DataLogic Releases CEO Letter to Shareholders Discussing Fiscal 2003 Results and Forward Guidance
April 09 2004 - 2:37PM
PR Newswire (US)
DataLogic Releases CEO Letter to Shareholders Discussing Fiscal
2003 Results and Forward Guidance IRVINE, Calif., April. 9
/PRNewswire-FirstCall/ -- DataLogic International, Inc. (OTC
Bulletin Board: DLGI; Berlin, Frankfurt StockExchange: 779612),
today releases a letter to shareholders discussing fiscal 2003
results and forward guidance. To Our Valued Shareholders, I am
proud to announce that DataLogic has achieved record revenue in
2003 of $10.7 million as compared to $2.1million from the prior
year, a 412% year-to-year growth. 2003 was a challenging year but
very productive for DataLogic. We have learned from our past
mistakes and made substantial progress against the major milestones
we set at the beginning of the year and achieved results that are
pivotal to DataLogic's future success. Although the net earnings
results were a slight disappointment for DataLogic International,
the new year brings confidence that the factors that brought about
the disappointment are well behind us. The main obstacles in Q4
2003 were the adjustments from the comprehensive year-end audit
procedures in preparing DataLogic for a major exchange listing
along with uncollected debts for $113,000 and deferred revenues
booking of $125,000. As a result of these adjustments, defaulted
accounts coupled with R&D and ongoing M&A consulting
expenses, we did not realized the full potential earning that we're
expected for the quarter. The adjustments and reclassifications to
the previous quarter results were necessary to form an organized
financial based from which we will expand into our new VoIP and M2M
businesses. Although we had to reclassify $113,000 of income from
Kiboga System to doubtful debt, we expect to ultimately collect
this amount through legal actions. Our deferred revenues of
$125,000 will be booked in the first two quarters of 2004. We
expect to record over $3.5 million in revenues in the first
quarter. This is in line with our sales projection of over $20
million in annual revenue for fiscal 2004. Since the start of 2004,
sales for our VoIP products and licenses have been on the rise
along with strong demands for our GPS products. We are currently
working with over ten major companies in Asia, Middle East, North
America, South America and Europe to either test or deploy our VoIP
solutions. The majority of our current business is deriving from
Asia such as China, Vietnam and the Philippines. We expect the
market in Asia to remain strong. We also have plans to expand into
the retail channels in North America this year as well as stronger
penetration into Europe, Middle East and South America. We're
currently marketing our GSM and CDMA vehicle tracking devices in
North America, South America and Europe. The majority of our sales
have been to distributors and application developers but we
anticipate to consummate some of the transactions we have in the
current pipeline with various large clients shortly. We're also
conducting tests of the products in China and intend to increase
our marketing effort in Asia beginning this quarter. We are in the
process of organizing our resources and strengthening our
infrastructure to support the anticipated growth through the sales
of our VoIP and M2M products. In conjunction, we also endeavor to
eliminate inefficiencies in our R&D, operations and collection
process. We expect this effort to result in an improved bottom
line. As you recall from my previous shareholders letter, DataLogic
is undergoing a major capital restructuring which will result in
new funding and debt refinancing for the company to significantly
reduce the costs of borrowed capital, strengthen our balance sheet
and at the same time leveraging our capital resources via
merger/acquisition activities. We believe that our actions, both
strategic and tactical, have put DataLogic in a much better
position today than it has been over the last few years. These
actions, coupled with an improving economic landscape, give us
confidence going into 2004 that we are well positioned to realize
our mission of building world-class technology companies and
increasing shareholders value. We appreciate all your support and
looking forward to a successful and mutually rewarding 2004.
Sincerely, Derek Nguyen Chief Executive Officer About DataLogic
International Inc. DataLogic International, Inc. is a technology
and professional service company dedicated to providing a wide
range of Information Technology and Communications related products
and services. For more information about DataLogic, go to
http://www.dlgi.com/ or contact Investor Relations at or (888)
530-8228. This release contains forward-looking statements within
the meaning of Section 27a of the Securities Act of 1933, asamended
and section 21e of the Securities and Exchange Act of 1934, as
amended. Those statements include the intent, belief or current
expectations of the company and its management team. Prospective
investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of
various factors. Accomplishing the strategy described herein is
significantly dependent upon numerous factors, many are not in
management's control. Some of these factors include the ability of
the company to raise sufficient capital, attract qualified
management, attract new customers and effectively compete against
similar companies. DATASOURCE: DataLogic International, Inc.
CONTACT: Investor Relations of DataLogic International Inc.,
+1-888-530-8228, Web site: http://www.dlgi.com/
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