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
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.