Announces Profits of $0.10 Per Share
MOUNTAIN VIEW, Calif., Jan. 26 - 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: http://www.lasercard.com or http://www.vcall.com. The Internet Webcast will be archived for one year.
About LaserCard Corporation
LaserCard Corporation (http://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. 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
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
