ISCO International Reports Financial Results for the Second Quarter 2006 and Upcoming Investor Call
ELK GROVE VILLAGE, IL -- 07/27/2006 -- ISCO International, Inc. (AMEX: ISO),
a leading global supplier of radio-frequency management and
interference-control systems for the wireless telecommunications industry,
announced its second quarter results and shared information about an
upcoming investor conference call.
Second Quarter Results
ISCO International's revenue for the second quarter of 2006 rose to $3.4
million from the $2.5 million achieved during the second quarter of 2005.
Revenue for the first six months of 2006 was $4.8 million as compared to
$5.8 million of the first half of 2005. ISCO also entered the third
quarter with $1.8 million in order backlog, as compared to negligible
backlog at the same point of 2005.
Net loss for the second quarter 2006 was $1.2 million as compared to the
$0.8 million loss of the second quarter 2005. Net loss for the first half
of 2006 was $2.9 million as compared to $1.3 million for the first half of
2005. Product gross margins were approximately 40% for the second quarter
and first half of 2006, reflecting a change in product mix from margins of
46% for the first half of 2005.
Non-cash charges related to stock option expense, deprecation and
amortization were approximately $0.4 million during the second quarter of
2006, compared to $0.3 for the same period in 2005, though the latter also
included a $0.2 million patent charge that did not occur during 2006.
Additionally, we accrued $0.2 million in interest expense during the second
quarter of 2006, as we did during the second quarter of 2005.
"We received more than $5 million in customer orders during the second
quarter," ISCO's President and CEO John Thode said. "We began the third
quarter with backlog on par with last year's $2 million in Q3 revenue, so
we are looking forward to building on our momentum." Thode added, "We
continue to differentiate our product portfolio and expand our customer and
geographic footprint as key strategic initiatives to grow our business.
With the increase in customer orders during Q2, we are starting to see
tangible benefits from these efforts."
Investor Call
An investor call will be held Wednesday, August 2nd, at 4:30pm eastern. To
participate in the call domestically, dial 1-800-374-0113. International
callers should dial 1-706-758-9607. The conference name is "ISCO." The
call will be replayed for 30 days at 1-800-642-1687 (or 1-706-645-9291 for
international callers), with a pass code of 3571038#.
Following the presentation, a short question and answer session will be
held. Participants are asked to dial in 10 minutes prior to the beginning
of the call. The call will be webcast live and then archived for 30 days.
ISCO will provide a link to the call on its web site (www.iscointl.com) for
both the live and archived versions. A copy of the webcast link will be
provided at www.iscointl.com and is copied below.
Webcast link: http://www.b2i.us/external.asp?b=826&id=27123&from=du&L=e
Safe Harbor Statement
Because the Company wants to provide investors with meaningful and useful
information, this news release contains, and incorporates by reference,
certain "forward-looking statements" that reflect the Company's current
expectations regarding the future results of operations, performance and
achievements of the Company. The Company has tried, wherever possible, to
identify these forward-looking statements by using words such as
"anticipates," "believes," "estimates," "expects," "plans," "intends" and
similar expressions. These statements reflect the Company's current
beliefs and are based on information currently available to it.
Accordingly, these statements are subject to certain risks, uncertainties
and contingencies, which could cause the Company's actual results,
performance or achievements to differ materially from those expressed in,
or implied by, such statements. These factors include, among others, the
following: market acceptance of the Company's technology; the spending
patterns of wireless network operators in connection with the build out of
2.5G and 3G wireless systems; the Company's ability to obtain additional
financing in the future; the Company's history of net losses and the lack
of assurance that the Company's earnings will be sufficient to cover fixed
charges in the future; uncertainty about the Company's ability to compete
effectively against better capitalized competitors and to withstand
downturns in its business or the economy generally; continued downward
pressure on the prices charged for the Company's products due to the
competition of rival manufacturers of front-end systems for the wireless
telecommunications market; the timing and receipt of customer orders; the
Company's ability to attract and retain key personnel; the Company's
ability to protect its intellectual property, the risks associated with
foreign operations and the risks of legal proceedings. A more complete
description of these risks, uncertainties and assumptions is included in
the Company's filings with the Securities and Exchange Commission,
including those described under the heading "Risk Factors" in the Company's
Annual Report on Form 10-K. You should not place undue reliance on any
forward-looking statements. The Company undertakes no obligation to
release publicly the results of any revisions to any such forward-looking
statements that may be made to reflect events or circumstances after the
date of this Report or to reflect the occurrence of unanticipated events.
Three Months Ending
June 30, June 30,
2006 2005
------------- -------------
UNAUDITED
Net sales $ 3,446,000 $ 2,484,000
Costs and expenses:
Cost of sales 2,059,000 1,194,000
Research and development 474,000 555,000
Selling and marketing 852,000 445,000
General and administrative 1,119,000 912,000
------------- -------------
Total costs and expenses 4,504,000 3,106,000
Operating loss $ (1,058,000) $ (622,000)
Other income (expense):
Interest income 21,000 4,000
Interest expense (194,000) (193,000)
------------- -------------
Total other income (expense) $ (173,000) $ (189,000)
Net loss $ (1,231,000) $ (811,000)
Basic and diluted loss per common
share $ (0.01) $ (0.00)
Weighted average number of common
shares outstanding 184,411,000 162,491,000
Six Months Ending
June 30, June 30,
2006 2005
------------- -------------
UNAUDITED
Net sales $ 4,772,000 $ 5,777,000
Costs and expenses:
Cost of sales 2,889,000 3,116,000
Research and development 938,000 901,000
Selling and marketing 1,483,000 812,000
General and administrative 2,059,000 1,763,000
------------- -------------
Total costs and expenses 7,369,000 6,592,000
Operating loss $ (2,597,000) $ (815,000)
Other income (expense):
Interest income 52,000 8,000
Interest expense (386,000) (486,000)
------------- -------------
Total other income (expense) $ (334,000) $ (478,000)
Net loss $ (2,931,000) $ (1,293,000)
Basic and diluted loss per common
share $ (0.02) $ (0.01)
Weighted average number of common
shares outstanding 183,993,000 161,535,000
Selected Balance Sheet Information: (unaudited)
June 30, December 31,
2006 2005
------------- -------------
Cash and equivalents $ 5,557,000 $ 3,486,000
Working Capital excl. Debt $ 9,649,000 $ 6,397,000
Total Assets $ 26,004,000 $ 22,906,000
Debt, short term and long term,
including related accrued
interest $ 15,906,000 $ 10,520,000
Stockholders' Equity $ 8,408,000 $ 10,531,000