News
Optibase, Ltd. Announces First Quarter Results
HERZLIYA, Israel-(Business Wire)-April 30, 2007 - Optibase, Ltd. (NASDAQ:OBAS) a leader in advanced digital video solutions today announced financial results for the first quarter ended March 31, 2007.
Revenues for the first quarter ended March 31, 2007 were $5.6 million compared with $4 million for the first quarter of 2006 and with $5.4 million for the fourth quarter of 2006. Net loss for the first quarter was $408,000 or $0.03 per basic and diluted share compared with a net loss of $1.3 million or $0.09 per basic and diluted share for the first quarter of 2006 and with a net loss of $162,000 or $0.01 per basic and diluted share for the fourth quarter of 2006. Weighted average shares outstanding used in the calculations were approximately 13.5 million for the first quarter of 2007, 13.4 million for the first quarter of 2006 and 13.5 million for the fourth quarter of 2006.
As of March 31, 2007, the Company had cash, cash equivalents, long terms investments in marketable securities and other financial investments, net, of $27.8 million, and shareholders' equity of $44.6 million, compared with, $42.9 million and $44.5 million as of December 31, 2006. On January 11,2007, Optibase purchased approximately 23% of Scopus Video Networks Ltd. at the price of approximately $16 million in cash.
Tom Wyler, Chairman and Acting Chief Executive Officer of Optibase, said, "We are very pleased with the continued progress we saw in the first quarter. We saw an uptrend in revenues from the fourth quarter, and a year-over-year increase of 40%. While still early in the year, we are seeing greater clarity in the market."
Mr. Wyler added, "In addition to several important customer wins during the first quarter, we are making significant strides toward our broader objective of advancing key strategic relationships including system integrator partnerships and OEM agreements. We believe that these catalysts, and our ability to capitalize on the opportunities that exist in the sector, position Optibase to continue growing as the market continues to mature."
He concluded, "As we recently announced, Danny Lustiger is leaving Optibase after 11 years to become the CFO of Housing & Construction Holding Company. I would like to take this opportunity to thank Danny for his contributions to the Company and to congratulate Amir Philips on his promotion from VP Finance of Optibase Inc. to CFO of Optibase Ltd. Amir's promotion is well deserved and gives me great confidence in the strength of our team as we move forward."
Conference Call
Optibase has scheduled a conference call for 9 a.m. EDT today, April 30, to discuss the first quarter results. For those unable to participate there will be replay available from 12:00 p.m. EDT April 30, 2007, through 11:59 p.m. EST, May 7, 2007. Please call: 1-973-341-3080 (Domestic & International), ID REPLAY CODE: 8728441.
Interested parties may access the conference call over the Internet via, www.kcsa.com. To listen to the live call, please go to the KCSA Web site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
About Optibase
Optibase provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company's platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase's breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in, Japan, China, India and Singapore. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For further information, please visit www.optibase.com.
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to our future events or our future performance, including statements regarding the IPTV market and the demand for our IPTV products. 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 IPTV market in particular, fierce competition in the digital video and streaming market, failure to meet technological changes in the market, our ability to manage growth and expansion, general economic conditions and other risk factors. We cannot guarantee future results, levels of activity, performance or achievements. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. These factors are updated from time to time through the filing of reports and registrations statements with the Securities and Exchange Commission. Optibase Ltd. does not undertake any obligation to update forward-looking statements made herein.
This release and prior releases are available on the Company's Web site at www.optibase.com.
This release and prior releases are also available on the KCSA Public Relations Worldwide Web site at www.kcsa.com. -0- *T Optibase Ltd. Condensed Consolidated Statement of Operations For the Period Ended March 31, 2007 ——————————————————————————————————— Three month ended March 31, March 31, 2007 2006 $ $ Un audited Un audited ————— ————— Revenues 5,550 3,970 Gross profit 2,982 2,270 Operating expenses: Research and development, net 1,202 1,016 Selling, general and administrative 2,358 2,682 Total operating expenses 3,560 3,698 Operating loss (578) (1,428) Other expenses, net (153) (11) Financial income, net 323 158 Net loss from continuing operations (408) (1,281) ————— ————— Income related to discontinued operations - 23 ————— ————— Net Loss (408) (1,258) ————— ————— Other comprehensive income ————————————————————————- Unrealized holding gains on available for sale securities 135 126 Total comprehensive loss (273) (1,132) Net loss per share from continuing operations: Basic ($0.03) ($0.09) Fully diluted ($0.03) ($0.09) Net Income per share from discontinued operations: Basic ($0.00) ($0.00) Fully diluted ($0.00) ($0.00) Net loss per share: Basic ($0.03) ($0.09) Fully diluted ($0.03) ($0.09) Number of shares used in computing Earning per share Basic & Diluted 13,500 13,364 Amount in thousands *T -0- *T Optibase Ltd. Condensed Consolidated Balance Sheets March 31, December 31, 2007 2006 Un audited Un audited ————— ——————- Assets ——————————————————————— Current Assets: Cash, cash equivalents and short term investments, net 25,591 40,695 Trade receivables net of bad debts 3,470 4,544 Inventories 4,896 4,147 Other receivables and prepaid expenses 866 1,272 Assets related to discontinued operations 157 157 Total current assets 34,980 50,815 Long term investments in marketable securities 2,207 2,207 Other long term investments 18,574 2,616 20,781 4,823 Fixed assets, net 1,619 1,700 Total assets 57,380 57,338 Liabilities and shareholders' equity ——————————————————————— Current Liabilities: Trade payables 2,904 1,764 Accrued expenses and other liabilities 7,206 8,555 Liabilities related to discontinued operations 205 155 Total current liabilities 10,315 10,474 Accrued severance pay 2,496 2,371 Total shareholders' equity 44,569 44,493 Total liabilities and shareholders' equity 57,380 57,338 Amounts in thousands *T
