SAN JOSE, Calif., Aug. 11 /PRNewswire-FirstCall/ -- NOVT Corporation (Pink Sheets: NOVT.PK) today announced a net loss of $499,000 or $0.12 loss per share for the three months ended June 30, 2006, as compared to a net loss of $2,580,000 or $0.63 loss per share for the three months ended June 30, 2005.
NOVT Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2006 December 31,
(Unaudited) 2005 (1)
ASSETS
Current assets:
Cash and cash equivalents $7,522 $10,449
Restricted cash - 1,864
Short-term investments - 349
Accounts receivable and other
receivable 824 476
Inventory, net - 19
Assets held for sale - 419
Prepaid expenses and other current
assets 159 431
Total current assets 8,505 14,007
Property and equipment, net - 81
$8,505 $14,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $270 $571
Accrued expenses 1,141 2,862
Unearned revenue - 367
Total current liabilities 1,411 3,800
Stockholders' equity:
Common stock 41 41
Additional paid-in capital 187,980 187,971
Accumulated other comprehensive loss (6) -
Accumulated deficit (180,749) (177,552)
Treasury stock, at cost, 10,733
shares (172) (172)
Total stockholders' equity 7,094 10,288
$8,505 $14,088
(1) Amounts are derived from the December 31, 2005 audited financial
statements.
NOVT Corporation
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
Net sales $ - $2,299 $406 $5,712
Cost of sales - 895 411 5,014
Gross margin (loss) - 1,404 (5) 698
Operating expenses:
Research and development - 102 55 536
Sales and marketing - 938 321 3,640
General and administrative 589 3,105 3,655 5,982
Total operating expenses 589 4,145 4,031 10,158
Loss from operations (589) (2,741) (4,036) (9,460)
Interest income and other 90 161 836 325
Net loss $(499) $(2,580) $(3,200) $(9,135)
Basic and diluted net loss per share $(0.12) $(0.63) $(0.78) $(2.24)
Shares used in computing basic and
diluted net income (loss) per share 4,084 4,084 4,084 4,084
About NOVT Corporation
On March 9, 2006, NOVT completed the sale of substantially all the assets of its vascular brachytherapy business. NOVT's strategic plan is to redeploy its existing resources to identify and acquire new business operations. NOVT's redeployment strategy will involve the acquisition of one or more operating businesses with existing or prospective taxable earnings. This strategy may allow NOVT to realize future cash flow benefits from its net operating loss carry-forwards ("NOLs"). In connection with the redeployment strategy, NOVT from time to time may review potential acquisitions, conduct due diligence, enter into letters of intent or similar agreements or otherwise evaluate potential acquisitions, and if it deems advisable, negotiate definitive acquisition agreements. No assurance can be given that the Company will find suitable candidates, and if it does, that it will be able to utilize its existing NOLs. NOVT's common stock is currently traded in the Pink Sheets under the symbol NOVT.PK. For general company information, please visit NOVT's website at NOVTCorporation.com.
Safe Harbor Warning
Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release, which are not strictly historical statements, constitute forward-looking statements. Actual results or events could differ materially from those anticipated in forward-looking statements. These risks and uncertainties include the Company's ability to succeed in its redeployment strategy, as well as risks and uncertainties that are set forth from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in the Company's expectations or events, conditions or circumstances on which any such statement may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
