SOURCE: Viscount Systems Inc.

May 10, 2005 09:00 ET

Viscount Reports Q1 Results: 25% Rise in Revenue, Company Returns to Profitability

BURNABY, BC -- (MARKET WIRE) -- May 10, 2005 -- Viscount (OTC BB: VSYS) today reported its Q1 2005 financial results. Highlights include:

A 25% increase in overall revenue.

Sales for the 3 months ended March 31, 2005, were USD $1,094,366 ($1,323,745 Canadian) compared to USD $875,612 ($1,148,190 Canadian) for the 3 months ended March 31, 2004.

Q1 2005 was the best revenue quarter ever for Viscount.

MESH sales spur Viscount return to profitability.

Sales of the Company's Next-Generation Access Control Product, MESH, accounted for 20.1 % of overall revenue.

Selling General and Administrative expenses (SG&A Expenses) decreased by $95,994 or 13.7% during the 3 months ended March 31, 2005, as compared with the 3 months ended March 31, 2004.

Viscount President and CEO Stephen Pineau commented, "Our Q1 is traditionally a slow quarter, so the fact that Q1 2005 was a record for any quarter is a very positive indicator that MESH will be the growth engine we anticipated. In Q1, 2005, we began to see the results of our plan. In 2004, we greatly increased our promotional budget and recent revenue growth can be almost entirely attributed to MESH. SG&A costs were down significantly in this quarter. We will continue to monitor these costs throughout the year. We anticipate that 2005 variable costs will be significantly lower than 2004. We have increasing numbers of confirmed MESH bookings and with the number of MESH re-sellers continuing to increase, we fully expect 2005 to easily be our best top line and bottom line year."

About Viscount Systems

Viscount Systems Inc. is a designer and manufacturer of telecommunications and electronic door control access systems for the security industry. From 1969-1997, Viscount was an R&D affiliate of Telus, itself a controlled subsidiary of GTE, now Verizon Communications. The company's diverse line of products are designed to improve safety and manage security for property owners and users. Viscount's products have been installed in approximately 35,000 sites in over 30 countries and are sold through a 500-member, North America-wide dealer network comprised of security equipment vendors. Additional information on Viscount's products may be obtained on-line at http://www.viscount.com. Financial statements are available from the company's registration statement filed with the U.S. Securities and Exchange Commission on February 6, 2002, which may be viewed at www.sec.gov or the company's web site www.viscount.com under the heading "Investor Relations". For further information, or to be placed on email NEWS ALERT please e-mail to ir@viscount.com or call toll free 1-866-252-9446.

Safe Harbor Statement

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Viscount Systems Inc., nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Forward-looking statements: This press release and other statements by Viscount Systems Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.

Contact Information

  • For more information, contact:
    Nick Waddell
    Viscount Systems, Inc.
    VP, Corporate Communications
    Toll Free 1-866-252-9446
    Nick@viscount.com