Delaware | 001-31783 | 77-0280662 | ||
(State or other jurisdiction of incorporation) |
(Commission File No.) | (I.R.S. Employer Identification No.) |
Item 2.02 Results of Operations and Financial Condition. | ||||||||
Item 9.01 Financial Statements and Exhibits. | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
Exhibit No. | Description | |||
99.1 | Earnings release dated March 22, 2011 regarding
the Companys financial results for the year
ended December 31, 2010. |
RAE SYSTEMS INC. |
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By: | /s/ Randall Gausman | |||
Name: | Randall Gausman | |||
Title: | Vice President and Chief Financial Officer |
Company Contact:
|
IR Agency Contact: | |
Investor Relations
|
Becky Herrick | |
408-952-8449
|
Lippert/Heilshorn & Associates, Inc. | |
investorrelations@raesystems.com
|
415-433-3777 | |
bherrick@lhai.com |
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December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 16,296 | $ | 17,153 | ||||
Restricted cash |
2,000 | 2,000 | ||||||
Trade notes receivable |
2,018 | 1,527 | ||||||
Accounts receivable, net of allowances of
$3,539 and $2,675, respectively |
14,286 | 14,735 | ||||||
Accounts receivable from affiliate |
200 | 322 | ||||||
Inventories |
11,546 | 9,308 | ||||||
Prepaid expenses and other current assets |
4,557 | 3,339 | ||||||
Income taxes receivable |
130 | 659 | ||||||
Current assets of discontinued operation |
6,093 | 10,130 | ||||||
Total current assets |
57,126 | 59,173 | ||||||
Property and equipment, net |
10,730 | 7,582 | ||||||
Intangible assets, net |
196 | 544 | ||||||
Investments in unconsolidated affiliates |
184 | 358 | ||||||
Other assets |
393 | 1,325 | ||||||
Noncurrent assets of discontinued operation |
3,478 | 9,892 | ||||||
Total assets |
$ | 72,107 | $ | 78,874 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 5,475 | $ | 5,725 | ||||
Accounts payable to affiliate |
25 | 92 | ||||||
Bank lines of credit |
1,814 | 4,026 | ||||||
Accrued liabilities |
11,957 | 11,962 | ||||||
Notes payable to related parties, current |
278 | 370 | ||||||
Income taxes payable |
128 | | ||||||
Deferred revenue, current |
557 | 603 | ||||||
Current liabilities of discontinued operation |
5,790 | 4,719 | ||||||
Total current liabilities |
26,024 | 27,497 | ||||||
Deferred revenue, non-current |
776 | 615 | ||||||
Deferred tax liabilities, non-current |
141 | | ||||||
Deferred gain on sale of real estate |
3,809 | 4,444 | ||||||
Other long-term liabilities |
1,491 | 761 | ||||||
Notes payable to related parties, non-current |
| 363 | ||||||
Noncurrent liabilities of discontinued operation |
182 | 1,639 | ||||||
Total liabilities |
32,423 | 35,319 | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
SHAREHOLDERS EQUITY: |
||||||||
Common stock, $0.001 par value, 200,000,000
shares authorized; 59,512,064 and 59,438,328
shares issued and outstanding, respectively |
59 | 59 | ||||||
Additional paid-in capital |
65,041 | 63,832 | ||||||
Accumulated other comprehensive income |
7,786 | 6,844 | ||||||
Accumulated deficit |
(34,311 | ) | (31,706 | ) | ||||
Total RAE Systems Inc. shareholders equity |
38,575 | 39,029 | ||||||
Noncontrolling interest |
1,109 | 4,526 | ||||||
Total shareholders equity |
39,684 | 43,555 | ||||||
Total liabilities and shareholders equity |
$ | 72,107 | $ | 78,874 | ||||
Three Months Ended | ||||||||||||||||
December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 23,341 | $ | 21,138 | $ | 87,053 | $ | 74,993 | ||||||||
Cost of sales |
9,137 | 10,000 | 34,752 | 35,415 | ||||||||||||
Gross profit |
14,204 | 11,138 | 52,301 | 39,578 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
5,333 | 4,617 | 19,494 | 16,354 | ||||||||||||
Research and development |
1,847 | 1,549 | 7,077 | 5,956 | ||||||||||||
General and administrative |
6,084 | 4,534 | 19,691 | 21,149 | ||||||||||||
Total operating expenses |
13,264 | 10,700 | 46,262 | 43,459 | ||||||||||||
Operating income (loss) from continuing operations |
940 | 438 | 6,039 | (3,881 | ) | |||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
4 | 17 | 66 | 46 | ||||||||||||
Interest expense |
(51 | ) | (76 | ) | (185 | ) | (390 | ) | ||||||||
Other, net |
(42 | ) | 73 | (177 | ) | 277 | ||||||||||
Equity in gain (loss) of unconsolidated affiliates |
(60 | ) | 71 | (173 | ) | (109 | ) | |||||||||
Income (loss) from continuing operations before income taxes |
791 | 523 | 5,570 | (4,057 | ) | |||||||||||
Income tax (expense) benefit |
1,124 | 946 | (297 | ) | 800 | |||||||||||
Income (loss) from continuing operations |
1,915 | 1,469 | 5,273 | (3,257 | ) | |||||||||||
Discontinued operations: |
||||||||||||||||
Loss from discontinued operations, net of tax |
(7,331 | ) | (683 | ) | (11,178 | ) | (3,457 | ) | ||||||||
Net loss attributable to the noncontrolling interest |
2,721 | 178 | 3,342 | 952 | ||||||||||||
Loss from discontinued operations |
(4,610 | ) | (505 | ) | (7,836 | ) | (2,505 | ) | ||||||||
Net income (loss) |
(2,695 | ) | 964 | (2,563 | ) | (5,762 | ) | |||||||||
Net income (loss) attributable to the noncontrolling interest |
(42 | ) | 4 | (42 | ) | 3 | ||||||||||
Net income (loss) attributable to RAE Systems Inc. |
$ | (2,737 | ) | $ | 968 | $ | (2,605 | ) | $ | (5,759 | ) | |||||
Earnings per common share basic: |
||||||||||||||||
Continuing operations |
$ | 0.04 | $ | 0.02 | $ | 0.09 | $ | (0.06 | ) | |||||||
Discontinued operations |
(0.08 | ) | (0.01 | ) | (0.13 | ) | (0.04 | ) | ||||||||
Net loss per share basic and diluted |
$ | (0.04 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (0.10 | ) | |||||
Diluted net loss per share |
||||||||||||||||
Continuing operations |
$ | 0.04 | $ | 0.02 | $ | 0.09 | $ | (0.06 | ) | |||||||
Discontinued operations |
(0.08 | ) | (0.01 | ) | (0.13 | ) | (0.04 | ) | ||||||||
Diluted net loss per share |
$ | (0.04 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (0.10 | ) | |||||
Weighted average common shares outstanding Basic |
59,512 | 59,390 | 59,439 | 59,367 | ||||||||||||
Stock options |
477 | 179 | 136 | | ||||||||||||
Weighted average common shares outstanding Diluted |
59,989 | 59,569 | 59,575 | 59,367 | ||||||||||||
Three Months | ||||||||||||||||
Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Cost of sales |
39 | % | 47 | % | 40 | % | 47 | % | ||||||||
Gross profit |
61 | % | 53 | % | 60 | % | 53 | % | ||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
23 | % | 22 | % | 23 | % | 22 | % | ||||||||
Research and development |
8 | % | 7 | % | 8 | % | 8 | % | ||||||||
General and administrative |
26 | % | 22 | % | 23 | % | 28 | % | ||||||||
Total operating expenses |
57 | % | 51 | % | 54 | % | 58 | % | ||||||||
Operating income (loss) from continuing operations |
4 | % | 2 | % | 6 | % | -5 | % | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Interest expense |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Other, net |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Equity in gain (loss) of unconsolidated affiliates |
-1 | % | 0 | % | 0 | % | 0 | % | ||||||||
Income (loss) from continuing operations before income
taxes |
3 | % | 2 | % | 6 | % | -5 | % | ||||||||
Income tax (expense) benefit |
5 | % | 5 | % | 0 | % | 1 | % | ||||||||
Income (loss) from continuing operations |
8 | % | 7 | % | 6 | % | -4 | % | ||||||||
Discontinued operations: |
||||||||||||||||
Loss from discontinued operations, net of tax |
-32 | % | -3 | % | -13 | % | -5 | % | ||||||||
Net loss attributable to the noncontrolling interest |
12 | % | 1 | % | 4 | % | 1 | % | ||||||||
Loss from discontinued operations |
-20 | % | -2 | % | -9 | % | -4 | % | ||||||||
Net income (loss) |
-12 | % | 5 | % | -3 | % | -8 | % | ||||||||
Net (income) loss attributable to the
noncontrolling interest |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Net income (loss) attributable to RAE Systems Inc. |
-12 | % | 5 | % | -3 | % | -8 | % | ||||||||