MTSX Metal Storm Reports Third Quarter 2004 Financial Results
Business Editors / Technology Writers / Defense Writers
ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 30, 2004--
(IN US DOLLARS)
Metal Storm Limited (NASDAQ Small Cap ticker symbol: MTSX and ASX
trading code: MST)
Metal Storm has reported unaudited group revenue from ordinary
activities of U.S. $1,130,899 for the third quarter of 2004 compared
to $154,519 for the same period last year. Revenue for the first nine
months of 2004 was $3,361,996, compared to $493,831 for the same
period last year. The increase in revenue primarily reflects the
acquisition of the company's new U.S. subsidiary, ProCam, LLC, in
December 2003.
Unaudited net loss for the third quarter of 2004 was $1,796,569
($0.003 per share and $0.014 per ADR), compared to an unaudited net
loss of $896,371 ($0.002 per share and $0.04 per ADR) for the same
period last year. Unaudited net loss for the first nine months of 2004
was $5,422,566 ($0.01 per share and $0.042 per ADR), compared to an
unaudited net loss of $3,150,863 ($0.007 per share and $0.144 per ADR)
for the same period last year. The increase in net loss for the
reflects increased research and development expenses, additional
technical staff, costs associated with testing and demonstrating Metal
Storm technology, and integration costs related to the ProCam
subsidiary.
As of September 30, 2004, Metal Storm held $13,043,176 in cash and
cash equivalents.
Mr. Charles Vehlow, chief executive officer of Metal Storm,
stated, "We continue to make progress towards commercialization of the
40mm and small caliber electronically initiated stacked rounds
ballistic systems through new partnerships with notable U.S. defense
industry contractors:
-- We are pleased to report a recent award by the US Navy to
develop a system to defeat incoming rocket propelled grenades
in cooperation with Northrop Grumman.
-- We entered an agreement with Lockheed Martin to conduct
studies and technical demonstrations of the Metal Storm
torpedo defense system.
-- We entered a cooperative research and development agreement
with the U.S. Army's Picatinny Arsenal, which provides us
valuable resources, including use of the Army's test firing
ranges, facilities, and ammunition handling capabilities.
"Overall, we have sufficient cash reserves to support further
development of the electronically initiated stacked rounds ballistic
systems, and we remain focused on securing commercial agreements and
licenses for the sale of our technology."
The company also notes that its development projects with the New
Jersey Institute of Technology are progressing, and the company is
accelerating its licensing efforts for the O'Dwyer VLe(R) electronic
handgun technology.
Mr. Vehlow continued, "We have also strengthened our senior
management and board of directors. We hired Mr Jim MacDonald as Chief
Financial Officer of the company. Jim brings extensive financial
experience both in Australia and overseas, including an in-depth
knowledge of U.S. generally accepted accounting principles, and U.S.
reporting requirements. Additionally, we appointed Mr George Bergeron
as Chief Technology Officer, along with an expansion of the technical
team. George brings more than 25 years experience, and formerly served
as director of the Technology Development Laboratory at Science
Applications International Corporation. In addition we have expanded
our board with the appointments of Mr J. Dennis Heipt and Mr Bruce
McComish. Dennis has valuable experience in government contracting and
a successful track record in negotiating commercial agreements within
the U.S. defense and technology sectors. Bruce brings extensive
experience in investment banking and mergers and acquisitions."
Mr. Vehlow also confirmed that the selection process to appoint a
new Chairman of the board was progressing.
About Metal Storm
Metal Storm Limited is a defense technology company, employing 60
staff, headquartered in Brisbane, Australia and incorporated in the
U.S., with offices in Washington, DC and a defense engineering
capability located in Seattle, operating as ProCam Machine LLC. The
Company has invented 100-percent electronic ballistics technology that
has no known conventional equivalent. Metal Storm is working with
government agencies and departments, including the National Institute
of Justice (U.S.), the Missile Defense Agency (U.S.), the U.S. Navy
and U.S. Army to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition system.
Safe Harbor
Certain statements made herein that use the words "estimate,"
"project," "intend," "expect," "believe," and similar expressions are
intended to identify forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
forward-looking statements involve known and unknown risks and
uncertainties which could cause the actual results, performance or
achievements of the company to be materially different from those
which may be expressed or implied by such statements, including, among
others, risks or uncertainties associated with the development of the
company's technology, the ability of the company to meet its financial
requirements, the ability of the company to protect its proprietary
technology, potential limitations on the company's technology, the
market for the company's products, government regulation in Australia
and the U.S., changes in tax and other laws, changes in competition
and the loss of key personnel. For additional information regarding
these and other risks and uncertainties associated with the company's
business, reference is made to the company's reports filed from time
to time and the Securities and Exchange Commission, including the
company's Form 20-F.
KEYWORD: NORTH AMERICA AUSTRALIA/OCEANIA VIRGINIA AUSTRALIA UNITED STATES
INDUSTRY KEYWORD: GOVERNMENT DEFENSE EARNINGS
SOURCE: Metal Storm, Inc.
CONTACT INFORMATION:
Metal Storm, Inc.
Charles Vehlow, 703-248-8218
cvehlow@metalstormusa.com
or
Investor:
Lippert Heilshorn & Assoc.
David Waldman/Jody Burfening, 212-838-3777
dwaldman@lhai.com
or
Media:
Lippert/Heilshorn
Chenoa Taitt, 212-838-3777
ctait@lhai.com
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