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VirTra Systems
(OTC BB: VTSI): Lands Record Contract |
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VirTra Systems kicked this
week off with the biggest news in the company's history. For those of you
have hung in there through a pretty tough six month market correction,
your time may have come with VirTra Systems.
You are looking at VirTra's IVR-300™
HD 360-degree, high-definition firearms training system. This hi tech system
is used for training both military and law enforcement in handling Judgemental-Use-Of-Force
situations. To understand the emerging market for this technology, just
turn on the news or open the newspaper. There is no shortage of demand
for better training in this volatile world.
One year ago the company announced
it had completed the development of these revolutionary training systems.
The first orders came in December from Mexico's law enforcement agencies.
Since that time, VirTra has
sold systems to the Army, Air Force, and a distributor in India.
The Army ordered one unit, then ordered a second. The Air Force
ordered one, upgraded the initial order, then ordered a second. An undisclosed
top secret wing of the US Armed forces has also ordered a unit.
I've always felt this company's stock
could reach for new highs once the company started delivering multi unit
orders. That day has come. It certainly looks like full steam ahead for
VirTra.
Today, just after the market closed,
VirTra
Systems announced it has received an order for at least 15,
and possibly up to 20 new IVR-300™s from Mexico's governmental
agencies.
The order, valued at about $1.7
million, is the largest in the company's history, and guarantees
VirTra's 4th quarter will be the strongest ever. This order helps confirm
my theory that VirTra would start landing multi unit orders after
selling initial systems. Mexico was the first to order an IVR-300™.
Behind the initial Mexico orders
you have initial orders from both the Army and the Air Force. With any
luck, it will be deja vu all over again with multi unit orders to follow
from the US Military. Our various branches of the military have a much
bigger appetite for this new technology than their Mexican counterparts.
In Q2 '04- the June quarter, VirTra
delivered
a whopping 368% growth over the same quarter in Q2'03. If they deliver
$1.7 million in revenues from this contract, they are assured of maintaining
this rapid growth throughout the remainder of '04.
I have chosen to put up a longer
term chart of VTSI. This chart goes back to the previous high of
$.47
set
in October of '03. Since that high, the stock has attempted to break out
above the $.41 level twice, only to be repelled each time. The news simply
didn't have the horsepower to fuel a breakout against the backdrop of a
declining market.
Today's news could provide the horsepower
for a real breakout. The market environment is improving. We are coming
into the strongest season of the year. The lows have been getting higher
since last January. The company will deliver its best historical corporate
performance on the back of high profile purchase orders.
If the stock can manage a break above
$.41 it could challenge the old high $.47. I still believe this stock has
a chance at $1 if these multi unit orders continue to come in. Based on
the current capitalization, $7 to $10 million in revenues in '05 could
do it.
This is a great penny stock story.
There's still lots of upside as we could be on the front end of a multi
year expansion. They have taken a bit longer to get traction than I originally
anticipated, but better late than never. If you don't own this one, it
is far from too late. Watch the $.41 level. If it gives way, we could set
a new high.
Here's today's news:
| Press Release Source: VirTra Systems,
Inc.
VirTra Systems Sells 15 Simulators
to Mexican Government
Monday October 4, 4:02 pm ET
ARLINGTON, Texas, Oct. 4 /PRNewswire-FirstCall/
-- VirTra Systems, Inc. (OTC Bulletin Board: VTSI - News) today announced
receipt of an order for a minimum of 15 IVR-300(TM) HD 360-degree, high-definition
firearms training systems for use by Mexican governmental agencies.
VirTra Systems recently received
the purchase order for 15, and as many as 20, systems for near-term delivery
to Mexican governmental agencies. The transaction, worth a minimum $1.7
million, is the largest sale in the company's history.
"This first million dollar-plus order
was awarded the company as a direct result of our superior product line,
the IVR(TM) HD series," commented Michael Kitchen, VirTra Systems' vice-president
of training and simulation. "We are becoming the de facto industry standard,
offering technological superiority, low maintenance, and lifesaving 360-degree
immersion -- all in high-definition resolution."
Luis E. Rodriguez Galindo, managing
director of Lonexi, S.A. de C.V., VirTra Systems' Mexican distributor,
commented, "After installation of the first VirTra Systems simulator in
Mexico earlier this year, reviewing feedback from our Mexican customers,
it was inevitable that Mexican officials would prefer the IVR(TM) HD series
in their facilities. Future sales will continue, as we believe other agencies
will specifically request this superior product line to train troops and
law-enforcement personnel in Mexico."
VirTra Systems produces the industry's
only line of immersive 360-degree firearms training simulators in high-definition
resolution, used by law- enforcement and military agencies for anti-terrorist,
Homeland Security, use- of-force, situational awareness, marksmanship,
and 4G squad-based training.
About VirTra Systems
Utilizing patented technology, VirTra
Systems sells situational awareness/judgmental use-of-force firearms training
systems to military agencies such as the U.S. Air Force and the U.S. Army,
and to national and international law enforcement agencies. Using the sensations
of motion, touch, sound, and smell, the company also produces custom promotional
virtual reality systems and 3-D theaters for clients such as General Motors,
Pennzoil, Red Baron(TM) Pizza, and the U.S. Army. For more information,
visit the corporate website at http://www.virtrasystems.com , or the training/simulation
website at http://www.virtratraining.com .
This press release contains certain
f o r w ard-looking s ta te m ents. F or w ard- lo o ki ng s ta te me nts
are generally preceded by the words such as "plans," "expects," "believes,"
"anticipates," or "intends." Investors are cautioned that all forward-looking
statements involve risks and uncertainties that could cause actual results
to differ materially from current expectations. VirTra Systems urges investors
to review in detail the risks and uncertainties contained within its filings
with the Securities and Exchange Commission.
Media Relations:
MPH
Jed Wallace,
publicist
Los Angeles,
California
310 234-3200
jwallace@mphpr.com
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Source: VirTra Systems, Inc. |
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