Optelecom, Inc. Announces 2Q 1999 Financial Results; Backlog Climbs Sharply
GAITHERSBURG, Md., Aug. 13 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC - news) today announced financial results for the second quarter ending June 30, 1999. Revenues for the 1999 quarter declined to just over $2.5 million from $4.2 million in the comparable 1998 quarter. For the six months ending June 30, revenues totaled $6.0 million in 1999 down from $8.6 million in 1998.
Net losses for the 1999 quarter were $(285,324) or $(0.13) a share, including a non-recurring charge of $82,000 related to the relocation of some company offices, compared to a net loss of $(113,117) or $(0.05) a share in the 1998 quarter. Year-to-date net losses increased to $(246,176) in 1999 from $(156,881) in 1998.
''During the quarter we achieved a milestone with sales of our Series 9000 product line equipment to Seokyo Telecommunications Co., Ltd. of South Korea, scheduled to ship in October. Our backlog almost tripled, which bodes well for future revenues,'' said Edmund Ludwig, President and CEO.
Operating expenses declined in the 1999 quarter to $1.1 million from $1.7 million in the 1998 quarter. The quarterly decline and the six-month decline in operating expenses to $2.5 million from $3.3 million are due primarily to cost reductions the company began implementing in September 1998. The Company expects operating expenses to remain relatively flat or decline slightly even as it continues to fund research and development efforts for new products.
''Our net results continue to reflect the impact of fixed manufacturing overhead costs for fiber optics and a shift in our revenue mix from higher- margin military orders to communications equipment sales,'' said Tom Driscoll, Vice President of Finance. ''We have intensified efforts to expand our customer base and increase commercial sales to a level that will offset these fixed costs. The increase in our backlog from approximately $1 million at the end of the March quarter, to $2.7 at the end of the June quarter and $2.9 as of today, reflects our progress. At the same time, we are continually improving operations to reduce costs throughout the company.''
The Company also announced it would hold its 1999 shareholders meeting at 1:00 p.m. on October 13, 1999. Details about the meeting and its location will accompany the Company's proxy mailing. |
