. 106

WebSite:
http://www.dlgi.com