GPS Industries Inc.(OTC BB: GPSN), a leading
innovator of Wi-Fi and GPS-enabled multimedia communications and management
solutions for golf facilities, resorts, sporting events and residential
communities is pleased to announce that the company just released Form
10-KSB, GPS Industries (GPSI) achieved a 166% sales increase for fiscal
2005, increasing from $2.18 million in 2004 to $5.82 million in 2005. The
company is also releasing guidance for 2006 sales, projecting a further
increase in 2006.
"We are miles ahead of where we were just a year ago," says CEO and
President Robert Silzer, Sr. "We have dramatically elevated our presence in
the industry and the reliability of our technology gets a lot of the credit
for that," Silzer adds. "Our sales are growing exponentially and 2006 will
be a breakout year for us."
To date GPSI has installed their Wi-Fi enabled INFOREMER™ GPS system at 74
golf facilities around the world. Currently averaging two new system sales
per week, the company is projecting 45-to-50 new installations through the
end of 2006. In fact, almost $4 million in sales have already been booked
through early second quarter. According to Silzer, "The sales trend is
positive, and our efforts are to maximizing operation efficiencies."
Along with this impressive sales trend however the company's Form 10-KSB
also reflects a substantial increase in financial charges and expenditures.
"Growth is always an expensive proposition, especially in a
technology-driven business like ours," says Silzer. "Obviously we are
continuing to innovate and enhance our technology."
The 10-KSB bears out the fact that Engineering and R&D costs have risen by
approximately 59%, due largely to continued product enhancements. "But the
main reasons for the pejorative financial report," explains Silzer, "are
non-cash charges totaling $9.8 million, including almost $6.5 million
caused by a fair value adjustment in derivative liabilities associated with
our convertible debt financing."
"At the same time," he adds, "the 10-KSB also shows that our COGS (Cost Of
Goods Sold) are actually 27% lower as a percentage of revenue this year.
Administrative costs are also lower, by almost 60%."
Additional expenses are attributable to the protection of GPSI's 29
international patents; these relate primarily to the use of Differential
GPS (DGPS) technology on golf courses. Last November the Company initiated
legal protection of those patents in the United Kingdom. According to
Silzer, "GPSI is continuing to pursue action against those infringing on
our patents."
About GPS Industries, Inc.
The company's unique suite of systems and software maximize operational
efficiency while also generating significant new revenue streams. The
company's patented InforemerTM GPS system is a comprehensive golf
management solution, combining powerful backend management tools and
revenue generating modules with mobile handheld or cart-mounted full color
display screens, seamlessly connected via a high-speed wireless network.
GPSI owns the patents covering golf-related GPS technology for all major
golf markets worldwide, including North America, Australia, Japan and 11
European nations. GPSI's Board of Advisors includes legendary golfer and
businessman Greg Norman.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially as a result of certain risks and uncertainties. These
risks and uncertainties include, but are not limited to: The Company's
ability to raise finance; global and market conditions within the golf
industry; demand for and market acceptance of new and existing products;
successful development of new products; the timing of new product
introductions; pricing pressures and other competitive factors; the ability
to develop and implement new technologies and to obtain protection for the
related intellectual property; as well as other risks and uncertainties,
including but not limited to those detailed from time to time in the
company's Securities and Exchange Commission filings. These forward-looking
statements are made only as of the date hereof, and the company undertakes
no obligation to update or revise the forward-looking statements, whether
as a result of new information, future events or otherwise. Other brands
and names contained in this release are the property of their respective
owners.
Contact:
Mr. Steven Barrett
Director, Marketing & Communications, GPS Industries
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