Digital Descriptor Systems, Inc. (Pink Sheets:DDSI), an industry leader in the development of Homeland Security-related products, announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800 percent, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506 percent, to $2,226,727, from $367,270 for fiscal 2004.
In March 2005, DDSI acquired Somerset County, N.J.-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.
"Our sales and profit numbers continue to improve steadily, from quarter to quarter," says Anthony Shupin, CEO of DDSI. "With just ten months of financial results since our acquisition of CGM, there's every indication the business strategies we set in motion in March 2005 are extremely effective. We're currently in the midst of a very strong turnaround."
Michael Pellegrino, DDSI's CFO, notes, "We continue to utilize planning and discipline to carefully navigate the company through this early stage of growth. EBITDA (earnings before interest, taxes, depreciation and amortization) losses of $220,166 for the ten months since the acquisition indicate that we may have come close to breaking even in cash flow had we had the full year."
