ELK GROVE VILLAGE, IL -- 07/27/2006 -- ISCO International, Inc. (AMEX: ISO), a leading global supplier of radio-frequency management and interference-control systems for the wireless telecommunications industry, announced its second quarter results and shared information about an upcoming investor conference call.
Second Quarter Results
ISCO International's revenue for the second quarter of 2006 rose to $3.4 million from the $2.5 million achieved during the second quarter of 2005. Revenue for the first six months of 2006 was $4.8 million as compared to $5.8 million of the first half of 2005. ISCO also entered the third quarter with $1.8 million in order backlog, as compared to negligible backlog at the same point of 2005.
Net loss for the second quarter 2006 was $1.2 million as compared to the $0.8 million loss of the second quarter 2005. Net loss for the first half of 2006 was $2.9 million as compared to $1.3 million for the first half of 2005. Product gross margins were approximately 40% for the second quarter and first half of 2006, reflecting a change in product mix from margins of 46% for the first half of 2005.
Non-cash charges related to stock option expense, deprecation and amortization were approximately $0.4 million during the second quarter of 2006, compared to $0.3 for the same period in 2005, though the latter also included a $0.2 million patent charge that did not occur during 2006. Additionally, we accrued $0.2 million in interest expense during the second quarter of 2006, as we did during the second quarter of 2005.
"We received more than $5 million in customer orders during the second quarter," ISCO's President and CEO John Thode said. "We began the third quarter with backlog on par with last year's $2 million in Q3 revenue, so we are looking forward to building on our momentum." Thode added, "We continue to differentiate our product portfolio and expand our customer and geographic footprint as key strategic initiatives to grow our business. With the increase in customer orders during Q2, we are starting to see tangible benefits from these efforts."
Investor Call
An investor call will be held Wednesday, August 2nd, at 4:30pm eastern. To participate in the call domestically, dial 1-800-374-0113. International callers should dial 1-706-758-9607. The conference name is "ISCO." The call will be replayed for 30 days at 1-800-642-1687 (or 1-706-645-9291 for international callers), with a pass code of 3571038#.
Following the presentation, a short question and answer session will be held. Participants are asked to dial in 10 minutes prior to the beginning of the call. The call will be webcast live and then archived for 30 days. ISCO will provide a link to the call on its web site (www.iscointl.com) for both the live and archived versions. A copy of the webcast link will be provided at www.iscointl.com and is copied below.
Webcast link: http://www.b2i.us/external.asp?b=826&id=27123&from=du&L=e
Safe Harbor Statement
Because the Company wants to provide investors with meaningful and useful information, this news release contains, and incorporates by reference, certain "forward-looking statements" that reflect the Company's current expectations regarding the future results of operations, performance and achievements of the Company. The Company has tried, wherever possible, to identify these forward-looking statements by using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends" and similar expressions. These statements reflect the Company's current beliefs and are based on information currently available to it. Accordingly, these statements are subject to certain risks, uncertainties and contingencies, which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These factors include, among others, the following: market acceptance of the Company's technology; the spending patterns of wireless network operators in connection with the build out of 2.5G and 3G wireless systems; the Company's ability to obtain additional financing in the future; the Company's history of net losses and the lack of assurance that the Company's earnings will be sufficient to cover fixed charges in the future; uncertainty about the Company's ability to compete effectively against better capitalized competitors and to withstand downturns in its business or the economy generally; continued downward pressure on the prices charged for the Company's products due to the competition of rival manufacturers of front-end systems for the wireless telecommunications market; the timing and receipt of customer orders; the Company's ability to attract and retain key personnel; the Company's ability to protect its intellectual property, the risks associated with foreign operations and the risks of legal proceedings. A more complete description of these risks, uncertainties and assumptions is included in the Company's filings with the Securities and Exchange Commission, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K. You should not place undue reliance on any forward-looking statements. The Company undertakes no obligation to release publicly the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this Report or to reflect the occurrence of unanticipated events.
Three Months Ending June 30, June 30, 2006 2005 ------------- ------------- UNAUDITED Net sales $ 3,446,000 $ 2,484,000 Costs and expenses: Cost of sales 2,059,000 1,194,000 Research and development 474,000 555,000 Selling and marketing 852,000 445,000 General and administrative 1,119,000 912,000 ------------- ------------- Total costs and expenses 4,504,000 3,106,000 Operating loss $ (1,058,000) $ (622,000) Other income (expense): Interest income 21,000 4,000 Interest expense (194,000) (193,000) ------------- ------------- Total other income (expense) $ (173,000) $ (189,000) Net loss $ (1,231,000) $ (811,000) Basic and diluted loss per common share $ (0.01) $ (0.00) Weighted average number of common shares outstanding 184,411,000 162,491,000 Six Months Ending June 30, June 30, 2006 2005 ------------- ------------- UNAUDITED Net sales $ 4,772,000 $ 5,777,000 Costs and expenses: Cost of sales 2,889,000 3,116,000 Research and development 938,000 901,000 Selling and marketing 1,483,000 812,000 General and administrative 2,059,000 1,763,000 ------------- ------------- Total costs and expenses 7,369,000 6,592,000 Operating loss $ (2,597,000) $ (815,000) Other income (expense): Interest income 52,000 8,000 Interest expense (386,000) (486,000) ------------- ------------- Total other income (expense) $ (334,000) $ (478,000) Net loss $ (2,931,000) $ (1,293,000) Basic and diluted loss per common share $ (0.02) $ (0.01) Weighted average number of common shares outstanding 183,993,000 161,535,000 Selected Balance Sheet Information: (unaudited) June 30, December 31, 2006 2005 ------------- ------------- Cash and equivalents $ 5,557,000 $ 3,486,000 Working Capital excl. Debt $ 9,649,000 $ 6,397,000 Total Assets $ 26,004,000 $ 22,906,000 Debt, short term and long term, including related accrued interest $ 15,906,000 $ 10,520,000 Stockholders' Equity $ 8,408,000 $ 10,531,000
Web site: http://www.iscointl.com
CONTACT: Mr. Frank Cesario PHONE: 847-391-9492 iscoir@iscointl.com