During the year, the Company recorded a onetime Deferred Tax Benefit of $3.9 million. The tax benefit is related to the reversal of a previously recorded deferred income tax valuation allowance that is no longer considered necessary. The deferred tax benefit is principally related to net operating losses and tax credits which the Company expects will offset future tax payments.
For the year ended March 31, 2014, Net income was $4.1 million, or $0.21 per share, for the year, including the onetime deferred tax benefit of $3.9 million, compared to net income of $566 thousand, or $0.03 per share, reported last year. For the year ended March 31, 2014, total sales were $26.5 million, compared to total sales of $28.0 million for the year ended March 31, 2013. The $1.5 million decrease resulted from a decrease in sales of Systems of $1.9 million, partially offset by increases in Supplies of $360 thousand.
Marc Perkins, President and Chief Executive Officer of the Company stated, “Our results reflected a decline in system sales due to reduced spending on capital equipment such as our high-speed, intelligent mailing systems”. At March 31, 2014, the Company had a systems order backlog of $552 thousand, compared to a systems order backlog of $51 thousand at March 31, 2013. After the April, May and June activity our order backlog increased to $1.4 million at June 27, 2014. The current backlog is higher than the backlog existing at the end of the fiscal year, and 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 (www.otcmarkets.com;
About Gunther International
Founded in 1978 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. 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;