QualMark Corporation Reports Third Quarter Financial Results...
QualMark Corporation (OTCBB: QMRK), a world leader in designing, manufacturing and marketing HALT (Highly Accelerated Life Testing), HASS (Highly Accelerated Stress Screening) and electrodynamic systems, today announced results for the third quarter and nine months ended September 30, 2005.
The Company reported revenue for the quarter of $3,509,000 versus revenue of $2,717,000 from the third quarter of 2004. Charles Johnston, President and CEO of QualMark, stated: "Our total revenue grew 29% and core business revenue grew 13% as compared to the prior year quarter, as prior period investments in marketing programs have begun to materialize. This is outstanding as historically the third quarter represents our slowest period." Mr. Johnston continued: "During the quarter, we closed an order that approached $600,000, which represented the largest single order the Company has ever received. This order was in addition to multiple Typhoon chambers that were purchased by the same customer throughout 2005. The sale represents the growing importance and dependency of HALT and HASS technology in the avionics industries. QualMark ACG revenue remained consistent. We have implemented specific sales and marketing initiatives that we expect to capitalize on in the fourth quarter of this year in the ACG electrodynamic vibration market."
The Company reported a net income for the quarter of $331,000 versus a net income of $212,000 from the third quarter of 2004. "The close of this quarter is significant for QualMark, as it marks the ninth consecutive quarter of profitability. Our net income for the quarter grew 56% as compared to a year ago due to our commitment to business fundamentals," continued Mr. Johnston.
The Company reported diluted income per share for the quarter of $0.03 as compared to diluted income per share of $0.02 for the third quarter of 2004. The primary dilution for the Company is attributable to certain financial securities that are convertible into common stock.
The Company reported a net income for the year of $984,000 versus a net income of $808,000 from 2004. "We are delighted with the continued growth and profitability of our business. Our net income for the year grew 22% as compared to a year ago due to our commitment to business fundamentals," Mr. Johnston concluded.
The Company reported diluted income per share for the year of $0.12 as compared to diluted income per share of $0.09 from 2004. The primary dilution for the Company is attributable to certain financial securities that are convertible into common stock. The Company does not anticipate any additional dilution at this time. However, the Company may enter into financial transactions to assist with financing additional acquisitions or provide capital for future growth, which may further impact dilution.
QualMark's quarterly conference call to discuss third quarter 2005 results will be held today, October 25, 2005, at 11:00 a.m. Eastern time.
To participate via conference call, dial 888-318-6430 (if calling from within the U.S.) no later than 10:50 a.m. EDT on October 25. The leader name is Charles Johnston. The QualMark security code to access this earnings call is QUALMARK.
QualMark Corporation, headquartered in Denver, Colorado, is the leader in designing, marketing, and manufacturing accelerated life-testing systems providing the world's largest corporations with solutions that improve product reliability and allow them to get to market faster. The Company has installed more than 600 of its proprietary testing systems in 25 countries. The Company operates and partners with ten testing facilities worldwide.
The Company also offers electrodynamic vibration solutions through its subsidiary, QualMark ACG Corporation.
QualMark ACG Corporation, headquartered in West Haven, Connecticut, is the leader in supplying electrodynamic systems, components, and service to the worldwide vibration test equipment market. For over 30 years, QualMark ACG (formerly ACG Dynamics, Inc.) has been supplying quality replacement parts and field service for most brands of vibration equipment.
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