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CirTran Reports Gain in Sales, Sharp Reduction in Loss in First Quarter

^{Published on 2010-05-25 07:00:19 - Market Wire}
 

SALT LAKE CITY--([ BUSINESS WIRE ])--CirTran Corporation (OTCBB: CIRC), a diversified international manufacturer and distributor of consumer, consumer electronics and IT products, has filed Form 10-Q for the quarter ended March 31, 2010, reporting a significant gain in sales and a sharp reduction in net loss.

"looks forward to paying even more royalty expenses in the future as we expand distribution and sales programs with Playboy Energy Drink"

CirTrana™s sales for the quarter were $2,183,838, an improvement of $216,456 (or 13.6%) over the $1,922,382 reported for the first quarter of fiscal 2009. CirTrana™s net loss for the quarter was $922,297, a 59% improvement over a loss of $2,249,557 reported for same period a year ago.

Iehab H. Hawatmeh, CirTrana™s chairman, president and CEO, said that the reduction in losses was a adirect result in strengthening our handle on expensesa during the quarter, noting that CirTran cut costs to $211,790 from $1,470,315 in the first quarter of 2009 including reducing selling, general and administrative (SGA) expenses by more than 31%.

Mr. Hawatmeh said CirTrana™s sales were driven by continued growth of its Playboy Energy Drink product line. Playboy Energy Drink is manufactured and distributed by CirTran Beverage Corp. on behalf of Play Beverages, LLC, a licensee of Playboy Enterprises International, Inc., in conjunction with CirTran Beverage Corporation, which is wholly owned by CirTran. He said that as sales of Playboy Energy Drink grew in the U.S. and 11 European and Middle Eastern countries, so did royalties for the product line, totaling $531,448 as compared with $147,189 in royalty expense during the first quarter of fiscal 2009.

Mr. Hawatmeh said that CirTran alooks forward to paying even more royalty expenses in the future as we expand distribution and sales programs with Playboy Energy Drink,a and that several new distribution contracts for the product line are now being finalized.

Mr. Hawatmeh also said that the successful sub-leasing of part of its facility and manufacturing equipment, announced in mid-March, is having the desired positive impact on the overall company.

aThe anew CirTrana™,a he said, ais benefitting from having shed the burden of financing and housing our contract manufacturing business in the U.S. while we look to grow elsewhere.a

About CirTran Corporation

Founded in 1993, CirTran Corporation ([ www.CirTran.com ]) has evolved from its roots as an international, full-service contract manufacturer. Today, CirTrana™s operations include: CirTran Beverage, which has partnered with Play Beverages, LLC ([ www.playboyenergy.com ]) to introduce and distribute the Playboy Energy Drink; 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, and CirTran Online, which offers products directly to consumers through major retail web sites.

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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