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VITRIX Announces Fiscal Year 2002 Financial Results; Reports Year-Over-Year Revenue Increase in Fiscal Q4

TEMPE, Ariz., Aug. 6 /PRNewswire-FirstCall/ -- VITRIX, Inc. (OTC Bulletin Board: VRXI) today announced unaudited financial results for its fiscal fourth quarter and year ended, June 30, 2002.

For the quarter ended June 30, 2002, revenue increased 8% to $919,128, compared to revenue of $854,584 for the quarter ended June 30, 2001. The net loss for the quarter ended June 30, 2002, decreased to $145,435, or $.02 per basic share, compared to a net loss of $288,437, or $.05 per basic share, for the quarter ended June 30, 2001.

Revenue for the fiscal year ended June 30, 2002 decreased 19% to $3,285,315, compared to revenue of $4,077,736 for the fiscal year ended June 30, 2001. The net loss for the fiscal year ended June 30, 2002 decreased to $655,852, or $.09 per basic share, compared to a net loss of $1,565,510, or $.25 per basic share, for the fiscal year ended June 30, 2001.

"We are pleased with the revenue growth in the quarter of 8% year-over- year and 21% on a sequential basis, in light of the difficult economic conditions that continue to exist," stated Thomas S. Bednarik, President and CEO. "We continued our trend of reducing operating expenses versus the same period in the prior year, as well," he continued.

The Company released its new TA50XL product in the fourth quarter, which is designed to address the needs of the small business market (companies under 100 employees). The TA50XL is a pre-packaged solution including labor management software, time clock, badges and cabling. In addition, the following significant events took place in fiscal Q4:

     -- Our TA50, TA100 and Genesis software products were upgraded to the PRO
        version featuring 32-bit technology.
     -- We released our first wireless connectivity products to allow for
        connection of devices without the need for special wiring.
     -- We continued to forge new payroll partner relationships and increase
        penetration into those already established, such as with Payroll

About VITRIX, Inc.:

VITRIX, Inc., based in Tempe, Arizona, is a developer and provider of workforce management solutions for businesses of all sizes. VITRIX products improve productivity by automating collection of time and attendance data, staff scheduling and management of labor resources. Its wholly-owned subsidiary, Time Spot, Inc., has been developing Time and Labor Management software and hardware solutions for over fourteen years, which automate the payroll process by collecting, processing and packaging payroll data for all types of companies in a broad range of markets. For more information please visit the Company's Web site at https://timespothq.com .


                               VITRIX, INC.
                                BALANCE SHEET
                                JUNE 30, 2002


     Current Assets:
        Cash and cash equivalents                                 $195,249
        Accounts receivable _ trade, net                           615,084
        Inventory                                                  174,697
        Prepaid expenses and other current assets                   47,708

                Total Current Assets                             1,032,738

     Property and equipment, net                                   142,984
     Current Liabilities:
        Current portion of long-term debt                         $134,095
        Accounts payable                                           355,381
        Accrued liabilities                                        214,641
        Deferred revenue                                           311,143

                Total Current Liabilities                        1,015,260

     Long-term debt, less current portion                          733,528
Total Liabilities 1,748,788

Commitments: --

     Stockholders' Equity (Deficit):
        Common stock, $.005 par value, 50,000,000 shares
         authorized, 9,105,828 shares issued and outstanding        45,529
        Contributed capital                                      6,052,120
        Accumulated deficit                                     (6,670,715)

                Total Stockholders' Equity (Deficit)              (573,066)
                Total Liabilities and Stockholders'
                 Equity (Deficit)                               $1,175,722

                                 VITRIX, INC.
                           STATEMENTS OF OPERATIONS

                                Three Months Ended          Years Ended
                                      June 30,                June 30,
                                 2002         2001       2002         2001
                              (Unaudited) (Unaudited) (Unaudited)
       Product sales           $745,552   $712,358   $2,650,310   $3,348,185
       Services revenue         173,576    142,226      635,005      729,551

         Total Revenues         919,128    854,584    3,285,315    4,077,736
     Cost of Revenues:
       Product                  289,215    315,499    1,099,572    1,529,766
       Services                 102,482    168,319      458,164      539,974
         Total Cost of
           Revenues             391,697    483,818    1,557,736    2,069,740

     Gross Profit               527,431    370,766    1,727,579    2,007,996
     Costs and Expenses:
       Sales and marketing      289,103    177,233     903,112     1,060,316
       Research and
        development             174,599    185,777     691,426     1,159,666
       General and
        administrative          224,650    290,530     741,820     1,168,276
       Impairment of asset           --         --          --        83,080
         Total Costs and
          Expenses              688,352    653,540   2,336,358     3,471,338
     Net Loss from
      Operations               (160,921)  (282,774)   (608,779)   (1,463,342)
     Other Income (Expense):
       Interest expense         (19,726)   (26,881)    (87,324)      (79,598)
       Loss on disposal of
        fixed assets                 --         --          --       (62,107)
       Other                          2     20,161       1,993        26,577
       Interest income            1,142      1,057       4,190        12,960
                                (18,582)    (5,663)    (81,141)     (102,168)

     Income Before
      Extraordinary Item       (179,503)  (288,437)   (689,920)   (1,565,510)
     Extraordinary Item -
      Gain on extinguishment
      of debt                    34,068         --      34,068            --

     Net Loss                 $(145,435) $(288,437)  $(655,852)  $(1,565,510)

     Basic Loss per Share        $(0.02)    $(0.05)     $(0.09)       $(0.25)
     Weighted Average
      Number of Shares
      Outstanding             9,105,828  6,295,828   7,344,280     6,263,920

Certain information and comments contained in this press release may be forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Factors set forth in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2001, and Quarterly Report on Form 10-QSB for the fiscal quarter ended March 31, 2002, together with other factors that appear in this press release or in the Company's other Securities and Exchange Commission filings could affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company, in this press release.

For further information please contact: Craig Smith, CFO of VITRIX, Inc., 1-480-296-0442, [email protected]

Copyright 2003, Time Spot, Inc., A Vitrix Company. All rights reserved.
51 West Third Street Tempe, AZ 85281 Phone: (800) 561-6366 Fax: (480) 967-5444
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