Gain on Derivative Valuation Boosts CirTran in Second Quarter
SALT LAKE CITY, August 19, 2010 – CirTran Corporation (OTCBB: CIRC), a diversified international contract manufacturer of consumer products, has filed Form 10-Q for the quarter ended June 30, 2011, reporting net income for the quarter attributed to a gain in the value of derivatives held by the company.
For the quarter, CirTran reported net sales of $685,625 as compared with $2,313,843 (adjusted) for the same period in 2010. For the six months ended June 30, 2011, CirTran had net sales of $2,080,825 as compared with $4,096,702 (adjusted) for the first six months of fiscal 2010.
CirTran reported a gain of $6,005,885 in the value of derivatives it held during the quarter, as compared with a gain in derivative value of $120,652 in the same period in fiscal 2010. That substantial increase boosted the net income attributable to CirTran to $5,263,106 for the quarter as compared with a loss of $118,174 in the second quarter of fiscal 2010.
CirTran Chairman and President Iehab J. Hawatmeh said his company “continues to battle day-to-day in a tumultuous world marketplace and economy. Like small and large companies around the globe, we are fighting for sales while trimming costs wherever we can.” Mr. Hawatmeh said that for the quarter ended June 30, 2011 CirTran’s cost of sales were $133,130 or 19% of sales, a 67% reduction from the $1,011,742, or 48% of sales, reported for the same quarter in fiscal 2010.
About CirTran Corporation
Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its roots as a premier international, full-service contract manufacturer. From its headquarters in Salt Lake City, where it operates along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites, and CirTran Beverage, which has partnered with Play Beverages, LLC to introduce and distribute the Playboy Energy Drink.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. CirTran disclaims any obligation or intention to update any forward-looking statement.
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