Pro Forma Results Include 30% Reduction in Operating Loss
SAN DIEGO, March 2 /PRNewswire-FirstCall/ -- Imaging Technologies
Corporation (OTC Bulletin Board: IMTO) announced today that it's Board of
Directors has passed on its agreement with Greenland Corporation
(OTC Bulletin Board: GRLC) by which ITEC will become a minority shareholder of
Greenland. In the original acquisition in January 2003, ITEC acquired a
majority interest in Greenland through a stock purchase transaction.
As a result of ITEC's divestiture of Greenland, liabilities will be
reduced by approximately $7.1 million, which consist primarily of notes
payable, accounts payable, and payroll-related liabilities, including taxes.
Concurrently, the ITEC balance sheet will show a reduction of total assets of
approximately $4.4 million, largely due to a reduction of goodwill related to
Greenland.
ITEC's loss would be reduced by 30% for the June and December periods due
to reductions in expenses attributed to Greenland operations. Adjustments to
ITEC's operations include a reduction in revenues of $400 thousand and
$4.5 million for the periods ended June 30, 2003 and December 31, 2003,
respectively. As a result of the transaction,
"This agreement enables both ITEC and Greenland to continue with their
respective business plans," said Brian Bonar, Chairman and CEO of ITEC.
"Management feels, most importantly, that the divestiture of Greenland
will remove quite a substantial loss from ITEC's ongoing operations. The
divestiture of our interest in Greenland is part of our overall strategy to
achieve operational profitability and to concentrate our business on providing
a variety of financial services to small and medium-size businesses," he
added.
Pursuant to the divestiture agreement, a majority of Greenland shares held
by ITEC were returned to Greenland; and Greenland canceled ITEC indebtedness
to Greenland. ITEC retains a minority interest in Greenland and ITEC nominee
directors have resigned from Greenland's Board of Directors effective
March 1, 2004.
ITEC will file a complete statement, including pro forma financial
statements on Form 8-K.
About Imaging Technologies Corp.
Imaging Technologies Corporation (OTC Bulletin Board: IMTO) was founded in
1982. Headquartered in San Diego, California, the Company provides a variety
of financial and human resources services to small and medium size businesses.
The Company will shortly implement a name change by which it will be known
as Dalrada Financial Corporation.
Two of ITEC's subsidiaries, SourceOne Group(TM), and ProSportsHR(TM), are
professional employer organizations that provide a variety of personnel and
human resources services to small to medium-sized businesses. Further
information can be obtained on the following internet sites:
http://www.prosportshr.com , and http://www.sourceonegroupinc.com .
The Company's MedicalHR(TM), and CallCenterHR(TM) subsidiaries are
temporary staffing organizations, which provide full-service staffing services
to specialized industries.
The Company also owns controlling interest in Quik Pix, Inc.
(Pink Sheets: QPIX), a leading visual marketing support firm located in Buena
Park, California. The Company's patented PhotoMotion(TM) is a unique color
medium of multi-image transparencies. Information on the Company is available
at http://www.colorvisuals.com ./ QPIX also produces and distributes the Company's
other imaging products, including its proprietary suite of ColorBlind(R)
software, which is devoted to color management for desktop and commercial
printing and graphic arts. More information is available at http://www.color.com .
Information on the Company is available at the ITEC Web site at
http://www.itec.net .
Statements in this press release may constitute forward-looking statements
and are subject to numerous risks and uncertainties, including the failure to
complete successfully the development of new or enhanced products, the
Company's future capital needs, the lack of market demand for any new or
enhanced products the Company may develop, any actions by the Company's
partners that may be adverse to the Company, the success of competitive
products, other economic factors affecting the Company and its markets,
seasonal changes, and other risks detailed from time to time in the Company's
filings with the U.S. Securities and Exchange Commission. The actual results
may differ materially from those contained in this press release. The Company
disclaims any obligation to update any statements in this press release.
For further information, please contact: Brian Bonar of Imaging
Technologies Corporation, +1-858-451-6120, bbonar@itec.net.
SOURCE Imaging Technologies Corporation
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Related links:
http://www.itec.net
CONTACT:
Brian Bonar of Imaging Technologies
Corporation, +1-858-451-6120, bbonar@itec.net
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