TEMPE, AZ--(Marketwire - Aug 6, 2012) - VirTra Systems (PINKSHEETS: VTSI), a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, today reported unaudited financial results for its second quarter of 2012, ended June 30. The unaudited financial statements are available on VirTra's website and here.
VirTra's second quarter 2012 net income grew to $0.61 million or 21 percent of revenue, up from $0.25 million or 9 percent of revenue in first quarter 2012 and a significant improvement in comparison to the $0.69 million loss reported for the full year ended December 31, 2011 (audited).
The company realized gross revenue of $2.93 million during the second quarter of 2012, an increase from the $2.61 million reported in the first quarter. For the first two quarters of 2012 VirTra earned revenue of $5.54 million which compares favorably to the $7.86 million the company reported in its full year 2011 annual results. One customer represented a significant portion of second quarter revenue attributing $1.00 million to the total reported. In addition, deferred revenue was reduced by $1.26 million from the end of the first quarter, from $1.79 million to $0.53 million, as in-process projects were completed.
Cost of goods sold for the second quarter was $0.92 million representing a 69 percent gross profit margin which continues the improvement the company showed during the first quarter. VirTra's gross profit margin for the first six months of 2012 stands at 68 percent, a significant boost over the 2011 annual results of 52 percent. VirTra's profit margin does fluctuate from quarter-to-quarter and is influenced by a number of factors such as: revenue recognition, volume, vendor pricing, improved production methods, composition of customer orders and international orders.
The company's general and administrative expenses during second quarter 2012 were $1.40 million or 48 percent of revenue. This was an improvement over the first quarter in which general and administrative expenses were $1.53 million or 59 percent of revenue. These expenses represented investment into support and scenarios for current customers which includes development work for new products, software and simulator content as well as targeted sales and marketing efforts to attract new customers and distributors in various market segments.
Mark Skidmore, VirTra's Director of Finance - Corporate Controller, commented, "I am pleased that we've been able to complete the unaudited second quarter 2012 financials ahead of schedule and look forward to keeping the company current in its reporting."
Bob Ferris, VirTra's Chief Executive Officer, stated, "We are encouraged by the improved results in the first half of 2012 and we are focused on continuing the positive momentum that has been established."
About VirTra Systems
VirTra is a global leading provider of the world's most realistic and effective small arms simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra's products provide the very best simulation training available for personnel that are entrusted with lethal force and critical missions. The Company's common stock is not registered under the Securities Exchange Act of 1934 and the Company does not currently file periodic or other reports with the Securities and Exchange Commission.
This news release includes certain information that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates", "proposed", "planned", "potential" and similar expressions, or are those, which, by their nature, refer to future events. All statements, other than statements of historical fact, included herein, including statements about VirTra's beliefs and expectations, are forward-looking statements. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Although VirTra believes that such statements are reasonable, it can give no assurance that such forward-looking information will prove to be accurate. VirTra cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors. Accordingly, due to the risks, uncertainties and assumptions inherent in forward looking information, readers and prospective investors in the company's securities should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof, is based upon the opinions and estimates of management and information available to management as at the date hereof and is subject to change. The Company assumes no obligation to revise or update forward looking information to reflect new circumstances, whether as a result of new information, future events or otherwise, except as required by law.