Strong Sales Lead to Record Revenue in Q4; 32% Growth in Annual
Revenue for 2008 TEL-AVIV, Israel, February 12
/PRNewswire-FirstCall/ -- Scopus Video Networks Ltd. (NASDAQ:SCOP),
a provider of digital video networking products, today announced
its results for the fourth quarter and full year of 2008. Fourth
quarter highlights: - Total revenues reached a record $20.3
million, a 22% year over year increase - Record pro-forma net
profit of $1.2 million (excluding the cost of options and expenses
related to Harmonic and Optibase transactions), net loss on a GAAP
basis of $0.2 million. - Positive operating cash flow of $1.5
million - Signing of Definitive Agreement with Harmonic to acquire
Scopus Fourth Quarter Results Summary Revenues for the fourth
quarter totaled $20.3 million, a 2% sequential increase from the
$19.9 million revenues in the prior quarter, and a 22% increase
over the $16.5 million reported for the fourth quarter of 2007. The
breakdown of revenue by region was 39% in EMEA, 16% in Asia and the
Pacific Rim, and 45% in the Americas. Gross profit for the fourth
quarter of 2008 was $9.7 million compared with $10.1 million in the
prior quarter, and $7.7 million in the fourth quarter of 2007.
Gross profit as a percentage of revenues was 48%. Net loss on a
GAAP basis for the fourth quarter of 2008 was $0.2 million, or
$0.02 loss per share, compared with a net profit of $0.5 million,
or $0.04 profit per share, in the prior quarter and a net loss of
$0.3 million, or $0.02 loss per share in the fourth quarter of
2007. The results for the quarter ended 31 December, 2008 included
a charge of $1.1 million of costs relating to the Harmonic
transaction, and the now-cancelled Optibase transaction. Pro-forma
net profit for the fourth quarter of 2008, which excludes expenses
related to stock based compensation as defined under FAS123R and
the above-mentioned $1.1 million charge, was a record $1.2 million,
or $0.09 profit per diluted share. This is compared to a net profit
(which only excludes expenses related to stock based compensation
as defined under FAS123R) of $0.9 million, or $0.06 per diluted
share, in the third quarter of 2008, and a net profit of $0.2
million, or $0.01 profit per share, in the fourth quarter of 2007.
The Company generated a positive operating cash flow of $1.5
million during the quarter, and ended the fourth quarter with cash
and cash equivalents plus short term investments and trading
securities of $36.1 million. This is compared with $34.6 million on
September 30th, 2008. Full Year 2008 Results Revenue for the full
year of 2008 was $75.7 million, a 32% increase from $57.5 million
in 2007. Gross profit for the year was $37.1 million compared with
$27.6 million in 2007. Gross profit, as a percentage of revenues,
for the full year was 49% compared with 48% last year. Net profit
on a GAAP basis for the full year of 2008 was $0.3 million, or
$0.02 profit per share, compared with a loss of $2.7 million in
2007. Pro-forma net profit for the year excluding $1.4 million of
FAS123R expenses and $1.1 million in costs relating to the Optibase
and Harmonic transactions, was $2.9 million or $0.20 profit per
diluted share, compared with a pro-forma net loss in 2007 of $0.9
million, or $0.07 loss per share. "Our results for the fourth
quarter culminate a strong year in which we saw a continued
sequential growth in our revenues and improved our business
fundamentals. It was also a year in which we saw a positive
operating cash flow and were profitable on both a GAAP and
pro-forma basis," commented Dr. Yaron Simler, CEO of Scopus. "We
are pleased with the shareholder approval of the Harmonic
transaction and expect closing to take place in early March 2009.
We believe that the combined forces of Harmonic and Scopus, will
enable us to emerge as a powerful and leading entity in the digital
video network space." Concluded Dr. Simler, "I am also pleased with
the achievements of Scopus in the last two years during my tenure
as CEO. During this time, the Company became profitable,
experiencing double digit year over year revenue growth, and ended
2008 with revenue of $75 million." The press release contains
non-GAAP financial measures. In this regard, GAAP refers to
generally accepted accounting principles in the United States.
Pursuant to regulations promulgated by the Securities and Exchange
Commission, the Company has provided reconciliations within the
press release of the non-GAAP financial measures to the most
directly comparable GAAP financial measures. The pro-forma results
provided in the press release exclude the cost of options. Due to
recent changes in US GAAP regulations, in accordance with FAS123R
guidelines, from the first quarter of 2006 and onwards, we have
been implementing and recording options expenses as part of our
P&L, management believes that the presentation of the pro forma
information provides investors with a better understanding of
Scopus' financial results going forward and assists investors in
comparing Scopus' historical, current and future expected results.
A replay of the call will also be available from the day after the
call in the investor relations section of Scopus' website at
http://www.scopus.net/. About Scopus Video Networks: Scopus Video
Networks (NASDAQ:SCOP) develops, markets, and supports digital
video networking solutions that enable network operators to offer
advanced video services to their subscribers. Scopus' solutions
support digital television, HDTV, live event coverage, and content
distribution. Scopus' comprehensive digital video networking
solutions offer intelligent video gateways, encoders, decoders, and
network management platforms. Scopus' solutions are designed to
allow network operators to increase service revenues, improve
customer retention, and minimize capital and operating expenses.
Scopus' customers include satellite, cable, and terrestrial
operators, broadcasters and telecom service providers. Scopus'
solutions are used by hundreds of network operators worldwide. For
more information visit: http://www.scopus.net/ This press release
contains forward-looking statements concerning our marketing and
operations plans. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. All forward-looking statements in this press release
are made based on management's current expectations and estimates,
which involve risks, uncertainties and other factors that could
cause results to differ materially from those expressed in
forward-looking statements. These statements involve a number of
risks and uncertainties including, but not limited to, risks
related to the evolving market for digital video in general and the
infancy of the video-over-IP in particular and the ability to
successfully demonstrate to service providers integrated solutions,
general economic conditions and other risk factors. Scopus does not
undertake any obligation to update forward-looking statements made
herein. SCOPUS VIDEO NETWORKS CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands) December 31, 2008 2007 ASSETS CURRENT
ASSETS: Cash and cash equivalents $ 33,717 $ 23,090 Short-term
deposits - 7,227 Trading securities 2,333 5,230 Trade accounts
receivable (net of allowance for doubtful accounts of $93 and $152
respectively) 10,363 12,409 Inventories 13,761 7,774 Other
receivables and current assets 2,101 2,151 Total current assets
62,275 57,881 Fixed assets, net 4,317 3,453 Deposits in general
severance fund 171 230 Other assets 132 105 TOTAL ASSETS $ 66,895 $
61,669 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES:
Trade accounts payable $ 7,590 $ 6,221 Other payables and current
liabilities 12,527 11,184 Total current liabilities 20,117 17,405
Liabilities for vacation and severance pay 1,921 1,945
SHAREHOLDERS' EQUITY: Ordinary shares 4,614 4,517 Additional
paid-in capital 79,514 77,428 Other comprehensive income 81 72
Accumulated deficit (39,352) (39,698) TOTAL SHAREHOLDERS' EQUITY
44,857 42,319 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 66,895 $
61,669 SCOPUS VIDEO NETWORKS CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS (Dollars in thousands, except share and per share data)
Year ended December 31, Three month ended December 31, 2 0 0 8 2 0
0 7 2 0 0 8 2 0 0 7 (Unaudited) Revenues $ 75,654 $ 57,477 $ 20,252
$ 16,533 Cost of revenues 38,541 29,901 10,531 8,839 Gross profit
37,113 27,576 9,721 7,694 Research and development expenses, net of
grants from the OCS 13,735 10,675 3,315 2,867 Sales and marketing
expenses 17,579 15,601 4,453 3,983 General and administrative
expenses 5,285 5,692 1,472 1,579 Operating loss 514 (4,392) 481
(735) Other expenses* 1,118 - 1,118 - Financing income, net 1,036
1,673 464 468 Income (loss) before income taxes 432 (2,719) (173)
(267) Income tax expense (86) (58) (54) 8 Net Income (loss) 346
(2,777) (227) (259) Basic and diluted net loss per ordinary share
0.02 (0.20) (0.02) (0.02) Diluted net earnings (loss) per ordinary
share 0.02 (0.20) (0.02) (0.02) Weighted average number of ordinary
shares used in basic net earnings (loss) per ordinary share
computation 14,040,617 13,595,346 14,055,348 13,848,635 Weighted
average number of ordinary shares used in diluted net earnings
(loss) per ordinary share computation 14,188,364 13,595,346
14,055,348 13,848,635 * Includes a charge of $1.1 million of costs
relating to the Optibase and Harmonic transactions Company Contact:
Moshe Eisenberg CFO Tel: +972-3-900-7100 DATASOURCE: Scopus Video
Networks Ltd CONTACT: Company Contact: Moshe Eisenberg, CFO, Tel:
+972-3-900-7100,
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