Company Expected to Modify its Capitalization Structure Either Through
a Stock Buyback Program or the Cancellation of Majority of Founders’ Shares
CEO Notes that Fiscal 2018 Should Represent “Breakout Year” for Company
Highlights:
- Revenues exceed $1.8 million surpassing guidance of $1.6-$1.8 million
- Revenue growth continues to be driven by both existing and new customer base
- Company achieves net income of over $275,000, exceeding guidance of $180,000-$220,000
- Gross margins increase to 35% from 34% in third quarter
- Reports fourth consecutive quarter of double digit revenue growth and second consecutive quarter of positive operating cash flow
- Company expands blue-chip client base with addition of Honeywell during quarter
- CEO sees Fiscal Year 2018 as “breakout year” for Company driven by industry’s increasing demand for touchscreen technologies, a growing blue-chip client base, new product offerings and a strong R&D pipeline -- while still able to grow earnings and maintain a virtually debt-free balance sheet
LOS ANGELES, Sept. 27, 2017 (GLOBE NEWSWIRE) -- Atlas Technology International, Inc. (OTCQB:ATLT), a rapidly growing designer, manufacturer and distributor of touch screen devices, today announced record revenues and earnings for its fourth fiscal quarter ended June 30, 2017.
“Our financial results for our fourth quarter and full year were outstanding for a company still in its infancy as a public company,” said Matthew Tsai, Chief Executive Officer of Atlas Technology International, Inc. “As much as we would like to celebrate we, perhaps more than anybody else, realize how cutthroat the competition has become in this industry. As a result, we are seeing new and tougher challenges but at the same time the emergence of dozens of new and even larger and more lucrative opportunities than the industry has ever experienced. It is due to these opportunities that we decided to move our corporate headquarters to the United States and better position ourselves for the next wave of growth and expansion from both the industry and Atlas Technology,” continued Mr. Tsai.
“The touchscreen industry has grown to become the fastest-growing segment of the display market since Apple’s launch of its iPhone in 2007. After all, it is quite evident that touchscreen technology, in one form or another, can be found today across a number of high-demanding consumer goods such as mobile phones, handheld games, game consoles, and tablet PC applications, which collectively is expected to account for more than $30 billion in touchscreen revenues this year, up from just $7 billion in 2010. In addition, we see strong touchscreen growth over the next several years from the continued demand for larger display applications such as all-in-one PCs, notebook PCs and consumer gaming products.
“We are very fortunate to have the experience, relationships, proprietary technology and, perhaps, most important the vision twenty years ago while working in the R&D departments at our respective positions to start preparing for Atlas’ debut in an industry that has grown faster than even our most aggressive expectations. Although Fiscal 2017 generated significant financial gains across all of our business segments, it was more importantly a year of refining our business strategy and making key investments in technology, IP and people to ensure that Fiscal 2018 will turn into a “breakthrough year” for Atlas Technology. This breakthrough, which can only be possible through the ongoing support of our clients, employees and shareholders, will represent a new era of growth, expansion and my highest priority -- the enhancement of shareholder value,” concluded Mr. Tsai.
Atlas Technology Achieves Record Revenues and Earnings for Fourth Quarter Fiscal 2017
Atlas Technology reported $1,843,145 in revenues for its fourth quarter of Fiscal 2017 ended June 30, 2017, up 32% from $1,393,365 in revenues from its third fiscal quarter. Revenues once again outpaced the Company’s previously announced guidance of $1.6-$1.8 million. The increase in revenues was primarily driven from new contracts from the Company’s growing portfolio of blue-chip multinational companies as well as continued growth with its existing clientele. Gross margins expanded to a bit over 35% from 34% in the third fiscal quarter, due primarily to new revenue channels as well as overall economies of scale.
The Company reported net income of $275,784 for its fourth fiscal quarter ended June 30, 2017, exceeding its previously announced guidance of $180,000-$200,000 and nearly three times earnings from the prior quarter.
At June 30, 2017, Atlas Technology International had over $2.5 million in cash and accounts receivables, up significantly from both the year-ago quarter and sequentially from the third quarter of fiscal 2017. The Company continues to grow with virtually no long-term debt. The Company’s fourth fiscal quarter represented its second consecutive quarter of positive operating cash flow, a significant improvement from a loss in the year-ago quarter.
Company Expected to Modify its Capitalization Structure Either Through a Stock Buyback Program or the Cancellation of Majority of Founders’ Shares
The Company today also reported that it expects to modify its capitalization structure by either implementing a stock buyback program or cancelling current outstanding shares owned by the Founders. The goal will be to decrease the current shares outstanding by more than half to less than 30 million shares outstanding. The Company believes a capitalization structure of this size is more in-line with its peer group and will almost immediately attract the interest of a broader audience from the investment community.
Company Provides Positive First Quarter 2018 Guidance
The Company anticipates revenues for its first quarter of Fiscal 2018 ending September 30, 2017 to be in the range of $1,900,000 to $2,200,000 and net income in the range of $350,000-$400,000.
Conference Call Information
Management will be hosting a conference call with investors to discuss today’s announcement at 1:00 pm Eastern Time/10:00 am Pacific Time. Following is dial-in information for the call:
Dial-In Information
Live Participant Dial In (Toll Free): 866-682-6100
Live Participant Dial In (International): 404-267-0373
Replay Dial-In Information
Replay Number (Toll Free): 877-481-4010
Replay Number (International): 919-882-2331
Replay ID: 20353
Teleconference Replay Available Until: December 27, 2017 at 11:59 PM
Webcast
The live, listen-only webcast of the conference call may also be accessed by visiting ATLT 4Q17 Earnings Call. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company’s website for 90 days.
To be added to the Company’s investor lists, please contact Bill Miller at Investor Relations Partners at 844-565-5665 or via email at bmiller@irpartnersinc.com.
About Atlas Technology International, Inc.
Atlas Technology International, Inc. (OTCQB:ATLT) is a leading designer, manufacturer and distributor of touch screen devices to consumer electronic producers all over the world. Their products power the interface to a wide array of smart devices including GPS systems, point of sale machines, hospitality and medical devices and small appliances. For further information on Atlas Technology International, please visit our website at www.atlastechintl.com.
(This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Atlas Technology International, Inc. has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect Atlas Technology International's current beliefs and are based on information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause Atlas Technology International's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Atlas Technology International undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information contained in this Press Release including such forward-looking statements.)
(Financial Tables Follow)
| ATLAS TECHNOLOGY INTERNATIONAL, INC | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||
| For The Three Months Ended June 30, | |||||||||
| 2017 Q4 | 2017 Q3 | ||||||||
| Revenues | $ | 1,843,145 | $ | 1,393,365 | |||||
| Cost of revenues | 1,207,099 | 925,949 | |||||||
| Gross profit | 636,046 | 467,416 | |||||||
| Operating expenses: | |||||||||
| Research and Development expense | 190,629 | 160,038 | |||||||
| Selling, general & administrative expenses | 25,825 | 202,507 | |||||||
| Total operating expenses | 216,454 | 362,545 | |||||||
| Gain on disposal of subsidiary | - | - | |||||||
| Income from operations | 419,592 | 104,871 | |||||||
| Other income (expense): | |||||||||
| Interest expense | (12,699 | ) | (11,738 | ) | |||||
| Other income | 4,041 | 2,759 | |||||||
| Total other expense | (8,658 | ) | (8,979 | ) | |||||
| Income (loss) before tax | 410,934 | 95,892 | |||||||
| Income tax expense | 135,073 | - | |||||||
| Net income (loss) | $ | 275,861 | $ | 95,892 | |||||
| Comprehensive income (loss) | |||||||||
| Net income (loss) | $ | 275,861 | $ | 95,892 | |||||
| Other comprehensive loss | |||||||||
| Foreign currency translation adjustment | (77 | ) | 2 | ||||||
| Total comprehensive income (loss) | $ | 275,784 | $ | 95,894 | |||||
| Earnings (Loss) per common share | |||||||||
| Basic | $ | 0.01 | $ | 0.00 | |||||
| Diluted | $ | 0.00 | $ | 0.00 | |||||
| Weighted average common shares outstanding | |||||||||
| Basic | 53,019,596 | 54,549,066 | |||||||
| Diluted | 72,745,623 | 54,549,066 | |||||||
| ATLAS TECHNOLOGY INTERNATIONAL, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||
| For the | For the | |||||||
| Year | Eleven Months | |||||||
| Ended | Ended | |||||||
| June 30, 2017 (unaudited) | June 30, 2016 | |||||||
| Revenue | $ | 4,242,302 | $ | — | ||||
| Cost of revenues | 2,851,339 | — | ||||||
| Gross profit | 1,390,963 | — | ||||||
| Operating expenses: | ||||||||
| Research and development | 473,931 | — | ||||||
| Selling, general and administrative expenses | 495,065 | 26,404 | ||||||
| Total operating expenses | 968,996 | 26,404 | ||||||
| Gain on disposal of subsidiary | (12,315 | ) | — | |||||
| Income (loss) from operations | 434,282 | (26,404 | ) | |||||
| Other income (expenses): | ||||||||
| Interest expense | (45,877 | ) | — | |||||
| Other income | 9,830 | — | ||||||
| Total other expenses | (36,047 | ) | — | |||||
| Income (loss) before tax | 398,235 | (26,404 | ) | |||||
| Income tax expense | 135,073 | — | ||||||
| Net income (loss) | $ | 263,162 | $ | (26,404 | ) | |||
| Comprehensive income (loss) | ||||||||
| Net income (loss) | $ | 263,162 | $ | (26,404 | ) | |||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustment | (75 | ) | — | |||||
| Total comprehensive income (loss) | $ | 263,087 | $ | (26,404 | ) | |||
| Earnings (loss) per common share: | ||||||||
| Basic | $ | 0.00 | $ | (0.00 | ) | |||
| Diluted | $ | 0.00 | $ | (0.00 | ) | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 53,019,596 | 169,912,239 | ||||||
| Diluted | 72,745,623 | 169,912,239 | ||||||
| ATLAS TECHNOLOGY INTERNATIONAL, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | June 30, | |||||||
| 2017 | 2016 | |||||||
| ASSETS | (unaudited) | |||||||
| $ | 15,138 | $ | 228 | |||||
| Accounts receivable | 2,516,755 | 25 | ||||||
| Prepaid expenses and other current assets | 11,374 | 29,753 | ||||||
| Total current assets | 2,543,267 | 30,006 | ||||||
| Total assets | $ | 2,543,267 | $ | 30,006 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Accounts payable | $ | 990,579 | $ | 8,610 | ||||
| Accrued expenses and other payables | 414,549 | 444 | ||||||
| Income tax payable | 135,073 | — | ||||||
| Due to related party | 1,594 | — | ||||||
| Short term loans | 135,078 | — | ||||||
| Convertible debt | 39,667 | — | ||||||
| Loans from related parties | 397,143 | 54,800 | ||||||
| Total current liabilities | 2,113,683 | 63,854 | ||||||
| Total liabilities | 2,113,683 | 63,854 | ||||||
| STOCKHOLDERS' EQUITY (DEFICIT): | ||||||||
| Common shares, $0.00001 par value, 100,000,000 shares authorized, 54,645,084 and 20,900,000 shares issued and outstanding as of June 30, 2017 and June 30, 2016, respectively | 546 | 209 | ||||||
| Additional paid-in capital | 255,891 | 55,883 | ||||||
| Retained earnings (accumulated deficit) | 173,222 | (89,940 | ) | |||||
| Accumulated other comprehensive loss | (75 | ) | — | |||||
| Total stockholders' equity (deficit) | 429,584 | (33,848 | ) | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 2,543,267 | $ | 30,006 | ||||
Investor/Media Contact:
Bill Miller
Investor Relations Partners
Phone: 844-565-5665
bmiller@irpartnersinc.com