ICx Technologies, Inc. (Nasdaq GM: ICXT), a developer of
advanced sensor technologies for homeland security, force
protection and commercial applications, announced today its
operating and financial results for the first six months and
second-quarter ended June 30, 2010.
First-Half Financials
For the first six months ended June 30, 2010, ICx reported
revenues of $77 million, compared to $92 million for the same six
months last year. The Company also reported an increase in funded
backlog, up 38% to $73 million from the beginning of the year. In
addition, adjusted EBITDA remained positive at $1.5 million for the
first six months of 2010 compared to adjusted EBITDA of $3.7
million for the same period last year.
Second-Quarter
For the second quarter of 2010, revenue was $36 million and
adjusted EBITDA was a loss of ($0.6) million. Last year, the
Company reported revenue of $45 million and adjusted EBITDA of $2.9
million.
Merger Agreement Announcement
As reported in a separate press release today, ICx has entered
into a definitive merger agreement with FLIR Systems, Inc. pursuant
to which ICx would be acquired through a cash tender offer,
followed by a merger with a subsidiary of FLIR, for a price of
$7.55 per share in cash, subject to the terms and conditions of the
merger agreement.
ICx has cancelled the previously scheduled August 16 call to
discuss its earnings.
About ICx® Technologies
ICx Technologies is a leader in the development and integration
of advanced sensor technologies for homeland security, force
protection and commercial applications. Our proprietary sensors
detect and identify chemical, biological, radiological, nuclear and
explosive threats, and deliver superior awareness and actionable
intelligence for wide-area surveillance, intrusion detection and
facility security. We then leverage our unparalleled technical
expertise and government funding to address other emerging
challenges of our time, ranging from a cleaner environment and
alternative energy to life science.
Safe-Harbor Statement
All forward-looking statements contained in this release are
made within the meaning of and pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are all statements other than statements
of historical facts, including but not limited to statements
concerning the outlook for the Company's revenues and EPS for
fiscal 2010; and all other statements concerning the plans,
intentions, expectations, projections, hopes, beliefs, objectives,
goals and strategies of management. Forward-looking statements are
not guarantees of future performance or events and are subject to a
number of known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those
expressed, projected or implied by such forward-looking statements.
Important risks, uncertainties and other factors include, but are
not limited to, demand for the Company's products and services; the
ability of the Company to successfully develop and expand its
products, services, technologies and markets; the ability of the
Company to effectively assimilate acquired businesses and achieve
the anticipated benefits of its acquisitions; changes in U.S.
government funding levels to purchase the Company’s products and
services; the ability of the Company to sell its products to
original equipment manufacturers, prime contractors and system
integrators; seasonality; competition; the ability of the Company
to develop innovative products; the ability of the Company to
attract, retain and motivate key personnel; the ability of the
Company to secure and maintain key contracts and relationships,
including contracts with the U.S. government; general economic,
market and business conditions, uncertainties and other factors
identified from time to time in the Company's filings with the
Securities and Exchange Commission. Accordingly, there can be no
assurance that the results expressed, projected or implied by any
forward-looking statements will be achieved, and readers are
cautioned not to place undue reliance on any forward-looking
statements. The forward-looking statements in this press release
speak only as of the date hereof and are based on the current
plans, goals, objectives, strategies, intentions, expectations and
assumptions of, and the information currently available to,
management. The Company assumes no duty or obligation to update or
revise any forward-looking statements for any reason, whether as
the result of changes in expectations, new information, future
events, conditions or circumstances or otherwise.
Use of Non-GAAP Financial Measures
In evaluating its business, ICx considers and uses Adjusted
EBITDA as a supplemental measure of its operating performance. The
Company defines Adjusted EBITDA as earnings from continuing
operations before interest, taxes, depreciation and amortization,
plus non-cash equity compensation. The Company also presents
Adjusted EBITDA because it believes it is frequently used by
securities analysts, investors and other interested parties as a
measure of financial performance. The term Adjusted EBITDA is not
defined under U.S. generally accepted accounting principles, or
U.S. GAAP, and is not a measure of operating income, operating
performance or liquidity presented in accordance with U.S. GAAP.
Adjusted EBITDA has limitations as an analytical tool, and when
assessing the Company’s operating performance, investors should not
consider Adjusted EBITDA in isolation, or as a substitute for net
income (loss) or other consolidated income statement data prepared
in accordance with U.S. GAAP. Among other things, Adjusted EBITDA
does not reflect the Company’s actual cash expenditures. Other
companies may calculate similar measures differently than ICx,
limiting their usefulness as comparative tools. ICx compensates for
these limitations by relying primarily on its GAAP results and
using Adjusted EBITDA only supplementally.
ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Net Loss
(Unaudited) (dollars in thousands, except per share amounts)
Unaudited Unaudited Three
Months Ended June 30, Six Months Ended June 30,
2010 2009 2010 2009 Revenues:
Product revenues $ 19,584 $ 22,122 $ 41,299 $ 38,443 Contract
research and development revenues 10,147 12,692 22,308 23,974
Service and other revenue 6,248 10,173
12,942 29,961 Total revenues
35,979 44,987
76,549
92,378 Cost of revenues: Cost of
product revenues 8,633 10,837 16,998 18,937 Cost of contract
research and development revenues 7,441 9,565 16,394 17,879 Cost of
service and other revenues 4,031 7,335
8,852 21,529 Total cost of revenue
20,105 27,737 42,244
58,345 Gross profit 15,874
17,250 34,305 34,033
Operating expenses: General and administrative 7,248 6,717 14,288
13,906 Sales and marketing 6,281 5,840 12,589 12,194 Research and
development 4,228 3,105 7,988 6,621 Depreciation and amortization
1,872 2,996 3,825
6,019 Total operating expenses 19,629
18,658 38,690 38,740 Operating
loss (3,755 ) (1,408 ) (4,385 ) (4,707
) Other income (expense): Interest income 15 39 27 91
Interest expense (17 ) (37 ) (45 ) (55 ) Other, net 587
344 834 401 Total
other income 585 346 816
437 Loss before income taxes (3,170 ) (1,062 ) (3,569
) (4,270 ) Income tax expense 509 122
789 235 Loss from continuing operations
$ (3,679 ) $ (1,184 ) $ (4,358 ) $ (4,505 ) Loss on discontinued
operations, net of tax (9 ) (87 ) (322 ) (241 ) Loss on sale of
discontinued operations, net of tax (29 ) —
(29 ) — Net loss $ (3,717 ) $ (1,271 ) $
(4,709 ) $ (4,746 ) Other comprehensive income Foreign
currency translation adjustment, net of tax (768 )
(136 ) (1,041 ) (915 ) Comprehensive loss $ (4,485 )
$ (1,407 ) $ (5,750 ) $ (5,661 ) Net loss per common share
Basic and diluted $ (0.11 ) $ (0.04 ) $ (0.13 ) $ (0.14 )
Reconciliation of Non-GAAP Measure: Net loss $ (3,717 ) $ (1,271 )
$ (4,709 ) $ (4,746 ) Add (subtract) Loss from discontinued
operations 38 87 351 241 Income tax expense (benefit) 509 122 789
235 Interest income (15 ) (39 ) (27 ) (91 ) Interest expense 17 37
45 55 Depreciation and amortization 1,872 2,996 3,825 6,019
Stock-based compensation expense 655 955
1,185 1,985 Adjusted EBITDA $
(641 ) $ 2,887 $ 1,459 $ 3,698
ICx
TECHNOLOGIES, INC. AND SUBSIDIARIES Condensed Balance
Sheets (Unaudited) (dollars in thousands)
June 30, December 31, Assets
2010 2009 Current assets: Cash and cash equivalents $
37,739 $ 22,257 Restricted cash 3,866 8,465 Trade accounts
receivable, net 20,737 36,751 Unbilled revenue 9,268 8,957
Inventories 28,929 22,491 Other current assets 5,519 4,553 Current
assets of discontinued operations — 1,065 Total
current assets 106,058 104,539 Property, plant and equipment, net
9,432 9,673 Goodwill and intangibles, net 77,802 80,176 Other
noncurrent assets 4,307 3,671 Noncurrent assets of discontinued
operations — 365 Total assets $ 197,599 $ 198,424
Liabilities and Stockholders' Equity Current
liabilities $ 30,568 $ 26,142 Current liabilities of discontinued
operations — 879 Noncurrent liabilities 513 966 Total
liabilities 31,081 27,987 Total stockholders'
equity 166,518 170,437 Total liabilities and
stockholders' equity $ 197,599 $ 198,424
ICx
TECHNOLOGIES, INC. AND SUBSIDIARIES Selected Segment
Information (Unaudited) (dollars in thousands)
Three Months Ended Six Months Ended June 30,
June 30, 2010 2009 2010 2009
Detection Product revenue $
11,912 $ 10,886 $ 26,321 $ 20,181 Contract research and development
revenue 9,706 12,573 21,296 23,657 Service and other revenue
1,300 864 2,459 1,683
Total revenue $ 22,918 $ 24,323 $ 50,076 $ 45,521 Gross
profit % 42.1 % 40.2 % 44.6 % 40.2 %
Surveillance Product revenue $ 5,912 $ 9,415 $ 11,955
$ 14,526 Contract research and development revenue 441 119 1,012
317 Service and other revenue 610 3,855
1,272 14,625 Total revenue(1) $ 6,963 $
13,389 $ 14,239 $ 29,468 Gross profit % 57.0 % 35.8 %
55.5 % 34.1 %
Solutions Product revenue
$ 1,746 $ 1,831 $ 3,027 $ 3,769 Contract research and development
revenue 59 121 96 156 Service and other revenue 4,516
5,624 9,428 13,915 Total
revenue(2) $ 6,321 $ 7,576 $ 12,551 $ 17,840 Gross profit %
35.7 % 35.4 % 32.4 % 31.7 %
(1) Includes $0 and $8 of intersegment revenue that has been
eliminated in the Consolidated Statement of Operations and Net Loss
for the three and six months ended June 30, 2010 and 2009,
respectively
(2) Includes $223 and $293 of intersegment revenue that has been
eliminated in the Consolidated Statement of Operations and Net Loss
for the three months ended June 30, 2010 and 2009, respectively;
and $317 and $443 of intersegment revenue that has been eliminated
in the Consolidated Statement of Operations and Net Loss for the
six months ended June 30, 2010 and 2009, respectively
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