Optelecom-NKF Reports Third Quarter Profit; 77% Growth in IP Product Sales

GERMANTOWN, Md. , Nov. 6 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), a leading global provider of advanced IP video network solutions, today announced third quarter 2008 results.

Revenues for the third quarter totaled $11.54 million compared to $11.46 million for the third quarter of 2007. IP-related revenue in the current quarter totaled $3.5 million, a 77% increase compared to IP-related revenues of $2.0 million in the third quarter of last year. Net income for the quarter totaled $1.0 million, or $0.28 per share, compared to net income of $882 thousand, or $0.24 per share, for the same quarter of 2007. Adjusted EBITDA (as defined in the addendum to this release) was $1.3 million in the third quarter of 2008.

Revenues for the nine months ended September 30, 2008 increased 13% to $33.4 million compared to $29.5 million for the first nine months of 2007. This includes IP-related revenue of $10.4 million for the nine months ended September 30, 2008 , compared to IP-related revenues of $6.3 million in 2007. Net income for the nine months ended September 30, 2008 was $1.2 million, or $0.33 per share, compared to net income of $408 thousand, or $0.12 per share, for the same period last year. Adjusted EBITDA totaled $2.6 million for the first nine months of 2008.

Edmund Ludwig , President and CEO of Optelecom-NKF, said, "We continued to see good demand for our product suites despite turbulent capital markets and strains in the global economy. We saw strong demand across our Siqura(R) IP product line, which contributed $3.5 million of the $11.5 million in revenue for the quarter."

"Adjusted EBITDA for the first three quarters of 2008 reached $2.6 million," added Steve Tamburo , Optelecom-NKF's CFO. "With our corporate refinancing complete, 77% growth in the Siqura IP product line, and solid liquidity on our balance sheet, we continue to focus on growing sales and managing IP product investments."

Third Quarter Conference Call

Optelecom-NKF President and CEO Edmund Ludwig will lead a conference call to discuss second quarter results at 10:00 a.m. Eastern Time , Friday, November 7, 2008 .

Interested parties are welcome to call 800-573-4754 (International Dial In: 617-224-4325) and request the "Optelecom-NKF conference call" shortly before the designated start time or provide the participant passcode 39817742. 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, 2008 . Those wishing to listen to the replay should call 888-286-8010. (International Dial In: 617-801-6888) and enter passcode number 48104525 when prompted.

The call is being web cast by Thomson Reuters and can be accessed at www.earnings.com or at Optelecom-NKF's website www.optelecom-nkf.com.

About Optelecom-NKF

Optelecom-NKF, Inc. (Nasdaq: OPTC), is a global supplier of advanced video surveillance solutions, including IP cameras, video servers/codecs, network video recorders, fiber transmission equipment, video management, and video analytics software. We deliver complete solutions for traffic monitoring and security of airports, seaports, casinos, prisons, utilities, public transit, city centers, hospitals, and corporate campuses.

Founded in 1972, Optelecom-NKF is committed to providing its customers with expert technical advice and support in addition to products that are developed and tested for professional and mission critical applications. All Optelecom-NKF IP surveillance solutions are marketed under the Siqura(R) name.

The Optelecom-NKF corporate headquarters is in Germantown, Maryland , USA, with European corporate offices in Gouda, the Netherlands , and sales offices or support covering Latin America , France , Spain , the UK, Germany , Italy , Dubai , and Singapore .

Non-GAAP Earnings Addendum

We define Adjusted EBITDA as net income or net loss plus interest expense, income taxes, other income/expense, depreciation and amortization. Adjusted EBITBA 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.

SOURCE Optelecom-NKF, Inc.



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