EXHIBIT 99.1
NEWS RELEASE
CONTACT: | Investor Relations | |
Irvine Sensors Corporation | ||
714-444-8718 | ||
investorrelations@irvine-sensors.com |
FOR IMMEDIATE RELEASE
IRVINE SENSORS RELEASES 1st QUARTER RESULTS
COSTA MESA, CALIFORNIA — February 11, 2004 — Irvine Sensors Corporation (NASDAQ: IRSN, Boston Stock Exchange: ISC) today reported operating results for its first quarter of fiscal 2004, the 13 weeks ended December 28, 2003.
Total revenues were $3,440,300, down from $5,197,000 for the 13 weeks ended December 29, 2002, reflecting a reduction in the Company’s contract research and development revenue over the prior year period, which included revenue from a single large contract that was substantially completed in fiscal 2003. Product sales in the current year period were up from the prior year period. Despite the approximate $1.75 million revenue reduction versus the prior year period, net loss for the 13-week period ended December 28, 2003 was $897,800 as compared to $693,700 for the 13-week period ended December 29, 2002, a disproportionate result that reflected improved margins on contract research and development revenue in the current year period. From a liquidity perspective, cash improved by $460,200 and working capital improved by $1,722,300 during the 13-week period ended December 28, 2003, largely as a result of a financing completed in December 2003.
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.
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IRVINE SENSORS CORPORATION
CONSOLIDATED BALANCE SHEETS
December 28, 2003 | September 28, 2003 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,627,000 | $ | 1,166,800 | ||||
Restricted cash | 54,200 | 54,200 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $10,000 and $57,700, respectively | 802,100 | 443,500 | ||||||
Unbilled revenues on uncompleted contracts | 759,100 | 598,100 | ||||||
Inventory, net | 777,900 | 932,100 | ||||||
Other current assets | 72,800 | 48,500 | ||||||
Total current assets | 4,093,100 | 3,243,200 | ||||||
Equipment, furniture and fixtures, net | 4,351,900 | 4,417,600 | ||||||
Patents and trademarks, net | 701,100 | 707,400 | ||||||
Deposits | 86,600 | 87,400 | ||||||
Total assets | $ | 9,232,700 | $ | 8,455,600 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,634,500 | $ | 1,620,600 | ||||
Accrued expenses | 883,600 | 806,100 | ||||||
Accrued loss on contracts | 42,300 | 358,500 | ||||||
Advance billings on uncompleted contracts | 20,300 | 437,000 | ||||||
Deferred revenue | 25,000 | 251,700 | ||||||
Capital lease obligations – current portion | 26,500 | 30,700 | ||||||
Total current liabilities | 2,632,200 | 3,504,600 | ||||||
Capital lease obligations, less current portion | 29,500 | 34,700 | ||||||
Minority interest in consolidated subsidiaries | 427,600 | 431,500 | ||||||
Total liabilities | 3,089,300 | 3,970,800 | ||||||
Commitments and contingencies | — | — | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized; | ||||||||
Series E convertible preferred stock, 0 and 2,083 shares outstanding | — | — | ||||||
Common stock, $0.01 par value, 80,000,000 shares authorized; 15,008,400 and 12,947,700 shares issued and outstanding | 150,100 | 129,500 | ||||||
Common stock warrants; 2,075,200 and 2,065,600 warrants outstanding | — | — | ||||||
Unamortized employee stock bonus plan contribution | (469,100 | ) | — | |||||
Common stock held by Rabbi Trust | (250,000 | ) | (250,000 | ) | ||||
Deferred compensation liability | 250,000 | 250,000 | ||||||
Paid-in capital | 113,320,400 | 110,315,500 | ||||||
Accumulated deficit | (106,858,000 | ) | (105,960,200 | ) | ||||
Total stockholders’ equity | 6,143,400 | 4,484,800 | ||||||
$ | 9,232,700 | $ | 8,455,600 | |||||
IRVINE SENSORS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
13 Weeks Ended | ||||||||
December 28, 2003 | December 29, 2002 | |||||||
Revenues: | ||||||||
Contract research and development revenue | $ | 2,474,100 | $ | 4,580,600 | ||||
Product sales | 939,700 | 599,300 | ||||||
Other revenue | 26,500 | 17,100 | ||||||
Total revenues | 3,440,300 | 5,197,000 | ||||||
Cost and expenses: | ||||||||
Cost of contract research and development revenue | 1,393,600 | 3,621,300 | ||||||
Cost of product sales | 1,066,200 | 606,600 | ||||||
General and administrative expense | 1,293,400 | 1,511,400 | ||||||
Research and development expense | 549,800 | 95,100 | ||||||
Total cost and expenses | 4,303,000 | 5,834,400 | ||||||
Loss from operations | (862,700 | ) | (637,400 | ) | ||||
Interest expense | (33,100 | ) | (51,500 | ) | ||||
Other expense | — | (5,800 | ) | |||||
Interest and other income | — | 4,700 | ||||||
Loss before minority interest and provision for income taxes | (895,800 | ) | (690,000 | ) | ||||
Minority interest in loss of subsidiaries | 4,000 | 6,200 | ||||||
Provision for income taxes | (6,000 | ) | (9,900 | ) | ||||
Net loss | (897,800 | ) | (693,700 | ) | ||||
Imputed dividend on Series E stock issued | — | (842,900 | ) | |||||
Net loss applicable to common stockholders | $ | (897,800 | ) | $ | (1,536,600 | ) | ||
Basic and diluted net loss per common share | $ | (0.07 | ) | $ | (0.22 | ) | ||
Weighted average number of shares outstanding | 13,592,700 | 7,144,940 | ||||||