I have been following OPTC Nasdaq 1.63 up .23 yest a long time and they have a long and distinguished history of both black and transparent contracts with the DOD....also significant video conferencing products and capabilities. They have already taken the pain of a restructure and the last remnants were in this past qtr:
Here is brief description plus some recent news:
PRODUCTS AND MARKETS
--------------------
OPTICAL PRODUCTS UNIT (OP)
The Optical Products unit addresses business opportunities in the worldwide
optical communication equipment marketplace, specializing in optical fiber
transmission technologies. The majority of its current and future revenues are
derived from several niche markets that leverage the advantages of fiber optic
telecommunications to solve their transmission requirements. Presently, the
vertical markets we serve include communications systems for highway traffic
monitoring, advanced air traffic control video monitor displays, security
surveillance and control systems, and manufacturing process and control
communications. Verticals that offer future sources of revenue include Video
Teleconferencing, Healthcare, and Broadcasting market opportunities. The OP unit
offers many product solutions to address our customers' needs. The OP products
are classified into the following categories:
Data Communications Products
----------------------------
Data Communications Products include a comprehensive family of fiber optic
modems that incorporate standard telecommunications protocols. The market
applications for these products include specialty data and timing distribution
modems for the military, aerospace and satellite earth station markets as well
as commercial, industrial, traffic control and surveillance markets.
-3-
<PAGE>
These products are included in or are compatible with products in our Series
9000 product line, as discussed in the next paragraph.
CCTV & Broadcast Video (FM), Audio and Data Products
----------------------------------------------------
This category includes fiber optic video only, audio only, video and data, audio
and data, and video, audio and data products, which use our traditional
Frequency Modulation (FM), Pulsed Frequency Modulation (PFM) and Pulsed Coded
Modulation (PCM) transmission techniques. Most of these products are included in
our 9000 series product line, which began shipping in late 1998, with a full
promotion being launched in March of 1999. Initial product offerings were an
eight-channel video multiplexer, a four-channel video multiplexer with
bi-directional data and/or audio and a new rack mount chassis and power supplies
which provide dense packaging and operate over a wide temperature range. During
1999, additional modules were added which expanded the number of video channels
and a four-channel audio multiplexer. The series also includes a Windows based
Graphical User Interface System Management Software which allows the user to
view the operating status of the whole fiber optic transmission network from a
PC, greatly facilitating maintenance. Markets for these products include video
surveillance, intelligent highways, robotics, process control, military,
distance learning and simulation markets.
High Resolution RGB Video Transmission Products
-----------------------------------------------
Red Green Blue (RGB) Video Transmission Products include those used to remote a
high-resolution display, such as a monitor or projector, from the video source.
Because of the high bandwidth and fidelity required to transmit these signals,
fiber optics may be the only means to transmit them farther than a few hundred
feet. While relatively low resolution VGA video, in the 600 x 400 pixel range,
may be transmitted via copper using copper baluns (such as offered by Paragon)
up to distances approaching 1000 feet, the bandwidth required to transmit ultra
high resolution 2048 x 2048 pixel RGB video limits the transmission distance
possible over copper to less than 100 feet. Optelecom is not aware of any other
fiber optic RGB video transmission system that meets the performance
characteristics of the high resolution RGB products that we offer. Applications
for this technology include air traffic control, military control rooms, remote
conference rooms, financial trading desks and process control.
Uncompressed Digital Video Products
-----------------------------------
Uncompressed digital video products provide an extremely high quality video
signal and maintain this quality at distances far exceeding the capability of FM
and PFM equipment. The bandwidth required to achieve this performance is
considerably greater than that needed for lower video quality systems, however,
the enormous bandwidth capacity of fiber optic transmission media provides an
obvious path for utilization of digital video technology. Additionally, since
the video transmission format is strictly digital, it can be easily combined
with digitized voice and digital data streams. This feature facilitates
switching and multiplexing of a variety of signals which is far more easily
accomplished than with PFM systems. Beginning in the year 2000, Optelecom began
development of a series of digital video products that extend and supplement the
features offered by our PFM video equipment. This development effort was
essentially completed by the end of the year.
Products include one, four, eight, and sixteen-channel video systems with
integrated voice and data channels, offering near-broadcast quality performance.
All of these new products incorporate the features of our PixelVue Graphical
User Interface system management software and share a common mechanical
interface with many of the legacy PFM video products.
-4-
<PAGE>
The totally modular approach used in the digital system design architecture will
reduce the inventory and logistical support investment required to address the
anticipated demand for these products. Initial marketplace reception has been
extremely positive and new applications involving a combination of our other
product offerings with the capabilities of the digital video equipment are being
constantly proposed. We expect the superior performance of the digital video
systems to expand the markets we can address and enhance the capability of our
systems in existing markets.
Compressed Digital Video Products
---------------------------------
Applying our expertise in video communications, we have developed a low cost,
high quality, compressed digital video product that leverages the advantages of
new technology recently made available to the marketplace. Joint Photographic
Expert Group (JPEG) and Motion Picture Expert Group (MPEG)II have become defacto
compression standards embraced by the consumer and other electronics
marketplace. The products we have developed will replace the older family of
compression products since its low cost, high performance characteristics will
render the previous family obsolete.
These products involve the digitization and compression of National Television
System Committee (NTSC) and Phase Alteration Line (PAL) video signal sources,
allowing transmission via T1, E1, or Ethernet, via IP (Internet Protocol). Our
plans include offering these products to the security and traffic markets
immediately, and leveraging our knowledge of these compression standards and
products to other markets whose users are turning to video communications as a
way to increase productivity. The explosive growth of the Internet dictates the
need for low cost, high quality compressed digital video for use over various
private and public networks. We plan to provide the transmission products to
meet these market needs.
Electro Optics Products
-----------------------
In late 2000, the Electro Optics group, previously part of the Government
Products Division, was combined with the Optical Products unit. The group
continues to focus on Interferometric Fiber Optic Gyros (IFOGs), which are
rotation-sensing instruments that are replacing mechanical and laser gyros in
aircraft, missiles, and other vehicles. Optelecom has used its expertise derived
from prior activities to develop winding technology for IFOG coils and to
manufacture these coils in production. In 2000 continued improvements were
incorporated to increase production capacity in anticipation of increased
requirement of these coils for the optical switching industry. This industry
utilizes the delay characteristics of these coils for equalization purposes
within the optical switch design.
VIDEO COMMUNICATIONS UNIT (VC)
The Video Communications unit designs, manufactures, and markets electronic
products and systems for multi-media applications utilizing unshielded
twisted-pair copper or "structured" Category 5 (CAT5) cabling for in-house
computer data networking applications. Initially, this business unit is
comprised of the Paragon AV business that was restructured during 2000 to permit
management emphasis on the delivery of quality products to this marketplace.
These products include baluns (Balanced to Unbalanced) devices that match the
different impedance of traditional coaxial and data networking cables. The use
of active baluns with higher-grade cables and high performance integrated
circuit devices facilitates the transmission of high-resolution
-5-
<PAGE>
video, voice and data signals without noticeable signal degradation. In
addition, Television transmission tuners for the receipt and distribution of
Cable TV channels over CAT5 cable have been developed and are being offered to
the European and Asian markets. These TV tuners are specifically designed to
provide business television services to financial markets.
Structured cable communications systems and fiber optic communications systems
offer comparable services in some applications and have distinct advantages or
disadvantages in others. For example, the use of baluns with structured cabling
has become common for in-house computer networking applications, while fiber
optic systems afford increased distance and higher bandwidths to information
systems. The Company has restructured the efforts of our Paragon AV subsidiary
by limiting the products offered to those components needed for the display and
integration of multimedia information at the user's desktop. This will enable
the Video Communications unit to address the market with a narrow set of
products that are highly differentiated and address a sizeable market. Recently,
the Company has invested in the development of product for this market to
maximize the Company's profitability in this market. The Company will continue
to evaluate and tradeoff the internal development of competitive products for
this market, versus the procurement of these products from external sources and
resale by the Video Communications unit to the customer.
(COMTEX) B: Optelecom, Inc. Wins Air Traffic Control Upgrade
B: Optelecom, Inc. Wins Air Traffic Control Upgrade
GAITHERSBURG, Md., Aug 7, 2001 /PRNewswire via COMTEX/ -- Optelecom, Inc.
(Nasdaq: OPTC) today announced it has received a contract from BFI Optilas for
high- resolution video equipment to be deployed as part of major air traffic
control system upgrades underway at airports in the cities of Malaga, Palma de
Majorca, and Ibiza, Spain. The equipment is scheduled for delivery during the
fourth quarter of 2001.
In these systems, Optelecom's RGB500/360 transmitters and receivers send Red,
Green, Blue (RGB) video to multiple high-resolution Sony 2K monitors in airport
control centers. This video provides identification of each aircraft, precise
information on its speed, direction and position, and presents weather maps, as
well as geographical reference and radar displays. The systems will be managed
with Optelecom's new 9911 Graphical User Interface (GUI) Management Software.
"These projects are part of ongoing air traffic control center upgrades
Optelecom has won in Europe and the United States over the past few years,"
stated Leonard May, Optelecom's vice-president of sales. "BFI Optilas and
Optelecom are optimistic that additional opportunities in Spain and elsewhere in
Europe will present themselves as countries struggle to keep up with burgeoning
air traffic volumes."
Optelecom's equipment provides the bandwidth required to drive high- resolution
monitors while extending the system's range to drive monitors in adjacent
buildings. Systems built with Optelecom's video equipment and managed with the
Company's GUI Management Software are immune from electrical noise, as signals
carried over optical fiber are unaffected by electromagnetic interference,
assuring undistorted video images. The systems are also resistant to failure
resulting from lightning strikes since fiber optic transmission provides
complete electrical isolation between transmitters and receiver. Furthermore,
security is enhanced because fiber optic transmission is highly resistant to
"tapping" and "eavesdropping."
BFI Optilas, an AVNET Company, is a pan-European distributor of specialist
products and services to the Electronics & Photonics market. The company employs
325 individuals working at 15 offices throughout Europe. For additional
information please visit bfioptilas.avnet.com .
Optelecom designs, manufactures and markets photonic components, video
communication systems technology, business video, and financial market data
information systems. From simple baseband transmitters to complex broadband
systems and video switches, Optelecom offers innovative technologies that meet
customers' needs. Headquarters are located at 9300 Gaither Road, Gaithersburg,
MD 20877; telephone number 301-840-2121.
This press release contains forward-looking statements contemplated under the
Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. The actual results realized by Optelecom could differ materially
from the statements made herein. The factors that might cause differences
between intended and actual results are discussed in Optelecom's Annual Report
on Form 10K, filed with the Securities and Exchange Commission.
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SOURCE Optelecom, Inc.
CONTACT: Rick Alpert of Optelecom, Inc., +1-301-948-7872
URL: optelecom.com
prnewswire.com
Copyright (C) 2001 PR Newswire. All rights reserved.
-0-
KEYWORD: Maryland
Spain
INDUSTRY KEYWORD: TLS
MLM
AIR
SUBJECT CODE: CON
OTC
*** end of story ***
(COMTEX) B: Optelecom Announces Two Major Orders
B: Optelecom Announces Two Major Orders
GAITHERSBURG, Md., Jun 22, 2001 /PRNewswire via COMTEX/ -- Optelecom, Inc.
(Nasdaq: OPTC) today announced it has received contracts for services performed
by its Electro-Optic Systems Group and for high-speed RGB technology developed
for the Federal Aviation Administration's (FAA) Standard Terminal Automation
Replacement System (STARS) program.
IXSEA, a French manufacturer of optical fiber gyro navigation systems, placed an
initial $300,000 order for Interferometric Fiber Optic Gyro (IFOG) coils. IFOG
coils are all solid state rotation sensing devices with significant advantages
relative to mechanical and laser gyro sensors.
Mastery of semiautomatic precision winding techniques and optical fiber handling
methods has made Optelecom a premier source of custom high performance optical
fiber coils tailored to meet customer requirements. The Company's coil winding
expertise extends to a wide range of coil sizes and configurations and a variety
of applications.
"This contract is an indication of confidence in our consistently high quality
optical fiber gyro precision coil winding capability," said Ron Smith, director
of the Optelecom Electro-Optic Systems Group. "We look forward to a positive,
long-term relationship with IXSEA."
The Company also announced it has received a $345,000 add-on order from Raytheon
Company for high-speed RGB video equipment under the STARS program. Deliveries
will occur in the second and third quarter of this year.
Optelecom's Model 5654A and 3654A fiber optic units transmit RGB video to
multiple air traffic control monitors in airport control towers. The
transmitters and receivers provide analog video bandwidths up to 180 MHz per
color with various sync configurations and automatic color balance. Each system
distributes video to as many as five monitors in each tower, providing identical
displays to air traffic controllers, backup personnel, and supervisors. This
video provides identification of each aircraft and precise information on its
speed, direction, and position.
In March of this year Raytheon Company upgraded software at El Paso
International Airport in Texas, where a beta version of STARS is now in
operation. STARS software running at Hancock International Airport in Syracuse,
NY, was upgraded to the FS-1 version shortly thereafter. A tentative rollout
schedule targeting 12 airports over the next two years also has been released.
By the end of September, airports in Bradley, CT, and Memphis, TN, will upgrade
to the STARS system from the aging Automated Radar Terminal Systems. Ten more
airports will convert to the new system by the end of September 2002. When the
rollout is finished in 2008, FAA will oversee 191 STARS sites.
The Defense Department, which partnered with FAA in the development of the
program, rolled out the first full version of STARS at Eglin Air Force Base, FL,
last July. DOD has not released a schedule for installation at the 140 stations
it has targeted for STARS.
STARS is the next generation of the FAA's radar system designed to track
aircraft within a 50-mile radius of an airport. The system uses as its primary
radar a modified version of Raytheon's Autotrac open architecture air traffic
software.
This press release may contain certain forward-looking statements contemplated
under the Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties. The actual results realized by the Company could differ
materially from the statements made herein. Factors that might cause such
differences include, but are not limited to: volatility and uncertainties in
primary industries targeted by the Company; failure to develop and market fiber
optic products; lack of reliable vendors, service providers, and outside
products; unforeseen changes in competing technologies and products; worldwide
economic variances; poor or delayed research and development results; and
disparities between forecast and realized sales. Additional factors are
discussed in the Company's Annual Report on Form 10K, filed with the Securities
and Exchange Commission.
Optelecom, Inc. designs, manufactures and markets photonic components, video
communication systems technology, business video and financial market data
information systems. From simple baseband transmitters to complex broadband
systems and video switches, Optelecom offers innovative technologies that meet
our customers needs. Headquarters are located at 9300 Gaither Road,
Gaithersburg, MD 20877; telephone 301-840-2121.
MAKE YOUR OPINION COUNT - Click Here
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SOURCE Optelecom, Inc.
CONTACT: Rick Alpert of Optelecom, Inc., 301-840-2121
URL: optelecom.com
prnewswire.com
Copyright (C) 2001 PR Newswire. All rights reserved.
-0-
KEYWORD: Maryland
INDUSTRY KEYWORD: ARO
CPR
STW
SUBJECT CODE: CON
*** end of story ***
(PR NEWSWIRE) Optelecom, Inc. Reports Second Quarter Financial Results; Sees
Optelecom, Inc. Reports Second Quarter Financial Results; Sees Return to
Profitability in Second Half of Year
GAITHERSBURG, Md., Aug. 14 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC)
today announced financial results for the company's second quarter ending June
30, 2001.
Revenues for the 2001 second quarter rose 8% to $2.57 million from $2.38
million in the comparable 2000 quarter. The company reported a net loss for
the 2001 quarter of $782,839 or $.28 per share compared to a net loss in 2000
of $604,372 or $.28 a share, on increased weighted average shares outstanding
from 2,168,661 to 2,821,000.
"We are pleased with our top-line performance in the second quarter,
particularly in light of the economic slowdown that has affected virtually all
technology companies," said Jim Armstrong, Controller of Optelecom, Inc. "We
believe our growth rate, in contrast to the declines experienced by other
companies in our sectors, illustrates that we are gaining share in our core
markets. The expansion of distribution channels serving the intelligent
transportation and surveillance vertical markets is beginning to have
significant impact. Our Integrator Support Program now produces over 65% of
revenue and is accelerating. We have forged key strategic partnerships with
major system integrators serving these core markets as demonstrated by recent
contract announcements."
"Although we recorded a net loss for the second quarter, our level of
business actually improved. Today, a strong pipeline, new product rollouts
and a high level of customer activity, characterizes Optelecom's business.
We've reduced spending to levels that support a return to profitability in the
second half of this year. In particular, reductions in discretionary spending
and staffing levels were completed in the latter half of the second quarter.
As a result, we are projecting that the third quarter revenue will advance
over that of the second quarter and that the Company will approach or exceed
breakeven on operations."
Edmund Ludwig, Executive Vice President of Operations, added, "Based on
indications from our customers, partners and prospects, we are planning our
business around anticipated revenue growth of approximately 20% for the
balance of this year and into 2002. Given recent efforts to size our
organizational expense structure to our anticipated revenue stream, our
business model is projected to achieve sustainable operating profitability,
before charges, at a quarterly revenue level of approximately $2.7 million.
We expect to achieve and sustain this level before the year ends. Our growth,
however, could vary over a wide range due to the timing of the anticipated
technology spending turnaround, and we are positioned to support higher levels
of growth if it materializes."
OPTELECOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30,
(Unaudited)
2001 2000
Revenues $2,573,435 $2,380,019
Cost of goods sold 1,532,422 1,435,246
Gross profit 1,041,013 944,773
Operating expenses:
Engineering 377,980 292,339
Selling and marketing 643,593 466,260
General and administrative 747,965 845,891
Total operating expenses 1,769,538 1,604,490
Operating loss (728,525) (659,717)
Other expenses:
Interest expense 54,314 84,654
Total other expenses 54,314 84,654
Loss before benefit for income tax (782,839) (744,371)
Benefit for income tax -- (140,000)
Net loss $ (782,839) $ (604,371)
Basic loss per share $ (0.28) $ (0.28)
Diluted loss per share $ (0.28) $ (0.28)
Weighted Average Shares Outstanding 2,821,000 2,168,661
This press release may contain certain forward-looking statements that
involve risks and uncertainties. The actual results realized by the Company
could differ materially from the statements made herein. Factors that might
cause such differences include, but are not limited to: volatility and
uncertainties in communications and defense, the primary two industries
targeted by the Company; failure to develop and market fiber optic products;
lack of reliable vendors, service providers and outside products; poor
military sales cycles; unforeseen changes in competing technologies and
products; worldwide economic variances; poor or delayed research and
development results; and disparities between forecast and realized sales.
Additional factors are discussed in the company's Annual Report on Form 10K,
filed with the Securities and Exchange Commission.
Optelecom, Inc. designs, develops, manufactures and markets high-bandwidth
communications products, financial market data information and business video
systems. Optelecom headquarters are located at 9300 Gaither Rd.,
Gaithersburg, MD 20877; telephone 301-840-2121.
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SOURCE Optelecom, Inc.
-0- 08/14/2001
/CONTACT: Rick Alpert of Optelecom, Inc., +1-301-948-7872/
/Web site: optelecom.com
(OPTC)
CO: Optelecom, Inc.
ST: Maryland
IN: CPR TLS FIN OTC
SU: ERN
*** end of story *** |
