Syscan Imaging, Inc. Announces Second Quarter Financial Results
17 August 2004 - 5:14PM
PR Newswire (US)
Syscan Imaging, Inc. Announces Second Quarter Financial Results SAN
JOSE, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Syscan Imaging,
Inc. (OTC:SYII) (BULLETIN BOARD: SYII) , a leading OEM and private
label manufacturer of mobile image scanning systems, today
announced financial results for its 2004, second quarter, which
ended June 30, 2004. The company's revenues increased to $974,831
for the three months ended June 30, 2004 from $946,874 for the same
period in fiscal 2003, an increase of approximately 3.0%. Revenues
decreased to $2,480,948 for the six months ended June 30, 2004 from
$2,724,957 for the same period in fiscal 2003, a decrease of
approximately 9.0%. The increase for the three months ended June
30, 2004 is primarily attributable to strong new product sales. The
decrease in revenues for the six months ended June 30, 2004 as
compared to the same period in fiscal 2003 is the result of channel
inventory levels that remained from Q4 2003. Gross profit increased
to $357,742, or 36.7% of net revenues for the three months ended
June 30, 2004 from $249,767, or 26.4% of net revenues for the same
period in fiscal 2003. Gross profit increased to $825,650, or 33.3%
of net revenues for the six months ended June 30, 2004 from
$743,316, or 27.2% of net revenues for the same period in fiscal
2003. The increase in gross profit for the three and six months
ended June 30, 2004 as compared to the same period in fiscal 2003
is the result of the company's revised sales and marketing strategy
focusing on the Value Added Reseller (VAR) and small-
office-home-office (SOHO) market places. We anticipate that it will
be difficult to continue our rise in gross profit margins as our
China based supplier's source and logistics costs including higher
fuel prices are projected to rise through the year ended December
31, 2004, which would result in our experiencing a higher cost of
goods sold. The Company experienced a net loss of ($123,974) for
the three months ending June 30, 2004 and ($110,294) for the first
six months ending June 30, 2004 compared to a profit of $123,847
and $387,790, respectively, during the comparable periods in 2003.
The Company's net loss is primarily attributable to increased
expenses related to the Company's newly formed imaging display
group and secondarily to additional personnel costs and outside
fees incurred in connection with the completion of the Company's
reverse merger activities. Darwin Hu, SYII's Chairman and Chief
Executive Officer, reported, "We are comfortable with the Company's
results and believe that the completion of the reverse merger will
allow us to focus on and continue to grow our current image capture
line-up, while creating break through technology solutions for the
image display market." Further Mr. Hu stated, "We have an
opportunity to leverage our core IP into the much larger display
market, the foundation has been laid, the contacts and distribution
channels exist, now we must execute." Calendar Year 2004, Q2
highlights: * The completion of our reverse merger giving the
Company greater visibility and the currency to consider potential
strategic acquisitions. * Completed Product Verification Test's
(PVT) related to the Company's next generation duplex mobile
scanning devices. * Finalized unique HDTV controller board design,
which will mark the Company's first technology solution aimed at
the growing LCD/Plasma/HDTV image display market. * Initiated and
completed a major OEM customer launch, expanding their business
from providing CIS modules to providing full turn key scanner
production. About Syscan Imaging, Inc. Headquartered in San Jose,
California with additional offices in the Netherlands and Hong
Kong, Syscan Imaging, Inc. designs and manufactures imaging
technology solutions. Currently the Company ships proprietary
image-scanning products to customers throughout the United States,
Canada, Europe, South America, Australia and Asia. The Company has
been granted 21 patents related to imaging technology with an
additional 13 patents under review. Syscan Imaging, Inc.'s common
stock is publicly traded on the OTC Bulletin Board under the symbol
SYII. All trademarks and copyrights contained herein are the
property of their respective holders. Note on Forward-Looking
Statements Statements contained in this press release, which are
not historical facts, are forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based largely on current
expectations and are subject to a number of known and unknown
risks, uncertainties and other factors beyond our control that
could cause actual events and results to differ materially from
these statements. These statements are not guarantees of future
performance, and readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this release. Syscan undertakes no obligation to update
publicly any forward-looking statements. DATASOURCE: Syscan
Imaging, Inc. CONTACT: David P. Clark of Syscan Imaging, Inc.,
+1-561-835-4069,
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