BUSINESS NEWS
Jun 09. Armor Designs, Inc., the developer of next generation composite armour, today announces its preliminary unaudited results for the year ended 31 December 2008. Sales of US$193,000 in first year of revenue generation. Operating loss of US$15.3m, (US$10.9m after US$4.4m of non-cash items) in 2008. Additional equity funding in 2009 of US$2.5m secured. Further fund-raising will be considered. Commenting on the results, Dr. James A. St. Ville, chairman of Armor Designs,
Inc., said: “The Company is beginning to capitalise on its knowledgebased
manufacturing expertise and the range of armour products developed in the last 12 months. We are quickly establishing a good reputation for providing leading edge armour solutions using our proprietary IP know-how. We are confident that our extensive pipeline of prototype applications spanning a range of military and civil markets and the recognition of revenue in the first quarter 2009 position the company for a year of development and growth. The company is well-placed to raise further equity funding as necessary, and this, coupled with the strengthening of the board, positions us to move the business forward this year.”
The Board is pleased to report Armor Designs’ first full-year results asa
listed company. 2008 was a year of significant transition for the business, during which Armor continued to move from being a development company toward a fully established commercial entity. The year saw the commissioning of the Company’s dedicated manufacturing facilities in Phoenix, Arizona, the development of Armor’s first range of commercial body armour products and prototype development in other sectors. The Company also completed the first stage of its global distribution network; and recruited management and staff to move the business forward. As a result, the Company achieved its objectives of positioning the business for future commercial success, rather than near-term financial performance. The year also saw significant development of the Company’s knowledge based approach with the creation of a focused R & D department, “Scorpion Works”, in the second quarter and the formation of strategic partnerships with ipCapital and Gauntlet Aviation to prioritise and accelerate the commercial exploitation of Armor’s IP. Through Scorpion Works the Company developed a number of prototype products over the second half of the year, including body armour plates for personal protection, rotorcraft armour material and future helmet designs. The achievement of such a large number of product designs and certifications in such a short time underscores the broad potential and wide application of Volumetrically Controlled Manufacture (VCM). Moreover, the products developed have consistently been verified as the lightest in their respective markets while providing comparable or better protection than competing products. VCM has quickly established itself as a strong differentiator in our markets, and we are confident that such differentiation will drive the Company’s future success as it expands and matures. During the first half of 2008 the Company began to build out its manufacturing facilities and recruited a number of specialist engineering, manufacturing, sales and administrative support staff required to move the business forward. The first half also saw a number of distribution channels opened both domestically and overseas with agents and distributors being appointed in various markets, particularly in Latin America. The second half of the year saw a step change in product development with eight new body armour products being developed and marketed during the period. The Company was also granted full registration as a defence industry exporter in compliance with United States ITAR regulations allowing it to tender for sales in a number of overseas countries. Anticipated revenues lagged, however, due in
part to the certification requirements of new armour plates, and the tim