International Electronics Inc. Reports Record Revenue for the Q3 2005

Access control and asset management products manufacturer sees increase in revenue, decrease in loss before taxes


CANTON, Mass.-- International Electronics, Inc., a leading manufacturer of electronic access control and asset management products for industrial and commercial applications, today reported quarterly financial results for the period ending May 31, 2005, with revenues at the highest quarterly level in the company's history.

Third Quarter Financial Performance Highlights:

-- Revenues of $3,299,133, a 13% increase compared to $2,926,570 for the same quarter a year prior.

-- Gross profit of $1,474,573, or 45% of revenues, compared to $1,269,800, or 43% of revenues for the same quarter a year prior.

-- Loss before taxes was $(136,196) compared to $(269,331) for the same quarter a year prior.

-- Net loss of $(136,196), or $(0.08) per diluted share compared with a net loss of $(297,331), or $(0.18) per diluted share for the same quarter a year prior.

Revenues for the nine-month period ended May 31, 2005 were $9,077,154, an increase of 7% from $8,493,784 for the same period of fiscal 2004. Gross profit for the first nine months of fiscal 2005 was $4,033,996, producing a margin of 44% of revenues, compared with $3,632,676, or 43% of revenues for the same period of fiscal 2004. The loss before taxes for the first nine months of fiscal 2005 was ($760,422), compared with a loss before taxes of ($438,322) for the prior year's first nine months. The net loss for the first nine months of fiscal 2005 was ($760,422), or ($0.44) per diluted share, compared with a net loss of ($438,322), or ($0.27) per diluted share, for the same fiscal 2004 period.

John Waldstein, company President and CEO said, "We are pleased to have produced our highest quarterly revenue. By delivering our second consecutive quarter of $3 million-plus in revenues we are achieving steady and consistent growth. Our position in the marketplace as a leader in quality access control solutions continues to be strengthened by the introduction of our eMerge Browser Managed Security Platform. During the quarter we developed versions of eMerge that can be sold through our security distributors. We expect interest in eMerge will continue to increase as we work with our distributors to introduce the product to qualified security dealers.

"Our strategy to leverage our positive reputation in the marketplace and introduce a browser managed security product is beginning to take hold while we've continued to make investments in eMerge. We feel these investments will be beneficial to the long-term growth of the company."