8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K 

CURRENT REPORT PRUSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 

Date of report (date of earliest event reported): October 24, 2013 

INTERPHASE CORPORATION

(Exact Name of Registrant as Specified in Its Charter) 

Texas

(State or Other Jurisdiction of Incorporation)

1-35267	75-1549797
(Commission File Number)	(IRS Employer Identification No.)

2901 North Dallas Parkway, Suite 200, Plano, Texas	75093
(Address of Principal Executive Offices)	(Zip Code)

(214) 654-5000 

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(C))

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2013, Interphase Corporation (the “Company”) issued a press release regarding its financial results for the quarter ended September 30, 2013. A copy of the press release is attached hereto as Exhibit 99.1 and is being furnished, not filed, under Item 2.02 of this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 -Press Release Dated October 24, 2013.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Interphase Corporation
	By: /s/ Thomas N. Tipton, Jr.
Date: October 25, 2013	Title: Chief Financial Officer, Secretary
	Vice President of Finance and Treasurer

EXHIBIT INDEX

Exhibit 99.1     Press Release dated October 24, 2013 (filed herewith)

EX-99

EXHIBIT 99.1

FOR IMMEDIATE RELEASE
Media Contact:	Investor Contact:
Lisa Bascom	Joseph Hassett
Interphase Corporation	Interphase Corporation
214-654-5000	866-630-INPH
pr@iphase.com	ir@iphase.com

Interphase Announces Third Quarter 2013 Financial Results

PLANO, Texas – October 24, 2013 -- Interphase Corporation (NASDAQ: INPH), a diversified information and communications technology company, today reported financial results for its third quarter ended September 30, 2013.

Revenues for the third quarter of 2013 were $4.2 million, an increase of 32% when compared to revenues from the third quarter of 2012 of $3.2 million. On a sequential basis, revenues increased 9% when compared to revenues from the second quarter of 2013 of $3.8 million. Revenues in the quarter were primarily derived from telecommunications and enterprise product revenues, which increased 48% to $3.1 million in the third quarter of 2013 compared to $2.1 million for the third quarter of 2012. Services revenues remained flat at $1.0 million for both the third quarter of 2013 and 2012. Gross margin was 48% for the third quarter of 2013 compared to 46% for the third quarter of 2012. The increase in gross margin percentage was primarily due to the increased utilization of our manufacturing facility partially offset by a revenue mix shift toward lower margin products and services. The Company reported a net income of $76,000, or $0.01 per fully diluted share in the third quarter of 2013 compared to a net loss of $541,000, or ($0.08) per share in the third quarter of 2012.

“We are pleased with our return to profitability and our second consecutive quarter of both sequential and year-over-year revenue growth,” said Gregory B. Kalush, CEO and President of Interphase. “The growth in our telecommunications business this quarter, coupled with the emergence of our services business to revenue levels of over $1 million, has allowed us to return to a profitable level of business. Our progress on penveu^® has been steady. We are not in a position to announce the general availability of the product; however the improvements that we are making to the systems should position us for a solid product rollout in the near future. We remain very excited about the prospects that this product will have in the marketplace.”

For the first nine months of 2013, revenues increased to $11.3 million, compared to $10.7 million for the first nine months of 2012. Gross margin decreased to 41% for the nine months ended September 30, 2013, compared to 46% for the same period in 2012. The Company reported a net loss of $2.2 million, or ($0.32) per share for the first nine months of 2013 compared to a net loss for the first nine months of 2012 of $2.6 million, or ($0.37) per share. On September 30, 2013, the Company’s working capital position was $9.9 million, including cash and marketable securities of $6.8 million.

About Interphase

Interphase Corporation (NASDAQ: INPH) is a diversified information and communications technology company, committed to innovation through the process of identifying, developing and introducing new products and services. The Company provides its customers solutions for connectivity, interworking and packet processing.  Clients of the Company’s communications networking products include Alcatel-Lucent, Fujitsu Ltd., Genband, Hewlett Packard, Oracle, and Samsung. 

The Company also offers engineering design and manufacturing services to customers from a wide variety of industries within the electronics market.

Interphase recently expanded its business to include penveu^®, a handheld device that adds interactivity to the installed base of projectors and large screen displays, making any flat surface, from pull down screens to HDTVs, an interactive display system. penveu is an affordable and portable solution that targets the education and enterprise markets.

The Company, founded in 1974, is headquartered in Plano, Texas, with manufacturing facilities in Carrollton, Texas, and sales offices in the United States and Europe. For more information, please visit our websites at www.iphase.com and www.penveu.com.

Forward-Looking Statements

This press release contains forward-looking statements about the business, financial condition and prospects of the Company. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including (without limitation) effects of the ongoing issues in global credit and financial markets, our reliance on a limited number of customers, the lack of spending improvements in the telecommunications and computer networking industries, significant changes in product demand, the development and introduction of new products and services, changes in competition, various inventory risks due to changes in market conditions and other risks and uncertainties indicated in Item 1A of the Company’s Annual Report on Form 10-K and in the Company’s other filings and reports with the Securities and Exchange Commission. All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words “believes,” “plans,” “expects,” “will,” “intends,” and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements.

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Interphase, the Interphase logo, and penveu are trademarks or registered trademarks of Interphase Corporation. All other trademarks are the property of their respective owners.

 Condensed Consolidated Financial Statements

Interphase Corporation

Condensed Consolidated Statements of Operations

(amounts in thousands, except per-share amounts)

	Three Months Ended Sept. 30,					Nine Months Ended Sept. 30,
	2013		2012			2013			2012
Revenues	$	4,168	$	3,167		$	11,266		$	10,651
Gross margin		1,985		1,464			4,650			4,890
Research and development		622		690			2,309			2,476
Sales and marketing		614		658			2,022			2,700
General and administrative		660		648			2,239			2,319
Restructuring benefit		-		-			(67	)		-
Total operating expenses		1,896		1,996			6,503			7,495
Income (loss) from operations		89		(532	)		(1,853	)		(2,605	)
Income (loss) before income tax		89		(532	)		(2,196	)		(2,592	)
Net income (loss)		76		(541	)		(2,229	)		(2,592	)
Net income (loss) per diluted share	$	0.01	$	(0.08	)	$	(0.32	)	$	(0.37	)
Weighted average common and dilutive shares		7,238		7,000			7,005			6,965

Selected Consolidated Balance Sheet Information

(amounts in thousands)

	Sept. 30, 2013		Dec. 31, 2012
Cash and marketable securities	$	6,845	$	8,803
Accounts receivable, net		3,395		2,781
Inventories		3,167		2,219
Net property, plant and equipment		265		334
Total assets		15,119		15,178
Total liabilities		7,768		6,125
Total shareholders' equity	$	7,351	$	9,053

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