GERMANTOWN, Md. , March 5 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), a leading global provider of Siqura(R) advanced IP-video network solutions, today announced fourth quarter and full year 2008 results. Strong IP product sales in 2008 pushed company revenue to record levels for the year.
Revenues for the fourth quarter totaled
"We reported solid revenue and reduced operating expense in the fourth quarter of 2008. Income from operations totaled
The Company reported a net loss of
Adjusted EBITDA for the quarter (as defined in the addendum to this release) was
At year-end, Optelecom-NKF, Inc. completed a reduction in force in select business units. The reduction in force will reduce costs in mature areas of the Company's technology offerings while focusing critical investments in growing Video over IP products. The Company recorded pre-tax charges of approximately
"We are sized appropriately for the opportunities at hand," Mr. Ludwig added. "Our team is dedicated to staying on top of operations and we are prepared to respond quickly to changing market conditions. Efforts in our technology development area will lead to a continuing flow of new products that meet our customers' needs and drive our success. This has positioned us to capture business as stimulus plans take shape at home and abroad."
"We continue to address our sales effectiveness and we plan to gain market share as some competitors, lacking our strength, have to reign in their efforts. Our management team was strengthened by bringing David Patterson on board as our new president and as my successor designee," Mr. Ludwig concluded.
Fourth Quarter Conference Call
Optelecom-NKF CEO Ed Ludwig will lead a conference call to discuss fourth quarter results at 10:00 a.m. Eastern Time , Friday, March 6, 2009 .
Interested parties are welcome to call 866-543-6408 (International Dial In: 617-213-8899) and request the "Optelecom-NKF conference call" shortly before the designated start time or provide the participant passcode 40321348. 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 1:00 p.m. following the teleconference until March 13, 2009 . Those wishing to listen to the replay should call 888-286-8010 (International Dial In: 617-801-6888) and enter passcode number 12381497 when prompted.
Optelecom-NKF, Inc., developer of Siqura(R) advanced IP video network solutions, 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 .
All Optelecom-NKF IP surveillance solutions are marketed under the Siqura(R) brand. Siqura(R) is a total IP surveillance solution and includes IP cameras, video servers/codecs, network video recorders, video management, and video analytics software. Siqura(R) can be used in hybrid installations and is compatible with all Optelecom-NKF fiber transmission equipment.
Investor inquiries should be directed to Mr. Rick Alpert at 301-948-7872.
OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME FOR THE THREE MONTHS ENDED DECEMBER 31, (Dollars in Thousands, Except Share Amounts) 2008 2007 Revenue $11,751 $13,013 Cost of goods sold 4,862 5,446 Gross profit 6,889 7,567 Operating expenses: Sales and marketing 2,596 2,560 Engineering 1,516 1,380 General and administrative 1,445 1,974 Amortization of intangibles 159 202 Total operating expenses 5,716 6,116 Income from operations 1,173 1,451 Other expense, net 511 318 Income before income taxes 662 1,133 Provision for income taxes 3,620 260 Net (Loss) Income $(2,958) $873 Basic (Loss) Income per share $(0.81) $0.24 Diluted (Loss) Income per share $(0.81) $0.24 Weighted average common shares outstanding - basic 3,644,754 3,622,094 Weighted average common shares outstanding - diluted 3,644,754 3,625,235 Net (Loss) Income $(2,958) $873 Foreign currency translation (1,144) 1,496 Comprehensive (Loss) income $(4,102) $2,369 OPTELECOM-NKF, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, (Dollars in Thousands, Except Share Amounts) 2008 2007 Revenue $45,165 $42,503 Cost of goods sold 17,938 17,452 Gross profit 27,227 25,051 Operating expenses: Sales and marketing 11,099 9,794 Engineering 6,013 5,150 General and administrative 6,923 6,437 Amortization of intangibles 739 765 Total operating expenses 24,774 22,146 Income from operations 2,453 2,905 Other expense, net 996 1,236 Income before income taxes 1,457 1,669 Provision for income taxes 3,213 388 Net (Loss) Income $(1,756) $1,281 Basic (Loss) Income per share $(0.48) $0.37 Diluted (Loss) Income per share $(0.48) $0.37 Weighted average common shares outstanding - basic 3,638,783 3,497,430 Weighted average common shares outstanding - diluted 3,638,783 3,502,765 Net (Loss) Income $(1,756) $1,281 Foreign currency translation (872) 2,836 Comprehensive (Loss) income $(2,628) $4,117 OPTELECOM-NKF, INC. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2008 AND DECEMBER 31, 2007 (Dollars in Thousands, Except Share Amounts) December 31, December 31, 2008 2007 ASSETS CURRENT ASSETS Cash & cash equivalents $5,671 $5,043 Accounts receivable and contracts receivable, net of allowance for doubtful accounts of $245 and $249 10,290 9,575 Inventories, net 5,782 5,214 Deferred tax asset - current 205 732 Prepaid expenses and other current assets 1,152 816 Total Current Assets 23,100 21,380 Property & equipment, less accumulated depreciation of $7,820 and $7,634 2,063 2,594 Deferred tax asset - non-current - 2,284 Intangible assets, net of accumulated amortization of $2,870 and $2,259 7,180 8,241 Goodwill 14,603 15,259 Other assets 202 205 TOTAL ASSETS 47,148 49,963 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable 3,634 2,623 Accrued payroll 1,841 2,165 Commissions payable 198 198 Bank line of credit - 1,000 Current portion of notes payable 3,468 1,525 Accrued warranty reserve 410 418 Taxes payable 931 49 Other current liabilities 1,688 1,135 Total Current Liabilities 12,170 9,113 Notes payable 10,367 14,245 Deferred tax liabilities 1,427 2,037 Interest payable 1,744 1,210 Other liabilities 249 257 Total Liabilities 25,957 26,862 STOCKHOLDERS' EQUITY Common Stock, $.03 par value - shares authorized, 15,000,000; issued and outstanding, 3,645,084 and 3,632,083 shares as of December 31, 2008, and December 31, 2007, respectively 109 109 Additional paid-in capital 16,252 15,534 Accumulated other comprehensive gain 2,534 3,406 Treasury stock, 162,672 shares at cost (1,265) (1,265) Retained earnings 3,561 5,317 Total stockholders' equity 21,191 23,101 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $47,148 $49,963
Non-GAAP Earnings Addendum
We define Adjusted EBITDA as net income or net loss plus interest expense, income taxes, foreign exchange losses, depreciation and amortization. Adjusted EBITDA 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.
The table below presents a reconciliation of net income to Adjusted EBITDA:
Three Months Ended Twelve Months Ended (Unaudited) December 31, December 31, (Dollars in Thousands) 2008 2007 2008 2007 Net (Loss) Income $(2,958) $873 $(1,756) $1,281 Add: Interest expense, net 165 268 734 1,128 Provision for income taxes 3,620 260 3,213 388 Foreign exchange loss, net 346 50 262 108 Depreciation 250 357 1,051 1,065 Amortization 159 202 739 765 Adjusted EBITDA $1,582 $2,010 $4,243 $4,735
SOURCE Optelecom-NKF, Inc.
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