Microphonics Records Profitable First Quarter 1999
29 April 1999
Microphonics --OTC BB: MRPS-- Records Profitable First Quarter 1999; Estimates Net Profit Projections for 1999; Files Registration Forms with S.E.C.
NASHVILLE, Tenn.--April 29, 1999--General Motors, Ford & NASCAR contribute to Microphonics (OTC BB: MRPS) profitable first quarter 1999.The following first quarter results are based on information compiled by the accounting firm of Marlin & Edmondson.
Microphonics announces record revenue of $86,844.93 for the first quarter ending March 31, 1999, with profit margin in excess of 40%.
James E. Gayle, CEO of Microphonics:
"We are extremely proud of the results from our first quarter, especially considering the fact that recent contracts secured in 1998 and early 1999 did not begin shipping until March 1999. These contracts now signed and many in current negotiation have provided the launching pad for sustained growth throughout 1999. The growing acceptance of our revolutionary Ultrasound devices in the automotive, trucking, machinery, and oil service industries has resulted in unprecedented growth in our revenues, which are just now beginning to enhance our bottom line."
Based on current signed contracts to date, Microphonics is already assured a profitable 1999. Our anticipated pre-tax margins for 1999 of over 40% is testament to the success of our business model and the operating leverage we can achieve with our continued increase in direct and distributor sales revenue.
Current major contracts with deliverable product in 1999 include the following:
Ford US - Ford has contracted to purchase the
Microphonics Model A07CK for its U.S. dealerships.
Ford Europe (through SPX Corp. - NYSE: SPW) - Contracted to
purchase the Microphonics Model A07CK for its European dealerships.
General Motors Has issued a blanket purchase order for
U.S. plants.
NASCAR - Is purchasing the Ultraphonics Model 111RCK. In addition,
we have in hand numerous additional sales to racing clubs and
teams throughout the U.S.
U.S. Army Corps of Engineers - Has & continues to purchase multiple
111RCK units.
Delco-Remy - Is testing & purchasing the Ultraphonics
Model 111RCK.
In addition to direct sales, Microphonics is developing an extensive industry specific distributor network to expand our exposure and sales. To date, the following distributors are among those who have contracted with Microphonics.
F&M Mafco - Distributor to the paper, petrochemical, power, steel and construction markets, F&M Mafco has a renewable contract to purchase 100 initial units (delivered) and 75 units per month for one year, for resale to its customer base.
Jud-Tech - Distributor to the oil & gas industry in Western Canada, has contracted to purchase multiple Model 111RCK & A07CK units for resale to its customer base.
Day & Associates - Distributor to the heavy duty trucking industry has contracted to purchase 3500 Ultraphonics 111RCK units for resale to its customer base.
As 1999 progresses, both direct sales, new contracts, and new distributors will increase. Based on only those contracts and distributors already in place, we are able to make the following projection:
Microphonics is anticipating a net profit (after costs of goods & expenses) in excess of 2.36 million dollars for the year 1999.
Microphonics has 10 million shares outstanding, with 4.2 million shares in the market float. Management has no intention of diluting these shares.
SAFE HARBOR DISCLAIMER:
The matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control which could cause actual results to differ materially from historically results, performance or other expectations and from any opinions or statements expressed with respect to future periods.