This one is just comming out its 52 wk low. It took off on today's news. Day traders took their profits ans closed strong EOD.
USA Technologies Reports 97% Increase in Full-Year Revenues
Tuesday September 28, 1:59 pm ET
MALVERN, Pa., Sept. 28 /PRNewswire-FirstCall/ -- USA Technologies Inc. (OTC Bulletin Board: USTT - News) reported record revenues for its 2004 fiscal year ended June 30, 2004. The Company reported revenues of approximately $5.6 million, a 97% increase versus approximately $2.9 million for the prior year. This increase was primarily a result of sales of the Company's energy management equipment as a result of the acquisition of Bayview. The increase was also due to increases in the sale of networked devices specifically sales of the Company's cashless technology equipment, which increased 90% from the prior fiscal year as a result of sales of e-Port®, e-Suds(TM) and Kiosk systems.
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USA Technologies reported a gross profit for the fiscal year ended June 30, 2004 of $1,303,123, compared to a gross loss of $118,375 for the prior fiscal year. The fiscal year ended June 30, 2004 resulted in a net loss of approximately $21.4 million (approximately $10.9 million in non-cash charges) compared to a net loss of approximately $21.9 million (approximately $12.6 million of non-cash charges) for the prior fiscal year. For the fiscal year ended June 30, 2004, the Company had $14.1 million in positive shareholder equity versus $3.6 million for the prior fiscal year.
"We believe we have laid the foundation for continued growth in our 2005 fiscal year," said George Jensen, USA Technologies' Chairman and CEO. "The demand for our suite of energy management solutions has never been greater, including many of the largest retailers in the country. In addition, our recently announced licensing agreement with MEI, (Mars Electronics), the world's leading manufacturer of payment systems, will allow customers to connect MEI cashless payment systems to our USALive® network. As we enter fiscal year '05, the Company has commercialized a wide array of new products and services which, combined with those we leveraged in fiscal year '04, are expected to further accelerate growth."
Some of the highlights of the 2004 fiscal year included:
New customers. The Company has had activity, new sales and partnerships with global brand names such as Mars Electronics, Sony Electronics, JC Penney, Bloomingdale's, Unilever, Kraft, Albertson's, 7-Eleven, Kinko's, Banana Boat, AT&T Wireless, AutoZone, Austin Energy, Crane Merchandising Systems, Compass Group, and some of the most prestigious hotels in the world such as Ritz Carlton.
Development of e-Port®. Through the strategic alliance with ZiLOG, the e-Port® technology has been added to ZiLOG's new eZ80 microprocessing chip. The immediate benefits include making the Company's products, such as e-Suds and e-Port, better and more affordable for its customers, in addition to making the technology available on a ZiLOG chip, enabling manufacturers of everyday products to design e-Port capability directly into their products.
Acquisition of the Bayview Technology Group, LLC. USA Technologies acquired the maker of intelligent power control solutions for vending machines, glass front coolers, office equipment and other commercial appliances. USA Technologies announced that since the inception of the Miser product line, it had topped more than 110,000 Miser sales, making it a top selling energy management solution in the Company's expanding portfolio.
Launch of PictureStation(TM). The Company entered into an agreement with Sony Electronics, who worked with USA Technologies to develop cashless transaction capabilities for its PictureStation(TM) photo-finishing systems, which are currently being launched nationwide.
Record sales of e-Ports®. The Company announced that it had shipped a record number of e-Ports in the last two quarters to 58 vending operators and bottlers, bringing the e-Port customer base to a total of 215 vending operators and bottlers in 41 states. Many of these customers own and operate in excess of 10,000 vending machines, representing growth and opportunity for the Company.
Growing opportunities for e-Suds(TM). In March, USA Technologies announced that it entered a multi-million dollar agreement with Caldwell and Gregory, who intends to introduce e-Suds to the 130 colleges to which they currently provide service.
Business Express® locations grew. The Company announced Business Express locations grew again in fiscal year '04 including such prestigious locations as the Grand Hyatt in Washington, DC; the Four Seasons in Chicago; and the Hilton in Orlando, Florida; and its first entry into high rise apartments. The product was chosen as Best New Technology and Best New Product at the International Hotel Motel and Restaurant Show (IHM&RS) in November 2003. In addition, the Company announced an alliance with Kinko's to connect Business Express locations to Kinko's stores.
Patents. In an effort to continue the Company's aggressive patent strategy, the patent portfolio increased to 54 patents granted and 34 patents pending -- representing hundreds of claims.
"We have never been more excited about the prospects for our Company," added Mr. Jensen. "We have the people, products, patents, customers and partners in place to achieve strong growth and profitability."
About USA Technologies:
USA Technologies is a leader in the networking of distributed assets, wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. USA Technologies is an IBM Business Partner and an inaugural member of the Sprint Enabling Application Service Provider Program for e-commerce. The Company has marketing agreements with the Sprint, Motient, MEI, Unilever and the ZiLOG Corporation. http://www.usatech.com
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to the ability of the Company to increase revenues in the future due to the developing and unpredictable markets for its products, the ability to achieve a positive cash flow, the ability to obtain orders for or install its products, the ability to obtain new customers and the ability to commercialize its products, which could cause actual results or revenues to differ materially from those contemplated by these statements.
USA Technologies Contact: Investor Relations Contact:
George R. Jensen, Jr., Chairman & CEO Ken Sgro
Stephen P. Herbert, President & COO CEOcast, Inc.
Phone: (800) 633-0340 Phone: (212) 732-4300
e-mail: sherbert@usatech.com
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Source: USA Technologies Inc.
[This message has been edited by prdponce (edited September 28, 2004).]
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