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."


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      
                                             --------------  -------------- 
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               
                              (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  

Optex Systems Holdings, Inc.
Stanley A. Hirschman
(972) 764-5700
1420 Presidential Drive
Richardson, TX 75081

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 his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Stratoscale, the software company developing the next generation data center operating system, exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016.Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere, IT is empowered to take control of their data ce...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
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, ...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.