SOURCE: Modern Technology Corp

December 13, 2005 13:15 ET

Modern Technology Corp Announces Positive Quarterly Results and Issues Update

OXFORD, MS -- (MARKET WIRE) -- December 13, 2005 -- Modern Technology Corp (OTC BB: MOTG), a diversified technology development and acquisition company, announced today quarterly revenues of $1,311,779. The company had a cash balance of $1,161,688, $1,509,498 in trading securities, and total current assets of $4,833,159 as of September 30, 2005.

The company reports $8,327,296 in total Assets and positive Stockholder Equity. The company's expenses have been large due in part to interest expense and the extraordinary initial costs associated with acquisitions. The company's current growth pattern anticipates positive Earnings-Per-Share within the coming year.

Stockholders are reminded the majority of our subsidiary's revenue will be generated in the latter part of 2005 during the busiest sales season. The company's subsidiary Sound City (www.soundcity.com), is doubling its retail footprint and continues to add product lines.

With the opening of this subsidiary's new location, we expect revenue to be in line with expectations.

Anthony Welch, Modern Technology Corp's Chairman, said, "We continue to grow with our acquisitions and targets are being met. We are entering our strong revenue season and expect superb results. We will be issuing more news in the coming days."

The company previously announced acquisitions expected to add an estimated $11 Million in 2005 profitable revenues and a projected additional $13 Million in profitable revenues for 2006.

These new acquisitions will be consolidated in the Company's financials in the next quarter.

The company's current revenue projections for 2005 year-end are expected to be in excess of $20,000,000. This projection does not include other acquisitions under consideration. It must be noted that we have transactions under consideration that may propel the company beyond $50,000,000 for 2005.

The company expects ongoing synergy-based cost reductions as well as increased revenue growth resulting from the synergies between the subsidiaries.

This guidance is the company's best good faith estimate based on current conditions and numerous assumptions about the company's industry, its access to financing, the competitive and regulatory landscape and its ability to successfully consummate the acquisitions under consideration.

About Modern Technology Corp.

Founded in 1982, Modern Technology Corp is a diversified technology development and acquisition company, building revenues by strategic acquisition and commercialization of nascent commercial technology and by the acquisition of synergistic operating companies. MOTG commercializes technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to consistently build shareholder value through accretive acquisitions of emerging technology or acquiring operating companies capable of benefiting from technology infrastructure enhancements or new product lines. For more information, visit: http://www.moderntechnologycorp.com.

Safe-Harbor Statement

This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Company Contact:
    Megan Peterson
    1-662.236.5928

    Modern Technology Corp
    1420 North Lamar Blvd.
    Oxford, MS 38655 USA
    Phone: +1.662.236.5928
    Fax: +1.662.236.7663
    Web: www.moderntechnologycorp.com