DFNS actually moving up a little here today. No momo, but it does have fundamentals:
Defense Industries International Reports Second Quarter 2004 Financial Results
Friday August 13, 3:19 am ET
ASHKELON, Israel--(BUSINESS WIRE)--Aug. 13, 2004--Defense Industries International, Inc. (OTCBB:DFNS - News), a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, yesterday announced its financial results for the second quarter ended June 30, 2004.
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Revenues for the quarter ended June 30, 2004 were $2,826,825, an increase of 44.8% compared to revenues of $1,952,258 for the three months ended June 30, 2003. The Company reported comprehensive income for the quarter of $101,157 compared to comprehensive income of $49,044 for the second quarter of 2003. Comprehensive income for each period includes adjustments related to foreign currency translation and unrealized gains or losses on securities available for sale.
Excluding these adjustments, net income for the period was $83,110, or $0.00 per share compared with a net loss of $(72,395), or $0.00 per share for the comparable period in 2003. Total basic and diluted shares outstanding used in the calculation of EPS for both periods were 25,350,000.
Gross profit for the second quarter of 2004 was $854,527, compared with gross profit of $547,684 for the second quarter of 2003. Operating income for the quarter increased to $207,198 compared with an operating loss of ($16,616) for the year-ago period.
Gross profit margin for the three months ended June 30, 2004 was 30.2% compared with 28% for the same period in 2003. The increase is attributable to increased export sales that were characterized by higher margins compared to local sales. Higher overseas margins were partially offset by the ratio spread between the Euro and US Dollar and increased local competition resulting from shrinkage in the Israeli market. The Company does not anticipate any major changes to gross margin percentage during the remainder of 2004.
Revenues for the quarter included sales of approximately $.97 million to the local market, compared with local sales of $1.28 million for the second quarter of 2003. Net sales from exports increased approximately 177% to $1.86 million, from $.67 million in the second quarter of 2003. The increase in the export business is partially attributable to the sales of the Company's ballistic plates, blankets and lightweight vehicle armor kits that were recently introduced as new product offerings.
The Company expects the trend of increased export sales to continue in the third quarter, and it is anticipated that third quarter 2004 sales will exceed sales from the third quarter of 2003.
For the six months ended June 30, 2004, the Company reported revenues of $6,572,804, compared with revenues of $5,120,402 for the six months ended June 30, 2003. Comprehensive income for the first half of 2004 was $374,553 compared to comprehensive income of $245,336 for the six months ended June 30, 2003. Comprehensive income for each period includes adjustments related to foreign currency translation and unrealized gains or losses on securities available for sale.
Excluding these adjustments, net income for the period was $432,334 or $.02 per share, an increase of 325% compared with $101,717, or $0.00 per share for the comparable period in 2003.
Gross profit for the period was $1,820,766, compared with gross profit of $1,442,016 for the six months ended June 30, 2003. The Company reported operating income of $745,821 for the first six months of 2004, compared with $365,692 during the comparable period in 2003.
Sales to the local market for the first six months of 2004 were approximately $1.7 million, compared with local sales of $2.7 million for the same period in 2003. Export sales for the period increased approximately 103% to $4.9 million, from $2.4 million reported in the six-month period ended June 30, 2003.
Commenting on the results, Joseph Fostbinder, CEO of Defense Industries said, "We are extremely pleased with our second quarter results. We saw continued strength in the Company's export sales, which we believe is attributable to the successful implementation of our strategy to concentrate our efforts on international expansion. While our sales to the local market remain depressed, our 177% gain in second quarter export revenues offset the local decline and allowed us to achieve net revenue growth for the quarter."
He continued, "The growth trend in North America continued this quarter as we received an order for approximately $1 million for our vehicle armoring kits from a key customer in the region. This is a follow-on order to the approximately $1.7 million initial order made in the first quarter of this year, and we expect to see additional orders from this customer in the second half. We are pleased by the initial market acceptance of our vehicle armoring kit, which is a relatively new addition to the Defense Industries product family. We believe these initial results speak greatly to the quality of our products and enhance the stellar reputation we have earned with our customers worldwide.
"Additionally, we received orders, worth a total of $1,100,000 from customers in South & Central America. These follow-on orders for the Company's bulletproof vests were the result of our joint venture and increased sales and marketing efforts in the region. It has been a little over a year since our expansion into the South American market and we continue to experience significant and positive word-of-mouth exposure that has resulted in interest in a number of our products from potential new customers. Our South American sales and marketing efforts remain extremely aggressive, and we continue to believe this market represents a significant growth opportunity for the Company."
Mr. Fostbinder concluded, "We are extremely pleased with the results from our international markets and we remain confident in our ability to capitalize on the continued growth opportunities that exist for the Company. We remain committed to continuing the expansion of our export business, both securing new customers and enhancing relationships with our existing customers, as well as working to return our local business to historical levels as the Israeli economy picks up and spending resumes."
About Defense Industries International, Inc.
Defense Industries International, Inc. ("Defense Industries") (www.defense-industries.com) is a leading manufacturer and global provider of personal military and civilian protective equipment and supplies. Defense Industries' subsidiary, Export Erez Ltd., was formed and registered in 1983. Defense Industries' main products include body armor, bomb disposal suits and bullet-resistant vests and jackets; ballistic wall covers, helmets, plates and one-way protective windows; personal military equipment, battle pouch units and combat harness units; dry storage units, liquid logistics, tents and vehicle covers; and winter suits, sleeping bags and backpacks.
Defense Industries' products are used by military, law enforcement, border patrol enforcement and other special security forces, corporations, non-governmental organizations and individuals throughout the world. Customers include the Israel Defense Forces, the North Atlantic Treaty Organization (NATO), the United Nations Peacekeeping Forces and other U.N. organizations.
Defense Industries manufactures its own products, thereby enabling it to offer highly competitive pricing and to fulfill product orders on a rapid and efficient basis. Its manufacturing facilities meet American EQNET and international ISO 9001 standards. Quality control in the Company's manufacturing facilities is performed according to ISO 9001; MIL.STD.105D; MIL-I-45208A (for the U.S. Armed Forces); AQAP (for the German Armed Forces and NATO); and the National Institute of Justice (N.I.J.).
Defense Industries' strategic objective is to be the leading global provider of personal military and civilian protective equipment and supplies. Defense Industries intends to realize its strategic objective by, amongst other methods, selectively pursuing strategic acquisitions that enhance its product lines and geographic presence in an effort to consolidate its highly fragmented industry and to create a more diverse and global reach in its marketplace.
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