Secured Digital Applications, Inc. has announced sharply higher revenue and earnings for the first quarter of 2006, as its sales reached record levels.
Revenue increased by 50% over the first quarter of 2005, from $6.52 to $9.78 million. Net income to shareholders was $384,571 in the first quarter, as compared to a loss of $286,597 during the comparable year earlier period. The financial results were contained in the company's quarterly report filed yesterday with the Securities and Exchange Commission.
Patrick Lim, Chairman and Chief Executive Officer, said the company experienced increased revenues in both its applications division and retail computer and consulting division.
The applications division, which provides Internet content, information technology consulting, and security and wireless applications, experienced an increase of revenue of 55% over the year earlier, from $5.41 to $8.4 million. The Company's Gallant computer operations, which includes three retail stores selling Apple computers and accessories as well as related consulting services, grew by 33% from the first quarter of 2005, from $1.01 to $1.35 million.
"In terms of revenue, this is our best quarter ever," Lim said. "In addition to the growth in sales, however, we also improved our profitability substantially," Lim noted. Gross profit increased by 125% to $1.33 million from $590,535. Income from operations increased by 312%, from $146,171 to $601,575. The gross profit margin improved from 9 to 14%.
The restructuring of the Company's balance sheet in 2005 resulted in improved income available to shareholders. Charges for interest, dividends and accretion to the redemption value of outstanding preferred shares were approximately $450,000 during the first quarter of 2005, Lim noted. "Our program to retire outstanding debt and preferred issues in 2005 has eliminated those charges and our bottom line is much improved," Lim said.
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