Soligen Technologies, Inc. Reports Third Quarter Fiscal 2002 Operating Results
NORTHRIDGE, Calif.--Feb. 14, 2002--Soligen Technologies, Inc. (OTCBB:SGTN), a rapid manufacturer of complex metal parts using proprietary technology, today announced operating results for the three and nine months ended December 31, 2001.
Revenues for the quarter ended December 31, 2001 were $1,305,000, a decrease of 10% compared to $1,442,000 in the quarter ended December 31, 2000. As a result revenues for the nine months ended December 31, 2001 were $3,630,000, a decrease of 26% compared to $4,885,000 for the corresponding nine-month earlier period.
Combined revenues for Parts Now and DSPC production in the third quarter ended December 31, 2001 were $1,167,000, a decrease of 8% compared to $1,262,000 for the quarter ended December 31, 2000 and for the nine months ended December 31, 2001 were $3,230,000, a decrease of 24% compared to $4,270,000 for the similar nine months ended December 31, 2001. The nine-month year to year decrease in Parts Now revenues was the result of the slowdown in the automotive industry causing customers' programs to be either delayed or cancelled. The decease in customer orders began the last quarter of the prior fiscal year, declined sharply in the first quarter ended June 30, 2001 and continued through the quarter ended December 31, 2001. Compared to the comparable nine-month period a year ago, customers continued to order DSPC production prototypes parts in low volume; however, these customers did not follow through with production orders for bridging/short run volume parts.
The net loss for the quarter ended December 31, 2001 was $243,000 or $0.01 per share compared to a net loss of $412,000 or $0.01 per share in the corresponding year-ago period. The net loss for the nine months ended December 31, 2001 was $1,022,000 or $0.03 per share as compared to a net loss of $1,110,000 or $0.03 in the corresponding period last year.
"The last nine months was a very difficult period for Soligen," said Yehoram Uziel, President and CEO. "The cutbacks in the automotive industry have halted many programs and caused personnel changes which further disrupted the order flow. Soligen has maintained its readiness so that when the `dust has settled' we will be able to benefit from this level of preparation. Even as the automotive industry severely reduced its development programs, Soligen continued to increase its penetration in the OEM and the Tier 1 companies. Our team has come together to enable the Company to live within its means by minimizing operating losses and severely restricting the use of cash," added Uziel. "I believe by taking these difficult and demanding actions we will be able to survive these tough times."
In the last 12 months Soligen has made entry into the aerospace casting business to partially alleviate the reduction in our automotive business. "The results thus far are very encouraging and I expect more programs and increased revenue from this new market place," said Uziel.
Soligen is able to rapidly manufacture cast metal parts, bypassing the traditional need for tooling, by employing Soligen's DSPC(R) technology. The DSPC technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal castings directly from a CAD file. Consequently, it enables postponement of design and the fabrication of expensive and time consuming casting tooling until after the parts are functionally tested, thus increasing the probability of making production tooling once and correctly on the first attempt. Additionally, Soligen rapidly produces production tooling for larger runs of metal castings from the same CAD file as the approved part. By combining three key production elements: DSPC(R) technology, conventional casting methods, and Computerized Numerical Control (CNC) machining practices, the Company has created the first "one stop shop" for functional metal parts that are made directly from a CAD file and that are ready for assembly. This complete service, trademarked as Parts Now(R), has become a single source for rapidly manufactured metal parts.
DSPC(R) and Parts Now(R) are registered trademarks of Soligen.
In order to improve communication with shareholders, the Company has created an electronic mailing list. Any person interested in receiving, via e-mail, announcements, copies of press releases from and about Soligen, please forward your e-mail address to: investorinfo@soligen.com.
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timing of development and release of new products by strategic suppliers and customers, the effect of the Company's accounting policies and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
Soligen Technologies, Inc.
Summary of Operations
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ ------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues $ 1,305,000 $ 1,442,000 $ 3,630,000 $ 4,885,000
Net loss $ (243,000) $ (412,000) $ (1,022,000) $ (1,110,000)
Net loss per basic
and diluted shares $ (0.01) $ (0.01) $ (0.03) $ (0.03)
Weighted number
of shares
outstanding 37,826,000 36,446,000 37,364,000 36,406,000