EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Investor Relations
John Carlson
Exec VP & CFO
(480)505-4869
www.alanco.com
Alanco Announces Preliminary
Fiscal Year 2010 Third Quarter Results
--------------------------------------------
(Scottsdale, AZ - April 26, 2010) - Alanco Technologies, Inc. (NASDAQ: ALAN),
today announced preliminary, unaudited financial guidance for its fiscal third
quarter ended March 31, 2010. Alanco's continuing operations are expected to
report a record gross profit for the third quarter ended March 31, 2010 of
approximately $1.64 million compared to $1,127,900 reported in the third quarter
of the prior year. Third quarter sales are expected to increase about 6% over
the second quarter ending December 31, 2009 to $3,826,000, which is less than
the $4 million plus anticipated, primarily due to limited availability of a
critical manufacturing component, which constricted March 2010 product
shipments. Third quarter gross margin is expected to increase to approximately
42%, compared to 30% for the previous year third quarter. Alanco's EBITDA
(Loss) for the quarter is expected to improve almost 90% to close to breakeven,
or about ($50,000) compared to ($517,100), incurred in the prior year third
quarter.
These preliminary unaudited results reflect the Company's continuing operations
only, which include StarTrak Systems and corporate staff expenses, but excludes
losses associated with business assets held for sale (primarily, the Company's
TSI PRISM subsidiary.)
Robert R. Kauffman, Chairman and CEO, commented, "We are pleased to again
report substantial quarterly progress towards our 2010 profitability turnaround
with this third quarter's record gross profit and near breakeven EBITDA.
Current order backlog and pipeline sales activity also indicate a strong
fourth quarter finish with significant positive cash flow and EBITDA results,
which should complete our profitability turnaround."
Alanco Technologies, Inc. provides wireless monitoring and asset management
solutions through its StarTrak Systems subsidiary. StarTrak Systems is the
dominant provider of tracking, monitoring and control services to the
refrigerated or "Reefer" segment of the transportation marketplace, enabling
customers to increase efficiency and reduce costs of the refrigerated supply
chain. For more information, visit the Alanco website at www.alanco.com or
StarTrak Systems at www.startrak.com.
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES
INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY
EQUIPMENT; COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS;
DEVELOPMENT OF NEW TECHNOLOGIES THAT MAKE THE COMPANY'S PRODUCTS OBSOLETE;
RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE
COMPANY'S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH
LENDERS AND REMAIN IN COMPLIANCE WITH FINANCIAL LOAN COVENANTS AND OTHER
REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND THE ABILITY TO SECURE AND
MAINTAIN KEY CONTRACTS AND RELATIONSHIPS.
Alanco Technologies, Inc.
Preliminary, Unaudited
3 months ended
3/31/2010 3/31/2009
----------------------------
Net Sales $3,826,000 $3,758,000
Cost of Goods Sold 2,186,000 2,630,100
----------------------------
Gross Profit 1,640,000 1,127,900
Gross Margin 42.86% 29.98%
Selling, General & Administrative (1,435,000) (1,335,900)
Corporate Expense (250,000) (309,100)
Amortization of stock-based compensation (72,000) (113,100)
Depreciation and amortization (133,000) (129,500)
----------------------------
Total Expense (1,890,000) (1,887,600)
----------------------------
Operating Loss ($250,000) ($759,700)
----------------------------
----------------------------
Preliminary, Unaudited
3 months ended
3/31/2010 3/31/2009
----------------------------
EBITDA (Loss) Reconciliation
Operating Loss ($250,000) ($759,700)
Stock based compensation 72,000 113,100
Depreciation & Amortization 133,000 129,500
----------------------------
EBITDA ($45,000) ($517,100)
----------------------------
----------------------------
# # #