Optelecom Reports Fourth Quarter Results
Records 31% Sequential Revenue Growth
GAITHERSBURG, Md., March 29 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC) today announced its operating results for the fourth quarter and year ending December 31, 2000. Revenue for the fourth quarter ended December 31, 2000, totaled $3.31 million, a 31% increase over the third quarter of fiscal 2000.
The Company reported a loss for the fourth quarter of $1,352,792, or $0.48 per share, compared to a loss of $87,531, or $0.04 per share last year. Results include a non-cash charge of $651,437 related to deferred tax assets the Company believes may not be utilized until such time as the firm regains profitability.
"In May of 2000 we set out to transition Optelecom from a technology-rich company driven by the demands of a narrow customer base, to a company that could respond rapidly and efficiently to a broad marketplace," stated Irving Zaks, President and CEO. "To meet this objective, we engaged a new management team, renovated many of our business processes, identified new vertical markets and developed an execution strategy to penetrate these markets profitably. Today, this rebuilding phase is nearly complete. Last quarter's sales momentum, and sales efforts so far in 2001, demonstrate Optelecom's reputation for high-quality products, superior technology, and reliability are gaining increased recognition and acceptance."
For the year ended December 31, 2000, OPTC stated that revenue declined 15% to approximately $10.7 million, compared to $12.6 million for 1999. The company reported a net loss per share of $2.53 compared to a loss of $0.10 per share in the comparable year-ago period.
"During the past year, we made initial investments in two optical technologies that, if successfully developed, could accelerate the growth of Optelecom," Zaks continued. We also, out of necessity, invested heavily in programs to make the Company more competitive. At the same time we have moved to cut operating costs, wherever possible, in an effort to drive operating efficiencies to the bottom line. Looking ahead to 2001 we anticipate that the positive trends we experienced during second half of 2000 in our core business will continue. While we're confident the course we've charted will return Optelecom to profitability, the pace of investment in our optical research initiatives will determine the company's overall profitability."
"As 2001 progresses and we gain a better understanding of the commercial potential for our new technologies, we may accelerate development efforts. Such acceleration would require our seeking additional outside capital. By pursuing these development programs, we believe we are setting Optelecom on a long-term course to compete in new, multi-million dollar vertical markets that we currently don't address."
In related news, the Company announced the resignation of Richard Kreter from its Board of Directors. No immediate successor was named. |
