ATLANTA, May 2, 2002 (PRIMEZONE) -- Color Imaging, Inc. (OTCBB:CIMG) announced that first quarter revenue increased to $7.9 million, or 42 percent over the same quarter in FY2001, continuing a strong revenue growth trend. Operating income rose 134 percent to $270,000 for the three months ending March 31, 2002, as compared to the same period during FY2001.
The Company provides a range of consumable products for more than 130 laser printers and analog and digital copiers. Color Imaging's focus is on the production, from raw materials to finished products, of black text, full-color and specialty toners, including MICR, a toner used to create magnetic characters that are printed on checks and other documents for subsequent high speed magnetic reading and sorting.
Color Imaging announced last week, at the Imaging Industry's European-based REMAX trade show (Paris, France), a further expansion of its specialty toner product line. Products introduced included new MICR toner formulations for printers manufactured by IBM, Lexmark and Xerox and full-process color toners for Hewlett Packard's most popular color laser printer, the HP-4500. Charles R. Allison, Color Imaging's Vice President of Marketing and Sales introduced the new HP-compatible color toners by noting that, "these color products will bring the end-user an OEM standard in print quality and a significant savings in costs."
The Company also disclosed that it has commenced the relocation and consolidation of most of the operations and research and development activities of its Logical Imaging Solutions, Inc. subsidiary from Santa Ana, Calif., to its headquarters in Norcross, Ga., leaving certain field support and software activities in California. Michael Brennan, Chairman and CEO of the Company indicated that, "this move to our headquarters is intended to achieve additional efficiencies and we expect to complete the relocation and consolidation by the end of the second quarter of 2002."
Logical Imaging Solutions supplies high-speed digital printing systems for commercial applications. These systems, directly installable on most offset presses, expand conventional offset printing capabilities to include the digital printing of any computer generated data, images, barcodes, MICR and alphanumeric sequences. These functions address the commercial printer's requirement for the on-press printing of tags, tickets, labels and forms. Further, the Company's completely digital and toner-based printing system eliminates all conventional prepress setup processes and the preparation and storage of printing plates and inks. Systems, printing at rates up to 550 pages-per-minute, have been installed on most major offset presses, including those manufactured by Allied Gear, ComCo, Didde, Mark Andy and Webtron.
Color Imaging, Inc., formed by the June 2000 merger of Color Image, Inc. and Logical Imaging Solutions, 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, and 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.