Optibase
OPTIBASE, LTD. ANNOUNCES THIRD QUARTER RESULTS
Wednesday 07 November 2007
| HERZLIYA, Israel, November 7, 2007 – Optibase, Ltd. (NASDAQ:OBAS) a leader in |
| advanced digital video solutions today announced financial results for the third quarter ended September |
| 30, 2007 |
| Revenues for the third quarter ended September 30, 2007 were $5.2 million compared with $6.7 |
| million in the second quarter of 2007 and $4.3 million for the same period a year ago. |
| Net loss for the quarter ended September 30, 2007, was $1.6 million or $0.12 per basic and fully |
| diluted share, compared with a net loss of $1.2 million or $0.09 per basic and fully diluted share for the |
| second quarter of 2007 and with a net loss of $589,000 or $0.04 per basic and fully diluted share for the |
| third quarter of 2006. Weighted average shares outstanding used in the calculation for the periods were |
| approximately 13.6 million basic and fully diluted for the third quarter of 2007, 13.5 million basic and |
| fully diluted for the second quarter of 2007 and approximately 13.5 million basic and fully diluted for |
| the third quarter of 2006. |
| For the nine months ended September 30, 2007, revenues totaled $17.4 million, compared with |
| $12.6 million for the same period in 2006. Net loss for the period was $3.3 million or $0.24 per basic |
| and fully diluted share, compared to a net loss of $3 million or $0.22 per basic and fully diluted share for |
| the nine months ended September 30, 2006. Weighted average shares outstanding used in the calculation |
| for the periods were approximately 13.6 million and 13.4 million respectively. |
| As of September 30, 2007, the Company had cash, cash equivalents and long term investments in |
| marketable securities and other financial investments, net, of $20 million, and shareholders’ equity of |
| $42.5 million. |
| Amir Philips CFO of Optibase, said, “We have continued to make progress toward achieving our |
| primary financial and strategic goals. Our revenue increased 19.75% for the quarter and 37.7% for the |
| first nine months and our gross margins are back to historical levels following last quarter’s product |
| mix-related decline. |
| OPTIBASE REPORTS/2 |
| 2 |
| “Also, there were several contract wins in enterprise, or non-telco markets, an area that represent |
| a growing opportunity for Optibase, which we hope to report on in the future. These wins, including |
| announced IPTV installations at Fort Leavenworth, Kansas and Vancouver Airport, are good examples |
| of the adaptability of Optibase’s technology for use outside the traditional telco-TV market. |
| “Notwithstanding our recent success in the enterprise arena, we are also making steady progress |
| within the more traditional telco market outside of the United States / North America. Bharti Airtel, a |
| carrier with service in 94 cities in India, chose Optibase’s MGW 5100 IPTV encoding platforms for its |
| planned IPTV service offerings. Additionally, our strategy to partner with local systems integrators |
| yielded an installation in Spain. |
| “We further strengthened our executive suite as Yossi Aloni was named president of Optibase |
| Inc. in the United States and Eli Sharon had joined the Company as vice president of research & |
| development. Both Yossi and Eli have considerable experience in the video and broadcast markets, and |
| we believe both will be great assets in taking Optibase to the next level,” |
| He concluded, “We remain pleased with the progress we are making, both broadly and within the |
| individual markets we serve. While our revenues were down on a sequential basis, we view Q2 as an |
| anomaly given the high concentration of third-party equipment we sold and are encouraged by our |
| growth as compared to the third quarter of 2006.” |
| Conference Call: |
| Optibase has scheduled a conference call for 9 a.m. EDT today to discuss the third quarter results. For those unable to |
| participate, there will be replay available from 12:00 p.m. EDT on October 29, 2007 through 11:59 p.m. EST, November 14, |
| 2007. Please call: 1-973-341-3080 (Domestic & International), and enter ID replay code 9415212. The conference call may |
| also be accessed over the Internet via, www.kcsa.com. Please logon at least 15 minutes prior to the scheduled start time to |
| register, download and install any necessary audio software. |
| About Optibase |
| Optibase provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, |
| service providers, broadcasters and content creators. The company’s platforms enable the creation, broadband streaming and |
| playback of high quality digital video. Optibase’s breadth of product offerings are used in applications, such as: video over |
| DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance |
| learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain |
| View, California and offices in, Japan, China, India and Singapore. Optibase products are marketed in over 40 countries |
| through a combination of direct sales, independent distributors, system integrators and OEM partners. For further |
| information, please visit www.optibase.com. |
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Nine months ended Three months ended
September 30 September 30 September 30 September 30
2007 2006 2007 2006
$ $ $ $
Unaudited Unaudited Unaudited Unaudited
Revenues 17,372 12,612 5,150 4,303
Gross profit 8,615 7,220 2,843 2,481
Operating expenses:
Research and development, net 3,703 3,229 1,232 1,201
Selling, general and administrative 7,433 8,122 2,449 2,715
Total operating expenses 11,136 11,351 3,681 3,916
Operating loss (2,521) (4,131) (838) (1,435)
Other (expenses) income (324) (172) (171) (175)
Financial income (loss), net (320) 1,346 (520) 1,021
Net loss from continuing operations (3,165) (2,957) (1,529) (589)
Income related to discontinued operations (87) 0 (87) 0
Net loss (3,252) (2,957) (1,616) (589)
Other comprehensive income
Unrealized holding gains (losses) on available for sale securities 411 579 1,161 1,855
Total comprehensive (loss) income (2,841) (2,378) (455) 1,266
Net loss per share:
Basic ($0.24) ($0.22) ($0.12) ($0.04)
Diluted ($0.24) ($0.22) ($0.12) ($0.04)
Number of shares used in computing
Earning per share
Basic
13,556 13,421 13,619 13,455
Diluted 13,556 13,421 13,619 13,455
Amount in thousands
Optibase Ltd.
Condensed Consolidated Balance Sheets
September 30
December 31
2007 2006
Unaudited Audited
Assets
Current Assets:
Cash, cash equivalents and short term investments, net 20,006 40,695
Trade receivables net of bad debts 3,744 4,544
Inventories 5,394 4,147
Other receivables and prepaid expenses 975 1,272
Assets Related To Discontinued Operations 43 157
Total current assets 30,162 50,815
Long term investments in marketable securities - 2,207
Other long term investments 22,604 2,616
22,604 4,823
Fixed assets, net 1,713 1,700
Total assets 54,479 57,338
Liabilities and shareholders' equity
Current Liabilities:
Trade payables 3,004 1,764
Accrued expenses and other liabilities 5,946 8,555
Liabilities Related To Discontinued Operations 214 155
Total current liabilities 9,164 10,474
Accrued severance pay 2,758 2,371
Total shareholders’ equity 42,557 44,493
Total liabilities and shareholders’ equity 54,479 57,338
Amounts in thousands
Contact:
Media Contacts:
Optibase, Ltd.
Director of Corporate Communications
Tally Netzer, 011-972-9-9709-125
tallyn@optibase.com
or
ink Communications for Optibase
Jane Pruitt, +1-617-488-0988 ext. 3
jane@theinkstudio.com
or
Investor Relations Contact:
KCSA for Optibase
Lee Roth, +1-212-896-1209
lroth@kcsa.com
Marybeth Csaby, +1-212-896-1236
mcsaby@kcsa.com
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