GERMANTOWN, Md., Nov. 4 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc., a leading global supplier of advanced video surveillance solutions, today announced its third quarter 2009 results.
Revenues for the third quarter ending September 30, 2009 totaled $8.3 million compared to $11.5 million for the same quarter in 2008. Operating expenses in the quarter declined 12%, falling to $5.6 million. Optelecom-NKF reported a net loss of $1.3 million, or $0.35 per share, compared to a net profit of $1.0 million, or $0.28 per share, one year earlier.
"Our third quarter results were disappointing, as we continued to feel the impact of a difficult economy and sluggish business development environment," said Dave Patterson, Optelecom-NKF's president and CEO. "We're monitoring our business pipeline and doing what is necessary to navigate through these tough times. We reduced staff significantly and implemented additional cost-saving measures. These decisions are tough to make, but necessary."
"During the past quarter we introduced the Siqura® TrafficServer(TM), which promptly took top honors for innovation from the world's largest security association, ASIS International. We partnered with mobiDEOS to offer remote monitoring and video surveillance via handheld devices, such as PDAs. We joined the EDGE® Innovation Network, a collaborative organization of industry and academia that works to enhance the development and delivery cycle of new technologies and advanced capabilities to warfighters and first responders. Additionally, we unified our entire product line under the Siqura® brand name reflecting our unique ability to integrate all of our products into solutions that deliver actionable information."
Third Quarter Conference Call
President and CEO Dave Patterson and Optelecom-NKF's CFO Steve Tamburo will lead a conference call to discuss third quarter results and the company's outlook at 10:00 a.m. (Eastern Time) on Thursday, November 5, 2009. Interested parties are welcome to call 800-860-2442 (international dial-in: 412-858-4600) and request the "Optelecom-NKF conference call'' shortly before the designated start time. PRNewswire will broadcast the call as a web cast, which can be accessed at http://www.videonewswire.com/event.asp?id=63475. The telephone conference call will feature a question and answer segment with Optelecom-NKF's management. For those parties unable to participate in the live conference call, a replay will be available following the teleconference. Those wishing to listen to the replay should call 877-344-7529 (international dial-in: 412-317-0088) and enter the pass code number 435223.
About Optelecom-NKF
Optelecom-NKF, Inc., manufacturer of Siqura® advanced video surveillance solutions, provides a full range of network products based on an open technology platform that simplifies integration and installation. Our Siqura solutions offer a perfect blend of ease of use and processing power, enabling end-users to optimize the effectiveness of their surveillance systems while reducing the total cost of ownership. All products and solutions are developed and tested for professional and missioncritical applications, such as at highway departments, airports, seaports, casinos, public transport authorities, hospitals, city centers, shopping centers, military bases, and corporate and government campuses. Founded in 1972, Optelecom-NKF is committed to providing its customers with expert technical advice and support. For more information please visit our website at http://www.optelecom-nkf.com/.
Investor inquiries should be directed to Mr. Rick Alpert at +1 301-948-7872.
OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, (Unaudited) (Dollars in Thousands, Except Share Amounts) 2009 2008 ---- ---- Revenue $8,307 $11,541 Cost of goods sold 3,714 4,332 ----- ----- Gross profit 4,593 7,209 Operating expenses: Sales and marketing 2,723 2,822 Engineering 1,195 1,590 General and administrative 1,461 1,737 Amortization of intangibles 172 181 --- --- Total operating expenses 5,551 6,330 (Loss) Income from operations (958) 879 Other (expense) income, net (158) 12 ---- -- (Loss) Income before income taxes (1,116) 891 Provision (benefit) for income taxes 153 (138) --- ---- Net (loss) income $(1,269) $1,029 ======= ====== Basic (loss) income per share $(0.35) $0.28 ====== ===== Diluted (loss) income per share $(0.35) $0.28 ====== ===== Weighted average common shares outstanding -basic 3,648,490 3,639,877 ========= ========= Weighted average common shares outstanding -diluted 3,648,490 3,641,058 ========= ========= Net (loss) income $(1,269) $1,029 Foreign currency translation 570 (1,648) --- ------ Comprehensive (loss) $(699) $(619) ===== ===== OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, (Unaudited) (Dollars in Thousands, Except Share Amounts) 2009 2008 ---- ---- Revenue $26,904 $33,414 Cost of goods sold 11,547 13,076 ------ ------ Gross profit 15,357 20,338 Operating expenses: Sales and marketing 8,215 8,503 Engineering 3,632 4,497 General and administrative 4,665 5,478 Amortization of intangibles 494 581 --- --- Total operating expenses 17,006 19,059 (Loss) income from operations (1,649) 1,279 Other expense, net (591) (485) ---- ---- (Loss) income before income taxes (2,240) 794 Benefit for income taxes 78 407 -- --- Net (loss) income $(2,162) $1,201 ======= ====== Basic (loss) income per share $(0.59) $0.33 ====== ===== Diluted (loss) income per share $(0.59) $0.33 ====== ===== Weighted average common shares outstanding -basic 3,645,360 3,636,168 ========= ========= Weighted average common shares outstanding -diluted 3,645,360 3,636,193 ========= ========= Net (loss) income $(2,162) $1,201 Foreign currency translation 522 273 --- --- Comprehensive (loss) income $(1,640) $1,474 ======= ====== OPTELECOM-NKF, INC. CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 (September 30, 2009 Unaudited) (Dollars in Thousands, Except Share and Per Share Amounts) September December 31, 2009 2008 ---- ---- (unaudited) ASSETS CURRENT ASSETS Cash & cash equivalents $4,290 $5,671 Accounts receivable, net of allowance for doubtful accounts of $443 and $245 7,643 10,290 Inventories, net of allowance 5,206 5,782 Deferred tax asset 298 205 Prepaid expenses and other current assets 578 1,152 --- ----- Total current assets 18,015 23,100 Property & equipment, less accumulated depreciation of $5,478 and $7,820 1,829 2,063 Intangible assets, net of accumulated amortization of $3,498 and $2,870 6,904 7,180 Goodwill 15,117 14,603 Other assets 213 202 --- --- TOTAL ASSETS 42,078 47,148 ====== ====== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current portion of notes and interest payable 15,197 3,432 Accounts payable 1,516 3,634 Accrued payroll 1,516 1,841 Accrued warranty reserve 549 410 Commissions payable 28 198 Bank line of credit - - Taxes payable - 931 Other current liabilities 1,397 1,724 ----- ----- Total current liabilities 20,203 12,170 Long term notes payable and interest payable - 12,093 Deferred tax liabilities 1,525 1,427 Other liabilities 233 267 --- --- Total liabilities 21,961 25,957 STOCKHOLDERS' EQUITY Common stock, $.03 par value- shares authorized, 15,000,000; issued and outstanding, 3,648,895 and 3,645,084 shares as of September 30, 2009, and December 31, 2008, respectively 109 109 Additional paid-in capital 16,817 16,252 Accumulated other comprehensive income 3,056 2,534 Treasury stock, 162,672 shares at cost (1,265) (1,265) Retained earnings 1,400 3,561 ----- ----- Total stockholders' equity 20,117 21,191 ------ ------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $42,078 $47,148 ======= ======= Non-GAAP Earnings Addendum
We define Adjusted EBITDA as net income or net loss plus interest expense, income taxes, foreign exchange losses, depreciation and amortization. Adjusted EBITDA is not a measure of cash flow or liquidity as determined by generally accepted accounting principles (GAAP). We have included Adjusted EBITDA as a supplemental disclosure because we believe that it is widely used by investors, industry analysts and others as a useful supplemental measure. Optelecom-NKF calculates and uses Adjusted EBITDA as an indicator of its ability to generate cash from reported operating results.
Adjusted EBITDA does not represent funds available for our discretionary use and is not intended to represent or to be used as a substitute for net income or cash flows from operations data as measured under U.S. generally accepted accounting principles ("GAAP"). The items excluded from Adjusted EBITDA but included in the calculation of Optelecom-NKF's reported net income are significant components of the accompanying unaudited consolidated statements of operations, and must be considered in performing a comprehensive assessment of overall financial performance. Other companies may calculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.
The table below presents a reconciliation of net income to Adjusted EBITDA:
Three Months Nine Months Ended Ended (Unaudited) September 30, September 30, --------------- --------------- (Dollars in Thousands) 2009 2008 2009 2008 ---------------------- ---- ---- ---- ---- Net (Loss) income $(1,269) $1,029 $(2,162) $1,201 Add: Interest expense, net 169 194 489 569 Provision (Benefit) for income taxes 153 (138) (78) (407) Foreign currency loss (gain) (11) (206) 102 (84) Depreciation 233 226 714 755 Amortization 172 181 494 580 --- --- --- --- Adjusted EBITDA $(553) $1,286 $(441) $2,614 ----- ------ ----- ------
Optelecom-NKF, Inc.
CONTACT: Mr. Rick Alpert, Optelecom-NKF, Inc., +1-301-948-7872
Web Site: http://www.optelecom-nkf.com/
