Integrated Security Systems has announced its results for its third fiscal quarter, which ended March 31, 2005.
The company reported sales of $3.6 million, which was up 28 percent over the same quarter 2004. For the company's last nine months, sales were up $2.2 million to $10 million as compared to $7.8 million in the same nine months a year ago.
That increase was credited to increased sales at subsidiary B&B ARMR and sales at DoorTek, which Integrated Security Systems acquired in December 2004.
ISSI reported that gross margin was decreased by $0.1 million (14 percent) as compared with the same quarter 2004. ISSI credited this to "a less favorable product mix and cost overruns on a large customer order related to the road and bridge division at B&B ARMR."
Operating expenses were up 13 percent over the same quarter 2004.
"We experienced disappointing results in the third fiscal quarter ended March 31, 2005," said ISSI Chairman and CEO C. A. Rundell Jr. in a prepared statement. "These are concentrated in our largest subsidiary, B&B ARMR. We are expecting improvement in gross margins during the 4th quarter at our B&B ARMR subsidiary as fixed overhead reductions continue to be realized at our primary manufacturing facility. In addition, we are continuing to contract with third party manufacturers for production of certain product assemblies and parts at a more favorable and fixed cost structure. Meanwhile, our Intelli-Site and DoorTek subsidiaries are starting to contribute consistently."
