Comnetix, Inc., (CXI), a provider of biometric identification and authentication solutions, announced results for its fiscal first quarter ended November 30, 2004.
Revenue increased by 109% compared to the previous year's first quarter, and by 19.6% compared to the fourth quarter of fiscal 2004, ended August 31, 2004. Revenue for the first quarter was $2.17 million with a net loss of $811,826, or $0.07 loss per share, versus revenue for the first quarter ended November 30, 2003, of $1.04 million with a net loss of $229,505, or $0.07 loss per share. The loss for the quarter ended November 30, 2004, includes approximately $309,000 in noncash and one-time expenses.
Jim Scullion, CEO of Comnetix, said, "Results from this quarter demonstrate our continued focus on increasing our presence in the United States, as well as in Canada. Several significant awards from within already established territories in the northeast of the U.S. contributed to the doubling of our revenue. In addition, as a result of our acquisition of International Fingerprinting Services Canada, Ltd., this quarter saw the first revenue generated from our fingerprinting services group. The group was profitable, with revenue standing at approximately $317,000.
"In addition, Comnetix continues to explore opportunities to develop and expand strategic relationships, and we are confident that with our experienced and energized sales team, leading-edge technology, and software-centric business automation solutions, we will continue to be successful in our expansion efforts."
Expenses for the quarter include a noncash stock compensation expense of $149,000 and a one-time payment of approximately $160,000 regarding the retirement of an executive from the company.
CFO Tim Zahavich said, "During the quarter the company's balance sheet remained solid, with cash and cash equivalents at $5.58 million, a current ratio at November 30, 2004, of 2.9:1, and total assets of $10.17 million. The company remains debt-free as of November 30, 2004."