Homeland Security Solution Provider Posts Losses, Predicts Gains

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August 31, 2005 (1:33 PM EDT)

Homeland Security Solution Provider Posts Losses, Predicts Gains

By TechWeb Technology News

GVI Security Solutions Inc. lost nearly $3 million in the second quarter of 2005 but expects to turn a profit next year.

The Carrollton, Texas-based homeland security solutions company released a forecast Wednesday that predicts a return to historical sales levels in the second half of the year. GVI suffered a second quarter loss of $2.9 million in 2005. GVI plans to reduce net losses during the third and fourth quarters while generating positive cash flow.

The company provides video surveillance, access control and detection systems to homeland security, professional, business-to-business and retail markets. It has $5.2 million in cash and $22 million in positive working capital, CEO Nazz Paciotti said in a written statement.

GVI expects improvements in working capital management and sales of higher margin products by the Enterprise Solutions Group. Paciottti said the company has the strength to achieve profitability without incurring additional debt outside of the company's current revolving credit facility. Paciotti also said the company can avoid recourse to equity financings, which would be dilutive to shareholders.