CirTran Reports ‘Continued Improvement' in 10-QSB Filing for 2nd Quarter
SALT LAKE CITY, August 22, 2006 – CirTran Corporation (OTC BB: CIRT), a full-service contract manufacturer of IT, consumer and consumer electronics products, has filed its second quarter Form 10-QSB with the Securities and Exchange Commission, reporting what its CEO called “continued improvement over the first quarter” of fiscal 2006.
For the period ended June 30, 2006, CirTran reported net sales of $2,224,441, 28% higher than the $1,737,824 reported for the previous quarter ended March 31, 2006. It was the second consecutive quarter of sales growth for CirTran, which had sales of $1,471,000 in the fourth quarter of fiscal 2005.
CirTran's improved performance was also demonstrated in its total assets, with the company reporting $11,110,681 – an increase of more than $208,000 since the beginning of the current fiscal year. Concurrently, CirTran also reduced its liabilities by $1.9 million (22%) to $7,870,997 over the first six months of fiscal 2006, as compared with liabilities of $9,633,843 reported at the close of fiscal 2005.
The filing also showed a 155% improvement in total shareholder equity, with CirTran reporting $3,239,684 through June 30, 2006 , as compared with $1,268,054 in its final filing for fiscal 2005.
CirTran Founder, President and CEO Iehab J. Hawatmeh said that he was “pleased but not satisfied” with his company's performance in the second quarter.
“CirTran's continued improvement was a result of both a significant increase in sales over the previous quarter and on-going control of costs,” he said.
“In the quarter, CirTran moved forward with plans to raise our margins substantially in the direct response/sold-on-TV business by being both manufacturer and co-marketer of the True Ceramic Pro Bio-ionic hair styling kit, now being sold via infomercials in the U.S. and overseas.
“In addition,” Mr. Hawatmeh said, “the quarter was highlighted by the announcement of a second stock purchase agreement for an additional $2 million by ANAHOP, a private California firm that had invested $1 million in CirTran earlier in the year.”
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTC BB: CIRT, www.CirTran.com) is a premier international full-service contract manufacturer. Headquartered in Salt Lake City, its ISO 9001:2000-certified, non-captive 40,000-square foot manufacturing facility is the largest in the Intermountain Region, providing “just-in-time” inventory management techniques designed to minimize an OEM's investment in component inventories, personnel and related facilities while reducing costs and ensuring speedy time-to-market. In 1998, CirTran acquired Racore Technology ( www.racore.com ), founded in 1983 and reorganized as Racore Technology Corporation in 1997. In 2004, it formed CirTran-Asia as a high-volume manufacturing arm and wholly-owned subsidiary with its principal office in ShenZhen , China . CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on the multi-billion dollar Direct Response Industry.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.
All trademarks are properties of their respective owners.