EXHIBIT 99.1
LASERCARD CORPORATION REPORTS FINANCIAL RESULTS FOR FY06 SECOND QUARTER
MOUNTAIN VIEW, CALIF. - Oct. 27, 2005 - LaserCard Corporation (NASDAQ:LCRD), a
leading supplier of ID credentials used in biometric identification, today
announced the financial results for its fiscal 2006 second quarter ended
September 30, 2005.
Revenues for the second quarter of fiscal 2006 were $8.7 million, compared with
$7.8 million in the same quarter a year ago. The net loss for the second quarter
of fiscal 2006 was $0.6 million, or a loss of $0.05 per share, compared with a
net loss of $1.5 million, or a loss of $0.13 per share, in the same quarter a
year ago.
LaserCard(R) optical memory card revenues for the quarter were $5.6 million
compared with $5.1 million last year. Revenues from LaserCard(R) read/write
drives, drive accessories and maintenance were approximately $0.4 million for in
the fiscal second quarter, compared with $0.2 million for the same period a year
ago. Revenues from specialty cards and printers totaled $2.7 million compared
with $2.5 million in the same quarter a year ago.
CASH
LaserCard Corporation's cash, cash equivalents, short-term investments and
long-term investments (the long-term investments have original maturities
ranging from 1 to 2.5 years) were $17.3 million at September 30, 2005 compared
with $16.4 million at March 31, 2005.
"We received orders for $17 million of optical memory cards during the second
quarter, which led to a record backlog of $18 million," said Richard Haddock,
CEO of LaserCard. "Second quarter shipments included about $1 million of Italian
national ID cards. We believe our role in Italy's secure national ID card
programs strengthens LaserCard's leadership position in the secure ID
credentialing market, which we believe is just beginning to emerge. In addition,
we shipped $950,000 worth of optical memory cards for a similar ID card program
in the Middle East."
EARNINGS RESULTS CONFERENCE CALL
LaserCard will hold a conference call to discuss the company's fiscal 2006
second quarter results today, October 27, 2005, at approximately 2:00 p.m.
Pacific Time / 5:00 p.m. Eastern Time. For access to the conference call, please
call 517-308-9001 by 1:50 p.m. Pacific Time. A taped replay of the call will be
available for one week. To access the replay, please call 402-998-0960. You will
need to reference the passcode "LaserCard." To listen to the call via the
Internet, please log on to: www.lasercard.com or www.vcall.com. The Internet
Webcast will be archived for one year.
ABOUT LASERCARD CORPORATION
LaserCard Corporation (www.lasercard.com) manufactures and markets LaserCard(R)
optical memory cards, chip-ready Optical/Smart(TM) cards and other
advanced-technology secure identification cards. The Company has sold over 35
million secure ID cards to meet the demanding requirements for border security,
immigration and national identification in countries around the world, including
the United States, Canada, and Italy. In addition, the Company manufactures
optical card read/write drives and develops optical card system software,
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Lasercard Corporation Reports Q2 FY06 Results
Oct. 27, 2005
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card-related ID subsystems and peripherals. The Company operates two wholly
owned German subsidiaries: Challenge Card Design Plastikkarten GmbH, which
manufactures advanced-technology cards; and cards & more GmbH, which markets
cards, system solutions, and card personalization printers.
Forward-Looking Statements:
All statements contained in this press release that are not historical facts are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and are not historical facts or
guarantees of future performance or events. Rather, they are based on current
expectations, estimates, beliefs, assumptions, and goals and objectives and are
subject to uncertainties that are difficult to predict. As a result, our actual
results may differ materially from the statements made. Often such statements
can be identified by their use of words such as may, will, intends, plans,
believes, anticipates, visualizes, expects, and estimates. Examples of
forward-looking statements in this release include our belief that the secure ID
card credentialing market is just beginning to emerge and any implication that
the Company will be able to deliver the $18.2 million card backlog per the
requested schedule. These forward-looking statements are based upon our
assumptions about and assessment of the future, which may or may not prove true,
and involve a number of risks and uncertainties including, but not limited to
whether the nationally run optical ID card programs are successful, leading
other nations to follow and whether the Company encounters card production
difficulties or customer-requested delays or cancellations as well as the risk
factors detailed in the Company's Form 8-K, 10-K, and 10-Q filings with the
Securities and Exchange Commission. Due to these and other risks, future actual
results could differ materially from the Company's expectations. These
forward-looking statements speak only as to the date of this release, and,
except as required by law, the Company undertakes no obligation to publicly
release updates or revisions to these statements whether as a result of new
information, future events, or otherwise.
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Lasercard Corporation Reports Q2 FY06 Results
Oct. 27, 2005
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LASERCARD CORPORATION AND SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
09/30/05 09/30/04 09/30/05 09/30/04
--------- --------- --------- ----------
Revenues $ 8,699 $ 7,773 $ 15,693 $ 16,483
Cost of product sales 6,206 5,842 11,360 12,208
--------- --------- ---------- ----------
Gross profit 2,493 1,931 4,333 4,275
--------- --------- ---------- ----------
Selling, general, and administrative expenses 2,612 2,809 5,743 5,843
Research and engineering expenses 552 723 1,051 1,574
--------- --------- ---------- ----------
Operating loss (671) (1,601) (2,461) (3,142)
Other income, net 108 62 204 85
--------- --------- ---------- ----------
Loss before income taxes (563) (1,539) (2,257) (3,057)
Income tax expense (benefit) 1 (18) 1 8
--------- --------- ---------- ----------
Net loss $ (564) $ (1,521) $ (2,258) $ (3,065)
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Net loss per share:
Basic and diluted $ (0.05) $ (0.13) $ (0.20) $ (0.27)
========= ========= ========== ==========
Weighted-average shares used in
computing basic and diluted, net loss per share: 11,355 11,368 11,350 11,388
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Lasercard Corporation Reports Q2 FY06 Results
Oct. 27, 2005
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LASERCARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share and per share amounts)
SEPTEMBER 30, March 31,
2005 2005
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ASSETS
Current assets:
Cash and cash equivalents $ 2,246 $ 3,965
Short-term investments 15,050 6,150
Accounts receivable, net 2,770 1,934
Inventories 7,452 7,909
Prepaid and other current assets 881 1,352
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Total current assets 28,399 21,310
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Property and equipment, net 11,808 12,532
Long-term investments -- 6,300
Equipment held for resale 5,459 4,061
Patents and other intangibles, net 913 923
Goodwill 3,321 3,321
Notes receivable 205 220
Other non-current assets 185 101
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Total assets $ 50,290 $ 48,768
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,458 $ 2,105
Accrued liabilities 2,026 2,312
Deferred tax liability 596 641
Advance payments from customers 1,754 1,167
Deferred revenue 525 539
Bank borrowings 105 --
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Total current liabilities 6,464 6,764
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Advance payments from customers 17,000 13,000
Deferred revenue 2,000 2,000
Deferred rent 442 326
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Total liabilities 25,906 22,090
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Commitments and contingencies
Stockholders' equity:
Common stock 114 114
Additional paid-in capital 54,179 54,155
Accumulated deficit (29,404) (27,145)
Accumulated other comprehensive income 21 209
Treasury stock (526) (655)
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Total stockholders' equity 24,384 26,678
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Total liabilities and stockholders' equity $ 50,290 $ 48,768
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