VANCOUVER, British Columbia, Aug. 19 /PRNewswire-FirstCall/ -- GPS Industries, Inc. (GPSI) (BULLETIN BOARD: GPSN) , the premier provider of Wi-Fi GPS systems for golf facilities, resorts and residential communities, today announced its unaudited financial and operating results for the second quarter ended June 30, 2008, and is pleased to report that for the 3 and 6 month periods ended June 30, 2008, revenues have increased 106% and 68% respectively over the corresponding periods in 2007 equalling the full year's revenue from 2007. Further, GPSI hired new CEO David Chessler in June to streamline operations, lead new sales initiatives and leverage GPSI's industry-leading technology to expand product offerings. Coincidental with his hire, GPSI closed a convertible debt financing of $5.5 million and continues to acquire new sources of equipment lease financing which will allow GPSI to offer its products to its customers under the most flexible terms in the golf industry.
While the net loss for the second quarter of 2008 of $3,866 (before Deemed preferred stock dividend) increased by $1,801 (87%) over the net loss from the corresponding period in 2007 (as restated), in this quarter GPSI sold and installed 12.5 (18 hole equivalent) Inforemer Systems while simultaneously restructuring its sales force and expanding its product offering to allow it to serve additional markets. These efforts were in addition to the significant task of reducing the ongoing operating while continuing to deliver the most technologically advanced and user-friendly family of products in the industry.
Q2 2008 Operating and Financial Hi-lights: (all amounts in thousands, except per share amounts) -- Total revenues increased by 106% to $4,564 in the second quarter as compared to the same period in 2007 primarily due to higher average selling prices and increased service and support revenue as a result of the Uplink acquisition. -- Cost of sales increased by 102% to $3,296 over the corresponding period in 2007 consistent with the increased revenues. -- Gross profit increased 116% to $1,268 vs. $587 in Q2 2007 and improved slightly over Q2 2007 as a percent of revenue at 28% vs. 27%. -- Total Operating expenses increased by 107% to $4,827 in comparison with the corresponding period in 2007. Included in the 2008 operating expenses are several one time charges associated with the restructuring and financing activities untaken by the company totaling approximately $965. In addition, 2008 expenses include the operations of Uplink and GPSI Europe acquired in January 2008 and October 2007 respectively and the amortization of the estimated value of the Intellectual Property associated with the Uplink acquisition. -- Secured new financing totaling $9.0M. GPSI increased its banking facility by $3.5M, guaranteed by GWSE and raised $5.5M of convertible debt financing from Tulip Investment Group Ltd. -- On June 16, 2008 GPSI hired David Chessler as Chief Executive Officer.
"The results for GPSI prior to my arrival present quite a challenge," stated CEO David Chessler, "However, I am extremely pleased with the progress made to date. With our superior technology, quality personnel, customer support and established infrastructure, GPS Industries has the tools to be successful; we must continue to consolidate our operations, reduce costs and be more efficient in delivering our industry-leading products to the market. I am highly confident we will rise to the challenges leaner, better and much more successful than we have been in the past, and I look forward to building on our initial successes."
About GPS Industries, Inc.
GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi multimedia solutions to enable managers of golf facilities, resorts, and residential communities to improve operational efficiencies and generate new revenue streams. The Company's Inforemer(R) Management Solutions product line provides integrated software applications and a high-resolution 10.4-inch cart mounted "HDX" display panel. The HDX panels vividly illustrate each hole, providing precise distance measurement information, strategic playing tips and targeted advertising messages. The patented system is seamlessly connected via a high-speed Wi-Fi network that enables the entire facility into a wireless hot spot. For additional information, please visit http://www.gpsindustries.com/.
Forward-Looking Statements
Some statements contained in this release may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, the company's ability to generate revenues and other factors as described in the Company's literature and filings with the Securities and Exchange Commission.
