Food Technology Service, Inc. (Nasdaq:VIFL) had revenues of $661,824 during the first quarter of 2010 compared to revenues of $674,830 for the same period in 2009. This is a decrease of about 1.9 percent. The Company had income before taxes during the first quarter of 2010 of $227,591 compared to income before taxes of $181,872 during the first quarter of 2009. This is an increase of about 21.9 percent. Management attributes decreased revenue to a large customer that was purchased and moved during the first quarter of 2009. That customer accounted for approximately 25% of the Company’s 2008 revenue and virtually all of that revenue has been replaced.
The Company’ statement of operations reflects non-cash deferred income tax expense for the three months ended March 31, 2010 in the amount of $85,600. In past reporting periods, the Company had presented income tax expense with a corresponding benefit as management continued to reduce its valuation allowance for the deferred tax asset. For the three months ended March 31, 2010, management did not reduce the valuation allowance resulting in the non-cash expense for income taxes. This resulted in net income during the first quarter of 2010 of $141,991 versus net income of $181,872 during the first quarter of 2009.
Food Technology Service, Inc. CEO Dr. Richard Hunter said, “I am pleased by our ability to replace revenue lost when a large customer was bought and moved. The replacement revenue is more profitable which is reflected in higher earnings before taxes.”
Food Technology Service, Inc. provides irradiation services for medical products, food items and consumer goods to enhance the safety of those products. The Company is certified to ISO 13485:2003 standards for the provision of radiation sterilization services for medical devices.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.