Third quarter results:
biz.yahoo.com
Thursday January 27, 4:10 pm Eastern Time
Company Press Release
Odetics Reports Third Quarter Results of Operations
ANAHEIM, Calif.--(BUSINESS WIRE)--Jan. 27, 2000--For its
third quarter ended Dec. 31, 1999, Odetics Inc.
(Nasdaq:ODETA - news; Nasdaq:ODETB - news) Thursday
reported net income of $20,691,000, compared with a net
loss of $3,839,000, reported for the third quarter ended
Dec. 31, 1998.
Odetics reported basic earnings per share of $2.27 and
diluted earnings per share of $2.18 in the quarter ended
Dec. 31, 1999 compared with a basic and diluted loss per
share of $.49 in the third quarter ended Dec. 31, 1998. For
the third quarter ended Dec. 31, 1999, Odetics' net sales.
and contract revenues were $19,607,000, compared with
$20,167,000 reported in the third quarter ended Dec. 31,
1998.
For the nine months ended Dec. 31, 1999, Odetics reported
net income of $11,605,000, compared with a net loss of
$13,267,000 reported for the nine months ended Dec. 31,
1998. Odetics reported basic earnings per share of $1.28
and diluted earnings per share of $1.24 in the nine months
ended Dec. 31, 1999, compared with a basic and diluted loss
per share of $1.77 in the nine months ended Dec. 31, 1998.
For the nine months ended Dec. 31, 1999, Odetics reported
that net sales and contract revenues were $61,854,000,
compared with $62,069,000 reported in the nine month period
ended Dec. 31, 1998.
Net income in the three and nine month periods ended Dec.
31, 1999 includes royalty income of $38.4 million
representing license fees, net of expenses, earned from the
settlement of litigation with Storage Technology Corp.
Under the terms of the agreement, Odetics will receive
additional payments and recognize additional royalty income
of $10 million in September 2000, and another $10 million
in September 2001. The results for the third quarter ended
Dec. 31, 1999 were negatively impacted by $3.0 million for
pricing concessions to certain customers and adjustments to
inventory reserves and capitalized software related to
certain discontinued products and product options in the
company's Mariner Networks, Broadcast and Gyyr businesses.
During the third quarter Odetics announced the filing of a
registration statement with the Securities and Exchange
Commission for the initial public offering of up to $50
million of the common stock of Iteris Inc., the company's
93% owned subsidiary formerly called Odetics ITS. The
company also announced plans to spin-off Iteris immediately
prior to and conditioned upon the successful completion of
the initial public offering. The spin-off will be
accomplished by means of a tax-free dividend distribution
of the Iteris common stock to the Odetics Class A and Class
B common stockholders.
Commenting on the results for the quarter, Joel Slutzky,
chairman and chief executive officer of Odetics stated,
``Our Gyyr Inc. subsidiary completed a successful
acquisition of the Security Product Division of Digital
Processing Systems Inc. This was a significant acquisition
because it provides our Gyyr business with a line of
digital recorders, the DVMS(TM) series, and strengthens our
position as a leading provider of integrated, network-based
security solutions.
``In our Mariner Networks Inc. subsidiary we made good
progress toward completing the development of our Dexter(TM)
family of integrated access devices. We expect to begin
beta testing Dexter this month, with general availability
of the product to the market in the June quarter. We
believe Dexter will be a performance and price leader in
the market of integrated access devices for small and
branch office applications with high bandwidth
requirements,' Slutzky concluded.
Odetics' mission is to nurture and develop companies that
can be spun-off to stockholders. Odetics' companies are
leading suppliers of communications equipment for the
television broadcast, video security, telecommunications
and intelligent transportation systems markets. Odetics'
headquarters are located in Anaheim, with additional
operations in Europe and Asia. For more information about
the company, its subsidiaries and divisions, see the Web
site at www.odetics.com.
Important Notice:
This earnings release contains statements, which may be
deemed to be forward-looking. Actual results could differ
materially from those projected in the forward-looking
statements as a result of risk factors such as: short
product lives, technological shifts, current technical
issues that cannot be resolved on a timely basis, component
availability, competition (including new and directly
competitive products from others), pricing pressures,
incorrect assumptions regarding market demand, the
significant uncertainty of market acceptance of new
products by both distributors and end-user customers, and
the inability of the company to execute its incubator
strategy including the completion of initial public
offerings of its subsidiaries.
Investors are strongly encouraged to review the risk
factors set forth in the company's last filed Forms 10-K
and 10-Q.
Odetics Inc.
Summary Financial Data
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
December 31, December 31,
Consolidated Statement of
Operations 1998 1999 1998 1999
Net sales and contract revenues:
Net sales $16,210 $15,171 $52,550 $47,875
Contract revenues 3,957 4,436 9,519 13,979
Total net sales and
contract revenues $20,167 $19,607 $62,069 $61,854
Costs and expenses:
Cost of sales 10,846 14,622 36,737 38,631
Cost of contract
revenues 2,624 2,524 6,151 9,496
Gross profit 6,697 2,461 19,181 13,727
Selling, general and
administrative expense 7,360 9,214 23,071 26,566
Research and development
expense 2,731 3,964 8,098 12,172
Total operating
expenses 10,091 13,178 31,169 38,738
Income (loss) from
operations (3,394) (10,717) (11,988) (25,011)
Non-operating items
Royalty income 0 (38,437) 0 (38,437)
Interest expense, net 445 454 1,279 1,821
Income (loss) before taxes (3,839) 27,266 (13,267) 11,605
Income tax expense
(benefit) 0 6,575 0 0
Net income (loss) ($3,839) $20,691 ($13,267) $11,605
Earnings (loss) per share:
Basic ($0.49) $2.27 ($1.77) $1.28
Diluted ($0.49) $2.18 ($1.77) $1.24
Weighted average number of shares outstanding:
Basic 7,890 9,128 7,493 9,076
Diluted 7,890 9,485 7,493 9,353
Odetics Inc.
Summary Financial Data
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1999 1998 1999
Revenues by segment:
Iteris $4,483 $6,242 $10,400 $17,447
Video Products 12,167 11,372 40,684 36,647
Telecom Products 3,517 1,993 10,985 7,760
$20,167 $19,607 $62,069 $61,854
(audited) (unaudited)
Balance Sheet Highlights 03/31/99 12/31/99
Current assets $40,286 $40,666
Property, plant & equipment, net $22,476 $21,545
Other assets $18,593 $20,672
Current liabilities $25,070 $21,123
Long-term debt -- less current
portion $19,962 $12,460
Shareholders' equity $36,323 $49,300 |
