NEW YORK, Aug. 22, 2005 (PRIMEZONE) -- GPS Industries, Inc. (OTCBB:GPSN) (Frankfurt WKN:252179), a leading innovator of Wi-Fi wireless and GPS-enabled multimedia communications and management solutions for golf facilities and residential communities, is pleased to announce that revenue in the second quarter of 2005, i.e. for the three months ended June 30, 2005, was $2,109,896 compared to $159,924 for the same period last year. After a 33% increase in the first quarter, revenue for the six months ended June 20, 2005 increased 223% over the same period in 2004. Gross Profit for the six months ended June 30, 2005 was 34% of revenue.
In our New Release dated June 7, 2005 we projected revenue for the three months ended June 30, 2005 to be over $2,800,000. The difference of approximately $700,000 represents a timing difference between sales contracts signed but not yet installed. Our accounting policy is to only recognize revenue when an installation is installed and signed off, by our golf course customer. Several orders signed but not installed in the second quarter will be installed and the revenue recognized in the third quarter of 2005.
George Dorin, Chief Financial Officer of GPSI stated, "We are pleased with sales progress we are making and our reduction in cost of goods sold, which reflects a significant improvement in gross margin over 2004. Based on the run rate of new sales contracts signed and sales at various stages of being closed, i.e. in the pipeline, we expect to see continued revenue growth throughout the remainder of the year, compared to 2004. These increasing volumes should also allow us to reduce our cost of goods sold over time."
About GPS Industries, Inc.
GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi wireless multimedia solutions to enable managers of golf facilities, resorts, sporting events, and residential communities worldwide to generate significant new revenue streams, improve operational efficiencies and thus reduce costs. The company's unique and patented Inforemer(TM) product line provides a complete GPS golf business solution, combining a powerful back-end management information system and revenue generating modules with either mobile color hand-held or cart-mounted Differential GPS units, seamlessly connected via a wireless, high-speed Wi-Fi network. GPSI owns or has applied for GPS and related golf patents in all major golf markets worldwide, including the United States, Canada, Australia, Japan and 11 European nations. For additional information on GPSI and its solutions, please visit www.gpsindustries.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: The Company's ability to raise finance; global and market conditions within the golf industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; pricing pressures and other competitive factors; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Other brands and names contained in this release are the property of their respective owners.