HORSHAM, Pa., Nov. 14 /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 nine month periods ended September 30, 2008.
The Company's revenues for the three months ended September 30, 2008 decreased approximately 27.7% to $6.0 million, from approximately $8.3 million for the three months ended September 30, 2007, but increased approximately 13.2% from $5.3 million for the three months ended June 30, 2008. The Company's gross margin for the three month period ended September 30, 2008 was 32.5% compared to 29.3%, and 28.8% for the three month periods ended September 30, 2007 and June 30, 2008, respectively. The Company's operating loss for the three months ended September 30, 2008 was $139,000, compared to operating income of $296,000 for the three months ended September 30, 2007, and an operating loss of $605,000 for the three months ended June 30, 2008. The Company's net loss for the three months ended September 30, 2008 was $230,000 (or $0.04 per basic and diluted common share), compared to a net income of $322,000 (or $0.05 per basic and diluted common share) recognized during the three months ended September 30, 2007, and compared to net loss of $1.7 million, inclusive of a $969,000 non-cash compensation charge coincident to a change in control, (or $0.28 per basic and diluted common share) for the three months ended June 30, 2008.
The Company's revenues for the nine months ended September 30, 2008 decreased approximately 21.4% to $17.3 million, from $22.0 million for the nine months ended September 30, 2007. The Company's gross margin for the nine months ended September 30, 2008 was 25.7% compared to 31.5% the nine months ended September 30, 2007. The Company's operating loss for the nine months ended September 30, 2008 was $1.9 million, compared to operating income of $643,000 for the nine months ended September 30, 2007. The Company's net loss for the nine months ended September 30, 2008 was $3.0 million, inclusive of a $969,000 non-cash compensation charge coincident to a change of control, (or $0.50 per basic and diluted common share), compared to a net income of $615,000 (or $0.10 per basic and diluted common share) recognized during the nine months ended September 30, 2007.
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, 2007 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 Nine Months Ended September 30, June 30, September 30, September 30, 2008 2008 2007 2008 2007 Contract revenues $5,973 $5,292 $8,302 $17,314 $22,020 Cost of revenues 4,035 3,766 5,867 12,878 15,089 Gross profit 1,938 1,526 2,435 4,436 6,931 Operating expenses: General and administrative 625 653 778 2,092 2,507 Sales and marketing 868 949 928 2,646 2,610 Research and development 584 529 433 1,586 1,171 Total operating expenses 2,077 2,131 2,139 6,324 6,288 Operating (loss) income (139) (605) 296 (1,888) 643 Compensation charge coincident to change in control -- (969) -- (969) -- Other (expense) income, net (91) (71) 99 (209) 207 (Loss) income before income taxes (230) (1,645) 395 (3,066) 850 Income tax expense (benefit) -- 32 73 (66) 235 Net (loss) income $(230) $(1,677) $322 $(3,000) $615 Basic and diluted (loss) earnings per share $(0.04) $(0.28) $0.05 $(0.50) $0.10 Weighted average number common shares-basic 6,001,573 6,001,573 6,001,573 6,001,573 6,001,573 common shares-diluted 6,001,573 6,001,573 6,023,589 6,001,573 6,019,582 Selected Financial Data September 30, December 31, (amounts in thousands) 2008 2007 Cash and cash equivalents $935 $2,214 Working capital 3,487 6,444 Total liabilities, all current 9,765 8,297 Stockholders' equity 7,153 9,073
