VANCOUVER, BC / ACCESSWIRE / November 25, 2015 / Viscount Systems Inc., (VSYS) ("Viscount"), a software company specializing in physical and logical security solutions, today announced its second quarter financial results for the three-month period ending Sept. 30, 2015.
"The third quarter presented many changes within the organization including the departure of our former CEO and our former Controller. The transition required the management team to focus on a much more tactical level within the operational aspects of the business. Revenue numbers were off comparatively speaking, do in part to supply chain issues and raw materials availability, however, the overall health of the business continues to improve along with a growing pipeline, and better cost controls which contributed to improved margins in the third quarter," commented Scott Sieracki, CEO of Viscount Systems.
"Our market development efforts for our Freedom, access control and identity management solution has helped recruit many new channel partners and generated a number of high profile project wins in early fourth quarter."
Third Quarter 2015 Highlights:
Sales totaled $1.18 million for the third quarter of 2015 compared to $1.4 million in the third quarter of 2014, a decrease of 17%.
- Freedom sales totaled $318,073 for the third quarter of 2015 compared to $491,512 in the third quarter of 2014, a decrease of 35%.
- Enterphone (including MESH) sales totaled $594,062 for the third quarter of 2015 compared to $552,714 in the third quarter of 2014, an increase of 7%.
- Gross profit totaled $700,977 for the third quarter of 2015 compared to $615,015 in the third quarter of 2014, an increase of 14%.
Sales for the three months ended Sept. 30, 2015, and 2014 were $1,177,211 and $1,419,204, respectively, reflecting a decrease of $241,993 or 17%. Freedom sales for the three months ended Sept. 30, 2015, and 2014 were $318,073 and $491,512, respectively, reflecting a decrease of $173,439 or 35%, which was mostly due to lower Freedom equipment and software sales during the three months ended Sept. 30, 2015. The decreases in Freedom sales and customer service contracts were partially offset by an increase of $41,348 or 7% in Enterphone (including MESH) sales for the three months ended Sept. 30, 2015, and 2014. Enterphone (including MESH) sales for the three months ended Sept. 30 2015, and 2014 were, $594,062 and $552,714, respectively.
Of the total sales for the three months ended Sept. 30, 2015, and 2014, $342,144 and $354,896, respectively, was derived from U.S.-based customers; $837,307 and $1,064,307, respectively was derived from Canadian-based customers. Substantially, all of the Company's operations, assets and employees are located in Canada.
Enterphone/MESH sales represented 50% and 39% of total revenue during the three months ended Sept. 30, 2015, and 2014, respectively. Freedom sales represented 27% and 35% of total revenue during the three months ended Sept. 30, 2015, and 2014, respectively. The balance of the Company's revenues are derived from other products, such as access tracking and control, closed circuit monitors, infrared and radio frequency remotes, and servicing of intercom equipment.
Gross profit for the three months ended Sept. 30, 2015, and 2014 were $700,977 and $615,015, respectively, an increase of $85,962 or 14%. For the three months ended Sept. 30, 2015, and 2014 cost of sales and services were $476,234 and $804,189 or as a percentage of sales was 40% and 57%, respectively. Viscount has continued to focus on controlling the input costs by using multiple suppliers to ensure that the best and most cost effective raw materials are used in all products. The cost of labor and travel incurred to generate the service division sales has also been reduced. The Company also increased software sales, which have zero to minimal cost of sales.
The Company had cash of $173,713 as of Sept. 30, 2015, slightly down from $190,308 as of Dec. 31, 2014.
Conference Call:
Scott Sieracki, CEO of Viscount Systems, will hold a conference call on Monday, Nov. 30, 2015 at 4:15 p.m. EST (1:15 p.m. PST) to discuss the results.
Join the meeting by following the procedures below.
1. Please join the meeting by clicking on the following link: https://attendee.gotowebinar.com/register/6441139597399385857
Webinar ID: 117-791-859
2. Join the conference call.
- Canada (Long distance): +1 (647) 497-9416
- United States: +1 (914) 614-3429
3. Access Code: 394-010-607
4. Audio PIN: Shown after joining the session
Should you have questions during the event please send an email to questions@viscount.com.
Additional Viscount Resources:
Freedom Access Control
White Paper: Rethink Access Control
Viscount Company Overview
About Viscount
Viscount is the leading provider of next generation, IT-centric access control and identity management applications. Viscount's Freedom application platform allows seamless unification of the physical and digital security worlds by replacing discrete, self-contained systems with an integrated security system that is sophisticated enough to protect today's critical business assets, and flexible enough to keep up with the evolving IT infrastructures of government and private organizations. For more information please visit: www.viscount.com
Safe Harbor Statement
Forward looking statements: This press release and other statements by Viscount Systems, Inc. may contain forward-looking statements 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:
Michael Pilato
michael.pilato@viscount.com
978 304 9024
SOURCE: Viscount Systems Inc.
