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NEWARK, Del., May 22 /PRNewswire-FirstCall/ -- Theater Xtreme Entertainment Group, Inc. (OTC Bulletin Board: TXEG - News), a nationwide seller and installer of real movie theaters for the home, reported on its recent corporate developments. The Company filed its Form 10Q for the quarter and nine months ended March 31, 2007, with the SEC on May 15, 2007.
Total revenues for the quarter ended March 31, 2007, were the highest quarterly revenues in the Company's reporting history, and were in excess of $1.8M. The Company maintains strong gross profit margins above 40%.
"We are executing on our growth strategy as planned. Most notably, we are expanding our complete-theater-room product offering while opening new design centers," said Scott Oglum, Theater Xtreme's Chief Executive Officer. "We have a strong management team, a very unique business model, and we're paving the way in a new retail market category. Moreover, we're maintaining healthy gross profit margins at a time when others in consumer electronics retail are sliding."
In April 2007, the Company announced that corporate and franchise sales orders of front projection theater systems have topped the 2000 mark in less than four years of operation. Since April 1, 2006, over 1000 system orders were taken, with overall combined sales orders in all categories exceeding $10 million. System prices range from $3,000 to $15,000.
In March 2007, Theater Xtreme opened a new flagship corporate store in Wilmington, Del. The retail space is designed to enhance the customer's buying experience and boasts eleven showrooms with different layouts and design options.
Since January 2007, the Company has continued its expansion with stores opening in Boca Raton, Fla., Short Pump, Va., and Lutherville, Md. The Company now totals 14 locations, with 11 more in various stages of opening, all of which are strategically located in newly developed suburban areas.
To be added to Theatre Xtreme's investor contact list, please contact Justin Schakelman at jschakelman@theaterxtreme.com.
About Theater Xtreme Entertainment Group, Inc.
Theater Xtreme Entertainment Group, Inc. (OTC Bulletin Board: TXEG - News) is a specialty retailer of real movie theaters for the home. The Company's 80" to 120" front projection systems deliver an authentic movie theater experience, as an increasingly popular alternative to flat panel televisions. Its cinema packages, featuring brand names and factory direct products, are simple to use and cost significantly less than traditional A/V dealer offerings. With package-focused merchandising and fast installation, the Company makes it easy to own a complete theater. It operates 5 company owned stores and 9 franchises in 10 states.
Safe Harbor Statement
Some of the information presented in this letter constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties, of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, the ability of the Company to sell franchises, success of the franchise stores, the ability to find suitable locations for new corporate and franchise stores, delay or loss of key products from vendors, the ability to maintain margin and sales growth rate, disruption of product delivery from overseas suppliers, changes in regard to significant suppliers, increased competition from companies with more expertise, experience, or financial resources, technological changes in the home theater market which may render the Company's offerings obsolete, less competitive, or too expensive, material reduction in the demand for home theaters, and lack of sufficient capital to allow the Company to achieve its corporate store opening goal. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission available at www.sec.gov.
Contacts:
Investor & Media:
The Investor Relations Group
Katrine Winther-Olesen
212-825-3210
katrine@investorrelationsgroup.com
Mike Graff/Susan Morgenbesser
212-825-3210
mgraff@investorrelationsgroup.com
susan@investorrelationsgroup.com
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