Defense Stocks; Optex Systems (OTCBB:OPXS) Releases Fiscal 2010 Third Quarter Financial Results

Category: Investment, Defense

RICHARDSON, Texas - Aug. 16, 2010 (Investorideas.com Newswire) - Optex Systems Holdings, Inc. (OTCBB:OPXS), a leading manufacturer of optical sighting systems and assemblies primarily for Department of Defense applications, reported operating results for its third fiscal quarter ended June 27, 2010.

Researching Homeland Security and Defense Stocks?

Get our Global stocks directory in PDF for just $29.95

Start trading today!

Revenues for the third fiscal quarter ended June 27, 2010 were $5.9 million as compared to revenues during the same period one year ago of $7.0 million, representing a decrease of 16%. Revenues for the nine months ended June 27, 2010 were $18.1 million versus $21.0 million for the corresponding period in the prior year, representing a decrease of 14%. The reduction in revenues was primarily attributable to decreased spending by the U.S. government. During the three months ended June 27, 2010, the Company recorded a net loss of $0.3 million, as compared to a net loss of $0.3 million for the three months ended March 29, 2009. For the nine months ended June 27, 2010, the net loss was $0.4 million compared to a net loss of $0.7 million for the nine months ended June 28, 2009. Despite reduced revenues during both the three and nine month periods, the net loss was consistent year-over-year for the quarter and lower for the nine month period. The revenue decrease during both periods was offset by cost reductions implemented by the company, including an approximately 24% reduction in force, and a reduction in intangible amortization over the prior year.

Our EBITDA declined by $1.1 million for the nine months ended June 27, 2010 as compared to the prior year performance for the same period. The EBITDA reduction for the period was primarily attributable to a $2.9 million reduction in revenues, lower product margins related to the mix of product lines shipped, and higher general and administrative spending, partially offset by a reduction in intangible amortization over the prior year. The Company continues to pursue additional cost efficiencies in its production and general and administrative areas.

Danny Schoening, COO of the Company, commented, "During the three and nine months ended June 27, 2010, we experienced reductions in forecasted sales volume due to an overall reduction in the number of solicitations issued by the government and the delay in awarding some existing solicitations. The 2011 Congressional budget is still being discussed by Congress and is not expected to be ratified until the December 2010 time frame. Until the Congressional budgets are approved, Optex and our major customers are unable to accurately update volume expectations for the coming year. We expect to mitigate some of the decrease in governmental spending with international orders and other new business."

In June 2010, the U.S. Army Tank-Automotive and Armaments Command, Warren, Michigan location, (TACOM-Warren) awarded Optex a $2.5 million purchase order for additional M137 panoramic telescopes. This was the fourth delivery order in the final ordering period of the existing 5 year contract between Optex and TACOM-Warren. Delivery of the M137s is scheduled to begin in January 2011 and will continue through August 2011. In addition, the Company booked over $2 million in new international orders during the third fiscal quarter. Earlier this week at the Military Vehicles Exposition in Detroit, MI, Optex introduced OpteVisionTM, a new, enhanced periscope that allows the user to toggle between unity vision, embedded LCD driven by an external feed, and thermal vision views.

CONFERENCE CALL INFORMATION

On Tuesday, August 17, 2010 at 4:15 PM EDT, the Company will host a conference call to discuss its third quarter 2010 earnings release. Analysts and investors interested in participating in the Conference Call should call (866) 244-8528 (domestic) or (719) 457-0816 (international), to access the call. The participant passcode is 304791.

For those who are unavailable to listen to the live broadcast, a recording of the conference call will be 48 hours after the call on our website. Click on the Investor Relations link to access the replay.

ABOUT OPTEX SYSTEMS

Optex, which was founded in 1987, is a Richardson, Texas -- based ISO 9001:2008 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.

Safe Harbor Statement

This press release and other written reports and oral statements made from time to time by the Company may contain so-called "forward-looking statements," all of which are subject to risks and uncertainties. You can identify these forward-looking statements by their use of words such as "expects," "plans," "will," "estimates," "forecasts," "projects" and other words of similar meaning. You can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address the Company's growth strategy, financial results and product and development programs. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially.

The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.

Contact:

Optex Systems Holdings, Inc.
Stanley A. Hirschman, President
(972) 644-0722
ir@optexsys.com
1420 Presidential Drive
Richardson, TX 75081

Defense News Published at National Homeland Security Knowledgebase Newswire: Security and Defence News RSS Feed

Submit your Defense news here: Publish your news and be seen by an average of 20,000- 30,000 visitors a day. Check out our Alexa Ranking

More Defense Stocks info: Visit the Defense and Homeland Security Stocks Directory.

Disclaimer: If you have any questions regarding information in these press releases please contact the company listed in the press release.National Homeland Security Knowledgebase Newswire disclaims any content contained in these releases.