NEW YORK, April 19, 2018 /PRNewswire/ --
- In 2017, revenues reached a record $2.9 million, up 531% compared to $461,000 in 2016
- in 2017, gross profit rose by 450% to $1.3 million compared $229,000 in 2016
DirectView Holdings, Inc., (OTC: DIRV) ("DirectView" or the "Company"), a company focused on ownership and management of leading video and security technology companies, on Tuesday, April 17, 2018, filed its year-end financial dislosures reporting record results for the year ending December 31, 2017, showing significant increases in revenue and gross profit of 531% and 450%, respectively.
Financial Highlights for the Full Year 2017
Revenues: Total revenues in 2017 reached a record $2.9 million, increasing by 531% compared to $461,000 in 2016. The record revenue was a result of a $2.1 million increase in product sales coupled with a $375,000 increase in services revenue. The revenue gains were mainly attributable to the Company's acquisition of Virtual Surveillance, LLC and ApexCCTV, LLC., two Texas-based video security and surveillance companies.
Gross Profit and Margin: Gross profit rose to $1.3 million in 2017, a 450% increase compared to gross profit of $229,000 in 2016. Product sales accounted for 98% of gross profit dollars compared to 76% in 2016. Gross margin percentage was 43.4% in 2017 compared to 49.8% in 2016.
Operating Expenses: Operating expenses in 2017 increased by 30.9% to $2.1 million compared to $1.6 million in 2016. The increase in operating expenses is mainly attributed to a $326,000 increase in compensation and taxes, a $146,000 increase in amortization, and a $127,000 increase in depreciation, partially offset by a $100,000 decrease in debt expense and a $50,000 decrease in marketing and public relations expenses.
Loss from Operations: The Company's operating loss narrowed to $(873,000) in 2017 compared to an operating loss of $(1.4) million in 2016. Net loss attributable to DirectView shareholders in 2017 narrowed by $3.2 million to $(1.6 million) or $(0.22) per share on 6.98 million weighted average shares outstanding compared to a net loss of $(6.7 million) or $(16.95) per share on 280,943 weighted average shares outstanding.
"We are pleased to have achieved record revenue and gross profit in 2017 as well as a significant improvement in our overall operating results," said Roger Ralston, CEO of DirectView. "We have successfully integrated our Virtual Surveillance, LLC and ApexCCTV, LLC into our operations and are poised to achieve continued improvement in our performance in the years to come."
"As we move through 2018, our entire team will work diligently to continue driving sales growth while managing expenses to achieve future profitability and build lasting value for our stockholders."
About DirectView Holdings, Inc.
DirectView Holdings, Inc., (DIRV) together with its subsidiaries, provides video surveillance solutions and teleconferencing products and services to businesses and organizations. The company operates in two divisions, Security (Video Surveillance) and Video Conferencing. The Security division offers technologies in surveillance systems providing onsite and remote video and audio surveillance, digital video recording, and services. It also sells and installs surveillance systems; and sells maintenance agreements. The company sells its products and services in the United States and internationally through direct sales force, referrals, and its Websites. The Video Conferencing division offers teleconferencing products and services that enable clients to conduct remote meetings by linking participants in geographically dispersed locations. It is involved in the sale of conferencing services based upon usage, the sale and installation of video equipment, and the sale of maintenance agreements. This division primarily provides conferencing products and services to numerous organizations ranging from law firms, banks, high tech companies and government organizations. For more information visit our websites at http://www.DirectView.com, http://www.ApexCCTV.com, http://www.VS-US.com and connect with us on Twitter, LinkedIn, Facebook, and Google+.
Cautionary Statement Regarding Forward Looking Statements
Forward Looking Statements: This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement. Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in our filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
DirectView Holdings, Inc.
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