ATLANTA, Nov. 5, 2001 (PRIMEZONE) -- Color Imaging, Inc.'s (OTCBB:CIMG) third quarter revenue increased to $9.8 million, or 63 percent over the same quarter in FY2000, while nine month revenues were up by 51 percent to $23.5 million over the nine month period of FY2000, continuing a strong revenue growth trend. Operating income rose 162 percent to $593,000 for the nine months ending September 30, 2001, compared to 2000.
The Company disclosed in its Form 10QSB filing with the Securities and Exchange Commission that it intends to beta test its latest SOLUTION Series of Electron Beam Imaging ("EBI") printing systems at two of its commercial printer installations in the fourth quarter of 2001, and begin selling them during 2002. The new SOLUTION Series will give the commercial printer the ability to print variable data in color at speeds exceeding 250 feet-per-minute, and provides a computer-driven alternative to conventional offset high-speed color printing processes.
Also revealed was the completion, during the third quarter, of the engineering development of a new print head configured for EBI printing. The new EBI print head (patent pending) incorporates a proprietary curved surface and generates a more uniform print image than earlier EBI print heads. Accompanying the development of the print head was a new enhanced black text toner formulated specifically for EBI duplex printing applications. The print cartridge and duplex toner are expected to be available for quantity deliveries during the first quarter 2002.
Additionally, the Company disclosed an agreement to sell 1,000,000 shares of its common stock at $2.00 per share to a nonaffiliate, on a promissory note and without prepayment penalty. The agreement provides that a registration statement covering such shares must be filed with the Securities and Exchange Commission within 60 days, and the note is payable the earlier of six months after the registration is declared effective or in 12 months.
Color Imaging develops and manufactures consumable products used in laser printers, analog and digital copiers and supplies complete printing systems for commercial printers. Consumable products include black text, color and specialty toners, including MICR (magnetic ink characters that are printed on checks and other financial documents). The printing system offered the commercial printer installs directly on their existing offset presses. The system expands conventional offset printing capabilities to include the printing of unlimited computer-driven variable data, including images, bar codes, MICR, and alphanumeric sequences. These functions address the needs of the commercial printers for the digital processing and printing of variable data at extremely high speeds and eliminates all conventional prepress processes, such as the preparation of printing plates and mixing of inks.
Color Imaging, Inc. is headquartered at 4350 Peachtree Industrial Blvd., Norcross, GA. 30071. The telephone number is 800/783-1090 and the FAX is 770/242-3494. CIMG's Web sites are www.colorimage-micr.com and www.logical-imaging.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Color Imaging's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and forward-looking statements included in this release are based upon information available to Color Imaging as of the date of the release. We assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to: dependence on suppliers; short product life cycles and reductions in unit selling prices; delays in development or shipment of new products; lack of market acceptance of our new products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; our ability to attract and retain qualified employees; difficulties in assimilating companies previously acquired; inability to expand our operations to support increased growth; and declining economic conditions, including a recession. These and other factors and risks associated with our business are discussed from time to time in Color Imaging's filings with the SEC including the Form 10-KSB filed March 30, 2001.