COSTA MESA, Calif., Jan. 12 /PRNewswire-FirstCall/ -- Irvine Sensors Corporation today reported operating results for fiscal 2008, the 52 weeks ended September 28, 2008. Optex Sytems, Inc. ("Optex"), Irvine Sensors' wholly owned subsidiary, has discontinued operations as a result of the October 2008 UCC sale of its assets and is classified as such in Irvine Sensors' results for fiscal 2008, fiscal 2007 and fiscal 2006.
Reflecting the exclusion of Optex's revenues, total revenues for fiscal 2008 were $16,677,000 compared to total revenues of $20,378,400 for fiscal 2007, an approximate 18% decrease. Despite this decrease, loss from continuing operations declined over 26% to $12,800,000 in fiscal 2008, from $17,442,400 in the prior fiscal year. The loss from discontinued operations, on the other hand, increased in fiscal 2008 to $8,758,900 as compared to $4,688,700 in fiscal 2007, largely due to the $7.6 million loss on disposal of discontinued operations recorded in fiscal 2008 as a result of the Optex Asset Sale. The combination of a lower loss from continuing operations and a higher loss from discontinued operations in fiscal 2008 produced a net loss of $21,558,900, nearly equivalent to the $22,131,000 net loss in fiscal 2007.
Irvine Sensors Corporation, headquartered in Costa Mesa, California, is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies and research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications.
IRVINE SENSORS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year Ended September 28, September 30, October 1, 2008 2007 2006 Revenues: Contract research and development revenue $14,157,900 $17,137,700 $16,503,700 Product sales 2,489,100 3,210,900 1,510,300 Other revenue 30,000 29,800 58,800 Total revenues 16,677,000 20,378,400 18,072,800 Cost and expenses: Cost of contract research and development revenue 11,339,000 13,550,100 13,588,500 Cost of product sales 1,885,600 2,490,300 1,468,900 General and administrative expense 8,932,400 9,208,800 8,169,200 Research and development expense 1,512,500 1,119,800 353,700 Total costs and expenses 23,669,500 26,369,000 23,580,300 Loss from operations (6,992,500) (5,990,600) (5,507,500) Interest expense (6,100,200) (7,026,800) (1,227,700) Loss on extinguishment of debt - (4,398,000) - Settlement fee on debt default - - (1,250,000) Change in fair value of derivative instrument - - (317,800) Gain on disposal of assets 315,600 4,700 1,100 Interest and other income 2,400 6,300 3,800 Loss from continuing operations before minority interest and provision for income taxes (12,774,700) (17,404,400) (8,298,100) Minority interest in loss of subsidiaries 200 500 300 Provision for income taxes (25,500) (38,500) (36,300) Loss from continuing operations (12,800,000) (17,442,400) (8,334,100) Discontinued operations: Loss from operations of discontinued operations (1,158,900) (4,688,700) (16,600) Loss on disposal of discontinued operations (7,600,000) - - Loss from discontinued operations (8,758,900) (4,688,700) (16,600) Net loss $(21,558,900) $(22,131,100) $(8,350,700) Basic and diluted net loss per common share information: From continuing operations $(4.35) $(7.16) $(4.25) From discontinued operations (2.94) (1.92) (0.01) Basic and diluted net loss per common share $(7.29) $(9.08) $(4.26) Weighted average number of common shares outstanding 2,980,100 2,436,400 1,959,600 IRVINE SENSORS CORPORATION CONSOLIDATED BALANCE SHEETS September 28, September 30, 2008 2007 Assets Current assets: Cash and cash equivalents $638,600 $937,600 Restricted cash 41,700 39,600 Accounts receivable, net of allowance for doubtful accounts of $15,000 and $15,000, respectively 662,400 1,571,000 Unbilled revenues on uncompleted contracts, net of allowance of $18,400 and $0, respectively 1,279,700 1,289,300 Inventory, net 1,126,900 898,900 Prepaid expenses and other current assets 64,800 57,000 Current assets of discontinued operations 7,494,700 8,678,000 Total current assets 11,308,800 13,471,400 Property and equipment, net 4,328,300 5,405,000 Intangible assets, net 1,005,500 1,183,900 Deferred costs 260,100 587,200 Deposits 101,000 65,800 Non-current assets of discontinued operations 5,880,300 13,717,100 Total assets $22,884,000 $34,430,400 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $4,047,100 $2,514,200 Accrued expenses 4,595,200 2,321,500 Success fee payable to related party - 500,000 Accrued estimated loss on contracts 144,500 200,100 Advance billings on uncompleted contracts 21,900 378,100 Deferred revenue 385,000 156,500 Income taxes payable 14,400 31,400 Restructured debt, net of discounts 11,788,800 - Promissory note payable - related party 400,000 400,000 Subordinated term loan - related party 2,000,000 - Capital lease obligations - current portion 29,100 40,300 Current liabilities of discontinued operations 4,009,600 5,043,100 Total current liabilities 27,435,600 11,585,200 Restructured debt, net of discounts - 10,869,300 Subordinated term loan - related party - 2,000,000 Deferred interest - 1,241,200 Executive Salary Continuation Plan liability 3,484,800 3,800,500 Capital lease obligations, less current portion 11,200 45,000 Minority interest in consolidated subsidiaries 411,600 411,900 Total liabilities 31,343,200 29,953,100 Commitments and contingencies Stockholders' equity (deficit): Preferred stock, $0.01 par value, 1,000,000 and 500,000 shares authorized, respectively; 126,000 and 0 shares issued and outstanding, respectively 1,300 - Common stock, $0.01 par value, 150,000,000 and 80,000,000 shares authorized, respectively; 3,557,200 and 2,684,300 shares issued and outstanding, respectively 35,600 26,800 Common stock warrants; 717,900 and 614,500 warrants outstanding, respectively - - Deferred stock-based compensation (183,200) (299,700) Common stock held by Rabbi Trust (1,214,100) (1,115,100) Deferred compensation liability 1,214,100 1,115,100 Paid-in capital 159,901,000 151,405,200 Accumulated deficit (168,213,900) (146,655,000) Total stockholders' (deficit) equity (8,459,200) 4,477,300 $22,884,000 $34,430,400
