Veltex Corporation (VLXC)

[ImakeMONEY]

Veltex Corporation Reports Strong Q1 Earnings for 2006
Thursday June 15, 4:41 pm ET

CITY OF INDUSTRY, Calif., June 15 /PRNewswire-FirstCall/ -- Veltex Corporation (Pink Sheets: VLXC - News) today reported their financial results for the first quarter of 2006.

Gross revenue: $14,620,319.00

Cost of revenue: $11,699,491.00

Gross profit: $2,920,828.00

Javeed Matin, CEO of Veltex Corporation stated: "We are on place to achieve our goal of $85 MM in revenue and more than $13 MM in profit for this year as we anticipate continued growth and stronger sales for the remaining three quarters of 2006. We continue to expand our market penetration through new licensing agreements and through our emergence into the retail supply business as well. We believe that Veltex-Canada will introduce our products to a broader market, resulting in international retailers adding our high quality merchandise in their stores both Canada and beyond. We are working with our new licensees to bring new and exciting merchandise to market. We expect our new high-end line of garments to be a major success and lead to new orders and greater licensing opportunities with new as well as existing brands. Growth has been exponential and we see it continuing as we focus the majority of our efforts into this aspect of the business. We are confident that our hard work will result in a significant reward for all of our patient and loyal shareholders."

He added, "We are on track, we are focused and we are driven to succeed."

There are 16,541,309 shares currently outstanding.

Veltex Corporation is a vertical manufacturing import and distribution company composed of five divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry and distribution of merchandise in the U.S. market; Veltex Explorer, Inc., a manufacturing, import and distribution company for the Promotional Products Industry in Canada; Veltex-Canada a retail supply company with more than sixteen major retail clients, Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, and sheeting for consumer and industrial products; and KCA Garment Industries, specializing in the manufacture of garments.

Safe Harbor: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.

URL: http://www.veltexcorp.com/ or http://www.veltexapparel.com/


Source: Veltex Corporation