Article from Sarasota Herald Tribune

Febuary 8,2005

Invisa reports improvements during 2004

By MICHAEL POLLICK SARASOTA -- Invisa Inc. is still in the red but showing improvements. The maker of the InvisaShield -- technology that detects the presence of a living or non-living objects -- reported revenues rose 53 percent for the fourth quarter to $90,000 and gross profit rose by 159 percent to $53,000. The revenue was the highest ever during a quarter for what has largely been a research and development business. "The improved gross profit suggests that the company's efforts to reduce recurring costs and the manufacturing costs of fourth-generation devices have been successful," company managers said in a statement to investors on Monday. Invisa makes and markets InvisaShield enabled devices. They can be used to build an invisible zone of protection to make monitored objects such as museum displays more secure, or to keep powered gates and doors from hitting pedestrians or vehicles. Overall, Invisa reported a loss of about $593,000 for the fourth quarter compared with a loss of $2.37 million during the same 2003 quarter. For the full year, the company lost 22 cents per share in 2004 compared with 73 cents per share during 2003. The company's full-year revenues were $197,000, though sales ran at a record level as Invisa introduced its products to new customers. The company's shares, which trade over-the-counter, got a boost from the news. They were selling for 51 cents at the close of regular trading on Monday, up 9 cents, or more than 21 percent. "The improved financial performance of the fourth quarter, along with the market's acceptance of our fourth generation safety sensor, is gratifying," said Herb Lustig, Invisa's president and chief executive, in a statement. "We believe that our efforts to build relationships with major manufacturers in the powered closure sector are beginning to pay off." "The results of tight control over expenses, a focus on cash flow and a third quarter 2004 $2.2 million equity infusion are beginning to show," added David Benedetti, Invisa's chief financial officer. The company's year-end balance sheet shows a decrease in total liabilities of 72 percent to $796,000, an increase in cash of 127 percent to $591,000, an increase in current assets of 31 percent to $716,000, and an increase in working capital to $220,000 from a negative $1.96 million.