SMS Reports Financial Results for First Fiscal Quarter 1999
14 April 1999
SMS Reports Financial Results for First Fiscal Quarter 1999
AUSTIN, Texas, April 13 -- Scientific Measurement Systems
(OTC Bulletin Board: SCMS) (SMS) today announced financial results for their
first fiscal quarter, the three months ended October 31, 1998.
Revenue for first fiscal quarter 1999 was up 62% compared to the same
period a year ago, $718,000 versus $443,000. The Company suffered a net loss
of ($172,000), compared to a net loss of ($324,000) for the same period last
year. The corresponding net loss per share for the quarter was ($.01).
Total operating costs for the quarter as a percentage of revenues
decreased to 33% in fiscal 1999, compared to 63% in fiscal 1998. The decrease
is primarily due to a reduction in marketing expenses, as well as the
absorption of overhead costs in the higher revenue results.
"We made progress on our existing systems contracts in the first quarter
and were able to recognize a substantial improvement in revenue compared to
the previous year, but we remain constrained by our balance sheet and tight
cash flow," stated Howard L. Burris Jr., President and CEO of SMS. He added
that management remained active in pursuing several new systems contracts, as
well as outside financing opportunities.
SMS designs, manufactures, and sells industrial CT equipment and services
to a worldwide customer base. The company is a recognized leader in the
development and commercialization of CT technology. CT provides a fully non-
destructive method for creating 2-D and 3-D data sets of an object, allowing
the user to examine both internal and external features. SMS is a public
company traded on the OTC Bulletin Board under the symbol SCMS. SMS is based
in Austin, Texas, and can be reached at 512-837-4712 or at http://www.sms-ct.com.
Selected Data from Consolidated Financial Statements (Unaudited)
Q ended 10/31/98 Q ended 10/31/97
1998 1997
Revenue $718,000 $443,000
Net Income (Loss) ($172,000) ($324,000)
Net Income (Loss) per Share ($.01) ($.02)
Statements made in this press release, including those related to the
production backlogs, industry attitudes toward "close packed" detector
technology, projections of future revenues, and the Company's ability to
secure future financing are forward-looking and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Among other things, a continued backlog in the scanning services business is
as dependent upon purchasing decisions by present and potential customers as
well as increased competition from new and existing competitors; industry
attitude toward "close packed" detector technology is subject to introduction
of competing products by others in the industry; projections of future
revenues are dependent upon the Company's realization of pending job orders
and research contracts; and the Company's ability to obtain additional
financing mechanisms is subject to the general availability of investor
capital in the marketplace. In addition to the factors set forth in this
release, the environmental, governmental, technological, economic,
competitive, and other factors identified in the Company's filing with the
Security and Exchange Commission could affect the forward-looking statements
contained in the press release.
For more information contact: Howard Burris, President & CEO of
Scientific Measurement Systems, 512-837-4712 or email, howard@sms-ct.com.