SOURCE: TouchIT Technologies Inc

TouchIT Technologies Inc

May 17, 2011 07:50 ET

TouchIT Technologies, Inc. Reports Financial Results for First Quarter Ended March 31, 2011

Continued Progress in Developing the Interactive LCD Product Line

ISTANBUL, TURKEY--(Marketwire - May 17, 2011) - MayTouchIT Technologies, Inc. (OTCBB: TUCN), a leading manufacturer of touch-based visual communication products, has announced today its financial results for the first quarter ended March 31, for 2011. Highlights for the quarter were as follows:

(mm - dollars in thousands US)

Net Sales - totaled $773.6mm for the quarter as compared to $1.046mm for the quarter ended March 31, 2010. The revenue decrease of $272.4 mm or 26% from the 2010 quarterly results resulted partially from a slowdown in a budgetary commitment process typically undertaken by certain customers resulting in a slowdown in demand for Company product. Additionally, the third and fourth quarters of the year are the strongest quarters for the Company's market, although the first quarter of 2010 provided for abnormally high level of sales for the Company for that time of year.

The sales activity for 2011, including the first quarter, also reflects management's plan of increasing focus more on recurring business in existing and new markets with less of an emphasis on non-recurring tender/bidding orders, which often provide for a longer sales cycle and lower margins.

Gross Profit - decreased from $327 mm in the first quarter of 2010 compared to $216.9mm for the first quarter of 2011, or a decrease of $110.1mm or by 33%. However, the percentage of profit over revenue has increased, showing that gross margins have increased.

Net Income - decreased from $70.0mm in the first quarter of 2010 to ($220.7mm) in the first quarter of 2011 or a $290.9mm decrease.

Current Outlook
In January 2010, the Company forecasted 2011 revenues to be $9 million for the 2011 fiscal year ended December 31st. The Company does not anticipate meeting this forecast in light of the slowness of the first quarter and the repositioning of the sales to have less emphasis on tenders/bidding situations.

The Company's progress in creating a more recurring revenue base was evidenced during the first quarter by the Company engaging a new distribution partner in South Africa, which is a significant growth opportunity for the Company given the fact that interactive product penetration is low in the region and is expected to experience near-term growth. Additional initiatives in sales expansion occurred in the Middle East, which is a region that continues to experience sales growth, particularly in Saudi Arabia.

The Company does anticipate revenues to be at least $9 million on a going forward 12 month basis, taking into consideration its near-term introduction of interactive LCD panels and its on-going success in opening new sales territories.

During the quarter, the Company continued its development of its Interactive LCD product line, with plans to launch sometime in the third quarter of 2011.

"We were gratified that TouchIT was able to move forward with its increased emphasis on recurring revenues and new product development with a modest decrease in our sales numbers during a quarter that is typically not a peak sales period," said Andi Brabin, CFO of the Company. "We continue to be excited by the feedback from our key customers regarding our planned introduction of the Interactive LCD product line. The Company took steps to develop more visibility in the US and European capital markets by engaging a well known investor relations firm based in New York," added Mr. Brabin.

About TouchIT Technologies
TouchIT Technologies is a leading designer, producer and marketer of touch-based visual communication products. The Company manufactures a large range of touch screen and touch board products containing TouchIT's proprietary technology to suit all types of applications, from small LCD touch-screens to large interactive whiteboard displays and audience response systems, with applications to several industry segments including education, business, and government. The Company is based in Istanbul, Turkey, where it has its manufacturing facilities and technology development team. Sales Offices have been established in London, UK, County Limerick, Ireland and Bloomfield Hills, Michigan USA. For more information, please visit:
Company's Website: www.touchittechnologies.com; Twitter - @touchit_tech
Facebook - http://www.facebook.com/touchittechnologies

Forward LookingStatements
This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). TouchIT Technologies, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: impact of the company's expansion plan, and new business development success, future financial results, development and acquisition of new product lines, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties.

Contact Information

  • CONTACT:
    CORPORATE:
    TouchIT Technologies, Inc.
    Andrew Brabin
    Chief Financial Officer
    Email Contact
    Tel: 44-207-858-1045

    INVESTOR RELATIONS:
    Cooper Global Communications LLC
    Richard E. Cooper
    President
    Email Contact

    Jennifer Zimmons
    Managing Director
    Email Contact
    Tel: 212-317-1400