InVision Technologies Reports Strong Second-quarter Results; Company Earns $0.52 Per Share, Revenues Double From First Quarter
BUSINESS WIRE - July 23, 2002 16:17
NEWARK, Calif., Jul 23, 2002 (BUSINESS WIRE) -- InVision Technologies, Inc. (Nasdaq:INVN) today reported results for the second quarter ended June 30, 2002. For the quarter, InVision reported total revenues of $68.4 million compared to revenues of $17.4 million a year ago and $33.2 million in the first quarter of 2002. Net income was $9.6 million, or $0.52 cents per diluted share, compared to $144,000, or $0.01 per diluted share, for the second quarter of 2001, and compared to $2.8 million, or $0.17 per diluted share, for the first quarter of 2002.
Gross margin in the second quarter was 42% of revenues compared to 31% in the same period last year, and 40% in the first quarter of 2002.
For the second quarter, operating expenses were $11.4 million, or 17% of revenues, compared with $5.0 million, or 29% of revenues, in the second quarter of 2001. In the first quarter of 2002, InVision's operating expenses were $8.7 million, or 26% of revenues.
For the first six months of fiscal 2002, InVision reported revenues of $101.6 million compared with revenues of $34.9 million in the first six months of fiscal 2001. The company reported net income of $12.4 million, or $0.73 per diluted share, for the first six months of fiscal 2002, versus $233,000, or $0.02 per diluted share, in the first six months of fiscal 2001.
"For the quarter, our product revenues were approximately one-third greater than product revenues for the entire year 2001. At the same time, effective leveraging of existing infrastructure produced historically strong gross margin and operating expense performance," said Sergio Magistri, Ph.D., InVision's president and chief executive officer. "We are very pleased with our performance for the second quarter, and believe that it demonstrates our ability to rapidly grow our business, while at the same time delivering very strong financial performance."
As of June 30, 2002, total company backlog was $375.1 million, of which $366.6 million was for explosives detection systems (EDS) products and services. Of the EDS backlog, 77% was from the U.S. Transportation Security Administration (TSA), with the remainder primarily from international customers. Since then, InVision announced additional orders from the TSA for $106.8 million in completed systems and parts.
"This most recent order includes the TSA's first sizeable order for CTX 9000 DSi units. This is significant for InVision because it reflects the position of most of the larger airports in the U.S. to move to faster, automated EDS solutions integrated into the baggage handling systems of airports," said Dr. Magistri. "These integrated solutions provide superior throughput and customer convenience. However, it can take more than a year to plan, design and construct integrated baggage handling systems. As a result, we expect to see demand in the U.S. for the CTX 9000 DSi to continue well beyond this year."
Current highlights -- Since March, the TSA has ordered 458 complete systems across InVision's full product line, and has funded the company to purchase parts kits for an additional 142 systems; -- InVision continues to see solid indications of robust international demand. During the second quarter, $43.9 million in orders were booked from customers in France, Italy, Canada, and Israel, as well as the first order from a U.S. airline for installation abroad; -- During the second quarter, InVision's manufacturing subcontractor CoorsTek began production of CTX 2500 EDS in its own facility, and has prepared for volume production of both 2500 CTX and 5500 CTX models beginning in the third quarter; -- Total headcount related to EDS products and service went to 425 from 328 during the quarter, an increase of 30%; -- InVision opened a field service office in France to serve European customers. This effort is part of a comprehensive plan to strengthen the service organization worldwide. During the second quarter, InVision added 18% to its service organization headcount; -- In May, InVision received a $1 million grant from the TSA to develop an upgrade to the CTX(TM) family of explosives detection systems utilizing quadrupole resonance technology. The company's Quantum Magnetics subsidiary will do the research on this effort to reduce operator alert rates and improve overall performance on existing systems; and -- Andrew Siegel joined the management team as the Vice President of Business Development, a new position. Looking forward
Dr. Magistri said, "We expect third-quarter revenues of at least $110 million and EPS of at least $1.00 per share. For the fourth quarter, InVision will continue to deliver on existing orders, and will build to new orders, as our customers require.
"In June, the TSA hired a team led by Boeing Co. and Siemens Corp. to oversee the installation of the systems. InVision has begun a close working relationship with the Boeing/Siemens team. The current national and international focus on aviation security highlights the contribution InVision can make to safer airline travel, and we look forward to continuing our work," said Dr. Magistri.
InVision Technologies, Inc. will webcast a presentation regarding these results and InVision's outlook for the future over the Internet at 1:45 pm (PDT) today. To listen, please log on to www.InVision-tech.com, and follow the link that will be posted on the front page. A replay of the webcast will be available shortly after the presentation and will remain available through midnight (EDT) on July 30, 2002. |
