For Immediate Release

 

IMPRESO REPORTS FIRST QUARTER FY 2005 SALES AND EARNINGS

 

 

COPPELL, Texas (January 14, 2005) – Impreso, Inc. (Nasdaq SmallCap Market: “ZCOM”), which through its subsidiaries is involved in (1) the manufacture and distribution of paper and film hard copy imaging products for commercial and home office applications, (2) the development of eCommerce initiatives, and (3) natural spring water bottling and distribution, today announced sales and earnings for the first quarter of Fiscal 2005.

 

Net sales decreased to $20 million in the First Quarter of Fiscal 2005, from $26.7 million in the prior year period, a decrease of $6.8 million or approximately 25.3%. Net income decreased to ($760,037), or ($0.14) per share in the most recent quarter, compared with $482,000, or $0.09 per share, in the prior-year period.

 

Our gross profit margin decreased to 4.9% in the three months ended November 30, 2004, as compared to 12.6 % in the prior corresponding period.

 

“As a result of the loss of key customers in Fiscal 2004, in January 2005, we began a plan to downsize operations to reduce costs and return to profitability,” stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. “The key elements of the plan are better utilization of space created by reduced operations; leasing available space; liquidating buildings that are vacant as a result of east coast consolidations; eliminating or reducing current work force and payroll; reducing

inventories by $5 to $7 million; raising finished goods pricing as necessary to recoup raw material price increases; and replacing lost sales as quickly as possible,” concluded Mr. Sorokwasz.

 

About Impreso, Inc.

           

Impreso, Inc. is a holding company for TST/Impreso, Inc. and HotSheet.com, Inc.  TST/Impreso, Inc. is a manufacturer and distributor of hard copy imaging products for commercial and home use in domestic and international markets.  HotSheet.com, Inc. primarily owns HotSheet.com, a single-page, online Internet directory with categorized links to premier web destinations.  Alexa Springs, Inc. is a natural spring water bottling operation. The Company’s website domains are and

Impreso, Inc. is headquartered in Coppell, Texas, and its common stock trades on the Nasdaq SmallCap Market under the symbol “ZCOM”.

 

 This press release may include statements that constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “expect” or similar expressions.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.  Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, paper prices and raw material costs, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission.  By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

 

For further information, please contact:

 

Marshall Sorokwasz at (972) 462-0100 (ext. 1103)

 

Or

 

Tammy Yahiel, General Counsel at (972) 462-0100 (ext. 1117)

or via e-mail at yahiel@tstimpreso.com

 

(Financial Highlights Follow)

IMPRESO, INC. & SUBSIDIARIES

 

INTERIM CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

 

 

 

Three Months Ended November 30,

 

2004

2003

 

 

 

 

 

 

 

 

 

Net sales

$    19,976,634

$    26,726,715

 

Cost of sales

      18,996,776

      23,345,954

 

 

 

 

 

                 Gross profit

979,858

3,380,761

 

 

 

 

 

Selling, general and administrative expenses

        2,285,850

2,281,994

 

 

 

 

 

                  Operating Income

      (1,305,992)

1,098,767

 

 

 

 

 

Other expenses and income:     

 

 

 

     Interest expense

           238,930

        337,014    

 

     Other income, net

           391,757

(6,869)

 

 

 

 

 

                 Total other costs and expenses

152,827

330,145

 

 

 

 

 

Income before income tax expense

      (1,153,165)

768,622

 

 

 

 

 

Income tax expense (benefit):

 

 

 

     Current

               6,250

           315,723

 

     Deferred

         (399,378)

(29,317)

 

 

 

 

 

                 Total income tax benefit expense

         (393,128)

286,406

 

 

 

 

 

Net income

$       (760,037)

$         482,216

 

 

 

 

 

Net income per common share

$             (0.14)

$              0 .09

 

     (basic and diluted)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (basic and diluted):

 

5,278,780

 

5,278,780