ZTEST Three (3) Months Net Income Increase 370 Percent
TORONTO, ONTARIO--ZTEST Electronics Inc., ("ZTEST") is pleased to announce that for the three (3) month period ended September 30, 1998, consolidated revenue increased to $1,812,227 from $1,513,688 for the same period last year. The net income for this period increased 370 percent from last year's results for the same period, improving to $475,067 from $101,077.
ZTEST is very pleased about this increase in profitability for the first quarter after having absorbed many one-time expenses in the fiscal year ended June 30, 1998, resulting in a loss of $609,183. The year end results, just mailed to shareholders, show a year to year increase in revenue of 186 percent, up to $3,676,605 from $1,285,922 in 1997.
On October 15, 1998, ZTEST received an order from its strategic partner, Gametele Systems Inc. ("Gametele") of Oakville, Ontario, for 1,000 remote sales terminals to be delivered by the end of April 1999. This order represents the initial installation in accordance with a contract Gametele signed with the Ontario Brain Injury Association. Under this contract, the Gametele proprietary tracking system will be utilized to facilitate the sale of tickets for televised bingo games. An order for an additional 1,000 units is expected to arrive during the third quarter of this fiscal year.
As previously announced, ZTEST was retained by its strategic partner, Med-Minder Enterprises Inc. ("Med-Minder") of Oakville, Ontario, to develop a proprietary system for the dispensing of medications. The prototype of this system was approved by Med-Minder on October 19, 1998 enabling Med-Minder to demonstrate it to potential distribution partners.
ZTEST is currently nearing completion of the components it is building for its other strategic partner, Nexsys Commtech International Inc. ("Nexsys") of Waterloo, Ontario. Installation of these components is expected to begin in December 1998 in accordance with three (3) pilot projects Nexsys is undertaking.
Our other two (2) strategic partners, Chessen U.V. Systems Inc. and UNIQRYPT Technologies Inc., both located in Mississauga, Ontario, continue to develop their respective products and markets.
In addition to its proprietary line of Automatic Test Equipment, ZTEST offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts together with a combination of fees and equity positions.