Shares of Document Security Systems Inc. were down 6 percent after the company reported a net loss in its first quarter.
DSS stock (NYSE: Amex: DSS) midday was trading at $3.12 a share, down 6.3 percent.
The company posted a net loss of $1.1 million, or a nickel a share, compared with a net loss of $400,000, or 2 cents a share in 2011. The increase in net loss was attributed to two non-recurring items, officials said. DSS reported its first-quarter results after markets closed Tuesday.
The company logged $3.8 million in first-quarter revenue, up 43 percent from $2.7 million in 2011. The increase in sales came primarily from packaging, which increased by more than $1 million, while printing sales were $670,000 for the quarter, down from $720,000 last year.
DSS this week said its DSS Printing Group subsidiary had received initial orders for counterfeit prevention printing projects from ConAgra Foods, the Hershey Co. and Kraft Foods Inc.
Despite the company’s increase in net loss, DSS CEO Patrick White focused on the company’s growth in revenue and gross profit.
“Our revenue and gross profit growth in the first quarter of 2012 continued the positive trend we saw at the end of 2011,” said White, in a statement. “We continue to see many exciting opportunities for all our product divisions that are the foundation of the company.”
DSS develops security and authentication products designed to prevent counterfeiting and brand fraud.
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