COPPELL, TX--Jan 15, 2004 -- Impreso, Inc. 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 and (2) the development of eCommerce initiatives, today announced sales and earnings for the first quarter of fiscal 2004.
Net sales for the first quarter FY2004 decreased approximately 11.5%, or $3.6 million, from $31.8 million in the prior-year period to $28.2 million. Net income increased to $482,000, or $0.09 per share, in the most recent quarter, compared with $305,000, or $0.06 per share, in the prior-year period.
"Although net sales decreased in our the first quarter of fiscal 2004 as compared to the prior-year period, our net profit increased," commented Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "The price for raw materials has been on a steady decline in the past few years. This decline has translated into lower selling prices for our finished good units, as our raw material costs is a percentage of our finished goods pricing. We believe the pricing on raw materials will stabilize and ultimately increase in the remaining three quarters of fiscal 2004. If we are successful in passing on the higher pricing to all of our customers, the Company's results of operations should improve in the year ending August 31, 2004, as compared to the prior year," 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. The Company's Web site domains are www.hotsheet.com, www.impreso.com, and www.tstimpreso.com.
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.
IMPRESO, INC. & SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
November 30,
2003 2002
---- ----
Net sales $ 28,178,743 $ 31,842,729
Cost of sales 24,797,982 28,598,347
------------ ------------
Gross profit 3,380,761 3,244,382
Selling, general and
administrative expenses 2,281,994 2,370,089
------------ ------------
Operating Income 1,098,767 874,293
Other expenses and income:
Interest expense 337,014 483,639
Other income, net (6,869) (106,697)
------------ ------------
Total other costs
and expenses 330,145 376,942
Income before income tax expense 768,622 497,351
Income tax expense (benefit):
Current 315,723 188,574
Deferred (29,317) 4,157
------------ ------------
Total income tax
benefit expense 286,406 192,731
Net income $ 482,216 $ 304,620
============ ============
Net income per common share
(basic and diluted) $ .09 $ .06
============ ============
Weighted average number of
common shares outstanding
(basic and diluted): 5,278,780 5,278,780
============ ============
Contact:
For further information, please contact:
Marshall Sorokwasz
(972) 462-0100 (ext. 1103)
Tammy Yahiel
General Counsel
(972) 462-0100 (ext. 1117)
e-mail at yahiel@tstimpreso.com