HOUSTON, April 15 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (BULLETIN BOARD: VTSI) today filed its audited 2007 10-KSB annual report with the Securities and Exchange Commission.
Total revenue reported for the year was $2,245,095, up 19% compared to $1,887,768 one year ago. Net loss for 2007 improved by 14% to $(1,124,045), or $(0.01) per share, compared to net loss of $(1,303,857) or $(0.02) per share, in 2006.
"If one removes a one time, non-cash accounting charge for the company's only employee stock option plan, we missed breaking even by only $171,000, which in our market is about the cost of one simulator sale," stated Major General Perry V. Dalby (USA-Retired), VirTra Systems' chief executive officer. "Although disappointed we are not yet profitable, I believe these results are very encouraging as we continue to experience accelerating sales in the first quarter of 2008.
"Fiscal 2007 saw 29 systems sold, compared to only 18 during fiscal 2006. System sales and installations domestically continue to be strong with systems provisioned for the Federal Air Marshals, Transportation Safety Administration (TSA), the U.S. Army, the U.S. Navy, the U.S. Air Force, various police departments, police academies, and community colleges. We also provisioned or upgraded more systems for Mexico and one system for a large South American customer.
"As a percentage of revenues, our cost of sales decreased from 39% in 2006 to 34% in 2007. We decreased our manufacturing costs on several components of our high-end Immersive Virtual Reality (IVR) small arms training simulator, resulting in costs savings. Moreover, many of our manufacturing costs are fixed or semi-fixed so that those costs naturally decrease as a percent of revenues when revenues increase.
"Also in 2007, we focused more heavily on sales of our IVR systems and put less emphasis on our custom projects, usually related to advertising and promotion. Custom projects typically have lesser margins than our IVR systems.
"Finally, our warranty revenues have increased in 2007 over 2006. Warranty revenues have historically had only negligible costs.
"In closing, I am pleased to announce that we have this past Monday completed talks and entered into a repayment plan with the Internal Revenue Service for settlement of the six-year old tax issue. We have been fortunate to negotiate a graduated repayment plan over multiple years until we are paid up, effectively ensuring the company's ability to continue building on our 2007 success. I remain optimistic for an even more successful year in 2008," Major General Dalby concluded.
About VirTra Systems
Utilizing patented technology, VirTra Systems sells situational awareness firearms training systems to military agencies such as the U.S. Army, Navy, Air Force, Marines, and Department of Defense, and to national and international law enforcement agencies. The company also produces multisensory promotional virtual reality systems and 3-D theaters for clients such as General Motors, Pennzoil, Red Baron(TM) Pizza, and the U.S. Army. For more information, visit http://www.virtra.com/.
One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. VirTra Systems urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.
Media Relations:
VirTra Systems, Inc.
Steve Haag, vice-president
of investor relations
Houston, Texas
(832) 242-1100
