Delta Systems Gross Profit Margin Rises

Bentonville’s Delta Systems Inc. improved its gross profit margin for the three months ended June 30, compared with last year’s second quarter. Delta is traded publicly on the Canadian Venture Exchange, but all figures in this report have been converted to U.S. Dollars.

The firm’s gross profit margin improved to 39.2 percent, up from 34.7 percent in 2000’s second period. According to Delta reports, both the gross profit increase and reduced expenses — from $1.4 million in 2000’s second quarter to $1.1 million in the comparable 2001 frame — are a result of streamlining. Delta is reengineering a number of its procedures to cut costs.

That helped Delta cut its second quarter net loss to $574,468 compared with $1.3 million a year ago.

But second quarter net sales still fell 27 percent from $2.2 million last year to $1.6 million in 2001. The company attributed that decline to a significant amount of special project work for a single customer in 2000.

The recent quarter saw subsidiaries Delta Software Inc. and Delta Automation Solutions Inc. generate revenues of $171,186 and $1.4 million, respectively. About 9 percent of Delta Software’s revenue was generated by the sale of software licenses and the remainder was for services.