Firearms Training Systems, Inc. Reports Q2 Revenue and Earnings; Wins Greek Army and Venezuelan Army Contracts
SUWANEE, Ga.---Firearms Training Systems, Inc. today reported results for its second quarter fiscal year 2000 ended September 30, 1999.
Revenue for the second quarter was $8,328,000 versus $12,111,000 for the same period of the previous year. Second quarter net loss was $3,812,000 or $0.18 per diluted share, compared with net loss of $826,000 or $0.04 per diluted share for the same period of fiscal 1999. Revenue for the six months ended September 30, 1999 was $23,524,000 versus $24,376,000 for the same period of the previous year. Net loss for the six months ended September 30, 1999 was $4,007,000 or $0.19 per diluted share compared with net loss of $2,844,000 or $0.14 per diluted share for the same period of fiscal 1999.
The Company also announced today that the Venezuelan Army has selected FATS to provide small arms simulators to train their forces by awarding a contract valued at approximately $1,400,000 with opportunity for additional systems and components. The Company also reported that FATS was recently selected through a demanding competitive process to provide small arms simulators to support the Greek Army training program with an initial contract value in excess of $500,000 and options to expand the program.
"Looking solely at the results for this past quarter will be deceptive and may cause our followers to overlook the near-term opportunity that we see for the Company,'' said Bob Mecredy, FATS' new President and CEO. "Our disappointing second quarter was substantially influenced by the many procurements that are being delayed or forced to full and open competition. Delays aside, the Company continued to win the significant competitions that were decided over the past several months. Awards such as Greece, Venezuela and numerous other smaller value contracts were based on technical superiority and total value to the customer. Recognizing these market conditions which effect our near-term financial condition, we have incorporated significant changes in business practices over the past two months to benefit future performance, with the full costs associated with these changes reflected in the second quarter SG&A.''
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Management believes that FATS remains the leader in military small arms simulation having recently delivered systems to the Australian and Canadian Armed Forces which incorporate the latest in digital technology. The Company also has unveiled a lower cost, portable system for law enforcement customers which includes the latest commercial information system technologies, and management expects this product to contribute to increased revenue in the near future.
Mr. Mecredy also said that, "the next six months are crucial in that at least two major procurements with current value exceeding $30,000,000 are to be decided in head-to-head competition. We have been preparing for these opportunities and remain confident that FATS will continue to lead the industry in small arms simulation. Furthermore, based on constructive discussions with our bank group, FATS anticipates an amended credit facility in the near future which will enhance the Company's financial stability and facilitate its capture of these key procurements.''
FATS is the leading worldwide producer of interactive simulation systems designed to provide training in the handling and use of small and supporting arms. FATS(r) products also include air defense, anti-armor, and armored vehicle training products, which are designed and manufactured by its Canadian subsidiary, Simtran Technologies, Inc. Commercial versions of FATS(r) products supporting the sports shooting enthusiast and professional hunter are designed and manufactured by its Colorado-based subsidiary, Dart International, Inc.
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Firearms Training Systems, Inc. Reports Q2 Revenue and Earnings; Wins Greek Army and Venezuelan Army Contracts
