Sales Up 42% - Operating Loss Halved
Reaffirms Fourth Quarter Turnaround
Alanco Technologies, Inc., (NASDAQ: ALAN), a leading provider of
wireless tracking and asset management solutions, today announced that
sales for its third fiscal quarter ended March 31, 2009 increased 42% to
$4,609,700, compared to sales of $3,247,700 for the same quarter of
fiscal year 2008.
The Company’s RFID Technology segment (Alanco/TSI PRISM) reported sales
of $851,700, an increase of $616,600, or 262%, over last year’s third
quarter sales of $235,100. The Wireless Asset Management segment
(StarTrak Systems) reported sales of $3,758,000, an increase of
$745,400, or 25%, compared to the prior year third quarter sales of
$3,012,600.
The Company’s operating loss for the third quarter of 2009 narrowed 47%
to $724,000, compared to a loss of $1,368,800 for the prior year period.
The net loss for the quarter ended March 31, 2009 improved to
$1,134,900, compared to the net loss of $2,200,000 for the comparable
quarter of the prior year.
Robert R. Kauffman, Alanco Chairman and CEO, commented, “Both TSI PRISM
and StarTrak Systems contributed to our significantly improved third
quarter results through strong sales performance and improved gross
margins. We are projecting continued sales gains and operating
improvements in both businesses, which we expect to result in a
turnaround and positive fourth quarter EBITDA for the Company.
“Looking ahead to fiscal year 2010, beginning July 1, we believe we can
build on our current market successes, achieved in obviously difficult
circumstances, and realize significantly increased sales and solid
profitability in the coming fiscal year.”
Comparisons of operating results for the three- and nine-month periods
ended March 31, 2009 and March 31, 2008 are presented below as Schedule
I & II. For additional discussion of the Company’s current financial
results, please see the Form 10-Q the Company filed with the Securities
and Exchange Commission.
Alanco Technologies, Inc. provides wireless tracking and asset
management solutions through its StarTrak Systems and Alanco/TSI PRISM
subsidiaries. StarTrak Systems is the dominant provider of tracking,
monitoring and control services to the refrigerated or “Reefer” segment
of the transportation marketplace, enabling customers to increase
efficiency and reduce costs of the refrigerated supply chain. Alanco/TSI
PRISM is the leading provider of RFID real-time tracking technologies
for the corrections industry. Its systems track and record the location
and movement of inmates and officers, enhancing safety, security and
productivity. For more information, visit the company’s website at www.alanco.com.
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS
PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE
HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE
QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE STATEMENTS.
THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO,
REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT; COMPETITIVE PRICING
AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW TECHNOLOGIES
THAT MAKE THE COMPANY’S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES;
FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY’S STRATEGIES; THE
ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND REMAIN
IN COMPLIANCE WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER
CURRENT BANKING AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY
CONTRACTS AND RELATIONSHIPS.
|
SCHEDULE I
|
|
Alanco Technologies, Inc.
|
|
Condensed Consolidated Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
NET SALES
|
|
$
|
4,609,700
|
|
|
$
|
3,247,700
|
|
|
Cost of Sales
|
|
|
3,053,600
|
|
|
|
2,237,900
|
|
|
Gross Profit
|
|
|
1,556,100
|
|
|
|
1,009,800
|
|
|
Selling, General & Administrative Expense
|
|
|
2,280,100
|
|
|
|
2,378,600
|
|
|
Operating Loss
|
|
|
(724,000
|
)
|
|
|
(1,368,800
|
)
|
|
|
|
|
|
|
|
|
|
Interest Expense, net
|
|
|
(190,700
|
)
|
|
|
(166,300
|
)
|
|
Other Income(expense), net
|
|
|
(500
|
)
|
|
|
21,600
|
|
|
Loss on discontinued operations
|
|
|
(92,500
|
)
|
|
|
(44,400
|
)
|
|
Net Loss
|
|
|
(1,007,700
|
)
|
|
|
(1,557,900
|
)
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividends
|
|
|
(127,200
|
)
|
|
|
(642,100
|
)
|
|
Net Loss Attributable to Common Stock Holders
|
|
$
|
(1,134,900
|
)
|
|
$
|
(2,200,000
|
)
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share - Basic and Diluted
|
|
$
|
(0.04
|
)
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
|
|
31,932,200
|
|
|
|
23,453,000
|
|
|
SCHEDULE II
|
|
Alanco Technologies, Inc.
|
|
Condensed Consolidated Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended March 31,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
NET SALES
|
|
$
|
14,670,000
|
|
|
$
|
9,507,900
|
|
|
Cost of Sales
|
|
|
10,676,600
|
|
|
|
6,309,100
|
|
|
Gross Profit
|
|
|
3,993,400
|
|
|
|
3,198,800
|
|
|
Selling, General & Administrative Expense
|
|
|
6,345,400
|
|
|
|
7,429,400
|
|
|
Operating Loss
|
|
|
(2,352,000
|
)
|
|
|
(4,230,600
|
)
|
|
|
|
|
|
|
|
|
|
Interest Expense, net
|
|
|
(702,800
|
)
|
|
|
(564,600
|
)
|
|
Other Income(expense), net
|
|
|
(185,300
|
)
|
|
|
59,300
|
|
|
Loss on discontinued operations
|
|
|
(250,000
|
)
|
|
|
(311,000
|
)
|
|
Net Loss
|
|
|
(3,490,100
|
)
|
|
|
(5,046,900
|
)
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividends
|
|
|
(347,300
|
)
|
|
|
(1,020,200
|
)
|
|
Net Loss Attributable to Common Stock Holders
|
|
$
|
(3,837,400
|
)
|
|
$
|
(6,067,100
|
)
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share - Basic and Diluted
|
|
$
|
(0.12
|
)
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
|
|
31,669,000
|
|
|
|
22,749,800
|
|
Alanco Technologies, Inc., Scottsdale
John Carlson, Exec VP & CFO,
480-505-4869
or
Lippert/Heilshorn & Associates
Harriet
Fried, 212-838-3777 (Investor Relations)
