SOURCE: American TonerServ

August 15, 2007 09:22 ET

American TonerServ Reports Significant Gains in Toner Revenues

SANTA ROSA, CA--(Marketwire - August 15, 2007) - American TonerServ Corporation (OTCBB: ASVP) today announced results of operations for the three months ending June 30, 2007 ("Q2 2007"), showing revenues of $1,098,630 as compared to $62,538 for the same period in Q2 2006, an increase of $1,036,092, or 1,657%. The increase in Q2 2007 revenues was due to the increase in toner and service revenue due to the acquisition of Optima Technologies, LLC which occurred during Q2 2007, the acquisition of the customer lists of Brody Enterprises doing business as Sun Products in Q4 2006, and Computech Printer Solutions, Inc. and Laser Cartridge Recharger Systems, Inc. which occurred during Q3 2006. In addition, the Company reported that gross profit (revenue less cost of goods sold) increased by $327,559 over the same period of a year ago. Gross profit for Q2 2007 was $362,823 as opposed to $35,264 in Q2 2006, an increase of 929%.

Total operating expenses for the three months ending June 30, 2007 were $1,199,523, up from $106,242 over the same period in 2006. The increase in expenses were primarily attributable to the expenses required in the operations of the acquired business and customer lists. All amounts 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 continue to grow our revenues at a very rapid pace. Additionally, we have generated a pipeline of prospective acquisition targets that have collectively more than $80.0 million in annual revenues. We have made good strides in the first half of 2007 towards our goal of becoming the leader in consolidating the highly fragmented printer supplies & services industry."

About American TonerServ:

American TonerServ Corp. ("ATS"), a publicly traded Delaware corporation (OTCBB: ASVP), is a disciplined consolidator in the highly fragmented printer supplies & services industry. It's looking to acquire and unite independent businesses focused on delivering printer supplies and service to end-customers. ATS offers thousands of customers a one-stop shop for their print management needs by providing equipment, supplies and service for printers, multi-function printers (MFPs), copiers and fax machines.

ATS has developed a very attractive and scalable platform for the estimated 5,000 independent companies providing printer equipment, supplies and service nationwide. In addition to providing the critical back-office component to these companies, sharing "best practices" and creating a "community" atmosphere of the acquired companies is an attractive attribute of their model.

Forward-Looking Statements

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