VirTra Reports Record $5.33 Million in Purchase Orders and Financial Results for Second Quarter 2013
TEMPE, AZ--(Marketwired - Aug 15, 2013) - VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms simulators to military, law enforcement agencies and other organizations, today reported unaudited financial results for its second quarter of 2013, ended June 30. The unaudited financial statements are available on VirTra's website and here.
During the second quarter 2013, VirTra received a record amount of purchase orders totaling $5.33 million. Some of these sales orders require customization and reaching milestones over the course of many months. VirTra expects to recognize the majority of the revenue from these projects in the future.
The Company posted second quarter revenue of $1.57 million along with a net loss of $0.13 million. For the first two quarters of 2013, revenue was $4.06 million and net income was $ 0.40 million. The lower second quarter revenue is due largely to the fact the Company commenced some large projects during the quarter, but the dollars are not yet recognized as revenue.
VirTra's cost of goods sold for the quarter was $0.51 million representing a 68 percent gross profit margin compared to 69 percent for the same quarter last year. Year to date gross profit margin is 69 percent compared to 68 percent for the same time last year. VirTra's profit margin may fluctuate from quarter-to-quarter and is influenced by a number of factors such as: revenue recognition, volume, vendor pricing, improved production methods and composition of customer orders.
The Company's general and administrative expenses during the second quarter of 2013 were $1.19 million compared to $1.40 million for the second quarter, 2012. VirTra has continued to control spending while investing in the development of multiple new products and sales initiatives in order to promote long-term growth along with world class customer support and new scenario development for current customers.
Mark Skidmore, Vice President - Chief Accounting Officer of the Company, stated, "The fluctuation in revenue from quarter to quarter is due to the nature of our business and our standard procedures of recognizing revenue. I am encouraged by how well we are managing our expenses and our cash." Mr. Skidmore continued, "The Company has achieved positive shareholder equity of $0.12 million, an increase of $0.45 million as compared with one year ago. In addition, we had no draws on our line of credit, compared to draws of $0.61 million during the second quarter 2012."
Bob Ferris, Chief Executive Officer of VirTra, commented, "The Company's record sales orders during second quarter is encouraging news and attributable to persistent efforts over a long period of time. VirTra's goals continue to be expanding our product offerings, gaining new customers, and building the overall value of the firm."
