SOURCE: American TonerServ

May 21, 2007 09:22 ET

American TonerServ Corp. Reports Significant Gains in Toner Revenues

SANTA ROSA, CA -- (MARKET WIRE) -- May 21, 2007 -- American TonerServ Corporation (OTCBB: ASVP) today announced results of operations for the three months ending March 31, 2007 ("Q1 2007"), showing a revenue increase of $300,672, more than quadrupling revenues from the same period in 2006. Q1 2007 revenues were $390,568 as compared to $89,896 in Q1 2006, an increase of more than 334%. The increase in Q1 2007 revenues was due to the increase in toner revenue. Toner revenues increased due to the acquisition of the customer lists of Computech Print Solutions, Inc. and Laser Cartridge Recharge Systems, Inc. which occurred during Q3 2006 and Brody Enterprises doing business as Sun Products in Q4 2006. In addition, the Company reported that gross profit rose by $103,681 over the same period of a year ago. In total, gross profit (revenue less cost of goods sold) for Q1 2007 was $157,755 as opposed to $54,074 in Q1 2006, an increase of 192%.

Total operating expenses for the three months ending March 31, 2007 were $1,083,274, up from $116,244 over the same period in 2006. The increases in expenses were attributable to the additional expenses required in the operations to focus on the acquisition and integration of toner businesses. All figures are based on the latest Form 10-QSB SEC filing and can be viewed in their entirety at: http://www.sec.gov/edgar.shtml.

According to Dan Brinker, President and CEO of American TonerServ, "We are strongly encouraged by our progress in the first quarter of 2007. We have been working extremely hard to materialize our business plan, and it is our belief we are on the right track to be the leader in consolidating the highly fragmented compatible toner market. We believe that we have laid a solid foundation for sustainable growth that bodes well for the future of American TonerServ."

About American TonerServ:

American TonerServ Corporation has recently entered the public markets after more than a decade in operations providing a range of supplies and services for office equipment. The Company's stated mission is to be the most efficient, low-cost provider of print management solutions to middle-market customers in the United States. American TonerServ has assembled a strong management team and advisory group to provide experience and direction as the company looks to gain market share as a disciplined consolidator in the highly fragmented print management industry.

Statement Concerning Forward-Looking Information:

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

Contact Information

  • Contact:
    American TonerServ Corp.
    475 Aviation Blvd.
    Suite 100
    Santa Rosa, CA 95403
    United States
    Phone: 800-736-3515
    www.americantonerserv.com