GPS Industries, Inc. (GPSI) (OTC BB: GPSN.OB), the only provider of Wi-Fi powered, advertising enhanced GPS systems for golf facilities, resorts and residential communities, today announced sales results for its third fiscal quarter ended 30th September 2007.
Revenues for the third quarter ended 30th September 2007 decreased by 53% compared to revenues from the same period in 2006. The decrease is attributed largely to lower sales and installations during this period as a result of several factors.
Primarily, uncertainty in the marketplace due to the pending acquisition of Uplink by GPSI and the new two-tiered price structure contributed to the slower sales. In addition, several customers indicated a desire to wait for the next generation InforemerHDX prior to committing to the purchase of an Inforemer system. GPSI is actively in the process of resolving these impediments to the sales process.
Thus far in Q4 GPSI has installed 4 systems, has 6 in backlog (defined as fully executed contracts and credit approved), 5 signed orders awaiting credit approval and 8 under LOI (letter of intent).
As GPSI continues to refine its business model and strategic pricing plan, the outlook is positive for continued increasing number of sales of the Inforemer HDX which can be leveraged by both the advertising and Fire at the Flag programs. In addition, GPSI is currently reducing its overall operating costs by improving productivity and finding efficiencies wherever possible. Management continues to reduce headcount and salaries by at least 20% – 25% by 31st December 2007 and other discretionary operating costs as necessary.
“While sales in the third quarter were disappointing to say the least, Q4 will be a pivotal for us,” stated Robert Silzer, Sr., president and CEO of GPS Industries. “With the availability of the new InforemerHDX , we’re positioned to finish the year with strong sales and jump start the new year with orders into Q1 2008.
GPS Industries, Inc. www.gpsindustries.com
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