QualMark Corporation Narrows Third Quarter Loss by 42%.Business Editors DENVER--(BUSINESS WIRE)--Oct. 16, 2002 QualMark Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : QMRK) a world leader in designing, manufacturing and marketing HALT (Highly Accelerated Life Testing) and HASS (Highly Accelerated Stress Screening) systems, today announced results for the third quarter ended September September: see month. 30, 2002. QualMark announced a reduction in net loss by 42% over the second quarter of 2002, on stable revenue. "Without arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the related expenses of $129,000, QualMark would have reported an income of $32,000," said Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by D. Johnston, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of QualMark Corporation. The Company reported a net loss of $97,000 and $385,000 on revenue of $1,916,000 and $5,903,000 for the third quarter and year to date for 2002, versus a net loss of $1,065,000 and $1,982,000 on revenue of $1,527,000 and $6,845,000 for the third quarter and year to date for 2001. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share was $0.05 and $0.31 for the third quarter and year to date for 2002, versus a basic and diluted loss per share of $0.30 and $0.57 for the third quarter and year to date for 2001. "We continue to be encouraged by the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of our business in these troubled times. Historically, the third quarter is the slowest and worst performing quarter of the year for this industry. For us to be able to produce consistent revenue, quarter over quarter, this year with the economic environment as such says a great deal about our product quality and sales efforts. Operationally, we are continuing to minimize expenses and maximize margins by making enormous strides in developing our service and used chamber business. Also, our product base has grown with the September 25, 2002, announcement of the first low-cost, portable, Omni-Directional Vibration System, or OVTT OVTT Out-of-Vehicle Travel Time ," said Charles D. Johnston, President and CEO of QualMark. A quarterly conference call to discuss first-quarter results will also be held today, October 16, 2002, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time). To participate via conference call dial 888-318-6430 (if calling from within the U.S.) no later than 10:50 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on October 16th. If you are calling from outside of the U.S., please call 334-323-7226. The leader name is Charles Johnston Charles Johnston can refer to several people:
Condensed Financial Tables
Quarter to Date Year to Date
September 30, September 30,
2002 2001 2002 2001
--------------------------------------------
Systems revenue $1,665,000 $925,000 $4,763,000 $5,059,000
ARTC service revenue 251,000 602,000 1,140,000 1,786,000
Total revenue 1,916,000 1,527,000 5,903,000 6,845,000
--------------------------------------------
Gross profit 927,000 402,000 2,607,000 2,533,0000
Gross profit margin 48.4% 26.3% 44.2% 37.0%
--------------------------------------------
Loss from operations (53,000) (746,000) (246,000) (943,000)
Pretax loss (97,000) (785,000) (384,000)(1,102,000)
Net loss (97,000)(1,065,000) (385,000)(1,982,000)
============================================
Earnings Per Share
Reconciling Items:
Accretion of redeemable
preferred stock and
dividends (50,000) (27,000) (129,000) (81,000)
Beneficial conversion
feature on issuance of
redeemable preferred
stock (50,000) -- (103,000) --
Dividend resulting from
conversion of Series A
preferred shares to
Series B preferred shares -- -- (489,000) --
Net loss available to
common shareholders (197,000)(1,092,000)(1,106,000)(2,063,000)
============================================
Basic earnings (loss) per
share $(0.05) $(0.30) $(0.31) $(0.57)
Diluted earnings (loss)
per share $(0.05) $(0.30) $(0.31) $(0.57)
============================================
Basic weighted average
shares outstanding 3,610,000 3,610,000 3,610,000 3,610,000
Diluted weighted average
shares outstanding 3,610,000 3,610,000 3,610,000 3,610,000
============================================
QualMark Corporation, headquartered in Denver, Colorado, is the leader in designing, marketing, and manufacturing accelerated life-testing systems providing America's largest corporations with products that improve product reliability and allow them to get to market faster. The Company has installed more than 450 of its proprietary testing systems in 18 countries and operates five of its own testing and consulting facilities in Denver, Colo.; Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.; Hopkinton, Mass.; Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif.; and Winter Park, Fla. In Detroit, Mi., the Company has a strategic alliance with a large testing facility. QualMark has also formed international ARTC ARTC Arthrocare Corp (stock symbol) ARTC Australian Rail Track Corporation ARTC Air Route Traffic Control ARTC Association de la Recherche Theatrale au Canada ARTC Andean Root and Tuber Crops alliances in Ireland, the Netherlands, Italy, France and Sweden. The Company also offers engineering services and products that complement the core technologies of QualMark and other test equipment providers. The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 27A of the Securities Act of 1933, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Company's Securities and Exchange Commission filings; downturns in the Company's primary markets; variability of order flow, future economic conditions; competitive products and pricing; new product development; disruptions in the Company's operations from acts of God or extended maintenance; transportation difficulties; or the delivery of product under existing contracts and other factors. |
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