GERMANTOWN, Md., Nov. 6 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), a leading global provider of advanced IP-video network solutions, today announced its financial results for the third quarter ended September 30, 2007 .
The Company reported record revenue for the third quarter of
"I am pleased with our progress," said Edmund Ludwig , President and CEO of Optelecom-NKF, Inc. "We posted good revenue growth and delivered strong operating results. We improved across the Company as we delivered superior innovative technologies that customers see as bringing great value to them.
"During the quarter we improved operations in North America , continued growing our global network of integrators and resellers, cross-sold product suites and solutions, and refined actions to boost sales and to capitalize on efficiencies. We remain solidly focused on our core strategy of profitable growth, developing the products our end-users want, driving operational enhancements, pursuing organic growth opportunities, and seeking out potential additions to our product lines."
"Revenue and earnings for the third quarter were very strong," commented
Steve Tamburo , Optelecom-NKF's CFO. "Operating income came in at
Third Quarter Conference Call
Optelecom-NKF President and CEO Edmund Ludwig will lead a conference call to discuss third quarter 2007 results at 10:00 a.m. Eastern Time on Wednesday, November 7, 2007 .
Interested parties are welcome to call 888-396-2369 (International Dial In: 617-847-8710) shortly before the designated start time and request the "Optelecom-NKF conference call" or provide the participant number 91750659. The telephone conference call will feature a question and answer segment with management. For those parties unable to participate in the live conference call, a replay will be available from noon following the teleconference until November 14, 2007 . Those wishing to listen to the replay should call 888-286-8010 (International Dial In: 617-801-6888) and enter reservation number 67182429 when prompted.
The call is being web cast and can be accessed at http://www.earnings.com. About Optelecom-NKF, Inc.Optelecom-NKF, Inc., is a global supplier of network video equipment, including video servers, Ethernet switches, fiber optic systems, and video management software. It delivers solutions for traffic management and security in airports, seaports, public transport, public space, industry parks, and buildings.
Founded in 1972, the Company's R&D centers have accumulated extensive knowledge of fiber optic and IP/Ethernet network technologies. Optelecom-NKF supplies top-quality equipment and is committed to providing its customers with expert technical advice and support. All products are developed and tested for LAN and WAN applications.
Optelecom-NKF has offices in the US, the Netherlands , France , Spain , the UK, and Singapore , and expertise centers in the US and Europe .
Investor Inquiries should be directed to Mr. Rick Alpert at 301-948-7872.
Forward-Looking Statements
The statements contained in this release, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include, among others: the ability of the Company to realize the anticipated results of the business plan; the ability of the Company to develop and market products and communication solutions for the video surveillance, transportation, and business video markets; lack of reliable vendors, service providers, and outside products; unforeseen changes in competing technologies and products; worldwide economic variances; poor or delayed research and development results; and disparities between forecast and realized sales results. Other important factors that could cause actual results to differ materially are included but are not limited to those listed in Optelecom-NKF's periodic reports and registration statements filed with the Securities and Exchange Commission. Optelecom-NKF does not assume any obligation to update information concerning its expectations.
OPTELECOM-NKF, INC. INCOME STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, (Dollars in Thousands, Except Per Share Amounts) 2007 2006 Revenues $11,464 $10,146 Cost of goods sold 4,441 4,059 Gross profit 7,023 6,087 Operating expenses: Sales and marketing 2,524 2,021 Engineering 1,230 1,222 General and administrative 1,547 1,703 Amortization of intangibles 191 178 Total operating expenses 5,492 5,124 Income from operations 1,531 963 Other expense, net (315) (296) Income before income taxes 1,216 667 Provision for income taxes 334 271 Net Income $882 $396 Basic earnings per share $0.24 $0.11 Diluted earnings per share $0.24 $0.11 Weighted average common shares outstanding - basic 3,617 3,504 Weighted average common shares outstanding - diluted 3,621 3,531 Net income $882 $396 Foreign currency translation 912 240 Comprehensive income $1,794 $636 OPTELECOM-NKF, INC. INCOME STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, (Dollars in Thousands, Except Per Share Amounts) 2007 2006 Revenues $29,490 $28,648 Cost of goods sold 12,006 12,083 Gross profit 17,484 16,565 Operating expenses: Sales and marketing 7,234 6,017 Engineering 3,770 3,574 General and administrative 4,463 4,378 Amortization of intangibles 563 450 Total operating expenses 16,030 14,419 Income from operations 1,454 2,146 Other expense, net (918) (892) Income before income taxes 536 1,254 Provision for income taxes 128 470 Net income $408 $784 Basic earnings per share $0.12 $0.23 Diluted earnings per share $0.12 $0.22 Weighted average common shares outstanding - basic 3,496 3,423 Weighted average common shares outstanding - diluted 3,502 3,566 Net income $408 $784 Foreign currency translation 1,340 1,476 Comprehensive income $1,748 $2,260 OPTELECOM-NKF, INC. BALANCE SHEETS AS OF SEPTEMBER 30, 2007 AND DECEMBER 31, 2006 (Dollars in Thousands) 2007 2006 ASSETS CURRENT ASSETS Cash and cash equivalents $3,413 $3,571 Accounts and contracts receivable 9,305 9,222 Inventories, net 5,912 5,759 Deferred tax asset - current 678 905 Prepaid expenses and other current assets 741 1,047 Total current assets 20,049 20,504 Property and equipment, net 2,729 2,488 Deferred tax asset - non-current 1,588 1,284 Goodwill 14,785 13,678 Intangible assets, net 8,185 8,124 Other assets 200 196 TOTAL ASSETS $47,536 $46,274 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $2,740 $3,371 Accrued payroll 1,331 2,105 Bank line of credit 1,600 800 Current portion of notes payable 1,619 1,548 Other current liabilities 2,078 2,674 Total current liabilities 9,368 10,498 Notes payable 14,291 14,650 Deferred tax liability 2,134 2,102 Interest payable 1,051 788 Other liabilities 254 293 Total liabilities 27,098 28,331 STOCKHOLDERS' EQUITY Common stock 108 105 Additional paid-in capital 15,241 14,497 Accumulated other comprehensive income 1,910 570 Treasury stock (1,265) (1,265) Retained earnings 4,444 4,036 Total stockholders' equity 20,438 17,943 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $47,536 $46,274SOURCE Optelecom-NKF, Inc.
