Click here to close now.




















Welcome!

News Feed Item

Optex Systems Holdings, Inc. Releases Quarterly Results

RICHARDSON, TX--(Marketwired - May 14, 2014) - Optex Systems Holdings, Inc. (OTCQB: OPXS), a leading manufacturer of optical sighting systems and assemblies primarily for Department of Defense applications, reported operating results for the three months ended March 30, 2014.

In the three months ended March 30, 2014, revenues decreased by ($1.6) million or (42.1%) from the respective prior period in 2013. The decreased revenue is primarily due to lower revenue in plastic and glass periscopes due to reduced spending by the U.S. Government compared to prior year levels.The gross margin during the three months ended March 30, 2014 was $0.36 million or 16.4% of revenues as compared to a gross margin of $0.66 million or 17.4% for the three months ended March 31, 2013. The slight decrease in gross margin percentage for the period, as compared to the prior year period, is primarily due to reserves booked for excess slow moving inventory in the current quarter. During the three months ended March 30, 2014, we recorded a net loss applicable to common shareholders of ($0.14) million as compared to net loss applicable to common shareholders of ($0.11) million during the three months ended March 31, 2013. The increased loss of ($0.03) million is primarily due to the lower revenue and the associated gross margin offset with reduced general and administrative spending of $0.23 million and favorable changes in deferred income taxes of $0.02 million and interest expense of $0.01 million in the current year period as compared to the prior year.

In the six months ended March 30, 2014, revenues decreased by ($2.1) million or (27.6%) from the respective prior period in 2013. There continues to be uncertainty in future U.S. military spending over the next 10 years pending Congressional resolution of the sequestration cuts to defense spending which began in fiscal year 2013. The ramifications of the 2012 Congressional budget sequestration have resulted in yet more uncertainty and potential cuts in spending by the U.S. military, and we have had to explore other avenues of revenue. We continue to explore other opportunities for manufacturing outside of our traditional product lines for products which could be manufactured using our existing capabilities in order to fully utilize our existing capacity. Given the reduction in backlog in early fiscal year 2014, we do not anticipate being able to fully offset the reduced government spending with alternative business in the next six months.The gross margin during the six months ended March 30, 2014 was $0.98 million or 17.8% of revenues as compared to a gross margin of $1.35 million or 17.8% for the six months ended March 31, 2013. The total gross margin is down for the six months due to lower revenue, however the gross margin as a percentage of revenue is in line with the prior year period gross margin.During the six months ended March 30, 2014, we recorded a net loss applicable to common shareholders of ($0.16) million as compared to a net loss applicable to common shareholders of ($0.7) million during the six months ended March 31, 2013. The increase in net loss of ($0.09) million is primarily attributable to lower revenue and the associated gross margin offset with the reduced general and administrative spending of $0.2 million and favorable changes in deferred income taxes of $0.04 million in the current year period as compared to the prior year.

Backlog, as of March 30, 2014, was $11.1 million as compared to a backlog of $16.5 million as of March 31, 2013, representing a decrease of $5.4 million or 32.7%. In the six months ending March 30, 2014, Optex Systems Holdings received $4.4 million in new orders consisting of $2.3 million in plastic periscopes, $1.7 million in M36/DDAN sighting systems and $0.4 million in other product lines.

As of March 30, 2014, we had cash and cash equivalents of $1.2 million. During the period from September 29, 2013 through March 30, 2014, we increased cash and cash equivalents by $0.03 million primarily attributable to decreased purchases and inventory and collections on open accounts receivable, which was partially offset by payments against the credit facility. We believe our resources and liquidity are sufficient for the next twelve months of operations.

"Second Quarter results were disappointing and below expectation," stated Danny Schoening, Optex CEO. "The volume of new solicitations and product orders from U.S. Government Defense agencies continue to slow as the results of defense spending cutbacks are realized. In addition, the shift in purchasing responsibility for many of our products has been transferred to the Defense Logistics Agency (DLA) where there's been a noticeable shift from reliability to lower price. We are transitioning several of our volume periscopes to lower cost models with streamlined production overhead to meet this new criteria."

In this quarter our sales to foreign entities continues to expand and we delivered the first order of Optex's electronically enhanced M17 Day/Thermal periscope to a South American country's department of defense. Additionally, we are presenting our entire product line of modernized periscopes and sighting systems at the Armored Vehicles Latin America in Rio de Janeiro, Brazil on May 27-29, 2014.

Merrick Okamoto, Optex's Chairman, also commented, "Our corporate focus continues to be on merger and acquisition opportunities because we're confident that a strong partnership can benefit Optex and other companies during this cycle of lower defense spending. Our commitment continues to be providing high-quality, value and durable products to defense organizations worldwide."

ABOUT OPTEX SYSTEMS

Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2008 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.

Safe Harbor Statement

This press release and other written reports and oral statements made from time to time by the Company may contain so-called "forward-looking statements," all of which are subject to risks and uncertainties. You can identify these forward-looking statements by their use of words such as "expects," "plans," "will," "estimates," "forecasts," "projects" and other words of similar meaning. You can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address the Company's growth strategy, financial results and product and development programs. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially.

The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.

                                                                            
                     Optex Systems Holdings, Inc.                           
                 Condensed Consolidated Balance Sheets                      
                                                                            
                                             (Thousands, except share data) 
                                                                            
                                             March 30, 2014   September 30, 
                                              (Unaudited)         2013      
                                             --------------  -------------- 
                                                                            
                   ASSETS                                                   
                                                                            
Current Assets                                                              
Cash                                         $        1,157  $          882 
Accounts Receivable                                   1,270           3,118 
Net Inventory                                         6,923           7,579 
Prepaid Expenses                                         29              36 
                                             --------------  -------------- 
                                                                            
Total Current Assets                                 9,379          11,615  
                                                                            
Property and Equipment                                                      
Property Plant and Equipment                          1,704           1,704 
Accumulated Depreciation                             (1,498)         (1,460)
                                             --------------  -------------- 
                                                                            
Total Property and Equipment                           206             244  
                                                                            
Other Assets                                                                
Deferred Tax Asset - Long Term                        1,154           1,077 
Prepaid Royalties - Long Term                           165             180 
Security Deposits                                        27              21 
                                             --------------  -------------- 
                                                                            
Total Other Assets                                   1,346           1,278  
                                             --------------  -------------- 
                                                                            
Total Assets                                 $      10,931   $      13,137  
                                             ==============  ============== 
                                                                            
    LIABILITIES AND STOCKHOLDERS' EQUITY                                    
                                                                            
Current Liabilities                                                         
Accounts Payable                             $          352  $          989 
Accrued Expenses                                        435             706 
Accrued Warranties                                       25              25 
Customer Advance Deposits - Short Term                  825             769 
Credit Facility                                           -             858 
                                             --------------  -------------- 
Total Current Liabilities                            1,637           3,347  
                                             --------------  -------------- 
                                                                            
Other Liabilities                                                           
Customer Advance Deposits - Long Term                 1,547           1,935 
                                             --------------  -------------- 
                                                                            
Total Other Liabilities                              1,547           1,935  
                                             --------------  -------------- 
                                                                            
Total Liabilities                                    3,184           5,282  
                                                                            
Stockholders' Equity                                                        
Optex Systems Holdings, Inc.Preferred Stock                                 
 ($0.001 par 5,000 authorized 1,001 and                                     
 1,016 series A preferred shares issued and                                 
 outstanding, respectively)                               -               - 
Optex Systems Holdings, Inc. - (par $0.001,                                 
 2,000,000,000 authorized, 170,913,943 and                                  
 157,346,607 shares issued and outstanding,                                 
 respectively)                                          171             157 
Additional Paid-in-capital                           17,955          17,922 
Retained Earnings (Deficit)                         (10,379)        (10,224)
                                             --------------  -------------- 
                                                                            
Total Stockholders' Equity                           7,747           7,855  
                                             --------------  -------------- 
                                                                            
Total Liabilities and Stockholders' Equity   $      10,931   $      13,137  
                                             ==============  ============== 
                                                                            
 The accompanying notes are an integral part of these financial statements  
                                                                            
                                                                            
                        Optex Systems Holdings, Inc.                        
              Condensed Consolidated Statements of Operations               
                                (Unaudited)                                 
                                                                            
                              (Thousands, except common share data)         
                         Three months ended           Six months ended      
                                                                            
                       March 30,     March 31,     March 30,     March 31,  
                         2014          2013          2014          2013     
                     ------------  ------------  ------------  ------------ 
                                                                            
Revenues             $      2,182  $      3,770  $      5,536  $      7,620 
                                                                            
Total Cost of Sales         1,818         3,115         4,555         6,268 
                     ------------  ------------  ------------  ------------ 
                                                                            
Gross Margin         $        364  $        655  $        981  $      1,352 
                                                                            
General and                                                                 
 Administrative               577           807         1,205         1,441 
                     ------------  ------------  ------------  ------------ 
                                                                            
Operating Loss       $       (213) $       (152) $       (224) $        (89)
                                                                            
Other Expenses                                                              
                                                                            
Interest Expense -                                                          
 Net                            1             6             8             6 
                     ------------  ------------  ------------  ------------ 
Total Other          $          1  $          6  $          8  $          6 
                                                                            
Loss Before Taxes    $       (214) $       (158) $       (232) $        (95)
                                                                            
Deferred Income                                                             
 Taxes (Benefit)              (72)          (52)          (77)          (29)
                     ------------  ------------  ------------  ------------ 
                                                                            
Net Loss After Taxes $       (142) $       (106) $       (155) $        (66)
                     ============  ============  ============  ============ 
                                                                            
Net Loss Applicable                                                         
 to Common                                                                  
 Shareholders        $       (142) $       (106) $       (155) $        (66)
                                                                            
                     ------------  ------------  ------------  ------------ 
Basic and Diluted                                                           
 Loss per Share      $      (0.00) $      (0.00) $    (0.0010) $    (0.0004)
                     ============  ============  ============  ============ 
                                                                            
Weighted Average                                                            
 Common Shares                                                              
 Outstanding          160,588,050   152,957,718   158,967,329   152,652,163 
                                                                            
 The accompanying notes are an integral part of these financial statements  
                                                                            

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...