Optelecom-NKF, a leading global provider of advanced IP-video network solutions, today announced second quarter 2008 results. Expanded international shipments and strong new IP product sales pushed company revenue to record levels for any second quarter.
Revenue totaled $11.3 million, a 23 percent increase compared to $9.2 million in the second quarter of 2007. Gross profit increased $1.1 million to $6.7 million, or 59 percent of revenues, for the three months ended June 30, 2008. Optelecom-NKF's IP-related sales jumped 133 percent in the quarter compared to the second quarter of 2007, while IP sales for the first half of 2008 increased 59 percent over last year.
The Company reported net income of $24 thousand, or $0.01 per diluted share, for the second quarter of 2008. This compares to a net loss of $(217) thousand, or ($0.06) per diluted share, for the second quarter of 2007. The second quarter of 2008 includes one-time costs before tax of approximately $350 thousand related to a previously announced refinancing and legal restructuring. The Company also received a nonrecurring $116 thousand benefit in income taxes related to this transaction.
Edmund Ludwig, President and CEO of Optelecom-NKF, said, "We enjoyed double-digit revenue growth for the fourth consecutive quarter. Our IP product sales increased significantly as we saw strong demand for our Siqura product suite. International sales grew as we benefited from increased demand as illustrated by our previously announced contract with Electricite de France, a Global Fortune 100 firm."
"We made progress across several fronts during the quarter," added Steve Tamburo, Optelecom-NKF's CFO. "Sales of our expanding Siqura IP product line grew and now represent more than a third of our total revenue."
"In the closing days of the quarter we finalized the reorganization of our international legal structure, enabling us to fully pay down our outstanding line of credit on July 1 and extend the term of our bank loan. This new flexible corporate structure will help streamline future growth. While we recognized a nonrecurring tax gain in the amount of $116 thousand, as expected we incurred significant restructuring and refinancing costs in the quarter."
