SureBeam Corporation today [Monday] reported record second quarter revenues of US$10.8m for fiscal 2002, an increase of 12% over US$9.6m in the second quarter of 2001.

SureBeam's gross margin was 35% for the second quarter of 2002 and 2001, the group said. The net loss, in accordance with generally accepted accounting principles, for the second quarter of fiscal 2002 was US$5.1m, or $0.08 per share, compared to a net loss of $9.2m, or $0.16 per share, for the same period last year, a per share improvement of 50%. Pro forma* net loss was US$276,000, or US$0.00 per share, for the second quarter of fiscal 2002 compared to a pro forma* net loss of US$2.5m, or US$0.05 per share, for the second quarter of 2001.

Revenues for the six month period ended 30 June, 2002 were US$17.8m, an increase of 18% over US$15.1m for the same period in 2001. SureBeam's gross margin for the six month period ended 30 June, 2002 was 28% compared to 39% for the six month period ended 30 June, 2001. The net loss, in accordance with generally accepted accounting principles, for the six month period ended 30 June, 2002 was US$14.1m, or US$0.22 per share, compared to a net loss of US$49.8m, or US$0.95 per share, for the same period last year. Pro forma* net loss was US$4.1m, or US$0.06 per share, for the six month period ended 30 June, 2002 compared to a pro forma* net loss of US$5.7m, or US$0.11 per share, for the six month period ended 30 June, 2001.

In the second quarter, SureBeam said it continued to make progress toward executing its strategy by signing additional customers to agreements. The company is working with several customers in preparation for additional product rollouts in the US in the near future. In addition, the build out of SureBeam's capacity infrastructure continues to progress, the company said. The Los Angeles service centre's grand opening is scheduled for August and processing is scheduled to begin in the third quarter of 2002.

"Achieving breakeven on an earnings per share basis before depreciation and amortisation, is a significant milestone for SureBeam," said Larry Oberkfell, President and CEO of SureBeam. "As you are aware, during the second quarter, Wegmans had a very successful rollout of SureBeam processed fresh ground beef at all of their stores, Dairy Queen continued its rollout of SureBeam processed hamburgers, and the Company signed an important equipment purchase agreement with a company in Vietnam." Oberkfell continued, "We are very excited about the progress we are making and are working on further roll-outs of fresh ground beef for the third quarter."

The company is also initiating guidance for fiscal year 2003 as follows: Revenue - US$75.0 to US$85.0m, an increase of approximately 100% over 2002; GAAP net loss per share - US$0.05 to US$0.15, an improvement of approximately 70% to 90% over the current year; and earnings before interest, taxes, depreciation and amortisation (EBITDA) - positive US$10.0m to US$15.0m.