HORSHAM, Pa., Aug. 11 /PRNewswire-FirstCall/ -- ORBIT/FR, Inc. (BULLETIN BOARD: ORFR) , a leading producer of sophisticated, automated microwave test and measurement systems for the aerospace/defense, wireless communication, automotive, and satellite industries, today reported results for the three- and six-month periods ended June 30, 2006.
The Company's revenues for the three months ended June 30, 2006 increased approximately 37% to $7.3 million, from $5.3 million for the three months ended June 30, 2005, and decreased approximately 3% from $7.5 million for the three months ended March 31, 2006. The Company's gross margin for the three-month period ended June 30, 2006 was 26% compared to 30%, and 31% for the three-month periods ended June 30, 2005 and March 31, 2006, respectively. The Company's operating income for the three months ended June 30, 2006 was $100,000, compared to $14,000 for the three months ended June 30, 2005, and $357,000 for the three months ended March 31, 2006. The Company's net income for the three months ended June 30, 2006 was $79,000 (or $0.01 per basic and diluted common share), compared to a net loss of $48,000 (or $0.01 per basic and diluted common share) recognized during the three months ended June 30, 2005, and compared to net income of $289,000 (or $0.05 per basic and diluted common share) for the three months ended March 31, 2006.
The Company's revenues for the six months ended June 30, 2006 increased approximately 28% to $14.8 million, from $11.5 million for the six months ended June 30, 2005. The Company's gross margin for the six months ended June 30, 2006 was 28% compared to 31% the six months ended June 30, 2005. The Company's operating income for the six months ended June 30, 2006 was $456,000, compared to $166,000 for the six months ended June 30, 2005. The Company's net income for the six months ended June 30, 2006 was $369,000 (or $0.06 per basic and diluted common share), compared to a net income of $94,000 (or $0.02 per basic and diluted common share) recognized during the six months ended June 30, 2005.
"Our 2006 top line results remain strong with first and second quarter revenues of $7.5 and $7.3 million, respectively," commented Israel Adan, President and CEO of ORBIT/FR. "Our lower than normal gross margins are primarily attributable to our use of the services of a subcontractor in constructing an RF shielded chamber for a major European aerospace customer." The Company's award of this two-year, $10 million contract, the largest in its history, was first announced in its July 27, 2005 news release.
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the current intent, belief or expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements, including those regarding the ability to obtain new contracts, and future profitability involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005 and Forms 10-Q. This press release, and all SEC filings are available at http://www.orbitfr.com/.
ORBIT/FR, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
Three Months Ended Six months Ended
June 30, March 31, June 30, June 30, June 30,
2006 2006 2005 2006 2005
Contract revenues $7,280 $7,529 $5,331 $14,809 $11,544
Cost of revenues 5,382 5,218 3,727 10,601 8,016
Gross profit 1,898 2,311 1,604 4,208 3,528
Operating expenses:
General and
administrative 749 773 541 1,522 1,158
Sales and marketing 722 771 764 1,493 1,680
Research and
development 327 410 285 737 524
Total operating
expenses 1,798 1,954 1,590 3,752 3,362
Operating income
(loss) 100 357 14 456 166
Other income (loss),
net 6 45 (22) 52 (13)
Income (loss) before
income taxes 106 402 (8) 508 153
Income tax expense 27 113 40 139 59
Net income (loss) $79 $289 $(48) $369 $94
Basic and diluted
earnings (loss)
per share $0.01 $0.05 $(0.01) $0.06 $0.02
Weighted average
number
common shares
- basic 6,001,573 6,001,573 6,001,573 6,001,573 6,001,573
common shares
- diluted 6,021,780 6,012,673 6,001,573 6,017,730 6,001,573
June 30, December 31,
Selected Financial Data (amounts in thousands) 2006 2005
Cash and cash equivalents $2,783 $3,188
Working capital 4,912 4,598
Total assets 15,548 14,531
Total liabilities, all current 8,461 7,813
Stockholders' equity 7,087 6,718
