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Related Quotes Sym. Price Chg. CIRT Trade News 0.041 0.001 CirTran Reports Record Shareholder`s Equity, Improved Outlook in 1st Quarter
May 19, 2006 15:39:01 (ET)
SALT LAKE CITY, May 19, 2006 (BUSINESS WIRE) -- CirTran Corp. (CIRT, Trade), a full-service contract manufacturer of IT, consumer and consumer electronics products, said today that it has filed its first quarter Form 10-QSB with the Securities and Exchange Commission.
For the period ended March 31, 2006, CirTran reported net sales of $1,737,824, an 18% improvement over the $1,471,000 reported for the previous quarter ended Dec. 31, 2005. The company also reported a net loss of $277,998, an 80% improvement over the loss of $1,367,000 for the previous quarter.
CirTran reported that total stockholder equity was at a record high of $3,165,931 as of March 31, 2006, an increase of 150% from $1,268,054 as reported on Dec. 31, 2005.
CirTran also reported a positive Current Ratio (current assets divided by current liabilities) of 1.05 for the first time in its history, with total liabilities diminishing by 48% to $6,509,571 since the end of fiscal 2005 when it owed $9,633,843. In addition, CirTran reported positive working capital of $300,000 at the end of the first quarter as compared with a negative $1,142,874 entering fiscal 2006.
Iehab J. Hawatmeh, CirTran's founder and president, said the company's performance in the first quarter "demonstrated a continued and overall improvement over the final quarter last year, despite a significant impact by the failure of what had been one of our largest customers," Advanced Beauty Solutions, LLC, of Los Angeles (ABS).
He said that ABS defaulted on its contractual obligations to CirTran in the fourth quarter of fiscal 2005, and then filed for bankruptcy during the first quarter of fiscal 2006. "We have a plan to resolve the situation with the bankruptcy court in June," said Hawatmeh, "and to resume our sales and marketing plan during third fiscal quarter this year.
"CirTran made significant fiscal progress in the first quarter, and is now moving forward with our strategic play for the year," said Hawatmeh.
CirTran, he said, will shortly launch a multi-national marketing and sales effort for The Real Deal Grill, endorsed by former heavyweight champion Evander Holyfield, in partnership with Harrington Business Development (HBD) of St. Petersburg, Fla., with whom it has a $30 million contract to manufacture the grill. In addition, CirTran is set to begin operations of a new wholly owned subsidiary which will provide market product marketing, production, media funding and merchandise manufacturing services to the direct response and entertainment industries.
About CirTran Corp.
Founded in 1993, CirTran Corp. (www.CirTran.com) is a premier international full-service contract manufacturer. Headquartered in Salt Lake City, its ISO 9001:2000-certified, non-captive 40,000-square foot manufacturing facility is the largest in the Intermountain Region, providing "just-in-time" inventory management techniques designed to minimize an OEM's investment in component inventories, personnel and related facilities while reducing costs and ensuring speedy time-to-market. In 1998, CirTran acquired Racore Technology (www.racore.com), founded in 1983 and reorganized as Racore Technology Corp. in 1997. In 2004, it formed CirTran-Asia as a high-volume manufacturing arm and wholly-owned subsidiary with its principal office in ShenZhen, China. CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on the multi-billion dollar direct response industry.
This press release contains 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. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.
All trademarks are properties of their respective owners.
SOURCE: CirTran Corp.
CirTran Corp., Salt Lake City Trevor M. Saliba, 310-492-0400 trevor*cirtran.com or The Kaminer Group David A. Kaminer, 914-684-1934 dkaminer*kamgrp.com
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