Impreso Reports First Quarter FY 2006 Sales and Earnings
COPPELL, TX -- 01/17/2006 -- Impreso, Inc. (NASDAQ: ZCOM), which through its
subsidiaries is involved in (1) the manufacture and distribution of paper
and film hard copy imaging products for commercial and home office
applications, (2) the development of eCommerce initiatives, and (3) natural
spring water bottling and distribution, today announced sales and earnings
for the first quarter of Fiscal 2006.
Net sales decreased to $18 million in the First Quarter of Fiscal 2006,
from $20 million in the prior year period, a decrease of $2.1 million or
approximately 10.7%.
Gross profit increased from $980,000 in the three months ended November 30,
2004 to $1.6 million in the First Quarter 2006. Our gross profit margin
increased to 9 % in the three months ended November 30, 2005, as compared
to 4.9 % in the prior corresponding period.
Net loss decreased to ($334,787), or ($0.06) per share in the most recent
quarter, compared with ($760,037), or ($0.14) per share, in the prior-year
period.
"The increase in gross profit and gross profit margin for the three month
period ended November 30, 2005, as compared to the prior year period, was a
result of successful implementation of significant portions of the cost
reduction savings plan, including a finished goods price increase in the
third quarter of Fiscal 2005, a further reduction in inventory, selling a
plant, and a leaner workforce," stated Marshall Sorokwasz, President and
Chief Executive Officer of Impreso, Inc. "From the quarter ended February
29, 2005, we have successively reduced our net losses each quarter, and are
encouraged by these results since we have not completed implementation of
all the elements of the plan, such as selling our West Virginia buildings.
Subsequent to this reporting period, in December 2005, another element was
accomplished by the subleasing of space at our Chambersburg, PA facility."
About Impreso, Inc.
Impreso, Inc. is a holding company for TST/Impreso, Inc., Alexa Springs,
Inc., and HotSheet.com, Inc. TST/Impreso, Inc. is a manufacturer and
distributor of hard copy imaging products for commercial and home use in
domestic and international markets. HotSheet.com, Inc. primarily owns
HotSheet.com, a single-page, online Internet directory with categorized
links to premier web destinations. Alexa Springs, Inc. is a natural spring
water bottling operation. The Company's website domains are www.impreso.com, www.tstimpreso.com, www.alexasprings.com, and www.hotsheet.com.
Impreso, Inc. is headquartered in Coppell, Texas, and its common stock
trades on the Nasdaq Capital Market under the symbol "ZCOM."
This press release may include statements that constitute "forward-looking"
statements, usually containing the words "believe," "estimate," "project,"
"expect" or similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to, continued acceptance of the
Company's products in the marketplace, competitive factors, new products
and technological changes, paper prices and raw material costs, dependence
upon third-party vendors, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission. By
making these forward-looking statements, the Company undertakes no
obligation to update these statements for revisions or changes after the
date of this release.
IMPRESO, INC. & SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
November 30, November 30,
2005 2004
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Net sales $17,840,693 $19,976,634
Cost of sales 16,237,339 18,996,776
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Gross profit 1,603,354 979,858
Gain on sales of assets (52,798) (59,224)
Embezzlement recovery (25) (253,313)
Selling, General and administrative
expenses 1,835,024 2,285,850
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Operating loss (178,847) (993,455)
Other expenses (income):
Interest expense 305,372 238,930
Insurance recovery --- (10,000)
Other expense (income), net 22,907 (69,220)
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Total other expense
(income) 328,279 (159,710)
Loss before income tax expense (507,126) (1,153,165)
Income tax (benefit) expense :
Current (113,788) 6,250
Deferred (58,551) (399,378)
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Total income tax benefit (172,339) (393,128)
Net loss (334,787) (760,037)
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Net loss per share (basic and diluted) $(0.06) $(0.14)
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Weighted average shares
outstanding (basic) 5,278,780 5,278,780
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Weighted average shares
outstanding (diluted) 5,286,389 5,301,493
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