Xenonics Reports 2nd Quarter
|Xenonics Holdings, Inc. Press Release||FlashlightNews.org - 5/13/2008|
Company reports net income of $222,000 as revenue increased to $3.6 million
Xenonics NightHunterII Handheld Illumination System
CARLSBAD, Ca. - XENONICS HOLDINGS, INC. (AMEX: XNN), a leader in high-intensity illumination and high-definition night vision technologies, today announced financial results for the second quarter and first six months of fiscal 2008, highlighted by sharply higher revenue and net income versus the comparable periods of fiscal 2007.
For the three months ended March 31, 2008 net income increased to $222,000, or $0.01 per basic and diluted share, on a 120% increase in revenue to $3,622,000. This compares to a net loss for the second quarter of fiscal 2007 of $177,000, or $0.01 per basic and diluted share, on revenue of $1,646,000.
For the first half of fiscal 2008, net income increased to $534,000, or $0.03 per basic and diluted share. This compares to a net loss for last year's first half of $582,000, or $0.03 per basic and diluted share. Revenue increased 180% to $7,182,000 compared to $2,562,000 for the same period last year.
Gross profit for this year's second quarter was 46% of revenue. This is not directly comparable to gross profit of 79% of revenue for the second quarter of fiscal 2007, which was positively affected by sales of NightHunter II devices from what was previously identified as excess inventory. All excess NightHunter II inventory had been shipped to customers as of June 30, 2007.
At March 31, 2008, the Company had working capital of $5,316,000 and a current ratio of 4.7-to-1, as compared to working capital of $4,527,000 and a current ratio of 4.9-to-1 at September 30, 2007. The increase in sales for the first six months of fiscal 2008 versus prior year resulted in an increase in accounts receivable by $3,187,000 and a decrease in inventories of $916,000. The majority of the receivables were collected after March 31, 2008.
"Our solid second quarter and first half results were primarily driven by sales of our NightHunter highintensity illumination products to U.S. military customers, supplemented by modest but steadily growing shipments of our SuperVision high-definition night vision systems to more than 50 police departments and state and federal agencies throughout the country. Feedback from these customers confirms our belief that SuperVision's combination of price and performance cannot be matched by any other night vision technology. Based on this consistently enthusiastic response to our revolutionary HD night vision device, we expect SuperVision to become an increasingly significant contributor to our growth," said Chuck Hunter, Chief Executive Officer of Xenonics.
Hunter continued, "As planned, we have sold all of our inventory of our NightHunter II highintensity illumination devices in anticipation of the launch of NightHunter 3 in the third quarter of fiscal 2008. Two years in development, and now in production by our supplier, Perkin Elmer, NightHunter 3 is half the size and weight of NightHunter II and can illuminate targets at a greater distance. NightHunter 3 is currently being tested by the U.S. Army as part of formal evaluation for the Crew Serve Weapons Light program, where initial requirements exceed 25,000 pieces with procurement scheduled to begin in fiscal 2009. Clearly, this program alone is a major growth opportunity for Xenonics, and we believe the market for NightHunter 3 extends beyond the U.S. Army into other military programs in the U.S. and internationally."
Conference Call Xenonics has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its results for the quarter. The dial in number is (866) 700-7441 (international dial in number is (617) 2138839), and the passcode is 86082840. A simultaneous webcast of the conference call can be accessed from the Webcast Center of the Investor Relations link at www.xenonics.com. A replay will be available after 1:00 p.m. EDT at this same Internet address. For a telephone replay, dial (888) 286-8010 (international dial in number is (617) 801-6888), passcode 60953640, after 1:00 p.m. EDT.
Xenonics Holdings, Inc. (AMEX: XNN) develops and produces advanced, lightweight and compact ultra-high-intensity illumination and low-light vision products for military, law enforcement, public safety, and commercial and private sector applications. Xenonics' NightHunter line of illumination products is used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision high-definition night vision is designed for commercial and military applications. Employing patented technologies, Xenonics provides innovative solutions for customers who must see farther so they can do their jobs better and safer. Xenonics' products represent the next generation in small, high intensity, high efficiency illumination and low-light vision systems.
Visit Xenonics on the web at www.xenonics.com.