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March 29, 2006 - VendTek Systems Inc. (TSX-V:
VSI) ("VendTek" or "The Company"),
a leading provider of software for prepaid service distribution,
announces revenues of $12,824,090 for the three month
period ended January 31, 2006. This is an increase of
$5,254,000, or 69% over the $7,570,000 in revenues for
the same period in 2005.
Revenues are mostly comprised of prepaid PIN revenue,
which totaled $12,726,000 in the first three months
of 2006 compared to $7,541,000 in the same period of
2005, an increase of 69%. License and engineering revenues
increased by $29,000 to $33,000 in Q1 2006 compared
to $4,000 in Q1 2005. This increase of 700% was due
to specialized engineering services being required by
a customer as well as software licenses issued for a
new customer. Systems and parts sales of $66,000 in
the quarter, compared to $25,000 in the same period
of 2005, are up by 164% because of increased parts orders
from VendTek's legacy vending machine customers and
more server sales.
Net income for the three months ended January 31, 2006
was $93,846 compared with the three months ended January
31, 2005 net loss of ($183,000). The net income per share
for Q1 2006 increased to $0.00 compared to ($0.01) for
Q1 2005.
The consolidated gross profit for the three month period
ended January 31, 2006, increased by approximately 211%
to $716,000 compared to $230,000 in the same period of
2005. The high revenues and profits generated by Now Prepay
accounted for the majority of the consolidated gross profits.
"We have made great progress over the past few quarters
and this quarter saw a continuation of the trends. While
we are happy with this progress we still have ambitious
plans for ongoing growth of both revenues and earnings.
We are working to continue to expand our product offering,
increase our network size, and launch our international
projects." said Paul Brock, President and CEO.
The G&A expenses were $487,000 or approximately 4%
of revenues during the three months ended January 31,
2006 compared with $337,000 or 4% of revenues, during
the three months ended January 31, 2005. Salaries under
G&A increased by 24% when Q1 2006 is compared to Q1
2005 due to management and administrative wage increases.
Stock-based compensation is the non-cash based option
expense which is allocated between salaries and director's
fees and for the Q1 2006 period was $67,000. Office, rent,
computer expenses and banking fees are up from $65,000
in Q1 2005 to $87,000 in Q1 2006. This $22,000 (34%) increase
is due to increased activity. Interest expenses decreased
by $2,000, or 12%, to $14,000 in Q1 2006 from $16,000
in Q1 2005.
Sales and marketing expenses increased in Q1 2006 by $48,000
(315%) to $63,000 compared to the Q1 2005 expense of $15,000.
Expenses for the three month period ended January 31,
2006 and the three month period ended January 31, 2005
were both less than 1% of revenues.
The complete statements are available at www.sedar.com.
For more information or to receive the complete statements
please contact Samantha Haynes at 604.805.4653 or 1-800-806-4958
or shaynes@vendteksys.com.
About VendTek
VendTek develops and licenses automated transaction
system software and supporting technologies that improve
the efficiency of product delivery, reduce costs to
clients and offer superior safety measures. VendTek's
customers and its subsidiaries, Now Prepay Corp. (in
Canada) and VendTek Systems Technologies (in China),
are using eFresh™
software to build electronic, prepaid services networks,
which enable consumers to purchase prepaid services
via POS and self-serve terminals connected to a central
eFresh™
server. This system creates significant value through
improved efficiencies compared to the traditional distribution
paradigm. eFresh™
reduces shrinkage and inventory requirements while improving
consumer access to prepaid services by completely eliminating
physical cards and vouchers. For further information
please visit the Company's websites www.vendteksys.com
and www.nowprepay.com.
This release contains forward-looking statements within
the meaning of the "safe harbor'' provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations
and beliefs and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from
those described in the forward-looking statements. The
Company assumes no obligation to update any forward-looking
information contained in this news release.
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The TSX Venture Exchange has
not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
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