QualMark Corporation Returns to Profitability.Business Editors DENVER--(BUSINESS WIRE)--Oct. 21, 2003 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, 2003. QualMark announced its return to profitability for the third quarter of 2003 by reporting a net income of $21,000. QualMark's revenues increased 7% over the third quarter of 2002, representing an increase in demand for its Equipment and Testing Service products. The Company reported a net income of $21,000 on revenue of $2,044,000 and a net loss of ($809,000) on revenue of $5,354,000 for the third quarter and year to date 2003, respectively, versus 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 2002, respectively. 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 $0.02 and $0.31 for the third quarter and year to date for 2003, respectively, versus a basic and diluted loss per share of $0.05 and $0.31 for the third quarter and year to date for 2002, respectively. "We are very encouraged by the increased demand in all aspects of our business. Historically, the third quarter is the slowest and worst performing quarter of the year for this industry. For us to be able to produce growing revenue, quarter over quarter, this year says a great deal about our redesigned products and reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. sales efforts. Sales increased throughout all product lines, and all geographic sectors. Our newly developed OVTT OVTT Out-of-Vehicle Travel Time is beginning to gain rapid momentum, as we shipped three this quarter," 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 Johnston, town (1990 pop. 26,542), Providence co., N central R.I., a suburb of Providence; inc. 1759. Among its manufactures are jewelry, textiles, and fabricated metals. Johnston is the home of several insurance companies. , 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. "In addition to our profitable quarter, I am pleased to announce that QualMark was awarded a significant multiple unit order from a major supplier of Airbus Industries. This is a key order, as it establishes QualMark as a leading supplier to Airbus Industries. We won this order on fierce head to head competition with our major competitor, which reconfirms QualMark's product superiority and rapid delivery capability in the market place. This order will begin with two chambers in the fourth quarter of this year and continue with chamber orders throughout 2005," concluded Charles D. Johnston, President and CEO of QualMark. A quarterly conference call to discuss third-quarter results will also be held today, October October: see month. 21, 2003, at 11:00 a.m. Eastern 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 21. If you are calling from outside of the U.S., please call 334-323-7224. The leader name is Charles Johnston Charles Johnston can refer to several people:
Quarter to Date Year to Date
September 30, September 30,
2003 2002 2003 2002
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Systems revenue $1,743,000 $1,665,000 $4,522,000 $4,763,000
ARTC service revenue 301,000 251,000 832,000 1,140,000
Total revenue 2,044,000 1,916,000 5,354,000 5,903,000
-------------------------------------------------
Gross profit 792,000 927,000 2,026,000 2,607,000
Gross profit margin 38.7% 48.4% 37.8% 44.2%
-------------------------------------------------
Income (loss) from
operations 56,000 (53,000) (715,000) (246,000)
Pretax income (loss) 21,000 (97,000) (808,000) (384,000)
Net income (loss) 21,000 (97,000) (a)(809,000) (385,000)
=================================================
(a) Includes $565,000 for
arbitration related charges
Earnings Per Share
Reconciling Items:
Accretion of redeemable
preferred stock and
dividends (50,000) (46,000) (146,000) (116,000)
Accretion of beneficial
conversion feature and
warrants on issuance of
redeemable preferred
stock (54,000) (54,000) (163,000) (116,000)
Dividend resulting from
conversion of Series A
preferred shares to
Series B preferred
shares -- -- -- (489,000)
-------------------------------------------------
Net loss available to
common shareholders $(83,000) $(197,000) $(1,118,000) $(1,106,000)
=================================================
Basic earnings (loss)
per share $(0.02) $(0.05) $(0.31) $(0.31)
Diluted earnings (loss)
per share $(0.02) $(0.05) $(0.31) $(0.31)
=================================================
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 Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , is the leader in designing, marketing, and manufacturing accelerated life-testing systems providing the world'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, operates ten of its own and partner testing and consulting facilities worldwide. 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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