Ballistic Recovery Systems (BRS) Releases Third Quarter 2004 Results
August 13 2004 - 4:00PM
PR Newswire (US)
Ballistic Recovery Systems (BRS) Releases Third Quarter 2004
Results ST. PAUL, Minn., Aug. 13 /PRNewswire-FirstCall/ --
Ballistic Recovery Systems, Inc. (OTC:BRSI) (BULLETIN BOARD: BRSI)
(BRSparachutes.com) reported $1,879,221 in third quarter fiscal
2004 sales which represents a 2% increase over the $1,836,535
figure reported for same period in fiscal 2003. On a year to date
basis fiscal 2004 sales figures are at $4,852,664 which is $267,012
below the comparable fiscal 2003 figure or a 5% reduction.
According to the Company, several factors accounted for the
decrease. A one-time accounting adjustment of approximately
$105,000 was recorded as a reduction in sales. This was attributed
to stock purchase warrants held by Cirrus Design, the primary
customer for the Company's general aviation products. In addition,
the Company granted pricing reductions to Cirrus Design in
compliance with the long-term purchase and supply agreement. An
additional impact was modestly softer orders of the company's
recreational aircraft products which account for approximately 25%
of the Company's sales mix. The Company is anticipating fiscal year
2004 revenues to exceed fiscal year 2003 by approximately 5% with
gross revenues approaching $7,000,000. Net income is expected to
lag slightly behind prior year levels as a result of expanded
business development expenditures and legal fees. According to BRS
President & CEO Mark Thomas, "BRS completed FAA certification
of our new parachute system for Cessna model 182 aircraft this
July. This has opened up a new market that includes over 5,000
potential new customers. Early sales activities suggest that a
significant number of Cessna 182 owners are interested in this new
system. This is in addition to the market potential that exists for
approximately 10,000 Cessna 172 owners." Both the Cessna 172 and
182 models are in current production at Cessna. John Gilmore, VP of
Sales, added, "Having a one-of-a-kind product tailored to a
previously untouched market gives us significant strength going
forward." The Company is in active discussions with additional
general and recreational aviation aircraft manufacturers in both
the US and Europe to develop BRS systems designed specifically for
their airplanes. These aircraft include a new category designated
as Light Sport Aircraft (LSA) which the FAA projects could grow
from 0 to 3000 planes by 2006 year end. "If we can make our
products available for more aircraft, we think we can get more
people flying," added Thomas. Over the company's 18-year history,
BRS has sold over 19,000 of its whole- plane parachute systems; and
these have been documented to have saved over 167 lives. The
forward looking matters discussed here should be considered subject
to risks and uncertainties, including market fluctuations, pricing,
procurement, manufacturing efficiencies, and other risks that could
cause the actual results to differ materially from those projected.
For more information, review the company's filings with the
Securities and Exchange Commission, particularly the Company's
annual report on Form 10-KSB. DATASOURCE: Ballistic Recovery
Systems, Inc. CONTACT: Robb Leer for Ballistic Recovery Systems,
Inc., +1-952-842-8133, , or Mark Thomas of BRS, Inc.,
+1-651-457-7491, Fax +1-651-457-8651,
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