Scopus Announces Second Quarter 2008 Results
TEL-AVIV, Israel, July 28 /PRNewswire-FirstCall/ — Scopus Video Networks Ltd. , a provider of digital video networking products, today announced its results for the second quarter of 2008, ending June 30, 2008.
Second Quarter Highlights: – Strong revenue growth reaching a record of $19.1 million, a 41% year-over-year increase – Net income of $0.1 million on a GAAP basis and $0.5 million on a non-GAAP basis (excluding stock based compensation) – Positive operating cash flow of $0.8 million – Strong booking and continued improvement in business fundamentals Second Quarter 2008 Results Summary
Revenue for the second quarter totaled $19.1 million, a 41% increase from the $13.5 million reported in the second quarter of 2007. The breakdown of revenue by region was 51% in EMEA, 32% in Asia and Pacific Rim and 17% in the Americas. Gross profit for the second quarter of 2008 was $9.3 million compared with $6.5 million in the second quarter 2007. Gross profit as a percentage of revenues was 49%, compared with 48% in the second quarter of 2007.
Net income on a GAAP basis for the second quarter of 2008 was $0.1 million, or $0.00 per diluted share, compared with a net loss of ($1.2) million, or ($0.09) per basic share in the second quarter of 2007.
Net income on a non-GAAP basis for the second quarter of 2008, which excludes expenses related to stock based compensation, was $0.5 million, or $0.03 per diluted share, compared to a non-GAAP net loss of ($0.7) million, or ($0.05) per basic share, in the second quarter of 2007.
The Company ended the second quarter of 2008 with net cash, cash equivalents and short-term securities of $36.0 million, compared with $35.8 million as of March 31, 2008. The Company generated a positive operating cash flow of $0.8 million during the quarter
“In the quarter we continued to execute on our business plan, achieving strong sales growth and reaching a new revenue record,” commented Dr. Yaron Simler, CEO of Scopus. “It is clear that the investments we have made in the past year and our focus on enhancing our competitive position are now bearing fruit. The second half of 2008 looks even brighter. We recently announced a number of new products and system capabilities that position us very well to increase our market share. These include the IRP-3910, designed to enable cable operators to manage the February 2009 transition from analog to digital broadcast. The IRP has been very well received by the market and we expect to generate revenue from this in the second half of 2008. We believe that we are well positioned to capitalize on the emerging trends in our industry.”
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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 non-GAAP 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 non-GAAP 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.
Conference Call Details
The Company will also be hosting a conference call later today, July 28, 2008 at 9:00am ET (6:00am Pacific Time, 2:00pm UK Time, 4:00pm Israel Time). On the call, management will review and discuss the results, and will be available to answer investor questions.
To participate, please call one of the following teleconferencing numbers: US Dial-in Number: 1-888-668-9141 UK Dial-in Number: 0-800-917-5108 Israel Dial-In Number: 03-918-0609 International Dial-in Number: +972-3-918-0609
For those unable to listen to the live call, a replay of the call will 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 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 solution offer intelligent video gateways, encoders, decoders and network management products. 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’ products 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) June 30, December 31, 2008 2007 2007 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 30,016 $ 2,514 $ 23,090 Short-term deposits – 28,463 7,227 Trading securities 5,968 – 5,230 Trade accounts receivable (net of allowance for doubtful accounts of $137 and $455 and $152 respectively) 14,637 9,215 12,409 Inventories 9,106 9,534 7,774 Other receivables and current assets 2,756 1,408 2,151 Total current assets 62,483 51,134 57,881 Fixed assets, net 4,196 3,056 3,453 Deposits in general severance fund 257 215 230 Other assets 120 74 105 TOTAL ASSETS $ 67,056 $ 54,479 $ 61,669 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Trade accounts payable $ 10,007 $ 3,237 $ 6,221 Other payables and current liabilities 11,819 8,814 11,184 Total current liabilities 21,826 12,051 17,405 Liabilities for vacation and severance pay 1,901 1,669 1,945 SHAREHOLDERS’ EQUITY: Ordinary shares 4,542 4,405 4,517 Additional paid-in capital 78,332 75,648 77,428 Other comprehensive income 100 – 72 Accumulated deficit (39,645) (39,294) (39,698) TOTAL SHAREHOLDERS’ EQUITY 43,329 40,759 42,319 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 67,056 $ 54,479 $ 61,669 Six month ended Three month ended Year ended June 30, June 30, December 31, 2008 2007 2008 2007 2007 (Unaudited) (Unaudited) Revenues $ 35,504 $ 25,769 $ 19,078 $ 13,514 $ 57,477 Cost of revenues 18,220 13,216 9,795 7,044 29,901 Gross profit 17,284 12,553 9,283 6,470 27,576 Research and development expenses, net of grants from the OCS 6,718 5,066 3,427 2,581 10,675 Sales and marketing expenses 8,383 7,871 4,601 3,918 15,601 General and administrative expenses 2,458 2,550 1,316 1,358 5,692 Operating loss (275) (2,934) (61) (1,387) (4,392) Financing income, net 348 587 134 228 1,673 Profit (loss) before income taxes 73 (2,347) 73 (1,159) (2,719) Income tax expense (19) (26) (19) (13) (58) Net profit (loss) 54 (2,373) 54 (1,172) (2,777) Basic and diluted net loss per ordinary share 0.00 (0.18) 0.00 (0.09) (0.20) Weighted average number of ordinary shares outstanding used in basic and diluted loss per ordinary share calculation 13,953,537 13,438,118 13,963,541 13,480,995 13,595,346 Company Contact: Moshe Eisenberg Chief Financial Officer Tel: +972-3-900-7100 Moshee@scopus.net Investor Relations Contact: Ehud Helft / Kenny Green GK Investor Relations Tel: (US) +1-646-201-9246 info@gkir.com
Scopus Video Networks Ltd
CONTACT: Company Contact: Moshe Eisenberg, Chief Financial Officer,Tel: +972-3-900-7100, Moshee@scopus.net; Investor Relations Contact: EhudHelft / Kenny Green, GK Investor Relations, Tel: (US) +1-646-201-9246,info@gkir.com