ATS MONEY SYSTEMS, INC. announced record earnings as a result of operations for the quarter ended June 30, 1999, which was set forth in its Quarterly Report on Form 10-QSB filed with the SEC on August 11, 1999.
2nd Quarter ended June 30 Six Months ended June 30
1999 1998 1999 1998
Total Revenues $4,244,476 $4,923,500 $7,535,119 $8,127,831
Net Income 560,970 194,964 806,087 308,385
Earnings per share $.10 $.03 $.14 $.05
Gerard F. Murphy, Chief Executive Officer of ATS Money Systems, Inc., commented, “Net Income of $560,970 during the 2nd Quarter 1999 was $366,006 (187.7%) higher than the $194,964 net income in the 2nd Quarter 1998 and was due to the increased sale of software at higher margins in the 2nd Quarter 1999. The record earnings achieved during the six month period are the result of the continued acceptance of our Cash Office System products, as well as initial sales of new products in the fast food, convenience store and grocery markets.”
Cost of equipment and systems sales decreased from 70.0% of sales in the 2nd Quarter 1998 to 47.8% of sales in the 2nd Quarter 1999. This was due to increased sales of software in the 2nd Quarter 1999 compared to higher sales of hardware in the 2nd Quarter 1998. Cost of maintenance and service decreased from 44.2% in the 2nd Quarter 1998 to 40.0% in the 2nd Quarter 1999 due to lower costs from a third party vendor.
Selling general and administrative expenses of $1,324,696 in the 2nd Quarter 1999 were $18,442 (1.4%) lower than in the 2nd Quarter 1998. Basically, higher salaries, additional staff and higher rents for increased office space was offset by reduced commissions resulting from a decrease in sales of equipment and systems.
Income tax expense for the 2nd Quarter 1999 was $403,000 compared to $122,000 in the 2nd Quarter 1998. This increase of $281,000 (230.3%) was due to the comparable rise in income from operations.
ATS Money Systems, Inc., with its consolidated wholly-owned subsidiary, Innovative Electronics, Inc., is engaged in the development, sales and service of currency counting systems and equipment for department and chain stores’ cash offices and bank commercial vaults and of specialized information communications systems primarily used by chain stores. The Company’s customers are businesses that handle a large number of cash, check and credit transactions on a daily basis, such as banks, department stores and chain stores.Details