Visualant,
Inc. (OTCQB:VSUL), a leading provider of
disruptive light-based technologies, reported results for the fiscal
first quarter ended December 31, 2013.
Fiscal Q1 2014 Operational Highlights
-
Formed strategic partnership with Intellectual Ventures (IV) to
accelerate the development of applications for Visualant’s ChromaID, a
breakthrough light-based identification and measurement technology
with the potential to disrupt traditional spectral analysis and other
costly methods of identification, authentication and diagnosis.
-
Completed the joint development of the ChromaID Scanner with Sumitomo
Precision Products, which has since allowed Visualant to put the new
technology into the hands of some of the world’s top inventors and
engineers across multiple industries.
-
Began shipping Software Development Kits (SDKs) to IV and the IV
Inventor Network (IVIN), as well as to engineers and developers at
select major corporations.
-
Awarded sixth ChromaID patent which supports more efficient
authentication, identification and diagnostic applications.
-
Appointed Richard Mander, Ph.D. (Stanford) as chief technology
officer, bringing to Visualant a long history of success in the
development of products for the consumer and business-to-business
marketplace, including seven years at Apple transferring emerging
technologies into successful products.
Management Commentary
“During the first quarter, we made steady progress in our transition
from a development stage company to a commercial applications company,”
said Ron Erickson, Visualant founder and CEO. “We achieved a major
milestone in our company’s history during the quarter, as we began
shipping ChromaID scanners and software development kits to some of the
brightest inventors and engineers around the world. We are receiving
amazing reports about the many new ChromaID applications being
developed, and we anticipate our first commercial application to
materialize in the coming months.
“Coupling this strong progress with our expanding intellectual property
portfolio and our strategic business development partnership with
Intellectual Ventures, we are well positioned to capitalize on the
substantial opportunities that lie ahead.”
Fiscal Q1 2014 Financial Summary
Revenue was $1.9 million versus $2.1 million in the same year-ago
quarter. The decrease was due to $250,000 in deferred revenue recognized
in the first quarter of fiscal 2013 from the joint development agreement
with Sumitomo Precision Products that did not repeat in the first
quarter of fiscal 2014. Excluding the deferred revenue recognition in
the year-ago quarter, revenue increased 4% due entirely to revenue
generated by Visualant’s TransTech subsidiary.
TransTech’s revenue increase was primarily driven by the release of new
products, including radio frequency, asset tracking and kiosk printer
products.
Gross margin was 16.3% compared to 26.0% in the same year-ago quarter.
The decrease relates to the reduction in license revenue from Sumitomo,
offset by an increase in TransTech gross margin from 15.7% to 16.3%.
Research and development expenses increased $147,000 to $313,000 from
$166,000 in the same year-ago quarter. The increase was due to
expenditures related to the commercialization of the company’s ChromaID
technology and its agreement with IV.
Selling, general and administrative expenses decreased $207,000 to
$843,000 from $1.1 million in the same year-ago quarter. The decrease
was due to a reduction in business development expenses of $109,000 and
salaries of $100,000.
Net loss totaled $846,000 or $(0.01) per basic and diluted share versus
a net loss of $701,000 or $(0.01) per basic and diluted share in the
same year-ago quarter. TransTech also recognized a marginal net income
of $2,000, compared to a net loss of $109,000 in the same year-ago
quarter.
Conference Call
Visualant management will hold a conference call later today (February
12, 2014) to discuss these results. The company’s President and CEO Ron
Erickson will host the call starting at 4:30 p.m. Eastern time. A
question and answer session will follow management’s presentation.
Date: Wednesday, February 12, 2014
Time: 4:30 p.m. Eastern time
(1:30 p.m. Pacific time)
Toll-free number: 1-877-941-2068
International
number: 1-480-629-9712
Conference ID: 4667033
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=107783
and via the investor relations section at www.visualant.net.
Please call the conference telephone number at least five minutes prior
to the start time and ask for the Visualant conference call. An operator
will register your name and organization. If you have any difficulty
connecting with the conference call, please contact Liolios Group at
1-949-574-3860.
A replay of the call will be available after 7:30 p.m. Eastern time
through February 26, 2014.
Toll-free replay number: 1-877-870-5176
International replay
number: 1-858-384-5517
Replay ID: 4667033
Important Cautions Regarding Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995. This release contains forward-looking statements regarding
expectations for future financial performance, which involve uncertainty
and risk. It is possible the Company's future financial performance may
differ from expectations due to a variety of factors including, but not
limited to our need for additional financing, the sale of significant
numbers of our shares, the potential adjustment in the exercise price of
our warrants and a volatile market price for our common stock. It is not
possible to foresee or identify all such factors. Any forward-looking
statements in this report are based on current conditions, expected
future developments and other factors it believes are appropriate in the
circumstances. Prospective investors are cautioned that such statements
are not a guarantee of future performance and actual results or
developments may differ materially from those projected. The company
makes no commitment to update any forward-looking statement included
herein, or disclose any facts, events or circumstances that may affect
the accuracy of any forward-looking statement.
About Visualant, Inc.
Visualant™ is a public company whose shares trade under the stock symbol
“VSUL.” The Visualant Spectral Pattern Matching™ (SPM) technology
directs structured light onto a substance or material, through a liquid
or gas, or off a surface, to capture a unique ChromaID™. A ChromaID can
be used to identify, detect, or diagnosis markers invisible to the human
eye. ChromaID scanner modules can be integrated into a variety of mobile
or fixed-mount form factors. The patented, award-winning technology is
disruptive, making it possible to effectively conduct analyses in the
field that could only previously be performed by large and expensive
lab-based tests. For more information on Visualant, visit the company’s
new website at www.visualant.net.
Copyright Business Wire 2014