CARROLLTON, Texas, -- GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, announced its financial results for the quarter ended June 30, 2009.
"We are reporting our tenth consecutive profitable quarter, despite the impact of the recession," said GVI Chief Operating Officer/CFO Joseph Restivo. "We've continued to strategically redeploy our marketing efforts and have seen strong performance in Latin American and Mexico continuing throughout the quarter. In North America, we saw signs of demand stabilization developing in the quarter."
The quarter ended June 30, 2009 saw some significant contract and project win announcements for the Company, including projects for school districts, a major telecom provider and a citywide surveillance project for a large Northeast city. In addition, as previously announced, GVI completed its acquisition of a Video Management Systems (VMS) software product suite during the quarter that GVI expects to market under the name AutoIP(TM).
"We are committed not just to continuing profitability, but also to driving the growth of our business. We believe that the AutoIP(TM) acquisition will be a major contributor to our future growth," said GVI Chairman/CEO Steven Walin. "It has become increasingly clear to us that IP cameras are the fastest growing segment of the video surveillance market. To seize that opportunity, we needed a solution that was designed specifically for the mid market space."
For the quarter ended June 30, 2009, net income was approximately $172,000 or $0.01 per diluted share, as compared to net income of approximately $366,000, or $0.01 per diluted share, in the quarter ended June 30, 2008. As compared to the prior quarter ending March 31, 2009, net income for the quarter ended June 30, 2009 rose by approximately 48% or $56,000.
Net revenues for the quarter ended June 30, 2009 were approximately $11.7 million, a decrease of approximately 9%, as compared to net revenues of approximately $12.8 million in the quarter ended June 30, 2008, and an increase of approximately 12% as compared to net revenue of approximately $10.4 million in the prior quarter ended March 31, 2009.
For the quarter ended June 30, 2009, selling general and administrative expenses increased approximately 4% to approximately $3.1 million as compared to the quarter ended June 30, 2008. Sales and marketing expenses increased approximately $57,000, or 3%, in the quarter ended June 30, 2009 as compared to the quarter ended June 30, 2008. General and administrative expenses increased approximately $58,000, or 5% in the quarter ended June 30, 2009 as compared to the quarter ended June 30, 2008. The increase in general and administrative expenses were primarily attributable to legal and other costs related to the acquisition of the VMS software suite from PacketNVR during the quarter.
Net interest expense for the quarter ended June 30, 2009 decreased 35% to approximately $122,000 from approximately $187,000 in the quarter ended June 30, 2008. The decrease was primarily a result of a lower interest rate on the Wells Fargo credit facility for the three months ended June 30, 2009 as compared to the three months ended June 30, 2008.
Earnings Conference Call
GVI will conduct a conference call on Thursday, August 13, 2009 at 11:00 a.m. Eastern Daylight Savings Time to discuss the Company's financial results for the quarter ended June 30, 2009. Steven E. Walin, Chairman and Chief Executive Officer, and Joseph Restivo, Chief Operating Officer and Chief Financial Officer, will host the call. To participate in the event by telephone, please dial 1.800.434.1335 five to 10 minutes prior to the scheduled start time (to allow time for registration) and use conference code 27664749 followed by the # key on your touchtone phone. International callers can participate in the event by dialing 00.1.404.920.6442 five to 10 minutes prior to the scheduled start time (to allow time for registration) and use conference code 27664749 followed by the # key on your touchtone phone. A digital replay of the call will be available immediately following the completion of the call. Dial 1.800.977.8002 and enter conference code 27664749 followed by the # key on your touchtone phone. International callers can access the digital replay at 00.1.404.920.6650 using conference code 27664749 followed by the # key. The digital replay will be available for one year.
About GVI Security Solutions, Inc.
GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS) is a leading provider of video surveillance and security solutions, with sales and service representation throughout North, Central and South America. The company provides Samsung Electronics and GVI branded products, software and services to the homeland security and commercial markets. Their customers include governments, major retail chains, leading financial institutions and public and private school systems.
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