[LOGO APPEARS HERE] IRVINE SENSORS CORPORATION | ||
NEWS RELEASE |
CONTACT: | Investor Relations | |
Irvine Sensors Corporation | ||
(714) 444-8718 | ||
investorrelations@irvine-sensors.com |
IRVINE SENSORS RELEASES FISCAL 2003 RESULTS
FOR IMMEDIATE RELEASE
COSTA MESA, CALIFORNIA — December 22, 2003 — Irvine Sensors Corporation (NASDAQ: IRSN, Boston Stock Exchange: ISC) today released its results for its 2003 fiscal year ended September 28, 2003. Fiscal 2003 revenues were $12,642,300, down $2.7 million, or approximately 17.6%, from fiscal 2002 total revenues of $15,342,300. Net loss for fiscal 2003 increased approximately 5% to $6,345,100 in fiscal 2003, as compared to the $6,037,500 net loss of fiscal 2002, reflecting a decrease of approximately $1.9 million in general and administrative expense from fiscal 2002. In addition to the net loss, fiscal 2003 included an imputed non-cash dividend of $1,013,100 related to the issuance of convertible preferred stock. Largely as a result of financings consummated during the fiscal year, the Company’s working capital at September 28, 2003 was improved by approximately $1.2 million over the prior year-end.
Irvine Sensors Corporation, headquartered in Costa Mesa, California, is primarily engaged in the sale of stacked chip assemblies and research and development related to high density electronics, miniaturized sensors and cameras, optical interconnection technology, high speed routers, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications.
Irvine Sensors Corporation 2003 Fiscal Year Results Press Release
December 22, 2003
Page 2 of 4
Safe Harbor’ Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
Important factors that may cause such a difference include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the economic slowdown in the technology sector and semiconductor industry; our ability to control costs and expenses; our ability to compete against firms with greater resources and successfully commercialize our technologies, the volume of our product sales and pricing concessions on volume sales; and the timing, rescheduling or cancellation of significant customer orders. Further information on Irvine Sensors Corporation, including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our other SEC filings that are available through the SEC’s EDGAR database (www.sec.gov) or from the Company’s Investors Relations.
Irvine Sensors Corporation 2003 Fiscal Year Results Press Release
December 22, 2003
Page 3 of 4
Consolidated Statements of Operations
Fiscal Year Ended | ||||||||
September 28, 2003 | September 29, 2002 | |||||||
Revenues: | ||||||||
Contract research and development revenue | $ | 10,367,900 | $ | 10,561,500 | ||||
Product sales | 2,212,700 | 4,641,700 | ||||||
Other revenue | 61,700 | 139,100 | ||||||
Total revenues | 12,642,300 | 15,342,300 | ||||||
Cost and expenses: | ||||||||
Cost of contract research and development revenue | 7,790,200 | 7,752,100 | ||||||
Cost of product sales | 2,375,600 | 4,048,800 | ||||||
General and administrative expense | 5,598,800 | 7,476,600 | ||||||
Research and development expense | 2,668,200 | 1,991,700 | ||||||
18,432,800 | 21,269,200 | |||||||
Loss from operations | (5,790,500 | ) | (5,926,900 | ) | ||||
Interest expense | (182,400 | ) | (230,400 | ) | ||||
Interest and other income | 5,100 | 10,100 | ||||||
Loss on disposal of assets | (369,400 | ) | — | |||||
Loss from continuing operations before minority interest and provision for income taxes | (6,337,200 | ) | (6,147,200 | ) | ||||
Minority interest in loss of subsidiaries | 7,900 | 112,200 | ||||||
Provision for income taxes | (15,800 | ) | (37,500 | ) | ||||
Loss from continuing operations | (6,345,100 | ) | (6,072,500 | ) | ||||
Discontinued operations: | ||||||||
Loss from operations of discontinued subsidiary | — | — | ||||||
Gain on disposal of subsidiary | — | 35,000 | ||||||
Gain from discontinued operations | — | 35,000 | ||||||
Net loss | $ | (6,345,100 | ) | $ | (6,037,500 | ) | ||
Imputed dividend on Series E stock issued | (1,013,100 | ) | — | |||||
Net loss applicable to common stockholders | $ | (7,358,200 | ) | $ | (6,037,500 | ) | ||
Loss from continuing operations | $ | (0.82 | ) | $ | (1.07 | ) | ||
Gain from discontinued operations | — | 0.01 | ||||||
Basic and diluted net loss per common share | $ | (0.82 | ) | $ | (1.06 | ) | ||
Weighted average number of shares outstanding | 8,958,200 | 5,694,800 | ||||||
Irvine Sensors Corporation 2003 Fiscal Year Results Press Release
December 22, 2003
Page 4 of 4
Consolidated Balance Sheets
September 28, 2003 | September 29, 2002 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,166,800 | 696,300 | ||||||
Restricted cash | 54,200 | 435,200 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $57,700 in 2003 and $76,300 in 2002 | 443,500 | 2,081,700 | ||||||
Unbilled revenues on uncompleted contracts | 598,100 | 648,500 | ||||||
Inventory, net | 932,100 | 938,000 | ||||||
Other current assets | 48,500 | 100,600 | ||||||
Total current assets | 3,243,200 | 4,900,300 | ||||||
Equipment, furniture and fixtures, net | 4,417,600 | 4,959,200 | ||||||
Patents and trademarks, net | 707,400 | 580,600 | ||||||
Deposits | 87,400 | 98,450 | ||||||
Total assets | $ | 8,455,600 | $ | 10,538,550 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,620,600 | $ | 3,880,100 | ||||
Accrued expenses | 806,100 | 1,205,400 | ||||||
Accrued loss on contracts | 358,500 | 444,200 | ||||||
Advance billings on uncompleted contracts | 437,000 | 143,800 | ||||||
Deferred revenue | 251,700 | 43,100 | ||||||
Line of credit | — | 400,000 | ||||||
Short term notes payable | — | 150,000 | ||||||
Capital lease obligations—current portion | 30,700 | 116,900 | ||||||
Total current liabilities | 3,504,600 | 6,383,500 | ||||||
Capital lease obligations, less current portion | 34,700 | 61,300 | ||||||
Minority interest in consolidated subsidiaries | 431,500 | 467,200 | ||||||
Total liabilities | 3,970,800 | 6,912,000 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized: | ||||||||
Series B convertible cumulative preferred stock, 0 and 4,300 shares outstanding | — | 25 | ||||||
Series C convertible cumulative preferred stock, 0 and 2,300 shares outstanding | — | 25 | ||||||
Series E convertible preferred stock, 2,083 and 0 shares outstanding; aggregate liquidation preference of $250,000 | — | — | ||||||
Common stock, $0.01 par value, 80,000,000 shares authorized; 12,947,700 and 7,027,900 shares issued and outstanding | 129,500 | 70,300 | ||||||
Common stock warrants; 2,065,600 and 1,094,800 outstanding | (250,000 | ) | — | |||||
Common stock held by Rabbi Trust | — | — | ||||||
Deferred compensation liability | 250,000 | — | ||||||
Paid-in capital | 110,315,500 | 102,158,200 | ||||||
Accumulated deficit | (105,960,200 | ) | (98,602,000 | ) | ||||
Total stockholders’ equity | 4,484,800 | 3,626,550 | ||||||
Total liabilities and stockholders’ equity | $ | 8,455,600 | $ | 10,538,550 | ||||