Xenonics Reports Third Quarter Results
|Streamlight, Inc. Press Release||FlashlightNews.org - 8/14/2007|
Company reports revenue increased 20%, quarterly loss increased to $0.11 per share
XENONICS HOLDINGS, INC.
CARLSBAD, Ca. - XENONICS HOLDINGS, INC. (AMEX:XNN), a leader in advanced illumination and low-light viewing technologies, today announced financial results for the third quarter of fiscal 2007, highlighted by initial revenue from its patented and proprietary SuperVision™ low-light viewing system launched during the quarter.
For the three months ended June 30, 2007, revenue increased 20% to $1,023,000, including SuperVision revenue of $593,000 and revenue from sales of its NightHunter high-intensity illumination products of $430,000. For the three months ended June 30, 2006, revenue was $855,000.
Gross margin for this year's third quarter reflected start-up costs and increased headcount associated with SuperVision manufacturing.
Selling, general and administrative expenses increased to $2,158,000 for the third quarter of fiscal 2007 compared to $827,000 for the third quarter of fiscal 2006, primarily reflecting higher advertising, trade show and other selling expenses associated with the SuperVision roll-out as well as $571,000 of non-cash charges related to options and warrants.
The net loss for this year's third quarter was $1,952,000, or $0.11 per share. This compares to a net loss for the third quarter of 2006 of $633,000, or $0.04 per share.
For the nine months ended June 30, 2007, revenue increased 44% to $3,585,000 compared to $2,493,000 for the first nine months of 2006. The net loss for this year's first nine months was $2,534,000, or $0.14 per share, compared to a net loss for the first nine months of the prior year of $2,241,000, or $0.14 per share.
At June 30, 2007, Xenonics reported working capital of $3,772,000 and stockholders' equity of $4,010,000. At September 30, 2006, working capital was $2,329,000 and stockholders' equity was $2,400,000. Xenonics has no debt.
Chief Executive Officer Chuck Hunter said, "We are making steady progress in the implementation of our business plan for both our SuperVision and NightHunter product families."
Hunter continued, "We have achieved our initial target for SuperVision production capacity of up to 2,000 units per month, and are now focused on expanding and refining our marketing efforts and recruiting additional sales personnel to take full advantage of the commercial potential of our unique low-light vision system in recreational, public safety and other large markets. We recently announced that the Army & Air Force Exchange Service (AAFES), which operates 'BX/PX' stores on U.S. military bases throughout the world, soon will begin carrying SuperVision in selected AAFES locations. AAFES joins Bass Pro Shops, Cabela's and other leading national accounts in our growing distribution network. We are pleased by our customers' enthusiastic response to SuperVision, and are confident that our product will gain traction in the marketplace in the months ahead.
"We also have recently introduced two new products in our NightHunter family of high-intensity illumination systems which address large market opportunities. Following two years of development, this week we will ship we recently shipped our new weapons-mounted illumination system, NightHunter3, to the U.S. Army for evaluation under the Crew Served Weapons program. With an initial program size of up to 70,000 systems, and procurement scheduled to begin in fiscal 2008, this program offers significant growth potential. In addition, the Army is now evaluating our tactical device designed for the Family of Flashlights (FoF) procurement program, and we are optimistic that the FoF program can become an additional growth opportunity for Xenonics," Hunter said. He added that Xenonics continues to anticipate significant orders from the Department of Defense for its NightHunter and NightHunterII illumination devices.
Xenonics 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 are used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision night vision device 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.