DGT Holdings Reports Third Quarter Of Fiscal 2015 Financial Results
Board Approves a Share Buy Back Plan
LOS GATOS, Calif., May 28, 2015 /PRNewswire/ -- DGT Holdings Corp. (OTCBB: DGTC) ("DGT Holdings" or "The Company") today announced unaudited financial results for its third fiscal quarter ended April 30, 2015.
FINANCIAL PRESENTATION
The Company's operations currently consist of a real estate business from a rental building retained from the sale of its Medical Systems Group on November 3, 2011, as well as the management of its investment portfolio and general and administrative expenses.
FINANCIAL RESULTS
Revenues, consisting of rental revenue from the Company's real estate, were $95,000 and $120,000 for the quarters ended April 30, 2015 and 2014, respectively. Property operating expenses, consisting of depreciation and rental-related costs, were $31,000 and $32,000 for the quarters ended April 30, 2015 and 2014, respectively. General and administrative expenses were $297,000 and $233,000 for the quarters ended April 30, 2015 and 2014, respectively.
The loss from operations before income taxes was $228,000 for the quarter ended April 30, 2015, compared to a loss of $147,000 for the same quarter of fiscal 2014.
The Company had a net loss of $272,000 for the quarter ended April 30, 2015 compared to a net loss of $173,000 for the quarter ended April 30, 2014.
FINANCIAL CONDITION
At April 30, 2015, the Company held $1.1 million of unrestricted cash and $55.6 million of investments. The Company expects to close the sale of its Long Island, New York property, which housed the power conversion business, in June 2015. The Company sold its power conversion business in August 2012.
SHARE BUYBACK
On May 28, 2015, the Board of Directors of the Company approved the repurchase of up to an aggregate of $500,000 of the Company's common stock. Any such repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market, in compliance with applicable laws and regulations. The repurchase program is expected to continue through the end of the current fiscal year unless extended or shortened by the Board of Directors.
ABOUT DGT HOLDINGS
DGT Holdings Corp. currently owns and leases an industrial building through its Italian subsidiary. The Company is continuing to evaluate strategic alternatives, where it can utilize its existing working capital and maximize the use of its net operating losses.
The Company's website is www.dgtholdings.com.
DGT Holdings Corp.
Terry Gibson
Chief Executive Officer
Chief Financial Officer
(408) 399-6490
| DGT Holdings Corp. |
|||||||
| Statements of Operations |
|||||||
| (Dollars in thousands, except per share amounts) |
|||||||
| (Unaudited) |
|||||||
| Quarter Ended April 30, |
Nine Months Ended April 30, |
||||||
| 2015 |
2014 |
2015 |
2014 |
||||
| Rental revenues |
$ 95 |
$ 120 |
$ 317 |
$ 352 |
|||
| Property operating expenses |
31 |
32 |
92 |
95 |
|||
| General and administrative expenses |
297 |
233 |
833 |
949 |
|||
| Total expenses |
328 |
265 |
925 |
1,044 |
|||
| Operating loss |
(233) |
(145) |
(608) |
(692) |
|||
| Other income, net: |
|||||||
| Other income |
5 |
(3) |
1,258 |
8 |
|||
| Interest income (expense) |
- |
1 |
(1) |
18 |
|||
| Income (loss) from operations before income taxes |
(228) |
(147) |
649 |
(666) |
|||
| Provision for income taxes |
44 |
26 |
129 |
65 |
|||
| Net income (loss) |
$ (272) |
$ (173) |
$ 520 |
$ (731) |
|||
| Basic and diluted income (loss) per share: |
|||||||
| Operating loss |
$ (0.08) |
$ (0.05) |
$ (0.20) |
$ (0.22) |
|||
| Net income (loss) |
$ (0.09) |
$ (0.05) |
$ 0.16 |
$ (0.22) |
|||
| Weighted average shares outstanding |
3,098,626 |
3,091,418 |
3,097,643 |
3,089,722 |
|||
| DGT Holdings Corp. |
|||
| Balance Sheets |
|||
| (Dollars in thousands) |
|||
| April 30, |
July 31, |
||
| 2015 |
2014 |
||
| ASSETS |
(Unaudited) |
||
| Current assets: |
|||
| Cash and cash equivalents |
$ 1,065 |
$ 2,816 |
|
| Prepaid expenses and other current assets |
212 |
127 |
|
| Assets held for sale |
948 |
948 |
|
| Total current assets |
2,225 |
3,891 |
|
| Property and equipment, net |
1,947 |
2,372 |
|
| Investments in marketable securities |
55,653 |
49,400 |
|
| TOTAL ASSETS |
$ 59,825 |
$ 55,663 |
|
| LIABILITIES AND SHAREHOLDER'S EQUITY |
|||
| LIABILITIES |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 20 |
$ 20 |
|
| Accrued expenses |
145 |
170 |
|
| Total current liabilities |
165 |
190 |
|
| Deferred income taxes |
339 |
429 |
|
| Total liabilities |
504 |
619 |
|
| Commitments and contingencies |
|||
| STOCKHOLDERS' EQUITY |
|||
| Common stock ($0.10 par value; 100,000,000 shares authorized; 3,305,760 and 3,299,856 shares issued, respectively) |
330 |
330 |
|
| Treasury stock (202,689 shares, at cost) |
(7,429) |
(7,429) |
|
| Additional paid-in capital |
88,155 |
88,025 |
|
| Accumulated other comprehensive income |
16,346 |
12,720 |
|
| Accumulated deficit |
(38,081) |
(38,602) |
|
| Total stockholders' equity |
59,321 |
55,044 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 59,825 |
$ 55,663 |
|
SOURCE DGT Holdings Corp.
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