GVI Security Solutions, a leading provider of video security solutions to homeland security, institutional and commercial market segments, has released its year end financial results for 2007 as well as announced four straight quarters of profits.
According to the company’s financial statements, Net Income was approximately $2.6 million compared to a loss of approximately $16.5 million in 2006. Pretax earnings from continuing operations were approximately $1.5 million as compared to a loss of approximately $13.8 million in 2006. The difference between net income and pre-tax income from continuing operations was due to a tax loss carry-forward that produced a net income tax benefit of approximately $942,000 and a gain from discontinued operations (net of tax) of $233,000, reflecting the reversal of the remaining reserve taken in connection with obligations to service discontinued retail product line, which ended December 31, 2007.
In other areas, Net Revenue was up $1 million to just over $45 million compared to $44 million in 2006. The increase in revenues can be attributed to increased sales to distributors, integrators and installers of a variety of products manufactured by Samsung Electronics as well as GVI branded products. The company also had a decrease of about $2 million in total returns and allowances in 2007 versus 2006.
The company is continuing to effectively control cost across the company’s operations and in 2007 selling, general and administrative expense decreased 24% to approximately $10.3 million when compared to approximately $13.5 million in 2006. Interest expense also decreased 83% to approximately $1.0 million, from approximately $5.9 million in 2006.
For the fourth quarter of 2007, net income was approximately $1.7 million and Pre-tax earnings from continuing operations were approximately $0.5 million when compared to a net loss of approximately $6.5 million in the fourth quarter of 2006.
Chairman and CEO Steven Walin believes the success has helped the company to reach its goals for the year. He stated, “More importantly, we put in place the tools that we need to help us aggressively grow the company moving forward.”
A conference has been set up by the company for later today beginning at 4:15 EDT to discuss earnings for the year ending December 31, 2007. Those wishing to participate may do so by calling 800-378-6604 and entering the conference code 4101539.
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