Lifeloc Reports Third Quarter 2018 Results
WHEAT RIDGE, Colo.--(BUSINESS WIRE)--Nov 13, 2018--Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the third quarter ended September 30, 2018.
Third Quarter Financial Highlights
We posted quarterly net revenue of $2.06 million resulting in quarterly net income after taxes of $58 thousand, or $0.02 per diluted share. These results compare to net revenue of $2.00 million for quarterly net income of $190, or $0.00 per diluted share, in the second quarter of 2017. Revenue for the quarter grew 3% versus the third quarter last year and year to date revenue grew for the first nine months of 2018 6% versus the first nine months last year.
This quarter was the fourth consecutive quarter with year over year growth as our distribution channels improve. Gross margin on net revenue improved in the current quarter to 46% versus 44% in the same quarter last year primarily due modestly better volume and a better product mix.
Our vision is that Lifeloc becomes the world’s leading company in real-time alcohol and drug abuse detection and monitoring. To that effect, we continue to invest aggressively in research and development. This investment amounted to 13% of revenue for the first 9 months of the year. Lifeloc has focused product development on three specific fronts.We will continue to push the bounds on our core portable breathalyzer business as we build a completely new breathalyzer platform with features that customers have demanded. Keeping our core business at the leading technical edge is critical as the core business allows us to fund our growth opportunities. This new breathalyzer platform is expected to begin limited production before the end of this year, with full scale production in the first quarter 2019. We will build our alcohol monitoring business utilizing the Real-time Alcohol Detection and Recognition or R.A.D.A.R.® device product line acquired last year. R.A.D.A.R. devices are alcohol monitoring units with biometrics which can be used as a tool to supervise offenders as an alternative to incarceration. The upgraded R.A.D.A.R. device – with a more robust design and better communications – is expected to relaunch in the first quarter of 2019. The marijuana breathalyzer took a step closer to realization with the detection of delta-9-THC (the psychoactive agent) captured from a vapor sample. The ability of our technology to detect delta-9-THC down to a concentration of 5 nanograms per milliliter has been demonstrated in our laboratories. Detection is accomplished through the SpinDx technology, licensed exclusively by Lifeloc Technologies for drugs of abuse from Sandia National Laboratory. More work is needed to convert this technology into a simple-to-operate device suitable for roadside testing. The next step is human testing of the collection and detection mechanism.
“We are working hard to improve the business through investment both in infrastructure and new product development,” commented Dr. Wayne Willkomm, President and CEO. “We are nearing the end of the investment cycle in infrastructure with the winding down of implementation expenses of this year’s new ERP (Enterprise Resource Planning) system. Likewise, we expect to start to realize benefits from the heavy product investments of the last few years.”
About Lifeloc Technologies
Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers. Lifeloc stock trades over-the-counter under the symbol LCTC. We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled “Risk Factors” in our SEC filings.
R.A.D.A.R.® is a registered trademark of Lifeloc Technologies, Inc.
SpinDx™ is a trademark of Sandia Corporation.
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