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0001102624-07-000183.txt : 20070725
0001102624-07-000183.hdr.sgml : 20070725
20070725160813
ACCESSION NUMBER: 0001102624-07-000183
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20070725
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Regulation FD Disclosure
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20070725
DATE AS OF CHANGE: 20070725
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: ISCO INTERNATIONAL INC
CENTRAL INDEX KEY: 0000888693
STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
IRS NUMBER: 363688459
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-22302
FILM NUMBER: 07999476
BUSINESS ADDRESS:
STREET 1: 1001 CAMBRIDGE DRIVE
CITY: ELK GROVE VILLAGE
STATE: IL
ZIP: 60007
BUSINESS PHONE: 8473919400
MAIL ADDRESS:
STREET 1: 1001 CAMBRIDGE DRIVE
CITY: ELK GROVE VILLAGE
STATE: IL
ZIP: 60007
8-K
1
iscointernational8k.htm
ISCO INTERNATIONAL 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
|
Date of Report: July 25, 2007
(Date of earliest event reported)
|
ISCO International, Inc.
(Exact name of registrant as specified in its charter)
|
|
DE
(State or other jurisdiction of incorporation)
|
001-22302
(Commission File Number)
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36-3688459
(IRS Employer Identification Number)
|
|
1001 Cambridge Drive, Elk Grove Village, IL
(Address of principal executive offices)
|
|
60007
(Zip Code)
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847-391-9400 (Registrant's telephone number, including area code)
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|
Not Applicable (Former Name or Former Address, if changed since last report)
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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:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o 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
The Company provided results from the second quarter 2007.
Item 7.01. Regulation FD Disclosure
The Company provided a product update and investor call information.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits
99.1 Press Release of ISCO International, Inc. dated July 25, 2007
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.
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Dated: July 25, 2007
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ISCO INTERNATIONAL, INC.
By: /s/ Frank J Cesario
Frank J Cesario
Chief Financial Officer
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Exhibit Index
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Exhibit No. |
Description |
99.1 |
Press Release of ISCO International, Inc. dated July 25, 2007 |
EX-99
2
iscointernationalin.htm
ISCO INTERNATIONAL PRESS RELEASE
ISCO International Reports Financial Results for the Second Quarter 2007 and Investor Call
ELK GROVE VILLAGE, IL -- 07/25/2007 -- ISCO International, Inc. (AMEX: ISO),
a leading supplier of RF management and interference-control solutions for
the wireless telecommunications industry, today reported financial results
for the second quarter 2007. The Company also announced an investor call.
Second Quarter Results
ISCO reported consolidated net revenues of $3.4 million for the three
months ended June 30, 2007, similar to the $3.4 million reported during the
comparable period of 2006. Gross margins increased to 50% from 40% for the
same periods, primarily due to the benefit of continued cost reduction
activities. Deferred software revenue was $0.3 million at June 30, 2007,
an item that didn't exist at June 30, 2006. The consolidated net loss was
$0.8 million for the three months ended June 30, 2007, an improvement from
the $1.2 million net loss during the same period of 2006 due to the
improvement in gross margins.
For the six-month period ended June 30, 2007, ISCO reported consolidated
net revenues of $4.4 million, down from the $4.8 million reported during
the first six months of 2006. Gross margins increased to approximately 45%
from the 40% reported during the first six months of 2006. As noted above,
deferred software revenue was $0.3 million at June 30, 2007, an item that
didn't exist at June 30, 2006. The consolidated net loss was $3.2 million
for the six months ended June 30, 2007, versus $2.9 million during the same
period of 2006. This difference was primarily due to non-cash charges
related to equity compensation as described below.
ISCO measures Cash Flow based on EBITDA (earnings before interest, taxes,
depreciation and amortization), and adjusted for non-cash equity
compensation expense, as an important non-GAAP measure of its performance.
On this basis, Cash Flow improved during the second quarter 2007 versus the
second quarter of 2006 due to improved supply chain management, inventory
utilization and manufacturing efficiencies. For the six-month period ended
June 30, 2007, Cash Flow was flat versus the same period last year. Please
see the note on non-GAAP financial information attached.
"While we continue to experience demand volatility in our business segment
due to structural changes in the industry, we've been able to rebound from
a weak first quarter to post a much improved second quarter, particularly
when taking into account our improved operational efficiencies and
margins," said John Thode, CEO of ISCO. "As we highlighted last quarter,
similar to others in our segment, we expect continued improvement in
segment demand throughout the year." Thode added, "The recurring revenue
stream that we've started to build with the sales of software should become
an increasingly significant differentiator for ISCO, particularly as we
plan to roll out the first fully digital Adaptive Interference Management
solution during the fourth quarter."
Product Update
"As we complete the final stages of the development of our software-based,
fully digital Adaptive Interference Management platform, we continue to
receive extremely positive validation of our differentiated solution and a
growing set of applications, both as a standalone interference management
solution as well as several new horizontal products and applications," said
Thode. The Company will further discuss these developments in the investor
call.
Investor call
An investor call will be held on Wednesday, July 25th, 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). The passcode for the replay is
7042543.
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 is below.
Webcast link: http://www.b2i.us/external.asp?b=826&id=36731&from=du&L=e
Use of Non-GAAP Financial Information
To supplement our financial results presented in accordance with GAAP, we
use the following non-GAAP financial measure: GAAP net income (loss)
excluding non-cash charges for patent amortization, depreciation and other
amortization, equity compensation, and accrued interest expense. We present
this non-GAAP financial measure as a supplement in reporting our financial
results to provide investors with an additional tool to evaluate our
operating results. This non-GAAP financial measure should not be considered
in isolation or as a substitute for comparable GAAP measures, and should be
read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP.
Our management uses the above non-GAAP financial measure internally to
understand, manage and evaluate our business, particularly on a cash flow
basis. Our management believes this measure is useful for the Company and
investors to review, as applicable, both GAAP information, which includes
employee stock-based compensation expense for example, and the non-GAAP
measure which excludes this item, in order to assess the performance of our
core continuing businesses and for planning and forecasting in future
periods. This non-GAAP measure is intended to provide investors with an
understanding of our operational results and trends that more readily
enables them to analyze our base financial and operating performance and
facilitate period-to-period comparisons and analysis of operation trends.
Our management believes this non-GAAP financial measure is useful to
investors in allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision-making. Management sets operating plans and is evaluated and
measured on both net result as well as cash flow as typically measured by
EBITDA (earnings before interest, taxes, depreciation and amortization),
removing the non-cash impact of equity compensation expense, and thus uses
this
non-GAAP measure internally on a regular basis.
Non-GAAP Measurement Tables:
Unaudited Unaudited
3 months ended 3 months ended
June 30, 2007 June 30, 2006
($millions)
Net loss per GAAP ($0.8) ($1.2)
Non-cash Equity Compensation $0.3 $0.4
Depreciation and Amortization $0.0 $0.0
Accrued Interest $0.3 $0.2
---- ----
Net "Cash Flow" Result ($0.2) ($0.6)
==== ====
Unaudited Unaudited
6 months ended 6 months ended
June 30, 2007 June 30, 2006
($millions)
Net loss per GAAP ($3.2) ($2.9)
Non-cash Equity Compensation $0.8 $0.6
Depreciation and Amortization $0.1 $0.1
Accrued Interest $0.5 $0.4
---- ----
Net "Cash Flow" Result ($1.8) ($1.8)
==== ====
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," "looks," "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 financing in
the future if necessary; 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 of 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 filed by the Company with the Securities and Exchange
Commission. 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.
Web site: http://www.iscointl.com
Three Months Ended
June 30, June 30,
2007 2006
------------ -------------
UNAUDITED
Net sales $ 3,423,000 $ 3,446,000
Costs and expenses:
Cost of sales 1,703,000 2,059,000
Research and development 662,000 474,000
Selling and marketing 671,000 852,000
General and administrative 982,000 1,119,000
------------ -------------
Total costs and expenses 4,017,000 4,504,000
Operating loss $ (594,000) $ (1,058,000)
Other income (expense):
Interest income 18,000 21,000
Interest expense (256,000) (194,000)
------------ -------------
Total other income (expense) $ (238,000) $ (173,000)
Net loss $ (832,000) $ (1,231,000)
Basic and diluted loss per common
share $ (0.00) $ (0.01)
Weighted average number of common
shares outstanding 190,766,000 184,411,000
Six Months Ended
June 30, June 30,
2007 2006
------------ -------------
UNAUDITED
Net sales $ 4,376,000 $ 4,772,000
Costs and expenses:
Cost of sales 2,412,000 2,889,000
Research and development 1,283,000 938,000
Selling and marketing 1,254,000 1,483,000
General and administrative 2,181,000 2,059,000
------------ -------------
Total costs and expenses 7,131,000 7,369,000
Operating loss $ (2,755,000) $ (2,597,000)
Other income (expense):
Interest income 36,000 52,000
Interest expense (511,000) (386,000)
------------ -------------
Total other income (expense) $ (474,000) $ (334,000)
Net loss $ (3,229,000) $ (2,931,000)
Basic and diluted loss per common
share $ (0.02) $ (0.02)
Weighted average number of common
shares outstanding 190,413,000 183,993,000
Selected Balance Sheet Information: (unaudited)
June 30, December 31,
2007 2006
------------ -------------
Cash and equivalents $ 2,293,000 $ 2,887,000
Working Capital excl. Debt $ 7,959,000 $ 9,874,000
Total Assets $ 24,004,000 $ 26,875,000
Debt, short term and long term,
including related accrued interest $ 15,439,000 $ 16,428,000
Stockholders' Equity $ 7,209,000 $ 8,164,000
CONTACT:
Mr. Frank Cesario
PHONE: 847-391-9492
INTERNET: iscoir@iscointl.com
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