VANCOUVER, British Columbia, Aug. 19 /CNW/ -- GPS Industries, Inc. (GPSI)
(OTC Bulletin Board: GPSN), the premier provider of Wi-Fi GPS systems for golf
facilities, resorts and residential communities, today announced its unaudited
financial and operating results for the second quarter ended June 30, 2008,
and is pleased to report that for the 3 and 6 month periods ended June 30,
2008, revenues have increased 106% and 68% respectively over the corresponding
periods in 2007 equalling the full year's revenue from 2007. Further, GPSI
hired new CEO David Chessler in June to streamline operations, lead new sales
initiatives and leverage GPSI's industry-leading technology to expand product
offerings. Coincidental with his hire, GPSI closed a convertible debt
financing of $5.5 million and continues to acquire new sources of equipment
lease financing which will allow GPSI to offer its products to its customers
under the most flexible terms in the golf industry.
While the net loss for the second quarter of 2008 of $3,866 (before
Deemed preferred stock dividend) increased by $1,801 (87%) over the net loss
from the corresponding period in 2007 (as restated), in this quarter GPSI sold
and installed 12.5 (18 hole equivalent) Inforemer Systems while simultaneously
restructuring its sales force and expanding its product offering to allow it
to serve additional markets. These efforts were in addition to the significant
task of reducing the ongoing operating while continuing to deliver the most
technologically advanced and user-friendly family of products in the industry.
Q2 2008 Operating and Financial Hi-lights:
(all amounts in thousands, except per share amounts)
-- Total revenues increased by 106% to $4,564 in the second quarter as
compared to the same period in 2007 primarily due to higher average
selling prices and increased service and support revenue as a result
of the Uplink acquisition.
-- Cost of sales increased by 102% to $3,296 over the corresponding
period in 2007 consistent with the increased revenues.
-- Gross profit increased 116% to $1,268 vs. $587 in Q2 2007 and improved
slightly over Q2 2007 as a percent of revenue at 28% vs. 27%.
-- Total Operating expenses increased by 107% to $4,827 in comparison
with the corresponding period in 2007. Included in the 2008 operating
expenses are several one time charges associated with the
restructuring and financing activities untaken by the company totaling
approximately $965. In addition, 2008 expenses include the operations
of Uplink and GPSI Europe acquired in January 2008 and October 2007
respectively and the amortization of the estimated value of the
Intellectual Property associated with the Uplink acquisition.
-- Secured new financing totaling $9.0M. GPSI increased its banking
facility by $3.5M, guaranteed by GWSE and raised $5.5M of convertible
debt financing from Tulip Investment Group Ltd.
-- On June 16, 2008 GPSI hired David Chessler as Chief Executive Officer.
"The results for GPSI prior to my arrival present quite a challenge,"
stated CEO David Chessler, "However, I am extremely pleased with the progress
made to date. With our superior technology, quality personnel, customer
support and established infrastructure, GPS Industries has the tools to be
successful; we must continue to consolidate our operations, reduce costs and
be more efficient in delivering our industry-leading products to the market. I
am highly confident we will rise to the challenges leaner, better and much
more successful than we have been in the past, and I look forward to building
on our initial successes."
About GPS Industries, Inc.
GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi multimedia
solutions to enable managers of golf facilities, resorts, and residential
communities to improve operational efficiencies and generate new revenue
streams. The Company's Inforemer(R) Management Solutions product line provides
integrated software applications and a high-resolution 10.4-inch cart mounted
"HDX" display panel. The HDX panels vividly illustrate each hole, providing
precise distance measurement information, strategic playing tips and targeted
advertising messages. The patented system is seamlessly connected via a
high-speed Wi-Fi network that enables the entire facility into a wireless hot
spot. For additional information, please visit http://www.gpsindustries.com.
Some statements contained in this release may be forward-looking within
the meaning of the Private Securities Litigation Reform Act of 1995. Editors
and investors are cautioned that such forward-looking statements involve risks
and uncertainties that may cause the company's actual results to differ
materially from such forward-looking statements. These risks and uncertainties
include, but are not limited to, the company's ability to generate revenues
and other factors as described in the Company's literature and filings with
the Securities and Exchange Commission.
For further information:
For further information: David Chessler, CEO of GPS Industries, Inc.,
+1-604-576-7442, firstname.lastname@example.org Web Site: http://www.gpsindustries.com