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Markland Technologies Reports Third Quarter Results

Added: (Tue May 24 2005)

Pressbox (Press Release) - News Release
May 24, 2005
Markland Technologies Reports Third Quarter Results

Company Posts Revenues of $13.2M in the Third Quarter

RIDGEFIELD, Conn. - May 24, 2005 - Markland Technologies, Inc. (OTCBB: MRKL), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today results for the company's fiscal third quarter ending March 31, 2005.

Revenues for the quarter were $13,210,258 a significant increase over revenues for the corresponding period in 2004 of $1,818,846. Revenues for the nine months ended March 31, 2005 and March 31, 2004 were $46,024,786 and $5,382,341 respectively. This significant increase in year over year revenues is due almost entirely to the acquisition of EOIR Technologies Inc.

Net cash used in operating activities for the nine months ended March 31, 2005 was $2,921,984 as compared to $2,360,283 in the corresponding period in 2004. The operating loss for the quarter amounted to $5,248,299. This loss was affected by non-cash charges for the compensatory element of stock issuances and amortization of intangible assets resulting from our recent acquisitions. These non-cash charges amounted to $1,672,935 for the three months ended March 31, 2005. Net loss attributable to common shareholders for the nine months ended March 31, 2005 was $20,954,843 or a loss of $0.36 per share compared to a loss of $6,243,618 or a loss of $0.97 per share in the corresponding period in 2004. This decrease in the loss per share is due to an increase in the weighted average number of shares outstanding to 57,790,890 from 6,438,758. The non-cash charges included in the net loss attributable to common shareholders for the nine months ended March 31, 2005 amounted to $15,194,410 compared with $4,548,553 for the corresponding period in 2004. Please refer to our Quarterly Report on Form 10QSB for the quarter ended March 31, 2005 filed with the Securities and Exchange Commission for more information about our financial performance. That document is a public filing available on the SEC's web site at www.sec.gov.

"The company finished the quarter in a very strong financial position with a record funded backlog of over $59M and a cash balance of approximately $8M," said Robert Tarini, Chairman and CEO of Markland Technologies Inc. "Our third quarter is historically our lowest revenue quarter for our subsidiary EOIR Technologies, while the fourth quarter is historically their highest revenue quarter. We believe that this pattern of seasonal revenue recognition will continue and that this fiscal year's fourth quarter revenue numbers will show significant growth over our third quarter numbers. The company is poised to capture significant new business from customers in the DOD and Homeland Security market segments. The company also expects to be able to reduce its overhead expenses as we consolidate administrative functions within our operating subsidiaries in the next several quarters."

About Markland Technologies

Markland Technologies, Inc. is committed to setting next-generation standards in defense and security through the provision of innovative emerging technologies and expert services. The Company is engaged in the identification of advanced technologies currently under development in laboratories, universities and in private industry, and in the transformation of those technologies into next-generation products. Markland's solutions support military, law enforcement and homeland security personnel to protect the nation's citizens, borders and critical infrastructure assets from the threat of terrorism and other dangers. Through strategic development, Markland focuses on the creation of dual-use technology and products with applications in both the defense market and civilian homeland security and law enforcement fields. The Company is a Board Member of the Homeland Security Industries Association, and is a featured Company on HomelandDefenseStocks.com; additional details can be viewed at http://www.homelanddefensestocks.com/Companies/MarklandTech. For more information about the Company and its products, please visit the Markland home page at http://www.marklandtech.com.

Forward-Looking Statements

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Markland Technologies officials during presentations about Markland Technologies, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are also forward-looking statements as defined by the Act. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: a reduction in order rates from the Army's Night Vision and Electronic Surveillance Directorate, difficulties integrating our acquisition of EOIR, insufficient cash flow to continue to fund the development and marketing of the Company's products and technology; a rejection of the Company's products and technologies by the marketplace, and; disputes as to the Company's intellectual property rights. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Markland Technologies, its products, economic and market factors and the industries in which Markland Technologies does business, among other things. These statements are not guarantees of future performance and Markland Technologies has no specific intention to update these statements. More detailed information about those factors is contained in Markland Technologies filings with the Securities and Exchange Commission.

Source: Markland Technologies, Inc.

Markland Technologies, Inc is a featured Company on http://www.HomelandDefenseStocks.com, a service for which Markland compensates the provider.

For full details, click here: http://www.homelanddefensestocks.com/Companies/MarklandTech/Default.asp

Contact:
Markland Technologies
http://www.marklandtech.com
or
ECON Corporate Services
Dawn Van Zant, 866-730-1151
dvanzant@investorideas.com
or
Trevor Ruehs
truehs@investorideas.com



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