Record Utility Sales Lead to Further Growth
Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that revenues reported in its 10-QSB filing with the Securities and Exchange Commission yesterday for the third quarter of 2007 were $368,855, a 59% increase over the third quarter of 2006. Total revenues for the quarter represented the highest total from the previous four years, surpassing the previous high from the immediately preceding second quarter. Strong sales to the electric utility market led to the increase, as the Company sold and produced more CEO700 whole house disconnect devices than in any quarter in its history. Sales of electric utility products produced 85% of total revenues for the quarter.
Selling, general and administrative expenses decreased 16% over the same period in the prior year, and the Company’s net loss improved from $605,751 during the third quarter of 2006 to $586,892, or $0.01 per share, for the third quarter of 2007. Results for the period do not include any results from the Company’s recently acquired IPTV Set-Top Box operation. The Company recently announced that it had acquired the IPTV Set-Top Box operations of Eagle Broadband effective October 11, 2007.
H. Douglas Saathoff, Nighthawk’s CEO, commented, “I am pleased with the results and happy with what has taken place this year so far. In comparison to the first nine months of 2006, this year we’ve lessened the amount of cash used in operations by 34%, or over $500,000, and as a result we’ve required much less outside funding for the Company. For the first time, because of the volume of units sold during the quarter, we had units built by contract manufacturers. With the recent acquisition of the Set-Top Box operation, and the volume of business that we expect from that operation, we have a tremendous opportunity to further improve on these results quickly.”
About Nighthawk Systems, Inc.
Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.
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Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.
Nighthawk Systems, Inc.
Doug Saathoff, 877-7-NIGHTHAWK, Ext 701
dsaathoff@nighthawksystems.com