CirTran Reports 629% Increase in Sales, 77% Improvement on Bottom Line for 2004
Business Wire - April 15, 2005 13:50
SALT LAKE CITY, Apr 15, 2005 (BUSINESS WIRE) -- CirTran Corp. (OTCBB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today filed Form 10-KSB for the year ended Dec. 31, 2004, reporting a 629% increase in sales and a 77% reduction in losses as compared with the previous year.
CirTran reported net sales of $8,862,715, an increase of 629% as compared with sales of $1,215,245 for fiscal 2003. The company also reported a 77% reduction in losses to $658,322 from $2,910,978 reported for fiscal 2003.
CirTran also showed a 98% increase in total assets, reporting corporate assets of $4,293,429 as compared with $2,169,834 a year ago. In addition, the company reduced total shareholders' deficit by 54%, reporting $2,242,033 as compared with $4,915,215 in its fiscal 2003 filing.
"Substantial Growth and Re-emergence"
"By any and all measures, 2004 was a period of substantial growth and re-emergence for CirTran," said Iehab Hawatmeh, the company's founder and president. "Everyone at CirTran went about the business of working hard to increase sales while reducing liabilities and keeping a watchful eye on operating expenses according to plan. Those efforts -- and we believe similar positive results -- have continued into fiscal 2005," he said.
CirTran "won more than $30 million (annualized) in contracts in the first quarter of 2005, led by the continued acceptance of our new CirTran-Asia subsidiary as a 'player' in building consumer electronics and sold-on-TV products in China," said Hawatmeh. He also said that CirTran's core business in the United States "has continued to improve in keeping with the general improvement in the domestic IT marketplace.
"The early years of the new millennium were very difficult for the IT industry here at home and around the world," he said. "Many companies -- some many times larger than CirTran -- were brought to their financial knees or just disappeared. I believe CirTran and our Racore Technology have re-emerged from these troubled times in good position to conduct business in the U.S., along with our Asian subsidiary."
Hawatmeh said that the company has continued to make substantial progress into 2005, including converting $2.5 million in debt to equity and paying off a negotiated settlement with the Internal Revenue Service, "improving CirTran's overall financial position by approximately $4 million.
"CirTran," he said, "also continued to make moves with immediate and long-term financial benefit" earlier this week when it purchased its 40,000-square-foot office and manufacturing facility for $2.05 million, including $1 million in restricted (for two years) stock at $.05 per share and assumption of a note for $1.05 million. Hawatmeh said the building, which has been CirTran's headquarters since 1996, has been appraised for more than $2.2 million.
About CirTran Corp.
Founded in 1993, CirTran Corp. (www.CirTran.com) is a premier international full-service contract manufacturer of low to mid-size volume contracts for printed circuit board assemblies, cables and harnesses to the most exacting specifications. Headquartered in Salt Lake City, CirTran's modern 40,000-square-foot non-captive manufacturing facility -- the largest in the Intermountain Region -- provides "just-in-time" inventory management techniques designed to minimize an OEM's investment in component inventories, personnel and related facilities, while reducing costs and ensuring speedy time-to-market.
About CirTran-Asia
CirTran-Asia (www.CirTran-Asia.com) was formed in 2004 as a high-volume manufacturing arm and wholly owned subsidiary of CirTran Corp. with its principal office in ShenZhen, China. CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on being a leading manufacturer for the multi-billion dollar Direct Response Industry, which sells through infomercials, print and Internet advertisements.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.
SOURCE: CirTran Corp.
CirTran Corp., Salt Lake City
Trevor M. Saliba, 801-963-5112
trevor@cirtran.com
or
The Kaminer Group (Press)
David A. Kaminer, 914-684-1934
dkaminer@kamgrp.com
