SAN JOSE, Calif., Nov. 21 /PRNewswire-FirstCall/ -- NOVT Corporation (Pink Sheets: NOVT.PK) today announced net income of $254,000 or $0.06 per share for the three months ended September 30, 2006, as compared to a net loss of $1,132,000 or $0.28 loss per share for the three months ended September 30, 2005.
NOVT also announced the appointment of Terry Gibson as Chief Executive Officer replacing John Quicke, who will continue to serve as Chairman of NOVT's Board of Directors.
About NOVT Corporation
On March 9, 2006 NOVT completed the sale of substantially all the assets of its VBT 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"). As of this date, no candidates have been identified, and 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 Corporation'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 .
NOVT previously amended its Amended and Restated Rights Agreement to amend, among other things, the definition of an "Acquiring Person" to reduce the requisite threshold for a person or "group" to be an Acquiring Person from 30% or more of the Company's outstanding common shares to 4.9% or more of the Company's outstanding common shares, except in certain very limited circumstances. The purpose of the amendment to the Rights Agreement was to seek to preserve the NOVT's existing net operating losses, or "NOLs," for tax purposes, which NOLs are discussed in NOVT's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2006, although there can be no assurance that the amendment to the Rights Agreement will protect the NOVT's NOLs or that NOVT will ever be able to realize any economic value from its NOLs. A copy of the amendment to the Rights Agreement was by filed by NOVT as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 1, 2006.
NOVT Corporation
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
Net sales $ - $1,386 $406 $7,098
Cost of sales - 475 411 5,489
Gross margin (loss) - 911 (5) 1,609
Operating expenses:
Research and development - 67 55 604
Sales and marketing - 153 321 3,799
General and administrative 145 2,192 3,800 8,167
Total operating expenses 145 2,412 4,176 12,570
Loss from operations (145) (1,501) (4,181) (10,961)
Interest income and other 399 369 1,235 694
Net income (loss) $254 $(1,132) $(2,946) $(10,267)
Basic and diluted net income (loss)
per share $0.06 $(0.28) $(0.72) $(2.51)
Shares used in computing basic and
diluted net income (loss) per share 4,084 4,084 4,084 4,084
NOVT Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2006 2005 (1)
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $7,568 $10,449
Restricted cash - 1,864
Short-term investments - 349
Accounts receivable and other
receivable 801 476
Inventory, net - 19
Assets held for sale - 419
Prepaid expenses and other current
assets 117 431
Total current assets 8,486 14,007
Property and equipment, net - 81
$8,486 $14,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $240 $571
Accrued expenses 898 2,862
Unearned revenue - 367
Total current liabilities 1,138 3,800
Stockholders' equity:
Common stock 41 41
Additional paid-in capital 187,980 187,971
Accumulated other comprehensive loss (12) -
Accumulated deficit (180,489) (177,552)
Treasury stock, at cost, 10,733
shares (172) (172)
Total stockholders' equity 7,348 10,288
$8,486 $14,088
(1) Amounts are derived from the December 31, 2005 audited financial
statements.
