Exhibit 99.2
NOVT CORPORATION ANNOUNCES FINANCIAL RESULTS
FOR THE QUARTER ENDED JUNE 30, 2006
SAN JOSE, Ca., August 11 /PRNewswire-FirstCall/ -- NOVT Corporation
(Pink Sheets: NOVT.PK) today announced a net loss of $499,000 or $0.12 loss per
share for the three months ended June 30, 2006, as compared to a net loss of
$2,580,000 or $0.63 loss per share for the three months ended June 30, 2005.
NOVT Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2006 December 31,
(Unaudited) 2005 (1)
----------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,522 $ 10,449
Restricted cash -- 1,864
Short-term investments -- 349
Accounts receivable and other receivable 824 476
Inventory, net -- 19
Assets held for sale -- 419
Prepaid expenses and other current assets 159 431
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Total current assets 8,505 14,007
Property and equipment, net -- 81
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$ 8,505 $ 14,088
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 270 $ 571
Accrued expenses 1,141 2,862
Unearned revenue -- 367
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Total current liabilities 1,411 3,800
Stockholders' equity:
Common stock 41 41
Additional paid-in capital 187,980 187,971
Accumulated other comprehensive loss (6) --
Accumulated deficit (180,749) (177,552)
Treasury stock, at cost, 10,733 shares (172) (172)
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Total stockholders' equity 7,094 10,288
========= =========
$ 8,505 $ 14,088
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(1) Amounts are derived from the December 31, 2005 audited financial statements.
NOVT Corporation
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Six months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
---------------------- ---------------------
Net sales $ -- $ 2,299 $ 406 $ 5,712
Cost of sales -- 895 411 5,014
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Gross margin (loss) -- 1,404 (5) 698
Operating expenses:
Research and development -- 102 55 536
Sales and marketing -- 938 321 3,640
General and administrative 589 3,105 3,655 5,982
-------- -------- -------- --------
Total operating expenses 589 4,145 4,031 10,158
-------- -------- -------- --------
Loss from operations (589) (2,741) (4,036) (9,460)
Interest income and other 90 161 836 325
-------- -------- -------- --------
Net loss $ (499) $ (2,580) $ (3,200) $ (9,135)
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Basic and diluted net loss per share $ (0.12) $ (0.63) $ (0.78) $ (2.24)
======== ======== ======== ========
Shares used in computing basic and diluted net
income (loss) per share 4,084 4,084 4,084 4,084
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ABOUT NOVT CORPORATION
On March 9, 2006, NOVT completed the sale of substantially all the assets of its
vascular brachytherapy business. NOVT's strategic plan is to redeploy its
existing resources to identify and acquire new business operations. NOVT's
redeployment strategy will involve the acquisition of one or more operating
businesses with existing or prospective taxable earnings. This strategy may
allow NOVT to realize future cash flow benefits from its net operating loss
carry-forwards ("NOLs"). In connection with the redeployment strategy, NOVT from
time to time may review potential acquisitions, conduct due diligence, enter
into letters of intent or similar agreements or otherwise evaluate potential
acquisitions, and if it deems advisable, negotiate definitive acquisition
agreements. No assurance can be given that the Company will find suitable
candidates, and if it does, that it will be able to utilize its existing NOLs.
NOVT's common stock is currently traded in the Pink Sheets under the symbol
NOVT.PK. For general company information, please visit NOVT's website at
NOVTCorporation.com.
SAFE HARBOR WARNING
Forward-looking statements in this press release are made pursuant to the
provisions of Section 21E of the Securities Exchange Act of 1934. Investors are
cautioned that statements in this press release, which are not strictly
historical statements, constitute forward-looking statements. Actual results or
events could differ materially from those anticipated in forward-looking
statements. These risks and uncertainties include the Company's ability to
succeed in its redeployment strategy, as well as risks and uncertainties that
are set forth from time to time in the Company's SEC reports, including its
Annual Report on Form 10-K for the year ended December 31, 2005 and its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. The Company
disclaims any obligation to publicly update or revise any such statements to
reflect any change in the Company's expectations or events, conditions or
circumstances on which any such statement may be based, or that may affect the
likelihood that actual results will differ from those set forth in the
forward-looking statements.
SOURCE: NOVT Corporation
08/11/2006
CONTACT: Terry Gibson of NOVT Corporation, +1-408-236-7517/
(NOVT.PK)
