GVI Security Solutions, Inc. Reports Eleventh Consecutive Profitable Quarter
CARROLLTON, Texas -- GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, announced its financial results for the quarter ended September 30, 2009.
For the quarter ended September 30, 2009, net income was approximately $84,000 or $0.00 per diluted share, as compared to net income of approximately $254,000, or $0.01 per diluted share, in the quarter ended September 30, 2008.
Net revenues for the quarter ended September 30, 2009 were approximately $12.0 million, a decrease of approximately 2%, as compared to net revenues of approximately $12.2 million in the quarter ended September 30, 2008, and an increase of approximately 3% as compared to net revenues of approximately $11.7 million in the prior quarter ended June 30, 2009.
For the quarter ended September 30, 2009, selling general and administrative expenses increased approximately 4% to approximately $3.1 million as compared to the quarter ended September 30, 2008. Sales and marketing expenses increased approximately $155,000, or 9%, in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. General and administrative expenses decreased approximately $50,000, or 4% in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. The increase in selling, general and administrative expenses were primarily attributable an increase in expenses to operate international offices and higher net marketing expenses partially offset by a decrease in personnel expense.
Net interest expense for the three months ended September 30, 2009 decreased 35% to approximately $115,000 from approximately $176,000 in the three months ended September 30, 2008. The decrease was primarily a result of a lower interest rate on the Wells Fargo credit facility for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008.
As announced on October 22, 2009, the Company has entered into a merger agreement to be acquired and taken private by investment funds managed by GenNx360 Capital Partners, a private equity firm focusing on middle market opportunities. Pursuant to the merger agreement, a subsidiary of GenNx360 Capital commenced a tender offer on November 3, 2009 to acquire all of the Company's outstanding shares of common stock for $0.38 per share. The tender offer would be followed by a merger in which all remaining shares of the Company not tendered would be acquired at the same price paid in the tender offer. The transactions are subject to customary closing conditions.
About GVI Security Solutions, Inc.
GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS) is a leading provider of video surveillance and security solutions, with sales and service representation throughout North, Central and South America. The company provides Samsung Electronics and GVI branded products, software and services to the homeland security and commercial markets. Their customers include governments, major retail chains, leading financial institutions and public and private school systems.
For the quarter ended September 30, 2009, net income was approximately $84,000 or $0.00 per diluted share, as compared to net income of approximately $254,000, or $0.01 per diluted share, in the quarter ended September 30, 2008.
Net revenues for the quarter ended September 30, 2009 were approximately $12.0 million, a decrease of approximately 2%, as compared to net revenues of approximately $12.2 million in the quarter ended September 30, 2008, and an increase of approximately 3% as compared to net revenues of approximately $11.7 million in the prior quarter ended June 30, 2009.
For the quarter ended September 30, 2009, selling general and administrative expenses increased approximately 4% to approximately $3.1 million as compared to the quarter ended September 30, 2008. Sales and marketing expenses increased approximately $155,000, or 9%, in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. General and administrative expenses decreased approximately $50,000, or 4% in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. The increase in selling, general and administrative expenses were primarily attributable an increase in expenses to operate international offices and higher net marketing expenses partially offset by a decrease in personnel expense.
Net interest expense for the three months ended September 30, 2009 decreased 35% to approximately $115,000 from approximately $176,000 in the three months ended September 30, 2008. The decrease was primarily a result of a lower interest rate on the Wells Fargo credit facility for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008.
As announced on October 22, 2009, the Company has entered into a merger agreement to be acquired and taken private by investment funds managed by GenNx360 Capital Partners, a private equity firm focusing on middle market opportunities. Pursuant to the merger agreement, a subsidiary of GenNx360 Capital commenced a tender offer on November 3, 2009 to acquire all of the Company's outstanding shares of common stock for $0.38 per share. The tender offer would be followed by a merger in which all remaining shares of the Company not tendered would be acquired at the same price paid in the tender offer. The transactions are subject to customary closing conditions.
About GVI Security Solutions, Inc.
GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS) is a leading provider of video surveillance and security solutions, with sales and service representation throughout North, Central and South America. The company provides Samsung Electronics and GVI branded products, software and services to the homeland security and commercial markets. Their customers include governments, major retail chains, leading financial institutions and public and private school systems.
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