CirTran reports 629% increase in sales, 77% reduction in losses
Apr 18, 2005
CirTran Corp. (OTCBB: CIRT) filed Form 10-KSB for the year ended Dec. 31, 2004, reporting a 629% increase in sales and a 77% reduction in losses as compared with the previous year.
CirTran reported net sales of $8,862,715, an increase of 629% as compared with sales of $1,215,245 for fiscal 2003. The company also reported a 77% reduction in losses to $658,322 from $2,910,978 reported for fiscal 2003.
CirTran also showed a 98% increase in total assets, reporting corporate assets of $4,293,429 as compared with $2,169,834 a year ago. In addition, the company reduced total shareholders' deficit by 54%, reporting $2,242,033 as compared with $4,915,215 in its fiscal 2003 filing.
"Substantial Growth and Re-emergence"
"By any and all measures, 2004 was a period of substantial growth and re-emergence for CirTran," said Iehab Hawatmeh, the company's founder and president. "Everyone at CirTran went about the business of working hard to increase sales while reducing liabilities and keeping a watchful eye on operating expenses according to plan. Those efforts - and we believe similar positive results - have continued into fiscal 2005," he said.
CirTran "won more than $30 million (annualized) in contracts in the first quarter of 2005, led by the continued acceptance of our new CirTran-Asia subsidiary as a 'player' in building consumer electronics and sold-on-TV products in China," said Hawatmeh. He also said that CirTran's core business in the United States "has continued to improve in keeping with the general improvement in the domestic IT marketplace.
"The early years of the new millennium were very difficult for the IT industry here at home and around the world," he said. "Many companies - some many times larger than CirTran - were brought to their financial knees or just disappeared. I believe CirTran and our Racore Technology have re-emerged from these troubled times in good position to conduct business in the U.S., along with our Asian subsidiary."
Hawatmeh said that the company has continued to make substantial progress into 2005, including converting $2.5 million in debt to equity and paying off a negotiated settlement with the Internal Revenue Service, "improving CirTran's overall financial position by approximately $4 million.
"CirTran," he said, "also continued to make moves with immediate and long-term financial benefit" earlier this week when it purchased its 40,000-square-foot office and manufacturing facility for $2.05 million, including $1 million in restricted (for two years) stock at $.05 per share and assumption of a note for $1.05 million. Hawatmeh said the building, which has been CirTran's headquarters since 1996, has been appraised for more than $2.2 million.