PARAGON TECHNOLOGIES REPORTS 2007 FOURTH QUARTER AND YEAR-END RESULTS

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EASTON, PA — March 18, 2008 -- Paragon Technologies, Inc. (Amex:PTG), a leading supplier of “smart” material handling systems and “software-driven” warehouse and distribution center solutions, announced today results for the fourth quarter and year ended December 31, 2007.

 

During the fourth quarter ended December 31, 2007, the Company had a net loss of $58,000 or $0.02 loss per share on revenues of $4.5 million. The Company’s backlog of orders at December 31, 2007 was $7.9 million compared to the Company’s backlog of orders at the beginning of the year of $5.9 million.

 

During the year ended December 31, 2007, the Company had net income of $341,000 or $0.12 earnings per share on revenues of $21.4 million. The rate of new orders rose during the year ended December 31, 2007 to $23.5 million compared to $16.8 million in new orders received during the year ended December 31, 2006.

 

Net income for the twelve months ended December 31, 2007 was favorably impacted by the recognition of a $309,000 income tax benefit primarily related to the reversal of accruals for the expiration of tax return statutes.

 

Len Yurkovic, Acting CEO of Paragon Technologies, commented, “Although we are disappointed in our 2007 fourth quarter and twelve month earnings, we are encouraged by the increase in the backlog of orders, which provides a good foundation for financial performance for 2008. Selling, general and administrative expenses have impacted our bottom line, but are in keeping with our long-term strategy to increase the level of sales by investing in resources associated with sales efforts in response to quoting and sales activities.”

 

 

The Company will host a conference call to discuss these results on Tuesday, March 18, 2008 at 11:00 a.m. ET. To participate in the call, please dial 1-866-752-7147 and ask for the Paragon Technologies teleconference. Simultaneous with the conference call, an audio webcast of the call will be available via a link on the Paragon website, www.ptgamex.com.

 

Paragon’s SI Systems’ branded technologies drive productivity at Fortune 1000 companies and the United States Government.

 

About Paragon Technologies

Paragon Technologies is a leader in integrating material handling systems and creating automated solutions for material flow applications. SI Systems’ branded technologies and material handling solutions address unit assembly in manufacturing operations and order fulfillment applications. One of the top material handling systems suppliers worldwide, SI Systems leading clients have included the United States Postal Service, BMG, Peterbilt, Honda, and Maybelline.