V2K International Announces Second Quarter Results
LAKEWOOD, Colo., May 14 // PRNewswire-FirstCall // -- V2K International, Inc. (OTC Bulletin Board: VTOK) announced today a loss of $119,420 for its fiscal 2008 second quarter ended March 31, 2008. This represents a 65% reduction in losses from the fiscal 2008 first quarter ended December 31, 2007 loss of $338,048, and a 48% reduction in losses from the fiscal 2007 second quarter ended March 31, 2007 loss of $228,523. Total revenue for the fiscal 2008 quarter ended March 31, 2008 was $1,751,948.
"The numbers obviously reflect a good, positive trend," said Vic Yosha, President and CEO of V2K. "The cost reduction program we implemented in January has been effective, and as our 3D Decor Creator software has matured our research and development expenses have also decreased substantially. R&D expense was down 33% in our fiscal 2008 second quarter compared to the same period a year ago. Additionally, with the launch of our kiosk marketing program generating increased revenues, we are forecasting a break-even third quarter and a profitable fourth quarter."
V2K commenced its kiosk marketing program with a major big box retailer with recent installations at sites in Tampa, Florida and Denver, Colorado. The roll out with this particular retailer is expected to continue during the spring and summer, with an additional 25 kiosks to be installed at various locations throughout the United States. The unmanned kiosks have live product custom window fashion samples and a consumer video presentation. The leads generated by the kiosks will be distributed to one of the roughly 180 V2K Window Decor and More franchises who will provide the infrastructure for order fulfillment. V2K has conservatively estimated that each kiosk should generate approximately $6,000 of sales per month.
"A successful kiosk program should accelerate new franchise sales, which will in turn grow the 'footprint' of the company, which in turn should lead to more kiosk locations. At some point the whole thing becomes a self-perpetuating phenomenon," said Yosha.
Through its wholly owned subsidiary, V2K Technology, V2K develops and licenses proprietary software that is designed to be used in the commercial and home decor markets. Almost anything can be done to the interior of a room utilizing its software. In a three dimensional view, where everything is 100% to scale, the user can add, adjust, color and texture walls, windows, doors, ceilings and floors, and then drag and drop items from a library of products into the scene. V2K Technology licenses a version of the software for custom window treatments to another wholly-owned subsidiary, V2K Window Fashions, which operates the franchise system, V2K Window Decor & More. Using the technology as the centerpiece of a franchise offering, V2K Window Fashions sells and supports franchises in the window fashion industry. V2K currently has approximately 180 franchisees operating in the United States, Canada and Aruba.
Forward Looking Statement Notice: This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the company's recent filings with the SEC, including its Quarterly Report on Form 10-Q. Furthermore, the company does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law.
SOURCE V2K International, Inc.