RUNNEMEDE, N.J. , Aug. 15 /PRNewswire-FirstCall/ -- Sielox, Inc.
(OTC Bulletin Board: SLXN), a developer, designer and distributor of security
solution and industrial vision products, announced today its results for the
second quarter and six month periods ended June 30, 2008 . Total revenue
reached
Sam Cassetta , Chief Executive Officer of Sielox, stated, "I'm pleased to report significant improvement in Sielox's financial progress in the second quarter in which the addition of new products, an aggressive sales strategy and an improved sales force began yielding results. Sielox's innovative products and world-class support and service have made the Company the vendor of choice for several Fortune 500 companies who seek to invest in store security and surveillance."
He added, "The integration of Sielox's two divisions, Costar Video Systems and Sielox LLC, has generated cost efficiencies and synergies in sales to dealer clients. The Company anticipates further improvements in revenue growth as we launch new products and technologies for the security industry."
Sielox, Inc. develops designs and distributes a wide range of security solution products such as surveillance cameras, lenses, digital video recorders, high speed domes and access control systems. The Company also develops designs and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Founded in 1986 and headquartered in Runnemede, NJ , Sielox's shares trade on the OTC market under the ticker symbol "SLXN".
A complete copy of the Company's Form 10-Q for the quarterly period ended June 30, 2008 can be downloaded at www.Sielox.com (click on the Company Information link, then click on the Investor Relations link) or at the SEC's web site at www.sec.gov.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume" and other similar expressions which predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. Our actual results could differ materially from those set forth in the forward-looking statements.
Forward-looking statements herein are based on information, plans and estimates at the date of this release, and we do not promise to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
CONTACT: Mel Brunt Chief Financial Officer Sielox, Inc. (856) 861-4579 SIELOX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) June 30, 2008 December 31, 2007 (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $716 $1,422 Short-term Investments 405 889 Accounts receivable, net of allowance for doubtful accounts of $40 and $25 in 2008 and 2007, respectively 4,290 3,920 Inventory, net of reserve for obsolescence of $201 and $194 in 2008 and 2007, respectively 5,694 7,005 Prepaid expenses 401 484 Total current assets 11,506 13,720 Fixed assets, net 292 354 Goodwill 1,229 1,229 Trade Name - Costar 1,587 1,587 Trademark - Sielox, LLC 300 300 Distribution agreement, net 1,321 1,358 Customer relationships, net 1,066 1,198 Proprietary technology, net 443 474 Long-term prepaid expenses 361 347 Deposits 66 67 Total assets $18,171 $20,634 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,401 $3,664 Accrued expenses and other 363 527 Contingent purchase price, current portion 700 700 Line of credit 1,808 1,761 Total current liabilities 5,272 6,652 Long term liability, contingent purchase price 349 983 Total liabilities 5,621 7,635 Commitments and Contingencies Stockholders' equity: Common stock, $0.001 par value; 90,000,000 shares authorized; 42,016,924 shares issued and outstanding. 42 42 Additional paid-in capital 155,788 155,774 Accumulated other comprehensive income 260 260 Accumulated deficit (139,070) (138,607) 17,020 17,469 Less: Common stock held in treasury, at cost; 6,116,241 shares at June 30, 2008 and December 31, 2007 (4,470) (4,470) Total stockholders' equity 12,550 12,999 Total liabilities and stockholders' equity $18,171 $20,634 SIELOX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net revenues $7,311 $3,975 $13,895 $8,183 Cost of revenues 5,126 3,122 9,917 6,450 Gross profit 2,185 853 3,978 1,733 Selling, general and administrative expenses 2,173 1,053 4,403 1,987 Income / (Loss) from Operations 12 (200) (425) (254) Other Income (expense) Interest income 9 47 25 82 Interest expense (31) (19) (63) (31) Total other income (expense), net (22) 28 (38) 51 Net Income / (Loss) $(10) $(172) $(463) $(203) Net loss per share: Basic $ - $(0.01) $(0.01) $(0.01) Diluted $ - $(0.01) $(0.01) $(0.01) Weighted average number of common shares outstanding: Basic and diluted 35,982 23,692 35,982 23,692 SIELOX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in thousands; unaudited) Six Months Ended June 30 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss $(463) $(203) Adjustments to reconcile net loss to net cash used in operating activities Stock based compensation 14 Depreciation and amortization 287 192 Provision for doubtful accounts 14 (1) Change in cash attributable to changes in operating assets and liabilities Accounts receivable, net (384) (325) Inventories, net 1,311 (535) Prepaid expense 83 (1) Long term prepaid expenses (14) 119 Accounts payable (1,263) 99 Accrued expense and other current liabilities (164) 31 Net cash used in operating activities (579) (624) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of short term investments 484 Purchase of fixed assets (25) (60) Payment of earn out provision related to Southern Imaging (634) (542) Net cash used in investing activities (175) (602) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from line of credit 47 399 Deposits 1 Net cash provided by financing activities 48 399 NET DECREASE IN CASH AND CASH EQUIVALENTS (706) (827) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,422 2,938 CASH AND CASH EQUIVALENTS, END OF PERIOD $716 $2,111 SUPPLEMENTAL DISCLOSURE CASH FLOW INFORMATION: Cash paid for interest $39 $33SOURCE Sielox, Inc.
