CARLSBAD, Calif., Aug. 18 /PRNewswire-FirstCall/ -- XENONICS HOLDINGS, INC. today announced financial results for the third quarter of fiscal 2006.
For the three months ended June 30, 2006, revenue was $855,000 compared to $3,075,000 for the three months ended June 30, 2005. The prior year revenue included $2,700,000 related to a single contract from the U.S. Marine Corps. The net loss for the quarter ended June 30, 2006 was $633,000, or $0.04 per share. This compares to net income of $23,000 for the same period of the prior year.
For the nine months ended June 30, 2006, revenue was $2,493,000. This compares to $3,905,000 for the nine months ended June 30, 2005. The net loss for the nine months ended June 30, 2006 was $2,241,000, or $0.14 per share. This compares to net loss of $1,806,000, or $0.12 per share, for the same period of the prior year.
"Xenonics has positioned itself to provide our illumination systems to new military development programs and to be part of the future of the military services. We are aggressively pursuing opportunities internationally as well as domestically. Last year a significant contact from the Marines was awarded in the 3rd quarter. This year we expect similar contracts in the 4th quarter which will markedly increase our 4th quarter year over year earnings.
"Homeland Security and border control are major opportunities for our current and future products. We expect the SuperVision System which we announced last week to have a major impact in the security and law enforcement market and on Xenonics' revenues. These events should have a very positive effect on future earnings and shareholder value," said Richard Naughton, CEO.
About Xenonics
Xenonics develops and produces advanced, lightweight and compact ultra-high intensity lighting products for military, law enforcement, public safety, and commercial and private sector applications. Currently, NightHunters are in use by every branch of the U.S. Armed Forces as well as a wide variety of law enforcement and security agencies. Using its breakthrough patented technology, Xenonics provides innovative solutions for customers that demand the ability to see farther so that they can do their job better and safer. Xenonics' products deliver a quantum leap in performance over other illumination technologies and represent the next generation in small, high intensity, high efficiency lighting systems. Visit Xenonics on the web at http://www.xenonics.com/.
Forward-Looking Statements
This new release contains forward-looking statements that reflect our management's current views about future events and financial performance. Forward-looking statements often contain words such as "expects," "anticipates," "intends," "believes" or "will." Our forward-looking statements are subject to a number of risks and uncertainties that may cause actual results and events to differ materially from those projected in the forward-looking statements. Risks and uncertainties that could adversely affect us include, without limitation, the loss of major customers, our failure to obtain new contracts, the adverse effect of competition, delays in the production or shipment of our products and the other risks and uncertainties that are discussed in our most recent filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-KSB and quarterly report on Form 10-QSB. The forward-looking statements in this news release are made only as of the date of this news release. We undertake no obligation to update our forward-looking statements, whether as a result of new information, future events or otherwise.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, September 30,
2006 2005
in thousands, except per share amounts (unaudited)
Assets
Current assets:
Cash $494 $890
Accounts receivable, net 335 213
Inventories, net 893 1,206
Other current assets 94 82
Total Current Assets 1,816 2,391
Equipment, furniture and fixtures, net 50 50
Other non-current assets 25 25
Total Assets $1,891 $2,466
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expense $539 $608
Accrued consulting fees 366 --
Accrued payroll and related taxes 124 86
Other current liabilities 7 6
Total Current Liabilities 1,036 700
Commitments and contingencies
Shareholders' equity:
Preferred shares, $0.001 par value,
5,000 shares authorized, 0 shares issued
and outstanding -- --
Common shares, $0.001 par value,
50,000 shares authorized as of June 30, 2006
and September 30, 2005, respectively;
16,710 and 15,686 shares issued as of June 30,
2006 and September 30, 2005, respectively;
16,597 and 15,573 shares outstanding as of
June 30, 2006 and September 30, 2005,
respectively. 17 16
Additional paid-in capital 16,520 14,541
Accumulated deficit (14,726) (12,485)
1,811 2,072
Less treasury stock, at cost, 113 shares
as of June 30, 2006 and September 30, 2005 (306) (306)
Less subscription receivable (650) --
Total Shareholders' Equity 855 1,766
Total Liabilities and Shareholders' Equity $1,891 $2,466
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
June 30, June 30,
2006 2005 2006 2005
in thousands, except per share amounts (unaudited) (unaudited)
Revenues $855 $3,075 $2,493 $3,905
Cost of goods sold 522 1,712 1,475 2,198
Gross profit 333 1,363 1,018 1,707
Selling, general and administrative 827 1,277 2,888 3,248
Engineering, research and development 149 111 380 335
Loss from operations (643) (25) (2,250) (1,876)
Other income/(expense), net:
Interest income 11 3 16 16
Interest expense (1) (7) (2) (8)
Other expense -- 2 (3) 3
Loss before provision for income taxes (633) (27) (2,239) (1,865)
Income tax provision / (benefit) -- (57) 2 (56)
Net loss before minority interest (633) $30 (2,241) $(1,809)
Minority interest -- 7 -- (3)
Net loss $(633) $23 $(2,241) $(1,806)
Net loss per share:
Basic and diluted (.04) -- (.14) (.12)
Weighted average shares outstanding:
Basic 16,391 15,191 15,845 14,742
Diluted 16,391 17,706 15,845 14,742
