American TonerServe Corp (fka ASVPQ)

[rooterjack]

Yahoo!My Yahoo!Mail Make Y! your home pageYahoo! SearchSearch:Sign In
New User? Sign UpFinance Home -Help


Home InvestingMarket OverviewMarket StatsStocksMutual FundsETFsBondsOptionsIndustriesCurrencyEducationNews & OpinionMarketsInvesting IdeasExpert AdviceSpecial EditionsCompany FinancesProvidersPersonal FinanceBanking & BudgetingCareer & WorkCollege & EducationFamily & HomeInsuranceLoansReal EstateRetirementTaxesHow-to GuidesGet QuotesSymbol LookupFinance Search



Press Release Source: American TonerServ Corp.


American TonerServ Corp. Reports Gains in Toner Revenues
Monday December 11, 9:18 am ET


SANTA ROSA, CA--(MARKET WIRE)--Dec 11, 2006 -- American TonerServ Corp. (OTC BB:ASVP.OB - News) today announced results for its three months and nine months ending September 30, 2006, posting an increase of approximately 4,800% in toner sales for the three months ending September 30, 2006 ("Q3 2006") over the same period in 2005 ("Q3 2005").
ADVERTISEMENT


The increase in Q3 2006 revenues was primarily due to the increase in toner revenue. Revenues from the sale of toner cartridges increased by $137,202 for the three months ending September 30, 2006 compared to 2005. Toner revenues for the nine month period ending September 30, 2006 increased by $142,027 as compared to the same period last year. Toner revenues increased due to the acquisition of the customer lists of Computech Print Solutions, Inc. and Laser Cartridge Recharge Systems, Inc. which occurred during Q3 2006.

Gross Profit (Revenue less Cost of Goods Sold) for Q3 2006 increased to $55,421 from $35,073 in Q3 2005. Gross profit YTD 2006 was $144,759 as compared to $137,309 in YTD 2005. The gross profit margin in Q3 2006 was 32% compared to a gross profit margin for Q3 2005 of 29%. The gross profit margin YTD 2006 was 44% compared to a gross profit margin in YTD 2005 of 38%. The Company's gross margins have increased due to the higher margins associated with service revenues on office equipment as compared to toner sales.

Total operating expenses for the three months ending September 30, 2006 were $631,135, up from $122,361 over the same period in 2005. For the nine months ending September 30, 2006, total operating expenses were $853,620, up from $500,738 in 2005. Management attributes the additional expense in operations to the change of focus to toner sales.

For more information, please see the Company's report on Form 10-QSB for the quarter ended September 30, 2006 which is available at: http://sec.gov/Archives/edgar/data/1009479/000126327906000192/ats10q.txt.

As reported in our Form 10-QSB, on July 5, 2006, the Company entered into a Customer List Purchase Agreement with Computech Print Solutions, Inc. ("Computech") in which the Company acquired Computech's list of customers and related information for $292,000. The terms of the agreement included a $50,000 down payment and a note for $242,000 with interest imputed at 10% and monthly payments of $8,000. On August 26, 2006, the Company entered into a Customer List Purchase Agreement with Laser Cartridge Recharge Systems, Inc. in which the Company acquired Laser Cartridge Recharge Systems, Inc.'s list of customers and related information for $104,000. The terms of the agreement included a $5,000 down payment and monthly payments of 25% of gross sales for year one and 20% of gross sales for year two. These companies were distributors of remanufactured laser toner cartridges, primarily to business customers. The Company is using the customer lists to solicit sales of remanufactured toner cartridges to increase the Company's sales of such products