December 2, 1999 - ZTEST Electronics Inc. Announces Q1/2000 Results
ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") is pleased to announce that it has put in place a solid business foundation for fiscal year 2000. The backlog of customer orders and commitments currently exceeds $5,000,000. Although a substantial amount of work was performed on these orders during the fiscal quarter ended September 30, 1999, only a modest $112,794 could be treated as revenue. Accordingly, the net loss for the period was $147,516.
After the successful launch of its point of purchase communications network used to validate and account for tickets sold for TV and media bingo events, our strategic partner, Gametele Systems Inc. (Gametele) of Oakville, Ontario, intends to expand this network and to increase the number of media bingo games served by it. In keeping with this objective, on October 20, 1999, Gametele placed an order with ZTEST to acquire 2,500 more remote sales terminals, with delivery starting January 2000. After evaluation of pilot projects, installed in Waterloo, Ontario, Cornwall, Ontario and Fort Wayne, Indiana, another strategic partner, Nexsys Commtech International Inc. (Nexsys) of Waterloo, Ontario, has started work on the commercial release of its technology. ZTEST continues to assist Nexsys by providing ongoing design and manufacturing services as well as additional investment capital. It is expected that the first installations of the commercialized technology will take place in mid 2000.
Med-Minder Enterprises Inc. ("Med-Minder") located in Oakville, Ontario, has completed focus group testing of its proprietary product as part of the market research being conducted by a large pharmaceutical company. The Med-Minder product is a pocket-sized, programmable device designed to house prescription drugs and remind the individual to take them in prescribed quantities at appropriate times. The results of this market research have been incorporated into the product design and have allowed ZTEST to begin manufacturing of a pre-production version of the product.
Our other strategic partners continue to develop their respective products and markets. Chessen U.V. Systems Inc. of Mississauga, Ontario is finishing two PVD coating systems for customers in Mexico and Portugal, which will be shipped during the second and third quarters. Uniqrypt Technologies Inc., also located in Mississauga, Ontario has begun to offer a line of encryption software via its web site at www.uniqrypt.com.
With the revenue and profits from these developments being recognized later this year, we look forward to the continued growth of our company.
The Company is also pleased to annouce that on November 30, 1999, 434,250 share purchase warrants were exercised for a total cash consideration of $495,312.50. These proceeds will be used for working capital purposes.
ZTEST offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.
For further information, please contact Mr. James E. Lalonde, Manager, Corporate Development, at (905) 569-3344 or visit our web site at http://www.ztest.com.
The current outstanding capital of ZTEST is 16,649,316 common shares.