ORBIT/FR Reports Q4 and 2002 Results
HORSHAM, Pa., March 13 -- ORBIT/FR, Inc. , a leading producer of sophisticated, automated microwave test and measurement systems for the aerospace/defense, wireless communication, automotive, and satellite industries, today reported results for the three-month and year periods ended December 31, 2002.
The Company's revenues for the three months ended December 31, 2002 increased approximately 48% to $3.7 million, up from $2.5 million for the three-month period ended September 30, 2002, and decreased approximately 12% from $4.2 million for the three months ended December 31, 2001. The Company's gross margin for the three months ended December 31, 2002 was 32% compared to 27% for the three-month periods ended September 30, 2002 and December 31, 2001. The Company's operating loss for the three months ended December 31, 2002 was approximately $487,000, compared to operating losses of $810,000 and $750,000, respectively, for the three-month periods ended September 30, 2002 and December 31, 2001. The Company's net loss before cumulative effect of change in accounting principle for the three months ended December 31, 2002 was $602,000 (or $0.10 per basic and diluted common share), compared to a $737,000 net loss (or $0.12 per basic and diluted common share) recognized during the three months ended September 30, 2002, and compared to a $856,000 net loss (or $0.14 per basic and diluted common share) for the three months ended December 31, 2001.
Revenues for the year ended December 31, 2002 decreased approximately 30% to $13 million down from $18.6 million for the comparable period in 2001. The Company's gross margin percentage for the year ended December 31, 2002 was 29% compared to 27% for the year ended December 31, 2001. The Company's operating loss for the year ended December 31, 2002 was approximately $2.5 million, compared to $1.4 million for the year ended December 31, 2001. A net loss before cumulative effect of change in accounting principle of $2.6 million, (or $0.43 loss per basic and diluted common share), was recorded for the year ended December 31, 2002 compared to a net loss before cumulative effect of change in accounting principle of $2.0 million, (or $0.33 per basic and diluted common share), for the comparable period in 2001. Loss per share calculations are based upon approximately 6.0 million weighted average common and diluted shares outstanding for all periods.
Operating results for the year ended December 31, 2002 exclude charges related to the adoption of a change in accounting principle for goodwill. Under the adopted principle, goodwill will no longer be amortized over its estimated useful life, but will be tested annually for impairment. During the nine months ended December 31, 2002, the Company recognized a $301,000 goodwill impairment.
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, including those regarding the ability to obtain new contracts, and future profitability 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, 2001 and Form 10-Q.
This press release, and all SEC filings are available at www.orbitfr.com.
ORBIT/FR, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
Dec. 31, Sept. 30, Dec. 31, December 31,
2002 2002 2001 2002 2001
Unaudited
Contract revenues $3,727 $2,521 $4,249 $13,053 $18,612
Cost of revenues 2,526 1,840 3,110 9,312 13,589
Gross profit 1,201 681 1,139 3,741 5,023
Operating expenses:
General and administrative 689 702 779 2,764 3,197
Sales and marketing 677 507 582 2,324 2,093
Research and development 322 282 528 1,144 1,142
Total operating expenses 1,688 1,491 1,889 6,232 6,432
Operating loss (487) (810) (750) (2,491) (1,409)
Other income (loss), net (45) 7 28 59 82
Loss before income taxes and
cumulative effect of change
in accounting principle (532) (803) (722) (2,432) (1,327)
Income tax expense (benefit) 70 (66) 134 145 669
Net loss before cumulative
effect of change in
accounting principle (602) (737) (856) (2,577) (1,996)
Cumulative effect of change
in accounting principle -- -- -- (301) --
Net loss $(602) $(737) $(856) $(2,878) $(1,996)
Basic and diluted loss per
share
before cumulative
effect of change in
accounting principle $(0.10) $(0.12) $(0.14) $(0.43) $(0.33)
cumulative effect of
change in accounting
principle (0.00) (0.00) (0.00) (0.05) (0.00)
Basic and diluted loss
per share $(0.10) $(0.12) $(0.14) $(0.48) $(0.33)
Weighted average number
common shares - basic
and diluted 6,002 6,002 6,002 6,002 6,008
December
Selected Financial Data 2002 2001
Cash and cash equivalents $3,030 $4,413
Working capital $4,749 $7,037
Total assets $11,875 $14,126
Total liabilities $5,392 $4,765
Stockholders' equity $6,483 $9,361