SALT LAKE CITY - (Business Wire) CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of consumer, consumer electronics, IT products, and energy beverages, today filed its Form 10-QSB for the period ended September 30, 2009, showing that continued growth in energy drink sales drove the company forward. CirTran reported sales of $2,690,941 for the third quarter, a 13 percent decrease as compared with the $3,102,414 reported for the same quarter in 2008. For the nine months ended September 30, 2009, CirTran’s revenues were $7,712,530, a decrease of 24 percent as compared with the $10,202,998 reported for the same period in 2008.
CirTran President Iehab J. Hawatmeh said an agreement granting the company $1 million in minimum royalty income was signed during the reported quarter, but that this income was not proportionately reflected in sales revenue reported in the filing. CirTran, he said, could report only a small portion of the $1 million in keeping with revenue recognition rules. Mr. Hawatmeh said CirTran anticipates that its fourth quarter report will show a larger portion of the advance included in revenues for that three-month period.
CirTran made progress on its bottom line, reporting a net loss of $1,208,140 for the three months ended September 30, 46% better than the loss of $2,258,414 in the same period a year ago. For the nine-month period, CirTran reported a loss of $2,591,848, 13 percent better than a loss of $2,981,427 for the same period in 2008.
CirTran Gets Energy from Playboy
Mr. Hawatmeh, CirTran’s president, said revenues continued to be driven by growth of CirTran Beverage operations. Playboy Energy Drink, he said, is now available in 11 European and Middle Eastern countries, with distribution agreements now being finalized throughout the U.S.
Mr. Hawatmeh said beverage sales, which began with the launch of its Playboy-branded products in late 2007, have continued to grow steadily throughout the fiscal year. In the third quarter, he said, beverages sales were up 56 percent over the same period a year ago, and for the nine month period ended September 30, grew to $1,263,292, an improvement of 43 percent over the same period in fiscal 2008.
“CirTran’s ability to identify and successfully enter new markets has been very important to our cash flow and well being,” he said. “With the difficult world economy impacting our traditional markets (electronics assembly and contract manufacturing) worldwide, with the redesign of some of our existing products, we have plans for stronger inroads in media and online marketing and in energy drink sales in the future to give the company exciting new markets and revenue sources,” he said.
About CirTran Corporation
Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites, and CirTran Beverage, which has partnered with Play Beverages, LLC to introduce and distribute the Playboy Energy Drink.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. CirTran disclaims any obligation or intention to update any forward-looking statement.
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CirTran Corporation
Iehab J. Hawatmeh
+(801) 963-5112
iehab@CirTran.com
