EFJ, Inc. Announces First Quarter 2008 Financial Results

IRVING, Texas , April 30 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq: EFJI) today announced its results for the quarter ended March 31, 2008 . Revenues were $33.9 million for the three months ended March 31, 2008 , and the gross margin was...


IRVING, Texas , April 30 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq: EFJI) today announced its results for the quarter ended March 31, 2008 . Revenues were $33.9 million for the three months ended March 31, 2008 , and the gross margin was 33%.

"This quarter's performance is on track with our plan to bring this company back to profitability in 2008," said Michael E. Jalbert , chairman and chief executive officer. "I believe that the steps we have taken over the last months have put us squarely on the path for meeting that goal. These include streamlining the organization by combining the three businesses into one; developing new products; seeking new partnerships; strengthening our marketing efforts to new federal, state and local government customers; and adding other customers seeking to use wireless solutions for monitoring and control."

Revenues were down as compared to last year's first quarter of $38.9 million which included large deliveries against Department of Defense contracts, which as expected, were not replicated in the first quarter of 2008. The decline in federal revenue was partially offset by increases associated with the Federal Communications Commission (FCC) rebanding initiative.

Gross profit decreased $1.3 million, or 10%, to $11.3 million in the three months ended March 31, 2008 , from $12.6 million for the same period in 2007. Gross profit as a percentage of revenues ("Gross Margin") increased to 33% for the three months ended March 31, 2008 , versus 32% for the same period a year ago.

The net loss was $2.1 million, or $0.08 per share, for the three months ended March 31, 2008 , compared to net loss of $363,000, or $0.01 per share, for the same period last year. The increased loss was due to the combination of lower gross profits in the current quarter coupled with higher general and administrative expenses, which totaled $6.4 million in the 2008 first quarter versus $5.6 million for the same quarter of 2007.

Jalbert noted that the Company has launched two new major products since the beginning of the year, including the Rapid Response Video-to-Vehicle (R2V2) Starter Kit and the final bands of the ES portable platform product. He noted, "We're especially pleased with early customer response to R2V2, which enables first responders to set up real-time video surveillance and send live footage of the scene to a command and control vehicle.

"We booked a new $1.8 million task order against the $16 million contract from the U.S. Department of Homeland Security announced last October and a $4.0 million follow-on order from a Department of Defense customer. We are actively cultivating business and technology partners, with plans to announce one new partnership by the end of this quarter. We continued to strengthen our sales and marketing program, which included our leadership of the first Interoperability Seminar held in Irving during February. Our new internal performance excellence program is designed to stimulate and reward employee achievements in generating process, operations, and design/engineering improvements throughout the organization," he said.

The Company's management plans to discuss the financial results and provide an operational progress report on its investor call today at 9:00 a.m. (EDT) . The investor conference call will be available via live webcast on the EFJ, Inc. website at www.efji.com under the tab "Investor Relations." Investors are advised to go to the website at least 15 minutes prior to the call to register, download and install any necessary audio software. The webcast will be archived for 90 days.

To participate by telephone, the domestic dial-in number is 877-407-8031 and the international dial-in number is 201-689-8031. Participants are urged to call in to the conference call at least 10 minutes prior to the start time.

About EFJ, Inc.

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