Flame Seal Products, Inc. Releases June 30, 2018 Results
HOUSTON, TX , Aug. 13, 2018 (GLOBE NEWSWIRE) -- FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP), a leading provider of Specialty Chemicals for the Passive Fire Protection Market, today issues the following update to its Stockholders.
From: Craig Keyser, CEO
Subject: June 30, 2018 Second Quarter Results and Corporate Update
Revenues for the quarter ended June 30, 2018 were $586,604, a $101,062 or 15% decrease compared to the June 30, 2017 quarter and a sequential $81,989 decrease or 12% less than the March 31, 2018 quarter.
Craig Keyser comments, "Flame Seal’s (FSP) sales continue unsatisfactorily as the prolonged transition away from legacy products has stretched out longer than planned. The testing and certification of FSP’s next generation technology, which is targeted to penetrate far larger markets requiring flame retardant protection for public safety has proven to be more exacting than anticipated, though the learning process is yielding some encouraging results. The company is in the process of completing our internal evaluation of a new coating product for the construction industry. Once the internal evaluation has been successfully completed we will initiate formal third-party testing to complete the certification requirements prior to launching our marketing campaign. By developing new, competitive technologies Flame Seal is committed to achieving success.”
Operating Results
For the quarter ending June 30, 2017 FSP’s net profit was $13,370. Please note the small profit was a result of capitalizing a greater portion of FSP’s $151,436 costs of development and testing of new products. The critical nature of these programs to the long-term success of our company cannot be overstated.
Operations
During the second quarter FSP maintained healthy gross operating margins. Operations are challenged at the current level of sales with existing product offerings but will improve with higher sales when testing and certifications prove successful.
Balance Sheet Status
FSP’s current ratio of 3.8 and remains healthy. Receivables are current and cash levels remain narrowly adequate to navigate through our product line transition. As of June 30, 2018, FSP has 71,228,296 shares outstanding compared with 71,192,396 at first quarter’s end.
Craig Keyser notes, “Since 2013, we’ve dramatically improved our financial condition, but 2018 continues to be challenging as testing new technology has presented unanticipated results. We appreciate our stockholders ongoing support and trust.”
Shareholder Meeting
Flame Seal is planning to hold a shareholder meeting in the fourth quarter of 2018. Details will be communicated once the schedule and program has been developed.
About Flame Seal
Flame Seal Products, Inc., manufacturer of the world's number one fire prevention technology, was founded in 1992 as a research and development company focused on the investigation and application of passive Fire Prevention Technologies. FLAME SEAL PRODUCTS, INC. (FLMP) began trading its common stock on March 27, 2000. Flame Seal Products, Inc. is also the Transfer Agent of record. The company offers a wide variety of Code Driven solutions for a number of diverse applications, industries, and has developed three passive fire prevention technologies which are the basis for the company's products.
For more company and product information, go to: http://flameseal.com. For publicly disclosed information, go to www.otcmarkets.com - symbol FLMP. All press releases regarding FLMP results and corporate updates can be found in the “News” section and all financials are in the "Filing and Disclosure" section.
Safe Harbor Statement
Certain statements in this release may be "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company's ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital. Flame Seal takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Flame Seal.