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NORTHRIDGE, CA--August 11, 2000 - Soligen Technologies, Inc. (OTC BB:SGTN), a
rapid manufacturer of complex metal parts using proprietary technology, today
announced operating results for the first fiscal quarter ended June 30, 2000.
Revenues for the quarter ended June 30, 2000 were $1,592,000, a decrease of 1% compared to $1,607,000 in the quarter ended June 30, 1999. Compared to the comparable three-month period a year ago combined revenues for Parts Now® and DSPC® production, Soligen's core business increased 1% to $1,340,000 from $1,325,000.
Gross profit for the quarter ended June 30, 2000 was $385,000 or 24% as compared to $577,000 or 36% in the quarter ended June 30, 1999. The decrease in gross margins was primarily the result of hiring additional personnel in anticipation of higher revenues.
Research and development expenses increased to $389,000 for the quarter ended June 30, 2000 compared to $280,000 for the similar quarter ended last year. Increases were the result of two major factors: 1) the addition of professional personnel, and 2) introduction of new programs to satisfy the requirements of the complex and more demanding requirements of the automotive and aerospace industries.
At June 30, 2000, the Company had $1,368,000 in cash and accounts receivable after having received net proceeds in November 1999 of $1,538,000 from the sale of Series B Convertible Preferred Stock.
``Last minute delays in shipping parts for two programs have hurt the revenues of the first quarter and affected the gross margins as well,'' said Yehoram Uziel, President and Chief Executive Officer of Soligen. ``These were a result of delays in obtaining data for final inspection. The parts were completed and shipped a few days later and will be recognized in the revenues of the second quarter. In the first quarter we have started a development program to enter into the aerospace market for functional parts. This program has the potential to enable Soligen to reach additional markets for high performance castings.''
Soligen is able to rapidly manufacture cast metal parts, bypassing the traditional need for tooling, by employing Soligen's DSPC® technology. The DSPC technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal castings directly from a CAD file. Consequently, it enables postponement of design and the fabrication of expensive and time consuming casting tooling until after the parts are functionally tested, thus increasing the probability of making production tooling once and correctly on the first attempt. Additionally, Soligen rapidly produces production tooling for larger runs of metal castings from the same CAD file as the approved part. By combining three key production elements: DSPC® technology, conventional casting methods, and Computerized Numerical Control (CNC) machining practices, the Company has created the first ``one stop shop'' for functional metal parts that are made directly from a CAD file and that are ready for assembly. This complete service, trademarked as Parts Now®, has become a single source for rapidly manufactured metal parts.
DSPC® and Parts Now® are registered trademarks of Soligen.
In order to improve communication with shareholders, the Company has created an electronic mailing list. Any person interested in receiving, via e-mail, announcements, copies of press releases from and about Soligen, please forward your e-mail address to: investorinfo@soligen.com.
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timing of development and release of new products by strategic suppliers and customers, the effect of the Company's accounting policies and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
(Table follows)
Soligen Technologies Inc.
Summary of Operations
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