Global Payment Technologies, Inc., a leading manufacturer and innovator of currency acceptance systems used in the worldwide gaming, beverage, and vending industries, announced its fiscal 2002 first-quarter results.
Summary of Financial Highlights
(in 000s, except per share data)
Three Months Ended December 31,
2001 2000 Change
Net Sales $8,290 $6,589 25.8%
Net Income $ 118 $ 111 6.3%
Net Income Per Share
Basic $ 0.02 $ 0.02 $ (0)
Diluted $ 0.02 $ 0.02 $ (0)
Thomas McNeill, GPT Vice-President and CFO, stated, “Given the tough economic climate, we are pleased that GPT’s fundamentals have remained strong with net income this quarter representing our fifth consecutive quarter of profitability, as well as a significant increase in revenue as compared to the year ago period. Our gross profit percentage decreased from 32.9% to 25.6%, which was the result of previously forecasted startup costs due principally to higher initial purchasing costs and product mix related to higher Argus(TM) sales. Specifically, Argus(TM) sales in the first quarter were approximately 75% of sales as compared to zero in the prior year period and 30% in our last quarter. This substantial rise in Argus(TM) sales means that we will, as previously stated, start benefiting from lower purchase prices and increased manufacturing efficiencies which should increase margins in each of our remaining three quarters this fiscal year. In addition, GPT’s operating expenses were reduced in absolute terms and as a percentage of sales from 31.6% to 24.8%. This is a testament to our cost containment efforts, as well as the hard work and effort of all GPT associates who continue being more efficient. With the expected improvement of the gross profit percentage in our second fiscal quarter, as well as our cost containment efforts, we anticipate improvement in our bottom line over this quarter.
With respect to our financial condition, which remains strong, we have achieved better utilization of assets by reducing inventory as a percentage of sales, have a current ratio in excess of 3 to 1, and maintained a high availability on our line of credit culminating December 31st with $3.7 million available on our six million dollar revolving line of credit.”
Stephen Katz, Chairman and CEO, said, “During this past quarter we have also achieved two significant milestones. First, the purchase of the remaining outstanding shares of our London affiliate has resulted in GPT becoming the sole shareholder of this profitable office and at the same time, we are consolidating some back office functions to our factory. This will permit our London sales office to focus more closely on existing customers as well as continuing to develop new business. Second, was the introduction of our new vending product called “Aurora”, at the London ATEI show in January, for which field trials are expected to commence shortly. We are excited about the opportunity this product brings to GPT, targeted at the beverage and vending currency validation market which has approximately $375 million in annual sales. These accomplishments, as well as our continued profitability reflect a clear indication that we are achieving our vision which includes diversification, growth of sales and profitability and increasing shareholder value.”
Global Payment Technologies, Inc. is a United States-based designer, manufacturer, and marketer of automated currency acceptance and validation systems used to receive and authenticate currencies in a variety of payment applications worldwide. GPT’s proprietary and patented technologies are among the most advanced in the industry.
For complete details on GPT’s 4Q/01 performance visit CardData ([www.carddata.com]).