-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TK0ew5MKFdgUHCgLbJ0V5TLxOD8zIC9sgLP5+juwtqg6m4+5s/zmc3UoL/L+pCDm 7skO+EMaFdf3vl53fW/U1A== 0000098618-10-000027.txt : 20100520 0000098618-10-000027.hdr.sgml : 20100520 20100520134939 ACCESSION NUMBER: 0000098618-10-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100520 DATE AS OF CHANGE: 20100520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALANCO TECHNOLOGIES INC CENTRAL INDEX KEY: 0000098618 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 860220694 STATE OF INCORPORATION: AZ FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09347 FILM NUMBER: 10847374 BUSINESS ADDRESS: STREET 1: 15575 N 83RD WAY STREET 2: SUITE 3 CITY: SCOTTSDALE STATE: AZ ZIP: 85260 BUSINESS PHONE: 4806071010 MAIL ADDRESS: STREET 1: 15575 N 83RD WAY STREET 2: SUITE 3 CITY: SCOTTSDALE STATE: AZ ZIP: 85260 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO ENVIRONMENTAL RESOURCES CORP DATE OF NAME CHANGE: 19930708 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO RESOURCES CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO LTD DATE OF NAME CHANGE: 19901004 8-K 1 fiscal20103rdqtrearningspr.txt Q3 2010 PRESS RELEASE SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 May 20, 2010 ----------------- (Date of Report) ALANCO TECHNOLOGIES, INC. ------------------------- (Exact name of Registrant as specified in its charter) 0-9437 --------- (Commission File No.) ARIZONA 86-0220694 ----------------------------- --------------------------------- (State of other jurisdiction) (IRS Employer Identification No.) 15575 N 83RD WAY, SUITE 3, SCOTTSDALE, ARIZONA 85260 -------------------------------------------------------- (Address of Principal Executive Office) (Zip Code) (480) 607-1010 ---------------------------------------------------- (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ( ) Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ( ) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On May 18, 2010, Alanco Technologies, Inc. issued a press release reporting financial results for the third quarter of fiscal year 2010, ended March 31, 2010. A copy of the press release is attached hereto as Exhibit 99.1, and is hereby incorporated by reference in this Item 2.02. Item 9.01 Financial Statements and Exhibits Exhibit 99.1 Press release from Alanco Technologies, Inc., dated May 18, 2010, titled "Alanco Third Quarter Results" SIGNATURES Date: May 20, 2010 By: /s/John A Carlson ----------------------- Chief Financial Officer EX-99 2 q32010pr.txt 051810 PRESS RELEASE Q3 2010 RESULTS EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACTS: Corporate Contact: John Carlson, Exec VP & CFO 480-505-4869 Alanco Third Quarter Results ------------------------------------------------------- Gross Profits Increase 68% - Operating Loss Narrows 69% (Scottsdale, AZ - May 18, 2010) - Alanco Technologies, Inc., (NASDAQ: ALAN), a leading provider of wireless tracking and asset management solutions, today announced that sales from continuing operations for its third quarter ended March 31, 2010 increased slightly to $3,825,800, versus $3,758,000 for the comparable quarter of the prior year. Gross profit for the quarter increased to $1,637,400, a 68% increase over the prior year third quarter. Gross margins in the third quarter improved from 26% in the prior year period to 42%. The significant gross margin improvement was due primarily to reduced warranty costs and the prior year completion of low margin hardware shipments required to convert several major customers from analog to digital communication networks. Alanco's EBITDA (Loss) for the three months ended March 31, 2010 was reduced to ($100,400), an 85% improvement compared to the loss of ($698,100) reported for the three months ended March 31, 2009. The Operating Loss (continuing operations) for the third quarter ended March 31, 2010 narrowed to ($232,600), a decrease of 69% compared to ($759,700) in the prior year third quarter. Loss from continuing operations for the quarter ended March 31, 2010 decreased $440,000, or 46.3%, to ($510,800) compared to ($950,800) for the prior year quarter. The Company's Loss from Discontinued Operations for the third quarter increased to ($510,000) compared to the prior year's third quarter Loss from Discontinued Operations of ($56,900). The increase in loss was attributable primarily to a reduction in revenues of the Company's RFID Technology segment and a loss on sale of Data Storage assets. Robert R. Kauffman, Alanco Chairman and CEO, commented, "We believe that our fiscal third quarter's significant improvement will mark the final transition towards our goal of a complete and sustained profitability turnaround for the Company's continuing operations. As we are beginning to experience the transportation industry responding to the national economic recovery, increasing demand for our refrigeration transport monitoring services is resulting in strong pipeline sales activity and an increasing shipment backlog indicating that we can achieve record sales and profitability results in our current fourth quarter, ending June 30, 2010." Comparisons of operating results for the nine-months ended March 31, 2010 and 2009 are presented below as Schedule I. For additional discussion of the Company's current financial results, please see the Form 10-Q the Company filed with the Securities and Exchange Commission on May 17, 2010. Alanco Technologies, Inc. provides wireless monitoring and asset management solutions through its StarTrak Systems subsidiary. StarTrak Systems is the dominant provider of tracking, monitoring and control services to the refrigerated or "Reefer" segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain. For more information, visit the Alanco website at www.alanco.com or StarTrak Systems at www.startrak.com. EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT; COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW TECHNOLOGIES THAT MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND REMAIN IN COMPLIANCE WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND RELATIONSHIPS. SCHEDULE I Alanco Technologies, Inc. Condensed Consolidated Financial Information (Unaudited) Three months ended Nine months ended March 31, March 31, 2010 2009 2010 2009 ----------- ----------- ----------- ----------- NET SALES $ 3,825,800 $ 3,758,000 $10,430,000 $10,460,300 Cost of Sales 2,188,400 2,784,100 5,935,500 7,739,500 ----------- ----------- ----------- ----------- Gross Profit 1,637,400 973,900 4,494,500 2,720,800 ----------- ----------- ----------- ----------- Operating Expenses Selling, General & Administrative Expense 1,437,400 1,182,000 4,122,400 3,843,800 Corporate Expense 227,100 309,100 657,700 616,100 Amortization of stock-based compensation 72,500 113,100 311,400 339,400 Depreciation and Amortization 133,000 129,400 403,100 365,800 ----------- ----------- ----------- ----------- Total Operating Expenses 1,870,000 1,733,600 5,494,600 5,165,100 ----------- ----------- ----------- ----------- Operating Loss (232,600) (759,700) (1,000,100) (2,444,300) Interest Expense, net (277,400) (190,600) (657,300) (702,700) Other Income (expense), net (800) (500) (2,700) (185,300) ----------- ----------- ----------- ----------- Loss from Continuing Operations (510,800) (950,800) (1,660,100) (3,332,300) Loss from Discontinued Operations (510,000) (56,900) (1,616,400)(1) (157,800) ----------- ----------- ----------- ----------- Net Loss (1,020,800) (1,007,700) (3,276,500) (3,490,100) Preferred Stock Dividends (43,600) (127,200) (301,800) (347,300) ----------- ----------- ----------- ----------- Net Loss Attributable to Common Shareholders $(1,064,400) $(1,134,900) $(3,578,300) $(3,837,400) =========== =========== =========== =========== (1) Includes a $325,000 impairment charge the Company recorded to reflect the anticipated reduced sales value of the Data Storage segment. SCHEDULE II Alanco Technologies, Inc. EBITDA Reconciliation to Net Income (Loss) from Continuing Operations 3 months 3 months 9 months 9 months ended ended ended ended March 31, March 31, March 31, March 31, 2010 2009 2010 2009 ----------- ----------- ----------- ----------- EBITDA before Stock-based compensation and Corporate Expense $ 199,200 $ (208,600) $ 369,400 $(1,308,300) Corporate Expense (227,100) (309,100) (657,700) (616,100) Stock-based compensation (72,500) (180,400) (311,400) (339,400) ----------- ----------- ----------- ----------- EBITDA (100,400) (698,100) (599,700) (2,263,800) Net interest expense (277,400) (190,600) (657,300) (702,700) Depreciation and amortization (133,000) (62,100) (403,100) (365,800) ----------- ----------- ----------- ----------- NET LOSS FROM CONTINUING OPERATIONS $ (510,800) $ (950,800) $(1,660,100) $(3,332,300) =========== =========== =========== =========== # # # -----END PRIVACY-ENHANCED MESSAGE-----