Sales Increase 40% In Challenging Period Ending 12/31/2008
Alanco Technologies, Inc. (NASDAQ: ALAN) today announced that
sales revenue for its fiscal second quarter ending December 31, 2008,
increased 40% to approximately $5,300,000 compared to $3,770,000 in the
prior year period. Sales for the initial six-month period of fiscal year
2009, ending December 31, 2008, increased 36% to approximately
$11,300,000 versus $8,320,000 in fiscal 2008’s first half period.
Robert R. Kauffman, Alanco Chairman & CEO, commented, “We are gratified
that our core businesses, StarTrak Systems and Alanco/TSI PRISM, have
both exhibited resilient sales growth during an obviously economically
challenging period.
“Alanco/TSI PRISM second quarter sales increased
three-fold to $1,100,000, benefiting from a large order backlog,
particularly the partial completion of its largest project-to-date, the
Washington D.C. jail. We anticipate continuing strong growth for our
RFID inmate tracking business in the fiscal year second half, as our new
contract from Northrop Grumman commences January, 2009 to provide RFID
inmate tracking systems for nineteen (19) federal immigration detention
facilities, housing in excess of 20,000 inmates. The Northrop contract
will be the Company’s, and probably the world’s, largest deployment of
active RFID personnel tracking technology.
“Second quarter and first half sales for StarTrak Systems
wireless information management services increased 37% to $3,350,000 and
20% to $6,700,000, respectively, compared to the comparable prior year
periods. During the second quarter, StarTrak added in excess of 20 new
customers, deploying over 1,200 new monitoring systems, including
truckload carriers, food distributors, biopharmaceutical shippers, and
intermodal transportation companies. We expect continued StarTrak sales
growth in the second half from both our core refrigeration transport
monitoring services, and from recently announced new business
opportunities, including hazmat tank car monitoring (December 8, 2008
release) and our MicroLogic acquisition (November 10, 2008 release).”
Mr. Kauffman also commented on the current status of Alanco’s compliance
with NASDAQ’s minimum bid price listing requirement as follows, “On
December 19, 2008, due to ‘extraordinary market conditions,’ NASDAQ
extended its suspension of the rules requiring a minimum $1.00 bid price
for continued listing until April 20, 2009.
