CirTran Posts Cash-Positive Results for First Quarter
SALT LAKE CITY, May 21, 2006 – CirTran Corporation (OTC BB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today filed Form 10-QSB for the first quarter of fiscal 2007, showing its first-ever cash-positive period.
On April 19 th , CirTran had announced that it anticipated reporting sales of approximately $3.7 million for the quarter ended March 31, 2007. However, in completing its quarterly closing and preparation for filing its first quarter Form 10-QSB, CirTran determined that approximately $1.4 million of sales did not meet its revenue recognition criteria.
In its filing today, CirTran reported sales of $2,288,293 for the period ended March 31, 2007, an increase of $550,469, or more than 31% over the same period in fiscal 2006. CirTran also reported a gross profit of $1,089,945, an improvement of $99,575 or 10% over the same period a year ago.
Another “major improvement” during the quarter, said Iehab J. Hawatmeh, founder, president and CEO of CirTran, was that the company was able to generate its own working capital. Net cash provided by (used in) financial activities was $129,999 as compared with ($719,898) in the same quarter in 2006.
“We are pleased with our first quarter results despite not including revenues from our new affiliation with the Global Marketing Alliance (GMA) or our new CirTran Online Corporation (COC) subsidiary,” Mr. Hawatmeh said. “Now, midway through the second quarter, the GMA/COC business unit is on-track, CirTran has new cost-effective self-financing in place through the sale and lease back of our building, and has successfully reintroduced on TV the popular True Ceramic Pro™, now fully owned and marketed by the company, which should generate significantly higher revenues and margins.”
CirTran, he said, is currently finalizing plans for the launch of The Real Deal Grill™ endorsed by former heavyweight champion Evander Holyfield, the infomercial spokesman for the product.
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. Continuing to grow, in 2004 CirTran formed CirTran-Asia as a high-volume manufacturing arm and wholly owned subsidiary with its principal office in ShenZhen , China . Today, 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. The Company disclaims any obligation or intention to update any forward-looking statements.
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