SEATTLE -- (BUSINESS WIRE) -- 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
“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.
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.