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Vitrix Announces Third Fiscal Quarter Results

April 30, 2002 8:03:00 PM ET

TEMPE, Ariz., April 30 /PRNewswire-FirstCall/ -- VITRIX, Inc. (OTC Bulletin Board: VRXI) today announced financial results for its third fiscal quarter ended March 31, 2002.

Revenue for the quarter ended March 31, 2002 decreased 27% to $757,425, compared to revenue of $1,037,643 for the quarter ended March 31, 2001. The net loss for the quarter ended March 31, 2002 decreased 70% to $145,194, or $.02 per basic share, compared to a net loss of $476,252, or $.08 per basic share, for the quarter ended March 31, 2001. Sequentially, the net loss remained flat vs. the prior quarter.

Revenue for the nine month period ended March 31, 2002 (the Company's third fiscal quarter) decreased 27% to $2,366,187, compared to revenue of $3,223,152 for the nine month period ended March 31, 2001. The net loss for the nine month period ended March 31, 2002, decreased 60% to $510,417, or $.08 per basic share, compared to a net loss of $1,277,073, or $.20 per basic share, for the nine month period ended March 31, 2001.

The financial results include the operations of Time Spot, Inc. for all periods presented. Time Spot Inc. merged with a subsidiary of Vitrix on March 30, 2001 in a transaction accounted for as a pooling of interests.

"We believe that our business is fundamentally sound and that our revenue will rebound when overall economic conditions improve. Specifically, in the quarter we signed-up thirteen new resellers and entered into distribution partnerships, as previously announced, with Datasym, Inc., a provider of Point of Sale (POS) software and hardware solutions and Galaxy Control Systems, a provider of access control systems. Over the coming months, we will continue to pursue partnerships in complimentary areas to extend our reach into specific vertical market segments," stated Thomas Bednarik, president and CEO of Vitrix, Inc. Also, the Company announced additions to its sales and marketing teams, hiring an ADP veteran to head up the direct sales team and increased sales and marketing headcount to build market visibility and awareness.

"The Company will be releasing a SQL version of its popular GenesisPro product in the coming quarter which should allow our resellers to obtain business where this database is specified as a requirement," added Bednarik. The company released an enhanced version of its TA100 product in the quarter and continues to improve the functionality of its products either through software enhancement or by providing additional hardware connectivity.

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 .

                  March 31, 2002


Current Assets:
  Cash and cash equivalents                             $441,871
  Accounts receivable - trade, net                       426,936
  Inventory                                              189,799
  Prepaid expenses and other current assets               38,685

        Total Current Assets                           1,097,291

Property and equipment, net                              161,527

             Total Assets                             $ 1,258,818

Current Liabilities:
  Current portion of long-term debt                     $171,062
  Accounts payable                                       376,308
  Accrued liabilities                                    182,984
  Deferred revenue                                       205,192

        Total Current Liabilities                        935,546

Long-term debt, less current portion                     750,902

Total Liabilities                                      1,686,448 
Stockholders' Equity (Deficit):
   Common stock, $.005 par value,
   50,000,000 shares authorized,
   9,105,828 shares issued and outstanding                45,529
   Contributed capital                                 6,052,121
   Accumulated deficit                               (6,525,280)

Total Stockholders' Equity (Deficit)                   (427,630)
Total Liabilities and
Stockholders' Equity (Deficit)                        $1,258,818


                    Three Months Ended         Nine Months Ended
                         March 31,                 March 31,
                     2002         2001        2002          2001

   Product sales    $600,803    $869,802   $1,904,758    $2,635,827
   Services revenue  156,622     167,841      461,429       587,325

     Total Revenues  757,425   1,037,643    2,366,187     3,223,152
 Cost of Revenues:
   Product           251,032     387,842      810,357     1,214,267
   Services          114,470     127,559      355,682       371,655
     Total Cost of
     Revenues        365,502     515,401    1,166,039     1,585,922

 Gross Profit        391,923     522,242    1,200,148     1,637,230

 Costs and Expenses:
  Sales and marketing 188,714     222,506      614,009       883,083
  Research and
  development         189,645     276,930      516,827       973,889
  General and
  administrative      139,725     349,275      517,170       877,746
  Impairment of asset      --      83,080           --        83,080
     Total Costs and
     Expenses         518,084     931,791    1,648,006     2,817,798
  Net Loss from
  Operations         (126,161)   (409,549)    (447,858)   (1,180,568)

  Other Income (Expense):
  Interest expense    (21,068)    (20,712)     (67,598)      (52,717)
  Other                   933     (47,660)       1,991       (55,691)
  Interest income       1,102       1,669        3,048        11,903

                      (19,033)    (66,703)     (62,559)      (96,505)

 Net Loss           $(145,194)  $(476,252)   $(510,417)  $(1,277,073)
Basic Loss per Share   $(0.02)     $(0.08)      $(0.08)       $(0.20)
Weighted Average                 
Number of Shares
Outstanding         7,706,661   6,295,828    6,759,240     6,253,322

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 its subsequently filed quarterly reports on Form 10-QSB -- 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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