- Revenues increase to $1.4 million exceeding guidance of $1.0-$1.2 million
- Revenue growth from both existing and new customers
- Company achieves net income of $95,894 in the midpoint of guidance
- Gross margins increase to nearly 34%, exceeding target of 29%
- Reports first quarter of positive operating cash flow
- Opens new headquarters in Los Angeles to capitalize on increasing demand from North America
- Company establishes new subsidiary focusing on direct sales inside China
- CEO sees robust revenue and earnings growth for balance of fiscal 2017 and beyond
LOS ANGELES, May 15, 2017 (GLOBE NEWSWIRE) -- Atlas Technology International, Inc. (OTCQB:ATLT), a rapidly growing designer, manufacturer and distributor of touch screen devices, today announced record revenues and earnings for its third fiscal quarter and nine months, ended March 31, 2017.
“We are executing our business plan at breakneck speed. Our third quarter exceeded expectations as we successfully booked more revenues in our last quarter than in the entire first half of fiscal 2017,” said Matthew Tsai, Chief Executive Officer of Atlas Technology International, Inc. “During the third quarter, we added a significant new blue-chip customer, while continuing to fulfill a growing number of orders from our existing customer base. We also relocated our headquarters to Los Angeles to capitalize on the demand and awareness of our technology from the North American market while concurrently creating a new subsidiary to leverage growing demand for electronics from China’s growing consumer market.”
Atlas Technology Achieves Record Revenues and Earnings for Third Quarter Fiscal 2017
Atlas Technology reported $1,393,365 in revenues for its third quarter of fiscal 2017 ended March 31, 2017, up 81% sequentially from $769,821 in revenues from its second fiscal quarter. Revenues significantly outpaced the Company’s previously announced guidance of $1.0-1.2 million. The increase in revenues was primarily driven from contracts from a significant new customer as well as repeat orders from the Company’s existing client base.
Cost of goods rose 69% to $925,949 for the third fiscal quarter compared with $549,400 in the second fiscal quarter. Gross margins expanded to 33.5% from 28.6% in the second fiscal quarter, well above the Company’s guidance of 29%, due primarily to new revenue channels as well as overall economies of scale.
Operating expenses rose 65% to $362,545, or 26% of revenues, in the third fiscal quarter, compared with $220,367, or 28.6% of revenues, in the second quarter, driven by increased purchasing power and product research. Research and development expenses rose to $160,038, or 11.5% of revenues, from $95,535, or 12.4% of revenues, in the second quarter, a 68% increase driven by investment in new technologies and design primarily for the burgeoning wearables market. SG&A for the third fiscal quarter came in at $202,507, or 14.5% of revenues, up 62% from $124,832, or 16.2% of revenues, in the second quarter, in line with an overall increase in operating expenses.
Operating income for the third fiscal quarter totaled $104,871, an eight-fold increase from second quarter operating income of $12,369 in the second quarter of fiscal 2017, which also included a one-time gain from the sale of a subsidiary of $12,315. Operating margins grew to 7.5% in the third quarter from 1.6% in the second quarter of fiscal 2017.
The Company posted net income of $95,982 in the third fiscal quarter ended March 31, 2017, at the midpoint of guidance and up sharply from $4,366,in the second fiscal quarter.
At March 31, 2017 Atlas Technology International had $1.7 million in cash and accounts receivable, up from $1.03 million in the second fiscal quarter ended December 31, 2016. Cash and equivalents declined slightly in the quarter to $33,122 versus $47,866 in the December quarter. The Company has no long-term debt and relied on short-term loans to fund its operations at this point.
The Company’s third fiscal quarter represented its first quarter of positive operating cash flow as it generated $22,521 in cash flow from operations, a significant improvement from a loss of ($163,442) in the prior quarter.
Atlas Technology Achieves Solid Nine-Month Financial Results
Atlas posted $2,399,157 in revenues for the nine months of fiscal 2017, ended March 31, 2017, a period comprised of 31 weeks of operations.
For the nine months, cost of goods totaled $1,644,240, or 68.5% of revenues, resulting in $754,917 gross profit, and gross margins of 31.4%.
Operating expenses came in at $752,542, or 31.4% of revenues, including $283,302, or 11.8% of revenues, in research and development expenses and $469,240, or 19.6% of revenues, in SG&A. Operating income totaled $14,690, or 0.6% of revenues, for the period.
Atlas Technology – Size, Technology and Flexibility is Competitive Advantage; Growth to Remain Strong for Balance of Fiscal 2017 and to Continue in Fiscal 2018
“Atlas Technology International is a ‘one-stop-shop’ for customers looking to create innovative touch screen interfaces. The Company offers high-quality design and production at a competitive price to both large established customers and to new emerging companies,” continued Mr. Tsai. “Our size, technology and flexibility places us in a unique position in the competitive touch screen market. First, our relatively small size enables us to stay ahead of new trends since Atlas Technology can easily work with small orders and emerging customers that would not attract larger producers.
“Second, Atlas Technology focuses on smaller touch screen designs. This is notable because smaller screens are expected to be one of the faster growth segments in the touch screen industry due to rapidly evolving technology and increasing consumer demand for so-called “wearable” devices. Smaller screens require more exacting design and tighter manufacturing tolerances in order to meet quality standards for clarity (readability), accuracy and durability. Finally, in a rapidly changing arena, flexibility often trumps size. Atlas Technology believes it can provide better value than the large producers, particularly in small orders and sampling projects.
“Our third quarter results continue to prove out the value of the initial customer relationships that management brings to the Company. As more companies see that Atlas has the expertise, operating and financial strength to design and provide innovative, industry leading touch screens for a growing variety of blue-chip branded consumer electronics, we expect many more companies will migrate their business to Atlas. Accordingly, we anticipate continued strong growth in the fiscal fourth quarter into 2018.”
Company Provides Positive Fourth Quarter Guidance
“Our momentum has remained strong in the fourth fiscal quarter and we anticipate further acceleration as we leverage our new headquarters in Los Angeles, where we can bring potential customers in to learn about our services, technology and value proposition. Based on our business so far this quarter, we anticipate revenues in the range of $1,500,000 to $1,600,000 and net income in the range of $140,000 to $150,000. We are in the final stages of the budget process for 2018 and plan to update shareholders with more specific guidance for the fourth fiscal quarter and full-year FY2017, and fiscal 2018, in the weeks ahead,” concluded Mr. Tsai.
Conference Call Information
Management will be hosting a conference call with investors to discuss today’s announcement at 1:00 pm Eastern Time/10:00 am Pacific Time. Following is dial-in information for the call:
Live Participant Dial In (Toll Free): (866) 682-6100
Live Participant Dial In (International): (862) 255-5401
Replay Dial-In Information
Replay Number (Toll Free): 877-481-4010
Replay Number (International): 919-882-2331
Replay ID: 10403
Teleconference Replay Available Until: May 29, 2017 at 11:59 PM
The live, listen-only webcast of the conference call may also be accessed by visiting ATLT 3Q17 Conference Call. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company’s website for 90 days.
To be added to the Company’s investor lists, please contact Bill Miller at Investor Relations Partners at 888-992-8527 or via email at firstname.lastname@example.org.
About Atlas Technology International, Inc.
Atlas Technology International, Inc. (OTCQB:ATLT) is a leading designer, manufacturer and distributor of touch screen devices to consumer electronic producers all over the world. Their products power the interface to a wide array of smart devices including GPS systems, point of sale machines, hospitality and medical devices and small appliances. For further information on Atlas Technology International, please visit our website at www.atlastechintl.com.
(This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Atlas Technology International, Inc. has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect Atlas Technology International's current beliefs and are based on information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause Atlas Technology International's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Atlas Technology International undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information contained in this Press Release including such forward-looking statements.)
(Financial Tables Follow)
|Atlas Technology International, Inc.|
|Consolidated Statements of Operations and Comprehensive Income (Loss)|
|For the Three|
|For the Three|
|For the Nine|
|For the Nine|
|Cost of goods sold||925,949||—||1,644,240||—|
|Research and development||160,038||—||283,302||—|
|Selling, general and administrative expenses||202,507||16,272||469,240||36,930|
|Total operating expenses||362,545||16,272||752,542||36,930|
|Gain on disposal of subsidiary||—||—||(12,315||)||—|
|Income (loss) from operations||104,871||16,272||14,690||(36,930||)|
|Other income (expenses):|
|Total other income (expenses)||(8,979||)||—||(27,389||)||5,000|
|Net income (loss)||$||95,892||$||(16,272||)||$||(12,699||)||$||(31,930||)|
|Other comprehensive income||2||—||2||—|
|Total comprehensive income (loss)||$||95,894||(16,272||)||(12,697||)||(31,930||)|
|Earnings per common share:|
|Weighted average common shares:|
|Atlas Technology International, Inc.|
|Consolidated Balance Sheets|
|March 31,||June 30,|
|Cash and cash equivalents||$||33,122||$||228|
|Accounts receivable, net||1,675,634||25|
|Other current assets||1,282||—|
|Total Current Assets||1,731,686||30,006|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Accrued liabilities and other payables||184,260||444|
|Due to related party||1,567||—|
|Short term loans||117,118||—|
|Loans from related party||182,051||54,800|
|Total Current Liabilities||1,593,457||63,854|
|STOCKHOLDERS' EQUITY (DEFICIT):|
|Series A preferred stock par value $0.00001: 10,000 shares authorized; 0 shares issued and outstanding as of March 31, 2017 and June 30, 2016, respectively||—||—|
|Series B preferred stock par value $0.00001: 250,000 shares authorized; 0 shares issued and outstanding as of March 31, 2017 and June 30, 2016, respectively||—||—|
|Series C preferred stock par value $0.00001: 250,000 shares authorized; 0 shares issued and outstanding as of March 31, 2017 and June 30, 2016, respectively||—||—|
|Common stock par value $0.00001: 100,000,000 shares authorized; 54,645,084 and 20,900,000 shares issued and outstanding as of March 31, 2017 and June 30, 2016, respectively||546||209|
|Additional paid-in capital||240,320||55,883|
|Accumulated other comprehensive income||2||—|
|Total Stockholders' Equity||138,229||(33,848||)|
|Total Liabilities and Stockholders' Equity||$||1,731,686||$||30,006|
Investor/Media Contact: Bill Miller Investor Relations Partners Phone: 844-565-5665 email@example.com
Source:Atlas Technology International, Inc.