Micropoint Announces Third Quarter Results
4 November 1998
Micropoint Announces Third Quarter Results
SALT LAKE CITY--Nov. 4, 1998--
The company's revenue grew substantially from initial fulfillment of
major consumer products contract with the toy industry
Micropoint Inc. (MICP - news) Wednesday announced today that its revenues grew to $957,378 for the three month period ending Sept. 30, 1998, compared to $22,925 for the same period last year.
Net operating loss for the third quarter 1998 was $(164,825), or $(.01) per common share, compared to a net loss of $(395,104), or $(.03) per common share for the same period in 1997. For the nine months ended Sept. 30, 1998, the company's revenues grew to $1,314,509, compared to $260,273 for the first nine months of 1997.
Net loss for the first nine months of 1998 was $(1,172,541), or $(.09) per common share, compared to a net loss of $(982,642), or $(.09) per common share for the same period last year.
"We are pleased with Micropoint's third quarter results," said Doug Odom, president and chief executive officer.
"The company's revenue growth is right on track as we emerge from a developmental stage to a full-fledged manufacturing concern. As anticipated, Micropoint experienced a dramatic increase in revenues this quarter due to heavy demand in the toy industry. The cyclical nature of that sector means that we will not necessarily see such dramatic increases in subsequent quarters," Odom continued.
"However, we anticipate substantial growth in this sector over the next 12 months. At the same time, we anticipate that our contracts in non-cyclicals, such as the automotive sector, will begin smoothing out quarterly variability," said Odom.
"Earnings will come in line as the trends in revenue growth continue and the need to expand infrastructure declines," said Odom. "Over the next several quarters, we will continue to build on infrastructure as we prepare to accommodate the larger and more complex automotive industry contracts in the pipeline."
Micropoint's unique Bend Sensor(R) device measures a predictable change in electrical resistance as it is deflected. It is capable of precisely measuring minute to very large changes in position. Flexible and self-contained Bend Sensor(R) technology can provide an ideal solution to problems associated with numerous applications requiring accurate sensing devices in many industries.
The Bend Sensor(R) is thinner, lighter, longer-lived, more reliable and more cost-effective than many previous devices in the sensor industry.
Through its operating subsidiary Flexpoint Inc., Micropoint designs, manufactures, and markets flexible Bend Sensor(R) technology for various industries, including the automotive, industrial, and toy industries. Micropoint's stock recently began trading under the symbol MICP.
Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, market acceptance, government regulation, changing economic conditions, risks in product and technology development, the effect of the company's accounting policies and other risk factors detailed in the company's filings with the Securities and Exchange Commission.
Micropoint Inc.
Financial Highlights for the periods ended Sept. 30, 1998 and 1997
Three months ended Nine months ended
9/30/98 9/30/97 9/30/98 9/30/97
Sales $957,378 $22,925 $1,314,509 $260,273
Gross profit 504,291 14,815 705,884 168,194
Research and
development 324,887 244,183 764,709 397,362
Net loss (164,825) (395,104) (1,172,542) (982,642)
Net loss per share $(0.01) $(0.03) $(0.09) $(0.09)
Weighted average
shares used in
calculation 15,860,279 11,574,786 13,618,521 11,198,236
Sept. 30, 1998 Dec. 31, 1997
Current Assets $974,585 $595,258
Total Assets $2,160,026 $1,470,018
Current Liabilities 559,452 1,680,176
Stockholders' Equity 1,600,574 (210,158)
Total Liabilities and
Stockholders' Equity $2,160,026 $1,470,018