Company Press Release
SOURCE: Orbit/FR, Inc.
ORBIT/FR, Inc. Reports 2nd Quarter Results
HORSHAM, Pa., Aug. 6 /PRNewswire/ -- ORBIT/FR, Inc. (Nasdaq: ORFR - news) reports today the Company incurred a loss of $0.02 per share for
the three month period ended June 30, 1998. The loss was caused mainly by ''Other Charges'' of approximately $0.03 per share related to the previously
announced investigation by the US Customs Service and from charges related to the proposed RDL, Inc. acquisition which was not completed. The
Company believes that revenues were also negatively impacted approximately 15% in the 2nd quarter related to project and management distractions
arising out of the US Customs matter.
''Favorable results are still anticipated for the 2nd half of 1998, as early activity in contract bookings were very strong for July including a partial rebound in
Asia,'' stated Aryeh Trabelsi, CEO.
Revenues for the second quarter of 1998 were $3.7 million versus $5.3 million for the corresponding quarter in 1997. A net loss of $145 thousand was
incurred for the quarter compared to a net profit of $865 thousand for the second quarter of 1997. A loss of $0.02 per share for the quarter was based on
6.1 million diluted common shares outstanding, compared to earnings per share of $0.20 per share based on 4.3 million diluted common shares outstanding
for the comparable period in 1997.
Revenues for the first six months of 1998 were $8.1 million versus $10.2 million for the corresponding period in 1997. Net income for the first six months of
1998 was $389 thousand compared to $1.5 million for the comparable period of 1997. Earnings per share for the first six months were $0.06 per share
based on 6.2 million diluted common shares outstanding, compared to $0.35 per share based on 4.1 million diluted common shares outstanding for the
comparable period in 1997.
''Although we are extremely disappointed with the RDL outcome and the impact of the US Customs investigation, we continue to believe we are well
positioned to provide excellent solutions in growth markets in the US and Europe. We expect that this position, combined with ORBIT/FR's acquisition
strategy, strong financial position and most important, our dedicated talented employees worldwide, will return us to our previous growth rates,'' said Aryeh
Trabelsi.
ORBIT/FR, Inc. develops, markets and supports sophisticated automated microwave test and measurement systems for the wireless communication,
satellite, automotive and aerospace/defense industries.
Except for historical information, the matters discussed in this news release may be considered ''forward-looking'' statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include
declarations regarding the current intent, belief or expectations of the Company and its management. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual
results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended December 31, 1997 and Forms 10-Q.
ORBIT/FR, Inc.
Consolidated Statements of Operations
($000's except share and per share data)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
1998 1997 1998 1997
Total revenues $ 3,747 $ 5,314 $ 8,062 $10,220
Cost of revenues 2,406 3,140 4,756 6,281
Gross profit 1,341 2,174 3,306 3,939
Operating expenses:
General and administrative 566 364 1,056 683
Sales and marketing 423 273 947 546
Research and development 377 246 678 466
Other charges (a) 345 0 345 0
Total operating expenses 1,711 883 3,026 1,695
Operating income/(loss) (370) 1,291 280 2,244
Other income, net 147 40 318 17
Income/(loss) before
income taxes (223) 1,331 598 2,261
Income tax expense/(benefit) (78) 466 209 810
Net income/(loss) $ (145) $ 865 $ 389 $ 1,451
Net income/(loss)
per common share
Basic $ (0.02) $ 0.20 $ 0.06 $ 0.35
Diluted $ (0.02) $ 0.20 $ 0.06 $ 0.35
Weighted average number of
shares outstanding
Basic 6,072,973 4,228,951 6,072,973 4,115,108
Diluted 6,072,973 4,271,685 6,153,573 4,137,071
(a) US Customs expense and RDL, Inc. acquisition costs |
