Ionatron Reports Second Quarter 2006 Financial Results.TUCSON Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. , Ariz. -- Ionatron Ionatron is a publicly traded company on the NASDAQ stock exchange trading under the ticker symbol IOTN. They are developing directed-energy weapons, consisting primarily of electroshock laser weapons which use a Laser-induced plasma channel to carry electric current to a target over a , Inc., (Nasdaq:IOTN IOTN Index of Orthodontic Treatment Need (UK) ) a Laser Guided
Energy (LGE LGE LG ElectronicsLGE 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 three months ended June June: see month. 30, 2006. The Company will host a live conference call Wednesday Wednesday: see week. , August 9, 2006 at 4:30PM (Eastern Time). Second Quarter 2006 Results Revenue for the second quarter of 2006 was $2.0 million, compared to $4.0 million for the same period last year. The decrease of approximately $2.0 million in revenue for the second quarter of 2006 compared to the prior-comparable quarter in 2005 was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the completion of certain Ionatron government contracts and an approximately eight-week temporary interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in North Star's operations while we effected facility 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. from New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). to Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Effective January January: see month. 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 June 30, 2006 was $832,000, whereas there was no stock-based compensation expense recognized in the second quarter of 2005. Net loss attributable to common stockholders for the second quarter of 2006 was $5.2 million, or $0.07 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 the prior-comparable period net loss of $1.7 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 second quarter of 2005, adjusted net loss, including stock based compensation, would have been $2.4 million, or $0.03 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 presented below. Business Update --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 Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic agreement. Under the agreement, the companies will engage in the cooperative development and selected application of Ionatron's LGE and LIPC LIPC Hepatic Lipase (gene) LIPC laser-induced plasma channel LIPC Livestock Industry Promotion Corporation (Japan) LIPC Long Island Planning Council (Wantagh, Long Island) 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 Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , will investigate its own application of Ionatron's LIPC technology in marine applications. --Ionatron and Anteon International Corp., recently acquired by General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. , signed a strategic teaming agreement on June 15, 2006 for the cooperative development of Counter-IED and Anti-Intruder technologies utilizing Ionatron's Laser Guided Energy (LGE(TM)) technology in conjunction with Anteon's integration, mission, operational and IT enterprise expertise. With this teaming agreement in place, the companies intend to focus on creating new capabilities and improve upon existing technology in order to deliver systems for the Anti-Terrorism Force Protection requirements of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . --The U.S. Army Armament Research, Development and Engineering Center (ARDEC ARDEC Armament Research Development and Engineering Center (US Army) ARDEC Agence Rwandaise pour le Développement et la Coopération ) signed a Cooperative Research and Development Agreement “CRADA” redirects here. For other uses, see CRADA (disambiguation). A Cooperative Research and Development Agreement (CRADA) is an agreement between a government agency and a private company to work together. (CRADA CRADA Cooperative Research And Development Agreement ) with Ionatron on July July: see month. 24, 2006 for the design and testing of ultra-short laser applications utilizing unique features. This CRADA will be used to baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version LGE and other Directed Energy (DE) technologies, suitable for enhancing the capabilities of the U. S. Army War Fighters and their missions. "This quarter was marked by significant progress in advancing our LGE and LIPC business in a number of areas," commented 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 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. "We continued to make excellent progress in enhancing the technical performance of our LGE and LIPC technologies and expect to receive new funding from the U.S. Government in 2006 to support continued technology development and effects testing. As we continue to improve the technology, we have paid close attention to our intellectual property strategy. In May 2006, we received notification from the United States Patent and Trademark Office The United States Patent and Trademark Office (PTO or USPTO) is an agency in the United States Department of Commerce that provides patent protection to inventors and businesses for their inventions, and trademark registration for product and intellectual property that a patent has been issued for applications incorporating the company's technologies. Presently we have four patents and 18 patent applications. We were also very pleased to announce a CRADA agreement with ARDEC, a well recognized leader in the development of advanced weapon systems for the U.S. military. In the area of industry partnerships, we recently announced strategic teaming agreements with leading defense companies such as DRS Technologies and General Dynamics to work together to integrate our LGE and LIPC technologies into existing and new mission-specific platforms. We are continuing to pursue additional strategic partnering relationships with other defense companies to further exploit the potentially broad applications of the technology. Ionatron continues to enhance its counter 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 technologies to offer additional capabilities. We have completed additional testing of the enhanced system against newly developed and recently identified IEDs with successful results. We continue to have ongoing discussions with potential customers regarding fielding systems in multiple applications. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2006 Results Revenue for the six months ended June 30, 2006 was $7.1 million, compared to $6.5 million for the same period last year. Stock-based compensation expense recognized under SFAS 123R for the first six months ended June 30, 2006 was $1.9 million, whereas there was no stock-based compensation expense recognized in the first six months of 2005. Net loss for the six months ended June 30, 2006 was $8.9 million or $0.12 per basic and diluted share compared to a net loss for the comparable period in 2005 of $3.4 million or $0.05 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 six months of 2005, adjusted net loss, including stock based compensation, would have been $6.2 million, or $0.09 per diluted share. Adjusted net income is considered non-GAAP financial information and a reconciliation of reported net income to adjusted net income is included in the attached financial tables presented below. At June 30, 2006, the Company had approximately $9.1 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 December: see month. 31, 2005. As of June 30, 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 $5.7 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 on August 9, 2006, at 4:30 PM. (Eastern Time). Shareholders and other interested parties can participate in the conference call by dialing 1-866-314-5232 (domestic) or +1-617-213-8052 (international) and entering access code 15754987, a few minutes before 4:30PM ET on August 9, 2006. The call will also be broadcast live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 August 16, 2006 by dialing +1 888 286 8010 (domestic) or +1 617 801 6888 (international) and entering access code 14912577. 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. is a solution provider that develops and markets Laser Guided Energy (LGE(TM)) and related products to defense and security customers for unique applications worldwide. Ionatron has significant expertise in the application of high-power high-pow·ered also high-pow·er adj. Having great power or energy; dynamic: She's on a high-powered career track. Adj. 1. lasers, optics and energy management technologies. Headquartered in Tucson, Arizona Tucson (pronounced /ˈtusɑn/, Spanish: Tucsón [tuk'son] , Ionatron is focused on solving technology problems directly for its government and security-conscious customers. For more information about Ionatron, please visit www.ionatron.com. "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 dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the 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 and testing of technology and products; 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
June 30, 2006 December 31, 2005
-----------------------------------
ASSETS (Unaudited) (Audited)
----------------- -----------------
Current assets
Cash and cash equivalents $ 123,174 $ 371,248
Accounts receivable - net 2,856,900 5,367,691
Inventory 2,229,029 1,348,700
Securities available-for-sale 9,000,000 12,000,000
Prepaid expenses and deposits 641,960 486,478
Other receivables 14,864 20,085
----------------- -----------------
Total current assets 14,865,927 19,594,202
Property and equipment - net 2,421,151 1,732,796
Other assets 65,813 50,449
Goodwill 1,487,884 1,487,884
Intangible assets - net 762,900 787,500
----------------- -----------------
TOTAL ASSETS $ 19,603,675 $ 23,652,831
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 916,526 $ 997,589
Accrued expenses 511,779 500,656
Accrued compensation 406,716 391,867
Withholding taxes payable 29,062 45
Insurance premium financing 27,467 216,043
Billings in excess of costs 54,901 84,208
Current portion of capital lease
obligations 45,333 37,617
----------------- -----------------
Total current liabilities 1,991,784 2,228,025
Capital lease obligations 54,441 62,290
Deferred tax liabilities 68,390 47,991
Deferred rent 97,463 82,623
----------------- -----------------
Total liabilities 2,212,078 2,420,929
----------------- -----------------
Commitments and contingencies
Stockholders' equity
Series A Convertible Preferred
stock, $.001 par value, 2,000,000
shares authorized and 710,000
shares issued and outstanding at
June 30, 2006; 720,000 shares
issued and outstanding at December
31, 2005. 710 720
Common stock, $.001 par value,
100,000,000 shares authorized;
73,367,353 shares issued and
outstanding at June 30, 2006;
71,996,111 shares issued and
outstanding at December 31, 2005 73,367 71,996
Additional paid-in capital 33,423,724 28,044,794
Accumulated deficit (16,106,204) (6,885,608)
----------------- -----------------
Total stockholders' equity 17,391,597 21,231,902
----------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 19,603,675 $ 23,652,831
================= =================
IONATRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
June 30,
-------------------------
2006 2005
-------------------------
Revenue $ 1,997,170 $ 3,956,522
Cost of revenue 2,023,231 3,775,826
-------------------------
Gross profit (loss) (26,061) 180,696
Operating expenses:
General and administrative 3,594,220 1,345,807
Selling and marketing 126,291 95,133
Research and development 1,201,179 385,656
-------------------------
Total operating expenses 4,921,690 1,826,596
-------------------------
Operating loss (4,947,751) (1,645,900)
Other (expense) income
Interest expense (4,120) (58,102)
Interest income 111,982 10,099
Other 35 (7,500)
-------------------------
Total other 107,897 (55,503)
-------------------------
Loss before provision for income taxes (4,839,854) (1,701,403)
Provision for income taxes 10,603 9,293
-------------------------
Net loss (4,850,457) (1,710,696)
Preferred stock dividends (303,663) -
-------------------------
Net loss attributable to common
stockholders $(5,154,120) $(1,710,696)
=========================
Net loss per common share -
basic and diluted $ (0.07) $ (0.02)
=========================
Weighted average number of shares
outstanding, basic and diluted 73,272,731 71,212,062
======================================================================
IONATRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the six months ended
June 30,
-----------------------------------
2006 2005
----------------- -----------------
Revenue $ 7,071,997 $ 6,526,793
Cost of revenue 6,790,409 6,180,312
----------------- -----------------
Gross profit 281,588 346,481
Operating expenses:
General and administrative 6,215,716 2,869,011
Selling and marketing 275,249 230,662
Research and development 2,276,246 491,646
----------------- -----------------
Total operating expenses 8,767,211 3,591,319
----------------- -----------------
Operating loss (8,485,623) (3,244,838)
Other (expense) income
Interest expense (9,363) (116,179)
Interest income 224,102 21,001
Other 44 592
----------------- -----------------
Total other 214,783 (94,586)
----------------- -----------------
Loss before provision for income
taxes (8,270,840) (3,339,424)
Provision for income taxes 21,902 18,870
----------------- -----------------
Net loss (8,292,742) (3,358,294)
Preferred stock dividends (607,323) -
----------------- -----------------
Net loss attributable to common
stockholders $ (8,900,065)$ (3,358,294)
----------------- -----------------
Net loss per common share - basic
and diluted $ (0.12)$ (0.05)
----------------- -----------------
Weighted average number of shares
outstanding, basic and diluted 72,726,740 71,091,456
================= =================
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 and Net Income per Share
For the three For the six
months ended months ended
June 30, 2005 June 30, 2005
Net loss:
As reported $ (1,710,696)$ (3,358,294)
Pro forma stock
compensation expense (722,959) (2,810,427)
----------------- -----------------
Pro forma $ (2,433,655)$ (6,168,721)
================= =================
Net Loss per share -
basic and diluted:
As reported $ (0.02)$ (0.05)
================= =================
Pro forma $ (0.03)$ (0.09)
================= =================
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion