Delta Systems 1Q Revenue Recedes

Rogers motion-control solution leader Delta Systems Inc. on April 29 reported 2001 revenue of $6.11 million, down 9 percent from $6.75 million in 2000. Its quest for profitability improved dramatically, however.

Delta’s net loss for 2001 was $2.85 million, a 38 percent improvement from a $4.62 million net loss in 2000. Loss per share was 21 cents for 2001 compared with 42 cents a year ago. Delta’s fiscal year ended Dec. 31.

Delta, incorporated in 1993, is traded publicly on the Canadian Venture Exchange as “DLT.S,” but all figures for this report are in U.S. dollars. Chairman and CEO Gerald S. Hurlow outlined a number of the company’s achievements during 2001, including a reduction in operating expenses by 27 percent which led to a better margin.

But Jake Bushey, Delta’s president and chief operating officer, said he has much greater expectations for 2002.

“We are very excited about the prospects for Delta Systems in 2002,” Bushey said. “We made great progress in the latter part of the 2001. Our automation solution business is now maturing and orders have increased.

“And although we only launched the licensing of SoftFlow in 2001, we are already achieving market acceptance based on SoftFlow’s superior functionality and lower cost.”

Delta provides PC-based solutions primarily for manufacturing and distribution operations using its proprietary software SoftFlow. The company and its two subsidiaries, Delta Software Inc. and Delta Automation Solutions Inc., may be visited online at www.delta-systems-inc.com.

• First Associates Investments Inc. of Toronto, Ontario, on April 25 initiated coverage of Delta with a “buy” rating. Analyst Philip Benson set a 12-month target price of $1.92 per share.

He cited a $500,000 deal struck with Tyson Foods Inc. as a major milestone for revenue potential, adding that the protein producer is expected to roll out Delta’s service throughout its meat processing plants nationwide.

That would be about $2 million in total new revenue from Tyson.