Food Technology Service, Inc. CEO Dr. Richard Hunter said “I am pleased by the third quarter, 2010 results. They show that the Company has fully recovered from the loss of a large customer in 2009 and returned to significant revenue growth.”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.
Food Technology Service, Inc., (Nasdaq: VIFL) had revenues of $815,275 during the third quarter of 2010 compared to revenues of $547,685 for the same period in 2009. This is an increase of approximately 49 percent. The Company had income before taxes during the third quarter of 2010 of $319,411 compared to income before taxes of $62,491 during the third quarter of 2009. This is an increase of approximately 411 percent. For the first three quarters of 2010, the Company had revenues of $2,238,329 and income before taxes of $824,626. Revenues during the first three quarters of 2009 were $1,875,239 and the Company had income before taxes of $410,289. Revenues increased by approximately 19.4 percent and income before taxes increased by approximately 101 percent in the first three quarters of 2010 compared to the same period in 2009. Included in revenue for the first three quarters of 2009 is a settlement fee of $85,229 relating to the termination of a warehouse lease with a former customer. Without the settlement fee, revenue from operations for the first three quarters of 2009 would have been $1,790,010. The Company’s statement of operations reflects non-cash deferred income tax benefit for the three months ended September 30, 2010 in the amount of $360,400. The Company periodically evaluates the value of tax-loss carry-forwards on its financial statements. During the third quarter of 2009, the Company increased the value of the deferred tax asset which increased net income by $281,000. During the third quarter of 2010, based on increased profitability and potential future profitability, the Company again increased the value of the deferred tax asset which increased net income by $360,400. These adjustments resulted in net income during the third quarter of 2010 of $679,811 versus net income of $343,491 during the third quarter of 2009. Similarly, the Company had net income of $994,926 during the first three quarters of 2010 verses $691,289 during the same period in 2009.