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DAC Technologies Announces Six Months Results and July Sales
LITTLE ROCK, AR--(Marketwire - August 15, 2008) - DAC Technologies (OTCBB : DAAT ) today
announced results for the quarter ended June 30, 2008. For the six months
ended June 30, 2008, the Company reported net sales of $5,440,027 as
compared to $5,579,528 for the same period in 2007, a decrease of 2%. Net
sales for the three month period ending June 30, 2008 were $2,724,258
versus $2,739,903 for 2007. Gross sales for July 2008 were $1,213,339
versus $1,026,067 in July 2007, an increase of 18%. Net income for the six
months ending June 30, 2008 was $50,064 as compared to $98,418 for the same
period in 2007.
David A. Collins, Chairman and CEO, stated, "The Company's gross margin in
the second quarter was affected by the tremendous increase in commodity
prices, increases in container shipping prices from China, and the
devaluation of the US dollar versus the Chinese RMB. This trend now seems
to be reversing itself as commodity prices have dropped from their highs in
May/June by an average of 20%. The US dollar is showing strength and
stabilizing against the Chinese currency. The price of oil has dropped
significantly and we are hopeful that shipping expenses will stabilize or
be reduced."
Collins also stated, "Sales for the first six months came in about where we
expected. We were disappointed in the decrease in gross margins in the
second quarter, but that situation seems to be, at a minimum, stabilizing.
The Company continues to be successful at introducing new products as
evidenced by its new fireplace accessory line that will begin shipping to
Wal-Mart in the third quarter, and by the addition of household cleaning
items. Although these items do not have the gross margins of our gun
cleaning items, they offer an opportunity for tremendous growth at
reasonable and profitable gross margins."
Collins further stated, "The Company still projects sales in the third and
fourth quarters combined to be between $11,000,000 and $13,000,000, a big
contributing factor being the shipment of our fireplace accessories. The
Company has also received a commitment of almost $1,000,000 on a Holiday
promotion with Wal-Mart. We expect annual sales for 2008 of between
$16,000,000 and $18,000,000, and net profits between eleven and thirteen
cents per share. The Company continues to tightly control expenses and
improve its strong financial condition, as evidenced by current assets of
$5.62 million and current liabilities of only $1.55 million, a current
ration of 3.6 to 1, and shareholder equity of $4,757,145. The Company will
continue to develop new products, and in fact, has been asked to work on a
significant amount of new household cleaning items for 2008."
About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of
high quality, reasonably priced security safes, gunlocks, gun cleaning
kits, sporting goods, household cleaning products and various hardware
items. 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.