GERMANTOWN, Md., Feb. 25 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), a leading global producer of advanced IP-video network solutions, today announced results for its fourth quarter and full year ended December 31, 2007 .
Revenue for the quarter set an all-time record at
The Company reported net income of
Operating income for the quarter increased to
Revenue for the full year ended December 31, 2007 also set a record,
increasing 8% to
"We met or exceeded our sales targets in the fourth quarter of 2007 with strong customer demand for IP video network solutions," said Edmund Ludwig , Optelecom-NKF's President and CEO. "Our strong performance highlights the traction our business model is gaining as we expand our product lineup, leverage our game-changing IP technologies, and maintain a disciplined cost management approach."
"We anticipate solid first quarter 2008 sales when compared with historical levels," added Mr. Ludwig . "However, in line with seasonal expectations, first quarter 2008 sales will be less than fourth quarter 2007."
"Revenue for the fourth quarter of 2007 increased 20% year-over-year with strengthening sales of our IP video network products and solutions," said Steven Tamburo , Optelecom-NKF's Chief Financial Officer. "Our results reflect the increasing importance of our transition to IP video network technologies and the opportunity in this growing market."
"While our revenue includes the benefit of foreign exchange from international sales, we reported new quarterly and full year sales benchmarks," added Mr. Tamburo . "We also marked our sixth consecutive year of profitability and we plan to continue executing our core strategy of delivering profitable year-over-year organic growth while developing the next generation of products and services end-users want."
Fourth Quarter Conference Call
Optelecom-NKF President and CEO Edmund Ludwig will lead a conference call to discuss fourth quarter and full year 2007 results at 10:00 a.m. Eastern Time , Tuesday, February 26, 2008 .
Interested parties are welcome to call 866-831-6270 (International Dial In: 617-213-8858) shortly before the designated start time and request the "Optelecom-NKF conference call" or provide the participant number 56438325. 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 March 4, 2008 . Those wishing to listen to the replay should call 888-286-8010 (International Dial In: 617-801-6888) and enter passcode 84908224 when prompted.
The call is being web cast and can be accessed at www.earnings.com.
About Optelecom-NKF, Inc.
Optelecom-NKF, Inc., is a global supplier of IP video and fiber transmission equipment, including IP cameras, video servers, network video recorders, video management, and video analytics software. We deliver complete solutions for traffic management and security of airports, seaports, casinos, prisons, utilities, public transport, 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. Our R&D centers have accumulated extensive knowledge of fiber optic and IP/Ethernet network technologies. This knowledge has enabled Optelecom-NKF to develop a broad range of innovative network products from high-grade fiber optic transmission products to sophisticated IP surveillance solutions. These solutions include powerful software tools to enhance the effectiveness and efficiency of today's video surveillance applications.
Optelecom-NKF has offices in the US, The Netherlands , Germany , France , Spain , Dubai, the UK, and Singapore , and expertise centers in the US and Europe .
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 Optelecom-NKF to successfully operate its global business; the ability of the Company to develop and market network video products and solutions for the traffic monitoring, transportation security, commercial and industrial and government 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.
Investor inquiries should be directed to Mr. Rick Alpert at 301-948-7872. OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED DECEMBER 31 (in thousands, except per share data) 2007 2006 Revenues $ 13,012 $ 10,836 Cost of goods sold 5,446 3,969 Gross profit 7,566 6,867 Operating expenses: Selling and marketing 2,560 2,252 Engineering 1,380 1,032 General and administrative 1,974 2,627 Amortization of intangible 202 180 Total operating expenses 6,116 6,091 Income from operations 1,450 776 Other expense 318 294 Income before income taxes 1,132 482 Provision (benefit) for income taxes 259 (288) Net income $ 873 $ 770 Basic earnings per share $ 0.24 $ 0.22 Diluted earnings per share $ 0.24 $ 0.22 Weighted average common shares outstanding-basic 3,622 3,524 Weighted average common shares outstanding-diluted 3,625 3,560 Net income $ 873 $ 770 Foreign currency translation 1,429 912 Comprehensive income $ 2,302 $ 1,682 OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, (in thousands, except per share data) 2007 2006 Revenues $ 42,503 $ 39,484 Cost of goods sold 17,452 16,051 Gross profit 25,051 23,433 Operating expenses: Selling and marketing 9,794 8,269 Engineering 5,150 4,606 General and administrative 6,437 7,006 Amortization of intangible assets 765 630 Total operating expenses 22,146 20,511 Income from operations 2,905 2,922 Other expense 1,236 1,187 Income before income taxes 1,669 1,735 Provision for income taxes 388 181 Net income $ 1,281 $ 1,554 Basic earnings per share $ 0.37 $ 0.45 Diluted earnings per share $ 0.37 $ 0.44 Weighted average common shares outstanding-basic 3,497 3,437 Weighted average common shares outstanding-diluted 3,503 3,562 Net income $ 1,281 $ 1,554 Foreign currency translation 2,770 2,388 Comprehensive income $ 4,051 $ 3,942 OPTELECOM-NKF, INC. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006 (in thousands) 2007 2006 ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,043 $ 3,571 Accounts and contracts receivable, net of allowance for doubtful accounts of $249 and $625 9,575 9,222 Inventories, net 5,214 5,759 Deferred tax asset-current 778 905 Prepaid expenses and other current assets 816 1,047 Total current assets 21,426 20,504 Property and equipment, at cost less accumulated depreciation of $7,634 and $6,377 2,594 2,488 Deferred tax asset-non-current 2,284 1,284 Intangible assets, net of accumulated amortization of $2,259 and $1,288 8,241 8,124 Goodwill 15,259 13,678 Other Assets 205 196 TOTAL ASSETS $ 50,009 $ 46,274 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 2,623 $ 3,371 Accrued payroll 2,165 2,105 Commissions payable 198 220 Current portion of capitalized leases 45 71 Bank line of credit 1,000 800 Current portion of notes payable 1,525 1,548 Accrued warranty reserve 418 431 Taxes payable 49 577 Other current liabilities 1,090 1,375 Total current liabilities 9,113 10,498 Notes payable 14,245 14,650 Deferred tax liability 2,150 2,102 Interest Payable 1,210 788 Capitalized leases -- 45 Other liabilities 256 248 TOTAL LIABILITIES 26,974 28,331 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock, $.03 par value-shares authorized, 15,000; issued and outstanding, 3,632 and 3,529 shares as of December 31, 2007 and December 31, 2006, respectively 109 105 Additional paid-in capital 15,534 14,497 Accumulated other comprehensive gain 3,339 570 Treasury stock, 163 shares, at cost (1,265) (1,265) Retained earnings 5,318 4,036 Total stockholders' equity 23,035 17,943 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 50,009 $ 46,274SOURCE Optelecom-NKF, Inc.
