Science & Technology
Science and Technology
Science and Technology
Thu, January 29, 2009 LaserCard Corporation Reports Financial Results for FY09 Third Quarter
MOUNTAIN VIEW, Calif.--([ BUSINESS WIRE ])--LaserCard Corporation (NASDAQ:LCRD), a leading supplier of secure ID solutions, today announced its financial results for its fiscal 2009 third quarter ended December 31, 2008.
Revenues for the third quarter of fiscal 2009 were $10.9 million, compared with $13.5 million in the prior quarter and $11.2 million in the same quarter a year ago. The net loss for the third quarter of fiscal 2009 was $849,000, or ($0.07) per diluted share, compared with a net profit of $239,000 or $0.02 per diluted share in the prior quarter, and net loss of $1.1 million or ($0.09) per diluted share in the same quarter a year ago.
LaserCard® optical memory card revenues for the quarter were $6.0 million compared with $8.6 million in the second quarter of fiscal 2009 and $7.9 million in the third quarter last year. Revenues from specialty cards and printers were $4.3 million for the third quarter of fiscal 2009 compared with $3.9 million in the prior quarter and $3.1 million in the same quarter a year ago.
LaserCard Corporation's cash, cash equivalents, and investments were $21.9 million at December 31, 2008 compared with $22.9 million at September 30, 2008. The Company has obtained a credit line from UBS in the amount of $8.7 million that is collateralized by its Student Loan Auction Rate Securities. During December, the Company drew down $3.0 million on this credit line.
"The deployment process associated with the Angolan National ID card program is moving forward," said Bob DeVincenzi, President and CEO of LaserCard. "Deployment of data collection and database infrastructure by the partner team has been underway, and implementation of the infrastructure for issuing cards can now begin, following our delivery of approximately $2 million worth of card personalization equipment during the third quarter. Supplementing our progress on the Angolan implementation are our recent announcements associated with the receipt of $13 million of orders for our core U.S. and Saudi Arabian programs. These new orders represent not only enhancements to our backlog, but also renewed volume commitments from two of our most valued strategic customers.
"We made progress towards refining our cost model with selective reductions in spending associated with SG&A and the realization of the full effect of reductions associated with our re-cast Research and Development plans," continued DeVincenzi.
The Company recorded a $200,000 non-cash expense on the Statement of Operations in other income (expense) related to the $13.5 million of Student Loan Auction Rate Securities (SLARS) held by UBS AG. This represents the difference between the SLARS par value and the sum of their fair value and the value of the Put Right received from UBS in October. The company does not anticipate that it will record an additional expense on the SLARS between now and the June 30, 2009 Put date.
Earnings Results Conference Call
LaserCard will hold a conference call to discuss the company's fiscal 2009 third quarter results today, January 29, 2009, at approximately 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. For access to the conference call, please call 773-799-3302 by 1:50 p.m. Pacific Time. A taped replay of the call will be available for one week. To access the replay, please call 203-369-3493. You will need to reference the passcode "LaserCard" and the conference leader "Robert DeVincenzi." To listen to the call via the Internet, please log on to: [ www.lasercard.com ] or [ www.vcall.com ]. The Internet Webcast will be archived for one year. A copy of this press release will be furnished to the U.S. Securities and Exchange Commission on a Form 8-K and posted to the Company's web site prior to the conference call.
About LaserCard Corporation
LaserCard Corporation, together with its subsidiaries, is a leading provider of secure ID solutions to governments and commercial clients worldwide. It develops, manufactures, and integrates LaserCard® optical memory cards, encoders, peripherals, smart and specialty cards, biometrics, and modular software. The Company's cards and systems are used in various applications, including citizen identification, border security, government service delivery, and facility access.
For further information, please visit [ www.lasercard.com ].
Forward Looking Statement Disclaimer
All statements contained in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are not historical facts or guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as may, will, intends, plans, believes, anticipates, visualizes, expects, and estimates. Examples of forward-looking statements in this release include that the Angolan National ID card program is moving forward, the Company's recent announcements regarding business in the U.S. and Saudi Arabia and that the Company does not anticipate that it will record an additional expense on the SLARS between now and the June 30, 2009 Put date. These and other forward-looking statements in this press release are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether UBS AG will have the ability to purchase our ARS at PAR on June 30, 2010 as well as the risk factors set forth under the caption "Risk Factors" and elsewhere in the Company's Forms 10-K, and 10-Q and other filings with the Securities and Exchange Commission. Due to these and other risks, future actual results could differ materially from the Company's expectations. These forward-looking statements speak only as to the date of this release, and, except as required by law, the Company undertakes no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.
| LASERCARD CORPORATION AND SUBSIDIARIES | ||||||||||||||||
| SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Revenues | $ | 10,906 | $ | 11,159 | $ | 35,095 | $ | 29,753 | ||||||||
Cost of sales (includes $187 and $482 stock-based compensation in the three and nine-month periods ended December 31, 2008 and $105 and $244 in the three and nine-month periods ended December 31, 2007, respectively) | 7,314 | 7,670 | 23,471 | 21,414 | ||||||||||||
| Gross profit | 3,592 | 3,489 | 11,624 | 8,339 | ||||||||||||
| Operating expenses: | ||||||||||||||||
Selling, general, and administrative expenses (includes $426 and $1,172 stock-based compensation in the three and nine-month periods ended December 31, 2008 and $527 and $1,178 in the three and nine-month periods ended December 31, 2007, respectively) | 3,950 | 4,056 | 11,437 | 10,826 | ||||||||||||
Research and development expenses (includes $25 and $96 stock-based compensation in the three and nine-month periods ended December 31, 2008 and $69 and $190 in the three and nine-month periods ended December 31, 2007, respectively) | 286 | 719 | 1,974 | 2,211 | ||||||||||||
| Total operating expenses | 4,236 | 4,775 | 13,411 | 13,037 | ||||||||||||
| Operating loss | (644 | ) | (1,286 | ) | (1,787 | ) | (4,698 | ) | ||||||||
| Other income (expense), net | (219 | ) | 225 | (94 | ) | 655 | ||||||||||
| Loss before income taxes | (863 | ) | (1,061 | ) | (1,881 | ) | (4,043 | ) | ||||||||
| Income tax expense (benefit) | (14 | ) | 19 | 3 | (106 | ) | ||||||||||
| Net loss | $ | (849 | ) | $ | (1,080 | ) | $ | (1,884 | ) | $ | (3,937 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.16 | ) | $ | (0.33 | ) | ||||
| Diluted | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.16 | ) | $ | (0.33 | ) | ||||
| Weighted-average shares of common stock used in computing net loss per share: | ||||||||||||||||
| Basic | 12,085 | 11,971 | 12,035 | 11,928 | ||||||||||||
| Diluted | 12,085 | 11,971 | 12,035 | 11,928 | ||||||||||||
| LASERCARD CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| (In thousands ) | ||||||||
| December 31, | March 31, | |||||||
| 2008 | 2008* | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,601 | $ | 5,583 | ||||
Accounts receivable, net of allowance of $29 at December 31, 2008 and $35 at March 31, 2008 | 6,098 | 2,952 | ||||||
Inventories, net of reserve of $971, at December 31, 2008 and $913 at March 31, 2008 | 15,426 | 13,080 | ||||||
| Deferred contract costs | 209 | 303 | ||||||
| Equipment held for resale | 7,181 | 89 | ||||||
| Prepaid and other current assets | 1,451 | 1,618 | ||||||
| Total current assets | 38,966 | 23,625 | ||||||
Property and equipment, net of accumulated depreciation of $22,000 at December 31, 2008 and $20,000 at March 31, 2008 | 11,552 | 11,700 | ||||||
| Long-term investments | 13,295 | 12,875 | ||||||
| Long-term defered contract costs | 326 | 561 | ||||||
| Long-term equipment held for resale | - | 6,599 | ||||||
| Patents and other intangibles, net | 409 | 402 | ||||||
| Notes receivable | 238 | 269 | ||||||
| Other non-current assets | 109 | 275 | ||||||
| Total assets | $ | 64,895 | $ | 56,306 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,272 | $ | 2,561 | ||||
| Accrued liabilities | 2,721 | 3,221 | ||||||
| Deferred income tax liability | 286 | 405 | ||||||
| Advance payments from customers | 30,398 | 3,060 | ||||||
| Short-Term Debt | 3,000 | - | ||||||
| Deferred revenue | 3,660 | 589 | ||||||
| Deferred rent | 131 | - | ||||||
| Capital lease obligation | 73 | 30 | ||||||
| Total current liabilities | 42,541 | 9,866 | ||||||
| Capital lease obligation, net of current portion | 190 | 76 | ||||||
| Accrued liabilities, net of current portion | 93 | - | ||||||
| Advance payments from customers, net of current portion | 1,695 | 23,770 | ||||||
| Deferred revenue, net of current portion | 564 | 3,437 | ||||||
| Deferred rent | 1,258 | 1,168 | ||||||
| Income tax payable | 263 | 263 | ||||||
| Total liabilities | 46,604 | 38,580 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 121 | 120 | ||||||
| Additional paid-in capital | 65,755 | 63,868 | ||||||
| Accumulated deficit | (47,750 | ) | (45,867 | ) | ||||
| Accumulated other comprehensive loss | 165 | (395 | ) | |||||
| Total stockholders' equity | 18,291 | 17,726 | ||||||
| Total liabilities and stockholders' equity | $ | 64,895 | $ | 56,306 | ||||
| *Amounts derived from audited consolidated financial statements | ||||||||
