CARROLLTON, Texas -- GVI Security Solutions, Inc., a provider of integrated Homeland Security Enterprise solutions for government agencies and the private sector, today reported financial results for the first quarter ended March 31, 2005.
First Quarter Highlights:
-- Revenue increases approximately 60% year-over-year to a record $23.9 million
-- Multiple contracts with Tinker Air Force Base
-- $7.5 million contract to provide video surveillance equipment with a major U.S. retailer
-- $1.8 million contract with a leading security systems integrator to provide customized surveillance equipment solutions for a major regional electronics retailer
-- Announces contract to install RAPOR(TM) Fast Trac rapid access portals at the Drug Enforcement Administration headquarters at Pentagon City
-- Launches Intelligent Video Threat Detection product line
Revenue for the first quarter of 2005 reached a record $23.9 million, an increase of approximately 60% from revenues of $15.0 million for the first quarter of 2004. The increase was attributable to growth in both the retail and professional products, which were up 99.8% and 39.5%, respectively.
The large growth in retail sales was primarily due to a large order from an exclusive retail distribution partner to improve inventory levels for delivery to retailers. Future retail revenue levels will vary based on the mix of the Company's products and end users. The increase in professional products was due to increases across the range of our professional products.
Nazzareno Paciotti, Chief Executive Officer of GVI Security Solutions, Inc., commented, "The company continues to transition its business from being principally a distributor to a total enterprise solutions provider. The first fiscal quarter was a time of significant accomplishments for GVI Security Solutions. Due to our high quality enterprise security solutions and customer service capabilities, GVI was able to win two multi-million dollar contracts with major U.S. retailers to provide customized surveillance equipment solutions."
The company reported a net loss of $510,000, or $0.01 per diluted share, for the three months ended March 31, 2005 compared to a net loss of $269,000, or $0.01 per diluted share, in the three months ended March 31, 2004.
Mr. Paciotti added, "We continue to devote substantial resources to building our Enterprise Solutions Group as we transition into the higher margin businesses associated with Homeland Security and providing end-to-end solutions for the private sector. These efforts are beginning to produce results, as evidenced by the recently announced high profile installation of our RAPOR(TM) Fast Trac rapid access portals at the Drug Enforcement Administration headquarters at Pentagon City and the installations of our solutions at Tinker Air Force Base. We intend to continue focusing our energies on pursing these kinds of opportunities."