Optibase
Optibase, LTD. Announces Second Quarter Results
Monday 04 August 2008
| HERZLIYA, Israel, August 4, 2008 – Optibase, Ltd. (NASDAQ:OBAS), a leader in advanced digital video solutions, today announced financial results for the second quarter ended June 30, 2008. |
| Revenues for the second quarter ended June 30, 2008 were $5.7 million compared with $4 million for the first quarter of 2008 and $6.7 million for the second quarter of 2007. |
| Net loss for the quarter ended June 30, 2008, was $2.1 million or $0.15 per basic and fully diluted share. This compares with a net loss of $2.9 million or $0.21 per basic and fully diluted share for the first quarter of 2008, and a net loss of $2 million or $0.15 per basic and diluted share for the second quarter of 2007. Weighted average shares outstanding used in the calculation were approximately 14 million basic and fully diluted for the second quarter of 2008 and 13.6 million basic and fully diluted for the first quarter of 2008 and 13.5 million basic and fully diluted for the second quarter of 2007. |
| For the six months ended June 30, 2008, revenues totaled $9.8 million, compared with $12.2 million for the six months ended June 30, 2007. Net loss for the period was $5 million or $0.36 per basic and fully diluted share, compared to a net loss of $3.5 million or $0.26 per basic and fully diluted share for the six months ended June 30, 2007. Weighted average shares outstanding used in the calculation for the periods were approximately 13.8 million basic and fully diluted and 13.5 million basic and fully diluted respectively. |
| As of June 30, 2008, the Company had cash, cash equivalents, and other financial investments, net, of $12.4 million, and shareholders’ equity of $39.4 million, compared with $7.6 million, and $36 million as of March 31, 2008 respectively. |
| Amir Philips CFO of Optibase, commented, “We gained back our momentum in the quarter with increased revenues, The execution of our strategy continued on track with our two new products, Creator Ingest Server and the EZ TV and the MGW X100 products. Our backlog and pipeline are showing significant growth for the second half of 2008 and we are on track realizing some of the contracts that were delayed last quarter. |
| “Our bottom-line continued to be impacted by the devaluation of the U.S. dollar compared to the New Israeli Shekel, the result of which again added pressure to our operating income. Despite this, our businesses and sales of our products have shown growth over the first quarter of 2008.” |
| He concluded by saying, “We are optimistic about what is to come for Optibase in terms of product innovation and new orders. Our strong R & D is an advantage that provides us with the ability to continually accommodate and serve our current and future customers.” |
| 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 |
| Conference Call: |
| Optibase has scheduled a conference call for 9 a.m. EDT, August 4, 2008 to discuss the second quarter results. For those unable to participate, there will be replay available from 12:00 p.m. EDT on August 4, 2008 through 11:59 p.m. EDT, September 4, 2008. Please call: +(800) 642-1687 (Domestic) and +(706) 645-9291 (International). REPLAY CODE: 57167356. |
| Interested parties may access the conference call over the Internet via, www.kcsa.com. To listen to the live call, please go to the KCSA Web site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software. |
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Six months ended Three months ended
June 30 June 30 June 30 June 30
2008 2007 2008 2007
$ $ $ $
Unaudited Unaudited Unaudited Unaudited
Revenues 9,770 12,221 5,743 6,672
Gross profit 4,964 5,772 2,936 2,790
Operating expenses:
Research and development, net 3,289 2,471 1,588 1,270
Selling, general and administrative 6,101 4,919 3,195 2,625
Total operating expenses 9,390 7,390 4,783 3,895
Operating loss (4,426 ) (1,618 ) (1,847 ) (1,105 )
Other expenses (705 ) (2,084 ) (219 ) (810 )
Financial income (expense), net 115 200 (47 ) (123 )
Net loss from continuing operations
(5,016 ) (3,502 ) (2,113 ) (2,038 )
Income related to discontinued operations
20 - 10 -
Net loss (4,996 ) (3,502 ) (2,103 ) (2,038 )
Other comprehensive income
Unrealized holding losses on available for sale securities
(267 ) (664 ) - (799 )
Total comprehensive loss (5,263 ) (4,166 ) (2,103 ) (2,837 )
Net loss per share:
Basic and diluted ($0.36 ) ($0.26 ) ($0.15 ) ($0.15 )
Number of shares used in computing
Earning per share
Basic and diluted
13,829 13,511 14,017 13,527
Amount in thousands except per share data
Optibase Ltd.
Condensed Consolidated Balance Sheets
June 30
2008
December 31
2007
Unaudited
Assets
Current Assets:
Cash, cash equivalents and short term investments, net 12,365 18,387
Trade receivables net of allowance for bad debts 4,308 4,053
Inventories 4,267
5,321
Other receivables and prepaid expenses 921 1,487
Assets Related To Discontinued Operations - 43
Total current assets 21,861 29,291
Other long term investments 28,553 20,316
Fixed assets, net 1,627 1,691
Total assets 52,041 51,298
Liabilities and shareholders' equity
Current Liabilities:
Trade payables 2,207 2,753
Accrued expenses and other liabilities 6,737 6,278
Liabilities Related To Discontinued Operations 162 162
Total current liabilities 9,106 9,193
Accrued severance pay 3,582 2,941
Total shareholders’ equity 39,353 39,164
Total liabilities and shareholders’ equity 52,041 51,298
Amounts in thousands
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