Exhibit 99.1
LASERCARD CORPORATION REPORTS RESULTS FOR FY06 THIRD QUARTER
-- ANNOUNCES PROFITS OF $0.10 PER SHARE --
MOUNTAIN VIEW, CALIF. - JAN. 26, 2006 - LaserCard Corporation (NASDAQ:LCRD), a
leading supplier of ID credentials used in biometric identification, today
announced the financial results for its fiscal 2006 third quarter ended Dec. 31,
2005.
Revenues for the third quarter of fiscal 2006 were $10.1 million, compared with
$6.3 million in the same quarter a year ago and $8.7 million in the prior
quarter of fiscal 2006. The net earnings for the third quarter of fiscal 2006
were $1.2 million, or $0.10 per share, compared with a net loss in the same
quarter a year ago of $2.8 million, or a loss of $0.25 per share. The net loss
in the prior quarter this year was $0.6 million, or a loss of $0.05 per share.
LaserCard(R) optical memory card revenues for the third quarter of fiscal 2006
were $7.7 million compared with $3.6 million in the prior fiscal year's third
quarter and $5.6 million in the prior quarter this year. Revenues from
LaserCard(R) read/write drives, drive accessories and maintenance were $0.2
million for the third fiscal quarter compared with $0.3 million in the same
period last year and $0.4 million in the prior quarter this year. Revenues from
specialty cards and printers totaled $2.2 million for the third fiscal quarter
compared with $2.4 million in the same quarter a year ago and $2.7 million for
the second quarter in fiscal 2006.
LaserCard Corporation's cash, cash equivalents and short-term investments were
$21.1 million at Dec. 31, 2005, compared with $17.3 million at Sept. 30, 2005.
"We are pleased with our profitability in the third quarter, during which we
shipped Italian national ID cards, U.S. Green Cards and Laser Visa Border
Crossing Cards, Permanent Resident Cards for Canada and Costa Rica, and optical
and specialty cards for other programs," said Richard Haddock, CEO of LaserCard.
"We expect revenue growth in the coming quarter given our current optical memory
card backlog."
EARNINGS RESULTS CONFERENCE CALL
LaserCard will hold a conference call to discuss the company's fiscal third
quarter results today, Jan. 26, 2006, at approximately 2:00 p.m. Pacific Time /
5:00 p.m. Eastern Time. For access to the conference call, please call
210-234-0003 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 203-369-3257. You will
need to reference the passcode: LaserCard and the conference leader: Richard
Haddock. 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), headquartered in Mountain View,
Calif., manufactures and markets LaserCard(R) optical memory cards, chip-ready
OpticalSmart(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, digital governance, and national
identification in countries around the world, including the United States,
Canada, Italy and India. In addition, the Company manufactures optical card
read/write drives and develops optical card system software, card-related data
systems and peripherals. The Company operates a wholly owned German subsidiary,
Challenge Card Design Plastikkarten GmbH, which manufactures advanced-technology
cards and markets cards, system solutions, and card personalization printers
under the `cards & more' brand.
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 we will have
revenue growth in the coming quarter given our current optical memory card
backlog. 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.
LASERCARD CORPORATION AND SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
12/31/05 12/31/04 12/31/05 12/31/04
------------ ------------ ------------ ------------
Revenues $ 10,077 $ 6,282 $ 25,770 $ 22,765
Cost of product sales 5,890 5,477 17,250 17,685
------------ ------------ ------------ ------------
Gross profit 4,187 805 8,520 5,080
------------ ------------ ------------ ------------
Selling, general, and administrative expenses 2,517 3,063 8,260 8,906
Research and engineering expenses 557 655 1,608 2,229
------------ ------------ ------------ ------------
Operating income (loss) 1,113 (2,913) (1,348) (6,055)
Other income, net 109 64 313 149
------------ ------------ ------------ ------------
Income (loss) before income taxes 1,222 (2,849) (1,035) (5,906)
Income tax expense (benefit) 68 (8) 69 -
------------ ------------ ------------ ------------
Net income (loss) $ 1,154 $ (2,841) $ (1,104) $ (5,906)
============ ============ ============ ============
Net income (loss) per share:
Basic $ 0.10 $ (0.25) $ (0.10) $ (0.52)
============ ============ ============ ============
Diluted $ 0.10 $ (0.25) $ (0.10) $ (0.52)
============ ============ ============ ============
Weighted-average shares of common stock
used in computing:
Basic 11,375 11,334 11,358 11,370
Diluted 11,577 11,334 11,358 11,370
LASERCARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share and per share amounts)
DECEMBER 31, March 31,
2005 2005
--------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 756 $ 3,965
Short-term investments 20,350 6,150
Accounts receivable, net 1,766 1,934
Inventories 8,242 7,909
Prepaid and other current assets 1,319 1,352
--------------- ---------------
Total current assets 32,433 21,310
--------------- ---------------
Property and equipment, net 11,999 12,532
Long-term investments -- 6,300
Equipment held for resale 5,673 4,061
Patents and other intangibles, net 903 923
Goodwill 3,321 3,321
Notes receivable 202 220
Other non-current assets 163 101
--------------- ---------------
Total assets $ 54,694 $ 48,768
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,618 $ 2,105
Accrued liabilities 1,918 2,312
Deferred tax liability 587 641
Advance payments from customers 3,122 1,167
Deferred revenue 473 539
--------------- ---------------
Total current liabilities 7,718 6,764
--------------- ---------------
Advance payments from customers 18,500 13,000
Deferred revenue 2,000 2,000
Deferred rent 517 326
Total liabilities 28,735 22,090
Commitments and contingencies
Stockholders' equity:
Common stock 114 114
Additional paid-in capital 54,316 54,155
Accumulated deficit (28,249) (27,145)
Accumulated other comprehensive income 13 209
Treasury stock (235) (655)
--------------- ---------------
Total stockholders' equity 25,959 26,678
--------------- ---------------
Total liabilities and stockholders' equity $ 54,694 $ 48,768
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