Ionatron Reports First Quarter 2006 Financial Results.TUCSON, Ariz. -- Ionatron, Inc., (Nasdaq: IOTN IOTN Index of Orthodontic Treatment Need (UK) ) a Laser Guided Energy (LGE LGE LG Electronics LGE Local Government Employers (UK) LGE Laser Guided Energy LGE Louisville Gas & Electric LGE Loop or Ground-start, Exchange (Newbridge) (TM)) company developing next generation Directed Energy An umbrella term covering technologies that relate to the production of a beam of concentrated electromagnetic energy or atomic or subatomic particles. Also called DE. See also directed-energy device; directed-energy weapon. Weapons, today reported financial results for the fourth quarter and full year ended March 31, 2006. The Company will host a live conference call Wednesday, May 10, 2006 at 4:30 p.m. ET. First Quarter 2006 Results Revenue for the first quarter of 2006 was $5.1 million, compared to $2.6 million for the same period last year. The increase of approximately $2.5 million in revenue for the first quarter of 2006 compared to the prior-comparable quarter in 2005 was derived from work on existing contracts with agencies of the U.S. Government, revenue from the Company's Joint IED Noun 1. IED - an explosive device that is improvised I.E.D., improvised explosive device explosive device - device that bursts with sudden violence from internal energy Neutralizer neu·tral·ize tr.v. neu·tral·ized, neu·tral·iz·ing, neu·tral·iz·es 1. To make neutral. 2. To counterbalance or counteract the effect of; render ineffective. 3. (JIN) counter-IED system pre-production contract and revenue from a new contract awarded in January 2006. Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123R, "Share-Based Payment," ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R") which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, based on estimated fair values. The Company elected to adopt the modified prospective transition method as provided by SFAS 123R and, accordingly, prior year results have not been restated. Stock-based compensation expense recognized under SFAS 123R for the three months ended March 31, 2006 was $1.1 million, whereas there was no stock-based compensation expense recognized in the first quarter of 2005. Net loss attributable to common shareholders for the first quarter of 2006 was $3.7 million, or $0.05 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to prior-comparable period net loss of $1.6 million or $0.02 per basic and diluted share. As noted above, since the Company adopted the provisions of SFAS 123R on a prospective basis, we did not adjust prior year reported results. If compensation expense was recorded for share based payments in the first quarter of 2005, adjusted net loss, including stock based compensation, would have been $3.7 million, or $0.05 per basic and diluted share. Adjusted net loss is considered non-GAAP financial information and a reconciliation of reported net loss to adjusted net loss is included in the attached financial tables. Business Update --The Company has concluded its 12 unit preproduction pre·pro·duc·tion adj. 1. Taking place or existing before production: preproduction planning. 2. contract for its JIN counter IED technology. Under this program, Ionatron delivered 12 preproduction units in less than nine months. The preproduction units successfully concluded a Military Utility Assessment (MUA (Mail User Agent) An e-mail client program. See messaging system. MUA - Mail User Agent ) program and then completed other various "In-Theatre" user assessments. Ionatron provided training, In-Theatre operators, maintenance and security. The U.S. Government customer concluded that the JIN counter IED technology performed well and offers great promise, but determined that the current vehicle platform should be changed. The platforms for these preproduction JIN counter IED units were selected due to their off-the-shelf availability. Ionatron is in the process of identifying potentially more rugged and capable platforms and may also offer its counter IED technology as a modification to existing military vehicles Military vehicles include all land combat and transportation vehicles, excluding rail-based, which are designed for or are in significant use by military forces. See also list of armoured fighting vehicles. . Ionatron expects to work with its Government customer to identify the most suitable platforms for its counter-IED technology. Ionatron is continuing to seek to develop and improve the integration of its technology to insure Insure can mean:
--The FY'05 Contract for Laser Induced induced /in·duced/ (in-dldbomacst´) 1. produced artificially. 2. produced by induction. induced, adj artificially caused to occur. induced induction. Plasma Channel A plasma channel is a conductive channel of plasma. A plasma channel can be formed in these ways:-
LIPC laser-induced plasma channel LIPC Livestock Industry Promotion Corporation (Japan) LIPC Long Island Planning Council (Wantagh, Long Island) ) technology development, as stated by the Company's Government customer, is proceeding as expected. The Company continues to successfully complete milestones for scaling the technology to useful capability for military applications. As a result, on January 25, 2006, the Company signed a $2.8 million contract with its Government customer for the further development of LIPC. U.S. Government support for Ionatron's Laser Guided Electricity and LIPC technologies continues through Congressional Plus Ups to the U.S. Navy budget. Work continues on the FY05 contract which was delayed in starting until Q3 2005 due to the Iraq Supplemental Bill SUPPLEMENTAL BILL, equity plead. A bill already filed to supply some defect in the original bill. See Bill supplemental. . The military held release of discretionary FY05 funds until the Supplemental Bill was passed. The FY06 funding has now been released and Ionatron anticipates a contract award in the near future. This funding supports continued technology development and effects testing. Additionally, the LIPC transportable demonstrator dem·on·stra·tor n. 1. One that demonstrates, such as a participant in a public display of opinion. 2. An article or product used in a demonstration. demonstrator Noun 1. will be transferred from the U.S. Government agency that initially contracted for that system and be completed by the military. Total LIPC/LGE dedicated funding for FY05 was $12.7M and for FY06 was $11.1M. --Brigadier General, U.S. Air Force (USAF) (Ret.) and former NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. Astronaut astronaut, crew member on a U.S. manned spaceflight mission; the Soviet term is cosmonaut. Candidates for manned spaceflight are carefully screened to meet the highest physical and mental standards, and they undergo rigorous training. James A. McDivitt was elected as an independent director to the Company's board of directors. From 1981 until his retirement in 1995, General McDivitt was Senior Vice President, Government Operations This article aims to describe the financial expenditure associated with the operations and processes of world governments of all levels. Size of economic footprint
1 Former town, since 1889 part of Chicago, Ill. It was founded in 1880 by George M. Pullman as a model community for workers of his sleeping-car company; all property was company owned, and administration policies were paternalistic. , Inc. and Consumers Power Company. --Ionatron continued to strengthen its senior management team with the appointment of Kenneth M. Wallace Wal·lace , Alfred Russel 1823-1913. British naturalist who developed a concept of evolution that paralleled the work of Charles Darwin. as Chief Financial Officer and the appointment of retired U.S. Navy Rear Admiral ADMIRAL, officer. In some countries is the commander in chief of the naval forces. This office does not exist in the United States. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Q. Donaldson, V, as Vice President, Business Development. Mr. Wallace joins Ionatron with more than 17 years of progressive experience in accounting, financial reporting, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and corporate development, gained from his experience in senior management level positions. As Vice President, Business Development, Mr. Donaldson's principal focus will be on evaluating new business opportunities and expanding the business development initiatives at Ionatron. --Ionatron and DRS Technologies DRS Technologies, Inc. (commonly known as DRS; formerly known as Diagnostic/Retrieval Systems, Inc.) is a supplier of defense electronic products and systems to the United States Air Force, Army, Coast Guard, Marine Corps, Navy, aerospace and defense prime , Inc. announced on May 3, 2006 that they had signed a long-term strategic agreement. Under the agreement, the companies will engage in the cooperative development and selected application of Ionatron's LGE and LIPC directed-energy weapon A system using directed energy primarily as a direct means to damage or destroy enemy equipment, facilities, and personnel. See also directed energy; directed-energy device. systems and DRS's energy management systems and mobility platforms of its DRS DRS Drives (street suffix) DRS Dispute Resolution Service DRS Doctorandus DRS Department of Rehabilitative Services DRS Direct Registration System (securities) DRS Department of Rehabilitation Services Test & Energy Management unit in Huntsville, Alabama Huntsville is the county seat of Madison County, Alabama. Huntsville is the largest city in northern Alabama in a region of a half-million people, with the city proper having 168,132 residents (2006 estimate). . In addition, the company's DRS Training & Control Systems unit in Ft. Walton Beach, Florida, will investigate its own application of Ionatron's LIPC technology in marine applications. Under this agreement, DRS and Ionatron will work collaboratively to capture business opportunities in directed-energy weapons and tactical-grade power management systems and mobility platforms with initial fielding of these advanced technologies focused on the U.S. military market. DRS's investigation of marine applications is expected to look at the use of this technology in various marine-based operations for homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and defense applications relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc shipping ports and dockside protection. Thomas Dearmin, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ionatron, commented, "We are extremely pleased with the strategic progress we have made in our business during the first quarter. We have expanded our capabilities, deepened our relationship with the Department of Defense, and believe we are well positioned to benefit from a highly favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. trend across many categories of directed energy weapons and force-protection systems. We also continued to build and effectively utilize our large and growing staff of engineers and scientists to develop market-leading products and to make advances in the technology of LGE and LIPC directed-energy weapons. Our recent relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of our North Star Power Engineering subsidiary to Tucson, AZ is expected to further support our research and development team." Mr. Dearmin continued, "In the LGE and LIPC segment, we believe that we have excellent opportunities to continue to broaden the applications of the technology and to identify new areas for growth. Our recent long-term strategic agreement with DRS Technologies is just the first example of how we intend to integrate our LIPC systems into existing and new mission-specific platforms. We believe this collaboration clearly demonstrates the value of our platform technology and represents the achievement of a significant milestone for the Company. As to our JIN counter-IED systems, we recently concluded the preproduction contract for our U.S. Government customer. We are now in the process of identifying potentially more rugged and capable platforms. We intend to utilize all options, including our new partners, to insure our customer's platform choice is developed and manufactured to their requirements." At March 31, 2006, the Company had approximately $10.8 million in cash and cash equivalents and securities available-for-sale as compared to $12.4 million in cash and cash equivalents and securities available-for-sale at December 31, 2005. As of March 31, 2006 the Company had a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $3.7 million, which is expected to be completed within the next twelve months. This backlog does not include proposals and contracts under negotiation. Conference Call As previously announced, Ionatron will host a conference call today, May 10, 2006, at 4:30 p.m. ET. Shareholders and other interested parties can participate in the conference call by dialing 800 638 4817 (domestic) or +1 617 614 3943 (international) and entering access code 54633212, a few minutes before 4:30PM ET on May 10, 2006. The call will also be broadcast live on the Internet at www.streetevents.com, www.fulldisclosure.com and www.ionatron.com. A replay of the conference call will be accessible two hours after its completion through March 17, 2006 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 29874701. The call will also be archived for 90 days at www.streetevents.com, www.fulldisclosure.com and www.ionatron.com. About Ionatron Inc. Ionatron, Inc. develops and markets laser-guided energy products, including directed energy weapon technologies, primarily for government entities. It is the future intent of Ionatron to launch facets of its LGE technologies into other viable industrial and commercial settings. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Certain statements contained in this News Release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the risks of uncertainty of patent protection; the risks of uncertainty of strategic alliances; the risk and uncertainty of management tenure; the impact of third-party suppliers' manufacturing constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties; management's ability to achieve business performance objectives, market acceptance of, and demand for, the Company's products, and resulting revenues; development of technology and manufacturing capabilities; impact of competitive products and pricing; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risks detailed in the company's filings with the Securities and Exchange Commission. The words "looking forward," "believe," "demonstrate," "intend," "expect," "contemplate," "estimate," "anticipate," "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Ionatron undertakes no obligation to update any forward-looking statements contained in this news release.
IONATRON, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2006 2005
-------------------------
ASSETS (Unaudited) (Audited)
-------------------------
Current assets
Cash and cash equivalents $ 1,812,567 $ 371,248
Accounts receivable - net 6,173,862 5,367,691
Inventory 2,759,010 1,348,700
Securities available-for-sale 9,000,000 12,000,000
Prepaid expenses and deposits 782,665 536,927
Other receivables 19,485 20,085
-------------------------
Total current assets 20,547,589 19,644,651
Property and equipment - net 1,913,731 1,732,796
Goodwill 1,487,884 1,487,884
Intangible assets - net 775,200 787,500
-------------------------
TOTAL ASSETS $ 24,724,404 $23,652,831
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,715,528 $ 997,589
Accrued expenses 480,771 500,656
Accrued compensation 600,849 391,867
Withholding taxes payable 595,182 45
Insurance premium financing 109,070 216,043
Billings in excess of costs 58,484 84,208
Current portion of capital lease
obligations 44,535 37,617
-------------------------
Total current liabilities 3,604,419 2,228,025
Capital lease obligations 66,078 62,290
Deferred tax liabilities 58,191 47,991
Deferred rent 90,477 82,623
-------------------------
Total liabilities 3,819,165 2,420,929
Commitments and contingencies - -
Stockholders' equity
Series A Convertible Preferred stock, $.001
par value, 950,000 shares authorized and
710,000 shares issued and outstanding at
March 31, 2006; 720,000 shares issued and
outstanding at December 31, 2005. 710 720
Common stock, $.001 par value, 100,000,000
shares authorized; 73,001,758 shares issued
and outstanding at March 31, 2006;
71,996,111 shares issued and outstanding at
December 31, 2005 73,049 71,996
Additional paid-in capital 31,783,563 28,044,794
Accumulated deficit (10,952,083) (6,885,608)
-------------------------
Total stockholders' equity 20,905,239 21,231,902
-------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,724,404 $23,652,831
=========================
IONATRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
March 31,
------------------------
2006 2005
------------------------
Revenue $ 5,074,827 $ 2,570,271
Cost of revenue 4,767,178 2,404,486
------------------------
Gross profit 307,649 165,785
Operating expenses:
General and administrative 2,706,427 1,523,204
Selling and marketing 148,958 135,529
Research and development 990,135 105,990
------------------------
Total operating expenses 3,845,520 1,764,723
------------------------
Operating loss (3,537,871) (1,598,938)
Other (expense) income
Interest expense (5,243) (58,077)
Interest income 112,120 10,902
Other 9 8,092
------------------------
Total other 106,886 (39,083)
------------------------
Loss before provision for income taxes (3,430,985) (1,638,021)
Provision for income taxes 11,299 9,577
------------------------
Net loss (3,442,284) (1,647,598)
Preferred stock dividends (288,438) -
------------------------
Net loss attributable to common
stockholders $(3,730,722)$(1,647,598)
========================
Net loss per common share - basic and
diluted $ (0.05)$ (0.02)
========================
Weighted average number of shares
outstanding, basic and diluted 72,212,214 70,969,510
========================
Non-GAAP Financial Information The Company provides non-GAAP financial measures including adjusted net income and adjusted net income per share as a supplement to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial information to enhance the overall understanding of the Company's financial performance and to assist investors in evaluating the Company's results of operations, period over period. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis. Reconciliation of Non-GAAP Net Income and Net Income per Share
For the three months ended March 31, 2005
Net loss:
As reported $(1,647,598)
Pro forma stock compensation expense (2,087,468)
------------
Pro forma $(3,735,066)
============
Net Loss per share - basic and diluted:
As reported $ (0.02)
============
Pro forma $ (0.05)
============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion