Astrata Group Reports Record Revenue Results for the Three and Nine Month Periods

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Astrata Group (OTCBB:ATTG) reported net sales from continuing operations rose to $4.7 million for the three-month period,ended November 30, 2007, a 522% increase, from the $0.8 million reported in the same period a year earlier.  For the nine-month period of 2008 fiscal year, ended November 2007, net sales climbed 394% to $10.4 million from $2.1 million, reported in the prior fiscal year period

The company said that the revenue growth for the three- and nine-month periods, ended November 30, 2007, stemmed from an overall increase in sales and the effect of the company’s recently announced change in revenue recognition policy in connection with its large, multi-year sales contracts.

Gross profit for the three months, ended November 30, 2007, gained 264% to $1.2 million from $0.3 million for the third quarter of the prior fiscal year.  The gross profit margin declined, however, to 26% from 44% from the comparable period as a result of the disproportionate size of the company’s homeland security business in the current product mix.  For the same reason, the company said that S,G&A expenses declined for the three-month period to $1.5 million from $2.1 million in the comparable fiscal period because lower profit margins in the homeland security business are typically offset by reduced operating costs.

Astrata’s net loss for the three-month period, ended November 30, 2007, was $1.1 million, or $0.04 per common share, down significantly from $6.3 million loss, or $0.59 per share, reported in the third quarter of the prior fiscal year.  

Astrata CEO Martin Euler said, “The results of this quarter demonstrate the positive strides that our company has achieved. 

“The execution and delivery of our $93.5 million contract is moving forward as planned.  We expect our losses to be eliminated as we progress through this contract,” he added. 

“The company continues to work aggressively on new contracts and anticipates realizing revenue growth in the future.  Our entire management team is focused and determined to deliver continued improved results that should translate to increased shareholder value,” he concluded.

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