Gunther International Announces Third Quarter Financial Results

Feb. 11, 2011 - PRLog -- Gunther International Ltd. is a leading designer and manufacturer of high-volume, intelligent software-driven mailing systems and a leading provider of industrial printing products using thermal inkjet technology.

Total sales for the quarter ended December 31, 2010, were $6.17 million, compared to total sales of $7.61 million for the quarter ended December 31, 2009.  The $1.44 million decrease resulted primarily from a reduction in sales of Systems of $1.39 million.  Operations resulted in no profit or loss, or $0.00 per share, for the quarter compared to a net loss of $96 thousand, or $0.00 per share, reported for the comparable period last year.

For the nine months ended December 31, 2010, total sales were $17.77 million, compared to total sales of $23.62 million for the nine month period ended December 31, 2009.  The $5.85 million decrease resulted primarily from reductions in sales of Systems and Supplies and Other of $5.41 million and $350 thousand, respectively.  Net loss was $155 thousand, or $0.01 per share, for the nine month period, compared to net income of $359 thousand, or $0.02 per share, for the comparable period last year.

Marc Perkins, President and Chief Executive Officer of the Company stated, “Our results continue to be negatively impacted by the world-wide economic conditions that have resulted in a reduction in spending on capital equipment such as our high-speed, intelligent mailing systems.  To some degree, our systems order backlog had protected us from the immediate impact of the recession, but the pace of new orders has slowed and we have now converted most of our backlog to revenue.”  At December 31, 2010, the Company had a systems order backlog of $302 thousand, compared to a systems order backlog of $794 thousand at December 31, 2009.  After the completion and delivery of systems in January and February our order backlog increased to $711 thousand at February 11, 2011, reflecting the receipt of additional orders for systems received after December 31, 2010.  The Company has ongoing negotiations that management believes will result in additional orders.

The Company posts current financial statements and other important information on PinkSheets.com (http://www.otcmarkets.com; symbol: SORT.PK), as well as the Company’s own website (http://guntherintl.com).

About Gunther International

Founded in 1981 and headquartered in Norwich, Connecticut, Gunther International designs, manufactures and services high-speed production mailing systems to organizations that define professional customer communications as an integral part of their business.  This includes insurance, healthcare, financial, utilities, pharmaceutical, service bureaus, government agencies and other companies that have a vested interest in maintaining guaranteed integrity in their mail processing.  Inc.jet, Inc, a wholly-owned subsidiary of Gunther International Ltd. supplies industrial printing solutions to OEMs, integrators and distributors in the commercial packaging, graphics and mailing markets throughout the world.  Incorporating thermal inkjet technology, Inc.jet products deliver easy-to-integrate hardware, software and ink supplies that make the printing of variable data effortless in most situations.  Gunther International is publicly traded on OTC Pink Sheets under the symbol “SORT.PK”.  Additional Company information is available at www.guntherintl.com.

Statements in this release concerning Gunther’s business outlook, future financial and operating results, and overall future prospects are forward looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the mailing industry; changes in overall technology spending; increases in competition; the timing of orders and their fulfillment; availability and cost of key parts and supplies; ability to establish and maintain relationships with customers; variations in the expected mix of products sold; changes in customer mix; customer and industry analyst perceptions of Gunther and its technology, products and future prospects; delays in scheduled product availability; market acceptance of our products and services; rapid technological and market change; adoption of regulations or standards affecting our products, services or industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; currency fluctuations; and litigation; and other factors listed in our most recent audited financial statements. All statements made in this press release are made only as of the date set forth at the beginning of this release. Gunther undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.