CIRTRAN CP (U-CIRT) - News Release CirTran Projects 30% Increase in Sales for Second Quarter
2006-07-19 09:39 ET - News Release
SALT LAKE CITY -- (Business Wire) -- July 19, 2006 Company Website: http://www.CirTran.com
CirTran Corporation (OTC BB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today said it projects reporting a 30% increase in sales when it files a 10-Q for the second quarter of fiscal 2006 next month. Iehab J. Hawatmeh, CirTran's founder, president and CEO, also said that the company is projecting sales of approximately $2.2 million for the period ended June 30, 2006, as compared with $1.7 million for the first quarter, which ended March 31, 2006. "This growth is particularly noteworthy as CirTran was able to move forward in a period when many U.S. and international manufacturing companies suffered through a downturn," Mr. Hawatmeh said. The CirTran president and CEO also reported to shareholders on several aspects of the company's business and finances: The Evander Holyfield "Real Deal Grill(TM)," said Mr. Hawatmeh, is expected to go into full production shortly. He said changes in the product's design, as requested by a food stylist consultant, are currently being made in the Read Deal Grill, a year-round indoor consumer electronics product endorsed by Holyfield. Mr. Hawatmeh said he anticipates that the design changes will be submitted over the next week, and that filming of the infomercial featuring the four-time heavyweight champion of the world will be filmed in mid-August, after his comeback fight set for Dallas on August 18th. The True Ceramic Pro Flat Iron Styling Kit, Mr. Hawatmeh said, was reintroduced in a marketing program launched nationwide earlier this week via DRTV. He said a co-marketing agreement with a value of at least $12 million per year to CirTran (if minimums are met) has been signed with Media Syndication Global, LLC (MSG), a multi-channel consumer products direct marketing company, to offer the popular the True Ceramic Pro hair styling kit in the U.S. and overseas. Following a successful test marketing study conducted by MSG, CirTran contracted with the New York City-based long-time direct response industry innovator leader to co-market the True Ceramic Pro, manufactured in China by CirTran-Asia. The popular sold-on-TV product was designed by Advanced Beauty Solutions, LLC (ABS) of Los Angeles, which had generated more than $30 million in sales during the brief 10-month campaign from 2004 - 2005, from whom CirTran recently purchased assets, including flat iron and hair dryer kits, intellectual property, customer lists, a 30-minute infomercial, and trade secrets, for $2.3 million in bankruptcy court. The second installment from Anahop, the private firm that has committed to a $2 million investment in CirTran, in addition to its original $1 million investment, is due to make the second installment at the end of July. Mr. Hawatmeh said he anticipates the $200,000 payment will be in cash and on schedule, "as has been Anahop's practice". Diverse Media Group, CirTran's newly formed wholly-owned subsidiary specializing in multi-channel product marketing and distribution in the direct response and entertainment industries, is currently in what Mr. Hawatmeh called "final negotiations with prospective clients in entertainment, vitamins/supplements and Internet software products," and is hopeful of having its first contracts signed before the end of this quarter. In addition, "CirTran also has several other projects which are heating up with the summer weather," he said. "This includes some lower volume but higher margin manufacturing at our Salt Lake City plant, as well as backlog and new projects built by CirTran-Asia."
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTC BB: CIRT, 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 Corporation 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. Contacts:
Company Contact: CirTran Corporation Trevor M. Saliba, +(310) 492-0400 trevor*cirtran.com or Press Contact: The Kaminer Group David A. Kaminer, +(914) 684-1934 dkaminer*kamgrp.com
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