Visualant Reports First Quarter Fiscal 2014 Results
“During the first quarter, we made steady progress in our transition from a development stage company to a commercial applications company”
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.
“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.
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
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.