Exhibit 99.1 Press Release
For Immediate Release
NUMEREX REPORTS FOURTH QUARTER AND FULL YEAR 2008 RESULTS
M2M operations continue to reflect strong fundamentals with 146% full year growth in digital network connections and 23% growth in service revenue
ATLANTA, February 26, 2009 - Numerex Corp. (NASDAQ: NMRX) a leading provider of full service, highly secure Machine-to-Machine (M2M) network services and solutions announces its financial results for the fourth quarter and full year ended December 31, 2008.
Key highlights of Numerex’s financial performance are as follows:
· | Revenues: For the full year of 2008, revenues grew to $72.3 million from $68 million in 2007. Wireless service revenues grew by 23%, more than offsetting the decline in hardware revenues of 3.5%. |
o | The anticipated lower hardware sales were due to the completion of the analog to digital transition in the commercial and residential security market coupled with reduced demand for wireless modules from M2M customers adjusting to the macroeconomic slowdown and lack of liquidity. |
· | Gross Margin: Fourth quarter and full year margins of 2008 were 39.8% and 35.1% respectively compared to 35.1% and 34.4% for the same periods in 2007. |
o | The increase in wireless service revenues drove an overall margin improvement since service revenues have a significantly higher gross margin than the ones achieved through the sale of hardware. |
· | Operating expense: Excluding impairments, operating expenses were $7.7 million for the fourth quarter of 2008 and $26.5 million for the full year 2008. This compares with $6.2 million and $20.9 million for the same periods in 2007. |
o | The reason for this increase includes the continued investment in the Company’s sales and marketing functions, legal fees associated with litigation, increased bad debt allowance, additional research and development expenses as well as higher amortization charges incurred primarily as the result of the acquisitions of both Orbit One and Ublip. |
o | The Company is tightly controlling costs and in the last several months has reduced administrative and support expenses. As a result of this and other cost control actions, general and administrative expenses, excluding legal litigation fees, were lower in 2008 than in 2007. |
o | In accordance with Financial Accounting Standard No. 123(R) the Company recorded non-cash stock option compensation costs of $301,000 and $1,158,000 in the fourth quarter and full year 2008 respectively. |
Commenting on these results and the strategic direction of the Company, Stratton Nicolaides, chairman and CEO of Numerex stated: “We believe that the fundamentals of our M2M business remain strong and centered on the capture of long-term recurring service revenue despite these difficult economic times. As a result of the economic climate and uncertainty in the capital markets, which we believe will continue into 2009, and after consideration of other relevant factors, we bolstered our reserves and recorded non-cash goodwill and intangible write-offs in the fourth quarter. We continue to take measures that will strengthen our balance sheet and build our cash balances. We expect that our service revenue and connection base will continue to reflect solid growth in 2009, building upon our 2008 accomplishments.”
-continued-
In 2008, we:
· | Strengthened our balance sheet by increasing cash position to $8.9 million, improving Days Sales Outstanding to 50 days, and reducing accounts receivable and inventory. |
· | Transitioned our analog customer base to digital during the year, while increasing the number of connections on our M2M networks. The total number of digital connections grew to 701,000 at the end of 2008 from a base of 285,000 at the beginning of the year, excluding analog connections. |
· | Increased the share of high margin service revenue as a result of our strategy to de-emphasize hardware only sales. Wireless service revenues in 2008 were 39.2% of total wireless revenue compared to 33.7% in 2007. In the fourth quarter of 2008, service revenues were actually slightly greater than hardware revenues compared to the same period in 2007 when they were less than 38% of the total revenue. |
· | Introduced “Numerex Foundation Application Software Technology” or Numerex FAST™ as a result of the Ublip acquisition. Numerex customers are now able to take advantage of a resilient and scalable hosting environment for the rapid creation and support of web-based M2M applications. |
· | Shaped our product and service delivery around Numerex DNA™, which captures our capabilities to provide complete M2M solutions, efficiently integrating a Device, a Network , and an Application. |
· | Reinforced our wireless security product suite through the introduction of two new products, the FD-1000 module and the ETL certified Uplink 2550, aimed at providing full data communications and reporting capabilities for both the commercial and residential security sectors. |
· | Introduced GPRSXpress™, a GSM data transport service that is optimized for subscribers seeking a simple and efficient data plan for M2M communications. |
· | Launched the NumereXpress™ portal, which gives direct web-access to Numerex's customer support and backend M2M services. This portal facilitates the device management and network provisioning for our SMSXpress™ and GPRSXpress customers. |
· | Received Hazards of Electromagnetic Radiation to Ordnance (HERO) certification, which, together with successful environmental testing, clears the way for military procurement of the SX1 satellite tracking tags. |
Including non-cash charges of $5.3 million for impairment and $3.5 million for deferred taxes, the Company reported a net loss of $10.7 million for the fourth quarter of 2008 and a net loss of $11.0 million for the full year of 2008. These results compare to net income of $554,000 and $440,000 for the fourth quarter and full year 2007, respectively. Net income for 2008, excluding stock based compensation expenses, legal fees associated with litigation, impairment charges and the deferred tax valuation allowance reversal (“non-GAAP income”) was $531,000 compared to net income of $1.4 million for 2007 using the same non-GAAP income measurement. All non-GAAP information is reconciled in the Non-GAAP Condensed Consolidated Statement of Operations table attached.
The Company conducted its goodwill and long lived asset analysis and assessment in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) 142 and Statement of Financial Accounting Standards (SFAS) 144. In the fourth quarter 2008, the Company recorded an estimated total pre-tax, non-cash charge of $5.3 million for the impairment of goodwill and long lived assets primarily attributable to the satellite division. A smaller portion of the impairment was attributable to the Company’s broadband solutions business. This non-cash charge has no impact on the Company’s liquidity or on its future operating performance. After this impairment, the Company’s goodwill balance will be approximately $23.8 million.
As a result of the current year’s net loss and its impact on the Company’s deferred tax asset related to net operating losses (NOL’s), management has decided that it would be prudent to re-establish a valuation allowance against the Company’s
deferred tax assets. The resulting deferred tax expense is a non-cash charge and has no impact on the Company’s
liquidity or future operating performance. In subsequent periods income generated by the Company will contain only minimal tax charges related to certain state taxes until such time as the valuation allowance related to the deferred tax
asset is released. In addition, until the Company has utilized $13.1 million in NOL carry forwards, cash payments for federal income taxes will also be minimal.
Key balance sheet metrics at December 31, 2008, include:
o | Total cash of $8.9 million compared to $7.4 million at December 31, 2007. This increase was generated organically and achieved despite the payment of over $4.1 million principal and interest on the Company’s debt. |
o | An improvement in Days Sales Outstanding (DSO), which are calculated by reference to monthly sales, to 50 days from 60 days at the end of 2007. |
o | Continued inventory management that yielded a second straight quarterly decline in total inventory levels. Despite this decrease, inventory remains elevated and it is believed that there are additional opportunities for prospective reductions. |
Mr. Nicolaides concluded, “Our mission is to bring our customers’ M2M ‘projects to life’, efficiently and reliably. In other words, we enable M2M projects by providing the appropriate device, wireless network, and software application, or Numerex DNA, and strip out the complexity associated with an M2M product launch. In our view, Numerex provides the ideal solution in an economic environment where customers seek productivity enhancement, operational efficiencies, and security. In 2009, we will maintain our focus on key strategic relationships in commercial and residential security, government and transportation, healthcare, energy and utilities, and financial services.”
Conference Call and Web Cast Information
Numerex will conduct a conference call on February 26th at 9:00 am Eastern Time, accessible by calling (866) 838-2057 in the United States and Canada or (904) 596-2360 for international. A live web cast of the call will also via the Numerex web site at http://www.numerex.com, under the Investor Relations section. A replay of the conference call will also be available via the Numerex web site beginning two hours after the call.
About Numerex
Numerex Corp. (NASDAQ: NMRX) provides a broad choice of secure machine-to-machine (M2M) network services and solutions. Numerex delivers a depth of expertise and excellence through its M2M service platforms that leading companies choose to power their M2M solutions. Numerex is the first M2M Company in North America to carry ISO 27001 certification -- ISO's highest information security benchmark that ensures data confidentiality, integrity and availability. The Company offers its M2M products and services through a variety of brands including Uplink, Orbit One, and Ublip. Numerex is headquartered in Atlanta, Georgia. For additional information, visit http://www.numerex.com
This press release contains, and other statements may contain, forward-looking statements with respect to Numerex future financial or business performance, conditions or strategies and other financial and business matters, including expectations regarding growth trends and activities in the wireless data business. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "assume," "strategy," "plan," "outlook," "outcome," "continue," "remain," "trend," and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may," or similar expressions. Numerex cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. These forward-looking statements speak only as of the date of this press release, and Numerex assumes no duty to update forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements and future results could differ materially from historical performance.
The following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: our inability to reposition our platform to capture greater recurring service revenues, difficulties associated with integrating Orbit One’s business, the risks that a substantial portion of Orbit One's revenues are derived from government contracts that may be terminated by the government at any time, variations in quarterly operating results, delays in the development, introduction, integration and marketing of new wireless services; customer acceptance of services; economic conditions; changes in financial and capital markets; the inability to attain revenue and earnings growth in our wireless data business; changes in interest rates; inflation; the introduction, withdrawal, success and timing of business initiatives and strategies; competitive conditions; the inability to realize revenue enhancements; and extent and timing of technological changes. Numerex SEC reports identify additional factors that can affect forward-looking statements.
Numerex Corp. | ||||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2008 | 2007 | Change | % Change | 2008 | 2007 | Change | % Change | |||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||
Hardware | $ | 7,303 | $ | 13,835 | $ | (6,532 | ) | -47 | % | $ | 43,048 | $ | 43,408 | $ | (360 | ) | -1 | % | ||||||||||||||
Service | 8,159 | 8,829 | (670 | ) | -8 | % | 29,271 | 24,596 | 4,675 | 19 | % | |||||||||||||||||||||
Total net sales | 15,462 | 22,664 | (7,202 | ) | -32 | % | 72,319 | 68,004 | 4,315 | 6 | % | |||||||||||||||||||||
Cost of hardware sales | 6,631 | 12,617 | (5,986 | ) | -47 | % | 37,469 | 38,491 | (1,022 | ) | -3 | % | ||||||||||||||||||||
Cost of services | 2,675 | 2,085 | 590 | 28 | % | 9,430 | 6,106 | 3,324 | 54 | % | ||||||||||||||||||||||
Gross Profit | 6,156 | 7,962 | (1,806 | ) | -23 | % | 25,420 | 23,407 | 2,013 | 9 | % | |||||||||||||||||||||
39.8 | % | 35.1 | % | 35.1 | % | 34.4 | % | |||||||||||||||||||||||||
Sales and marketing expenses | 2,132 | 2,247 | (115 | ) | -5 | % | 9,077 | 7,115 | 1,962 | 28 | % | |||||||||||||||||||||
General, administrative and legal expenses | 3,361 | 2,516 | 845 | 34 | % | 11,037 | 9,205 | 1,832 | 20 | % | ||||||||||||||||||||||
Research and development expenses | 710 | 455 | 255 | 56 | % | 2,198 | 1,459 | 739 | 51 | % | ||||||||||||||||||||||
Bad Debt Expense | 630 | 222 | 408 | 184 | % | 1,102 | 635 | 467 | 74 | % | ||||||||||||||||||||||
Depreciation and amortization | 818 | 777 | 41 | 5 | % | 3,107 | 2,493 | 614 | 25 | % | ||||||||||||||||||||||
Goodwill & long-lived asset impairment | 5,289 | - | 5,289 | nm | 5,289 | - | 5,289 | nm | ||||||||||||||||||||||||
Operating earnings (loss) | (6,784 | ) | 1,745 | (8,529 | ) | nm | (6,390 | ) | 2,500 | (8,890 | ) | nm | ||||||||||||||||||||
Interest expense | (389 | ) | (416 | ) | 27 | nm | (1,530 | ) | (1,365 | ) | (165 | ) | nm | |||||||||||||||||||
Other income | (10 | ) | 53 | (63 | ) | nm | (8 | ) | 33 | (41 | ) | nm | ||||||||||||||||||||
Earnings (loss) before tax | (7,183 | ) | 1,382 | (8,565 | ) | nm | (7,928 | ) | 1,168 | (9,096 | ) | nm | ||||||||||||||||||||
Provision (benefit) for income tax | 3,468 | 828 | 2,640 | nm | 3,047 | 728 | 2,319 | nm | ||||||||||||||||||||||||
Net earnings (loss) | $ | (10,651 | ) | $ | 554 | $ | (11,205 | ) | nm | $ | (10,975 | ) | $ | 440 | $ | (11,415 | ) | nm | ||||||||||||||
Basic earnings (loss) per common share | $ | (0.75 | ) | $ | 0.04 | $ | (0.78 | ) | $ | 0.03 | ||||||||||||||||||||||
Diluted earnings (loss) per common share | $ | (0.75 | ) | $ | 0.04 | $ | (0.78 | ) | $ | 0.03 | ||||||||||||||||||||||
Number of shares used in per share calculation | ||||||||||||||||||||||||||||||||
Basic | 14,160 | 13,197 | 14,144 | 13,137 | ||||||||||||||||||||||||||||
Diluted | 14,160 | 13,575 | 14,144 | 13,700 |
Numerex Corp. | ||||||||||||||||||||||||
Supplemental Sales Information | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
Net Sales: | 2008 | 2007 | Change | 2008 | 2007 | Change | ||||||||||||||||||
Wireless Data Communications | ||||||||||||||||||||||||
Hardware | $ | 7,099 | $ | 13,213 | $ | (6,114 | ) | $ | 40,196 | $ | 41,661 | $ | (1,465 | ) | ||||||||||
Service | 7,121 | 8,068 | (947 | ) | 25,952 | 21,164 | 4,788 | |||||||||||||||||
Subtotal | 14,220 | 21,281 | (7,061 | ) | 66,148 | 62,825 | 3,323 | |||||||||||||||||
Digital Multimedia, Networking and Wireline Security | ||||||||||||||||||||||||
Hardware | 203 | 622 | (419 | ) | 2,852 | 1,747 | 1,105 | |||||||||||||||||
Service | 1,038 | 761 | 277 | 3,319 | 3,432 | (113 | ) | |||||||||||||||||
Subtotal | 1,241 | 1,383 | (142 | ) | 6,171 | 5,179 | 991 | |||||||||||||||||
Total | ||||||||||||||||||||||||
Hardware | 7,302 | 13,835 | (6,533 | ) | 43,048 | 43,408 | (360 | ) | ||||||||||||||||
Service | 8,159 | 8,829 | (670 | ) | 29,271 | 24,596 | 4,675 | |||||||||||||||||
Total net sales | 15,461 | 22,664 | (7,203 | ) | 72,319 | 68,004 | 4,315 |
Condensed Consolidated Statement of Operations | ||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, 2008 | December 31, 2008 | |||||||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||||
Results | Adjustments | Results | Results | Adjustments | Results | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Hardware | $ | 7,303 | $ | 7,303 | $ | 43,048 | $ | 43,048 | ||||||||||||||||
Service | 8,159 | 8,159 | 29,271 | 29,271 | ||||||||||||||||||||
Total net sales | 15,462 | 15,462 | 72,319 | 72,319 | ||||||||||||||||||||
Cost of hardware sales | 6,631 | 6,631 | 37,469 | 37,469 | ||||||||||||||||||||
Cost of services | 2,675 | 2,675 | 9,430 | 9,430 | ||||||||||||||||||||
Gross Profit | 6,156 | - | 6,156 | 25,420 | - | 25,420 | ||||||||||||||||||
39.8 | % | 39.8 | % | 35.1 | % | 35.1 | % | |||||||||||||||||
Sales and marketing expenses | 2,132 | 2,132 | 9,077 | 9,077 | ||||||||||||||||||||
General, administrative and legal expenses | 3,361 | (1,454 | ) | 1,907 | 11,037 | (3,170 | ) | 7,867 | ||||||||||||||||
Research and development expenses | 710 | 710 | 2,198 | 2,198 | ||||||||||||||||||||
Bad debt expense | 630 | 630 | 1,102 | 1,102 | ||||||||||||||||||||
Earnings before interest, depreciation and amortization | (677 | ) | 1,454 | 777 | 2,006 | 3,170 | 5,176 | |||||||||||||||||
Depreciation and amortization | 818 | - | 818 | 3,107 | - | 3,107 | ||||||||||||||||||
Goodwill & long-lived asset impairment | 5,289 | (5,289 | ) | - | 5,289 | (5,289 | ) | - | ||||||||||||||||
Operating earnings (loss) | (6,784 | ) | 6,743 | (41 | ) | (6,390 | ) | 8,459 | 2,069 | |||||||||||||||
Interest expense | (389 | ) | (389 | ) | (1,530 | ) | (1,530 | ) | ||||||||||||||||
Other income | (10 | ) | (10 | ) | (8 | ) | (8 | ) | ||||||||||||||||
Earnings (loss) before tax | (7,183 | ) | 6,743 | (440 | ) | (7,928 | ) | 8,459 | 531 | |||||||||||||||
Provision (benefit) for income tax | 3,468 | (3,468 | ) | - | 3,047 | (3,047 | ) | - | ||||||||||||||||
Net earnings (loss) | $ | (10,651 | ) | $ | 10,211 | $ | (440 | ) | $ | (10,975 | ) | $ | 11,506 | $ | 531 | |||||||||
Basic earnings (loss) per common share | $ | (0.75 | ) | $ | (0.03 | ) | $ | (0.78 | ) | $ | 0.04 | |||||||||||||
Diluted earnings (loss) per common share | $ | (0.75 | ) | $ | (0.03 | ) | $ | (0.78 | ) | $ | 0.04 | |||||||||||||
Number of shares used in per share calculation | ||||||||||||||||||||||||
Basic | 14,160 | 14,160 | 14,144 | 14,144 | ||||||||||||||||||||
Diluted | 14,160 | 14,160 | 14,144 | 14,144 | ||||||||||||||||||||
(a) These Unaudited non-GAAP Consolidated Statements of Operations are for informational purposes only and are not presented in accordance with GAAP. The adjustments necessary to provide a direct reconciliation of the non-GAAP to the GAAP basis consolidated Statement of Operations exclude stock option expense, legal fees associated with litigation, goodwill and long-lived asset impairment expense as well as the re-establishment of the full valuation allowance against deferred tax assets. | ||||||||||||||||||||||||
Numerex Corp. | ||||||||||||||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, 2007 | December 31, 2007 | |||||||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||||
Results | Adjustments | Results | Results | Adjustments | Results | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Hardware | $ | 13,835 | $ | 13,835 | $ | 43,408 | $ | 43,408 | ||||||||||||||||
Service | 8,829 | 8,829 | 24,596 | 24,596 | ||||||||||||||||||||
Total net sales | 22,664 | 22,664 | 68,004 | 68,004 | ||||||||||||||||||||
Cost of hardware sales | 12,617 | 12,617 | 38,491 | 38,491 | ||||||||||||||||||||
Cost of services | 2,085 | 2,085 | 6,106 | 6,106 | ||||||||||||||||||||
Gross Profit | 7,962 | - | 7,962 | 23,407 | - | 23,407 | ||||||||||||||||||
35.1 | % | 35.1 | % | 34.4 | % | 34.4 | % | |||||||||||||||||
Sales and marketing expenses | 2,247 | 2,247 | 7,115 | 7,115 | ||||||||||||||||||||
General, administrative and legal expenses | 2,516 | (286 | ) | 2,230 | 9,205 | (941 | ) | 8,264 | ||||||||||||||||
Research and development expenses | 455 | 455 | 1,459 | 1,459 | ||||||||||||||||||||
Bad debt expense | 222 | 222 | 635 | 635 | ||||||||||||||||||||
Earnings before interest, depreciation and amortization | 2,522 | 286 | 2,808 | 4,993 | 941 | 5,934 | ||||||||||||||||||
Depreciation and amortization | 777 | - | 777 | 2,493 | - | 2,493 | ||||||||||||||||||
Goodwill & long-lived asset impairment | - | - | - | - | - | - | ||||||||||||||||||
Operating earnings | 1,745 | 286 | 2,031 | 2,500 | 941 | 3,441 | ||||||||||||||||||
Interest expense | (416 | ) | (416 | ) | (1,365 | ) | (1,365 | ) | ||||||||||||||||
Other income | 53 | 53 | 33 | 33 | ||||||||||||||||||||
Earnings (loss) before tax | 1,382 | 286 | 1,668 | 1,168 | 941 | 2,109 | ||||||||||||||||||
Provision (benefit) for income tax | 828 | - | 828 | 728 | 728 | |||||||||||||||||||
Net earnings (loss) | $ | 554 | $ | 286 | $ | 840 | $ | 440 | $ | 941 | $ | 1,381 | ||||||||||||
Basic earnings (loss) per common share | $ | 0.04 | $ | 0.06 | $ | 0.03 | $ | 0.11 | ||||||||||||||||
Diluted earnings (loss) per common share | $ | 0.04 | $ | 0.06 | $ | 0.03 | $ | 0.10 | ||||||||||||||||
Number of shares used in per share calculation | ||||||||||||||||||||||||
Basic | 13,197 | 13,197 | 13,137 | 13,137 | ||||||||||||||||||||
Diluted | 13,575 | 13,575 | 13,700 | 13,700 | ||||||||||||||||||||
(a) These Unaudited non-GAAP Consolidated Statements of Operations are for informational purposes only and are not presented in | ||||||||||||||||||||||||
accordance with GAAP. The adjustments necessary to provide a direct reconciliation of the non-GAAP to the GAAP basis consolidated | ||||||||||||||||||||||||
Statement of Operations excludes stock option expense. |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 8,917 | $ | 7,425 | ||||
Accounts receivable, less allowance for doubtful accounts of $1,010 | ||||||||
at December 31, 2008 and $1,009 at December 31, 2007: | 9,159 | 16,396 | ||||||
Inventory | 8,506 | 10,059 | ||||||
Prepaid expenses and other current assets | 1,508 | 1,885 | ||||||
Deferred tax asset | - | 770 | ||||||
TOTAL CURRENT ASSETS | 28,090 | 36,535 | ||||||
Property and equipment, net | 1,765 | 2,003 | ||||||
Goodwill, net | 23,771 | 22,603 | ||||||
Other intangibles, net | 5,796 | 6,940 | ||||||
Software, net | 2,796 | 3,486 | ||||||
Other assets - long-term | 288 | 526 | ||||||
Deferred tax asset - long-term | - | 2,005 | ||||||
TOTAL ASSETS | $ | 62,506 | $ | 74,098 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 7,291 | $ | 10,299 | ||||
Other current liabilities | 2,943 | 2,311 | ||||||
Note payable | 2,568 | 2,568 | ||||||
Deferred revenues | 1,134 | 1,328 | ||||||
Obligations under capital leases | 29 | 44 | ||||||
TOTAL CURRENT LIABILITIES | 13,965 | 16,550 | ||||||
LONG TERM LIABILITIES | ||||||||
Note payable - net of current portion | 7,629 | 10,197 | ||||||
Obligations under capital leases and other long-term liabilities | 520 | 486 | ||||||
TOTAL LONG TERM LIABILITIES | 8,149 | 10,683 | ||||||
COMMITMENTS AND CONTIGENCIES | - | - | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock - no par value; authorized 3,000,000; none issued | - | - | ||||||
Class A common stock - no par value, authorized 30,000,000, issued 15,349,327 | ||||||||
shares at December 31, 2008 and 14,706,101 shares at December 31, 2007 | 50,800 | 47,455 | ||||||
Class B common stock – no par value; authorized 5,000,000; none issued | - | - | ||||||
Additional paid-in-capital | 4,587 | 3,427 | ||||||
Treasury stock, at cost, 1,185,809 shares on December 31, 2008 and | ||||||||
December 31, 2007 | (5,053 | ) | (5,053 | ) | ||||
Accumulated other comprehensive earnings (loss) | (9 | ) | (6 | ) | ||||
Retained earnings (deficit) | (9,933 | ) | 1,042 | |||||
TOTAL SHAREHOLDERS' EQUITY | 40,392 | 46,865 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 62,506 | $ | 74,098 |