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DAC Technologies Announces Second Quarter Sales Results
LITTLE ROCK, AR--(Marketwire - August 1, 2007) - DAC Technologies (OTCBB : DAAT ) today
announced net sales for the second quarter of 2007 of $2,739,903, as
compared to net sales of $2,717,169 for the same period in 2006. This is
an increase of $22,734, or 1%. As previously reported, April sales
increased 15% to $629,259 and May sales increased 22% to $965,372. June
2007 sales were $1,145,272, a decrease of $232,220, or 17% over June of
2006. This decrease in June was due mainly to the fact that two large
shipments that occurred in June 2006 did not ship in the same timeframe in
2007, but will ship at a later date.
David A. Collins, Chairman and CEO, stated, "As reported at year end, the
Company saw its gross margins decrease from 35% to 29%, mainly due to
commodity price increases. This significantly affected our profits in 2006
and the first quarter of 2007. To offset these shrinking margins, the
Company announced a price increase in June, and has been working very hard
to control manufacturing costs. Our second quarter numbers are currently
being reviewed by our accounting firm. Preliminary figures show gross
margins increasing to 32%. This is a significant increase which, in turn,
will allow our gross profits to increase 12% to 13% over 2006. We are also
expecting significant increases in operating income, income before taxes
and net income. We have been controlling expenses very tightly, and
instituted a new shipping and freight policy in June. We are seeing
significant savings, especially in shipping and freight costs."
Collins also stated, "The Company is continually hunting for products to
increase sales. The Company began shipping in July new camouflage koozies
in both can and bottle models to Wal-Mart. The Company is also
manufacturing a second and larger camping table for Wal-Mart that will
begin shipping in January 2008. These two new items will add low seven
figure revenue to the Company. The Company is also working with the
hardware department on new products and is also designing a new line of
household cleaning kits. The Company also introduced in late June six new
gun cleaning kits that have been well accepted by our customers."
Collins further stated, "DAC has become well established in the gun
cleaning market and is the leader in this area. Because we already do
business with almost every major retailer, it is becoming harder to
maintain growth in gun cleaning kits as we did in 2003 through 2005.
Therefore, the Company is working hard, using its highly competitive
manufacturing resources overseas to develop new products for the sporting
goods, hardware, and household cleaning markets. We realize how important
it is to maintain revenue growth as a public company."
Collins added, "Our corporate council is currently engaged in settlement
negotiations with legal council for Skit International and certain
individuals regarding settlement of the $1,524,420 judgment the Company has
against Skit. All available appeal processes have been exhausted by Skit.
Should settlement negotiations not be successful, the Company will hire
collection attorneys in California to collect the judgment, as we feel
there are significant assets to collect against."
About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of
high quality, reasonably priced security safes, gunlocks, gun cleaning kits
and security products, as well as accessory items for the sporting goods
market. DAC distributes its products through mass merchandisers such as
Wal-Mart and Kmart, and sporting goods retailers and distributors such as
Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports, Sports Authority
and others. DAC also provides gunlocks to OEM gun manufacturers such as
Glock, SigArms, Savage, Marlin, Weatherby, as well as others. Also, DAC's
products are distributed through catalog companies.
The Private Securities Reform Act of 1995 provides a "safe harbor" for
forward-looking statements. Certain information included in this press
release (as well as information included in written statements to be made)
contains statements that are forward looking, such as those relating to
consummation of the transaction, anticipated future revenue of the
Company's and success of current public offerings. Such forward-looking
information involves important risks and uncertainties that could
significantly affect anticipated results in the future and, accordingly,
such results may differ materially from those expressed in any forward
looking statements.