Visualant,
Inc. (OTCQB: VSUL), a leading provider of
disruptive light-based technologies, reported results for the fiscal
second quarter ended March 31, 2014.
Fiscal Q2 2014 Highlights
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Shipped 20 Software Development Kits (SDKs) to Intellectual Ventures
(IV), which IV deployed to 20 inventor groups in its global Inventor
Network (IVIN).
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IVIN worked with the SDKs to explore unique applications of
Visualant’s ChromaID technology, as well as investigated enhancements
to the technology. Initial results indicate approximately 50
discoveries, which may lead to applications and the expansion of the
ChromaID technology.
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Visualant received positive feedback from potential customers in the
pharma, medical devices, packaging and semiconductor industries.
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Visualant explored potential applications pertaining to process
control and food safety.
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TransTech subsidiary sold new product solutions, including UHF RFID
asset tracking systems and kiosk printer products. These new product
offerings led to an increase in revenue and profitability in the
second quarter.
Management Commentary
“During the second quarter we witnessed first-hand the breadth and depth
of the Intellectual Ventures global inventor’s network,” said Ron
Erickson, Visualant’s founder and CEO. “We are receiving great reports
about the many new ChromaID applications being developed by IV’s
network, and we anticipate our first commercial application to
materialize in the second half of this year. We also expect several new
patent filings as a result of these efforts, which will strengthen our
intellectual property foundation as we move into the commercial
marketplace.
“In step with this, IV has also been introducing our technology to major
potential partners and licensees through its vast business development
network. We are encouraged by IV’s early efforts and remain well
positioned to capitalize on the substantial opportunities that lie
ahead.”
Fiscal Q2 2014 Financial Summary
Revenue was $2.0 million versus $2.2 million in the same year-ago
quarter. The decrease was due to $250,000 in deferred revenue recognized
in the second quarter of fiscal 2013 from the joint development
agreement with Sumitomo Precision Products that did not repeat in the
second quarter of fiscal 2014. The decline was partially offset by a
$54,000 increase in TransTech revenue related to the release of new
products, including radio frequency, asset tracking and kiosk printer
products.
Gross profit was 16.8% compared to 25.9% in the same year-ago quarter.
The decrease relates to the reduction in Sumitomo license revenue,
offset by an increase in TransTech gross margin from 16.5% to 16.8%
related to the release of new products.
Research and development expenses decreased $120,500 to $91,900 from
$212,400 in the same year-ago quarter. The decrease was due to reduced
expenditures for suppliers related to the commercialization of the
company’s ChromaID technology.
Selling, general and administrative expenses decreased 50% to $753,500
from $1.5 million in the same year-ago quarter. The decrease was due to
a reduction in business development expenses of $103,000, stock-based
compensation of $354,000 and legal expenses of $145,000.
Net loss totaled $1.7 million or $(0.01) per basic and diluted share, an
improvement from a net loss of $2.3 million or $(0.02) per basic and
diluted share in the same year-ago quarter.
Conference Call
Visualant management will hold a conference call today (May 15, 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: Thursday, May 15, 2014
Time: 4:30 p.m. Eastern time (1:30
p.m. Pacific time)
Toll-free number: 1-888-549-7704
International
number: 1-480-629-9810
Conference ID: 4683970
The conference call will be broadcast live and available for replay in
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 May 29, 2014.
Toll-free replay number: 1-877-870-5176
International replay
number: 1-858-384-5517
Replay ID: 4683970
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