Inrad Optics, Inc. Reports Financial Results for Second Quarter and Six Months 2012

NORTHVALE, N.J., Aug. 15, 2012 /PRNewswire/ -- Inrad Optics, Inc. (OTC Bulletin Board: INRD) has reported its consolidated financial results for its second quarter and six months ended June 30, 2012.

Revenue for the second quarter was $2.9 million, down 10.6% from $3.2 million in the same period last year.  For the six months ended June 30, 2012, revenue of $5.7 million was down 11.5%, compared to $6.5 million for the comparable period last year.

Orders for the second quarter were $3.3 million and $6.3 million for the six months ending June 30, 2012, down 5% compared to last year's second quarter but 2% higher on a year-to-date basis compared to last year. Orders from customers in new markets offset a slowdown in defense and certain segments of the semiconductor industry.

Gross profit for the second quarter was $568,000 or 19.7% of sales, down from $784,000 or 24.3% in the comparable quarter last year.  For the six months ended June 30, 2012, gross profit decreased to $1.3 million or 22.9% of sales compared to $1.7 million or 25.6% last year.  The decrease primarily reflects the impact of lower sales combined with the Company's relatively fixed overhead cost structure.

The net loss for the second quarter was $333,000 and $482,000 for the six months ended June 30, 2012. This compares with a net loss of $96,000 and $61,000, in the comparable periods last year.  The Company had a net loss per share of $0.03, basic and diluted, for the three months ended June 30, 2012 compared to a net loss of $0.01 last year.  For the six months ended June 30, 2012 and 2011, the basic and diluted net loss per share was $0.04 and $0.01, respectively. 

Net cash used in operating activities was $96,000 for the six months ended June 30, 2012 compared to net cash provided by operations of $53,000 in the comparable period last year.  The difference primarily reflects the impact of higher losses during the current period offset by last year's payment of $600,000 of accrued interest on convertible notes.   

After investing and financing activities, net cash decreased by $277,000 compared to a decrease of $83,000 last year.  At June 30, 2012, the Company had cash and cash equivalents of $3.1 million. 

President and CEO, Joe Rutherford commented, "Our second quarter and year-to-date results reflect continued delays in customer orders and slower than expected demand.   Despite these challenges, we saw a modest increase in year-to-date bookings over the same period last year which I attribute to the successful execution of our strategic long term plan.  We continue to push forward while managing the realities of worldwide economic uncertainty and contraction in defense spending.  We continue to hone our operational skills, add new customers, and strategically invest in new equipment. We are working hard to create a synergistic set of capabilities that will provide a distinct competitive advantage in the photonics marketplace.   Through these efforts, I believe we will be well-positioned to improve future sales and profitability." 

Inrad Optics, Inc. (formerly Photonic Products Group, Inc.) was incorporated in New Jersey in 1973. In January 2012, the Company's Board of Directors and shareholders approved the name change to Inrad Optics, Inc. The Company develops, manufactures and markets products and services for use in photonics industry sectors via three distinct but complimentary product areas - "Crystals and Devices", "Custom Optics" and "Metal Optics."

The Company is a vertically integrated organization specializing in crystal-based optical components and devices, custom optical components from both glass and metal, and precision optical and opto-mechanical assemblies.  Manufacturing capabilities include solution and high temperature crystal growth, extensive optical fabrication capabilities, including precision diamond turning and the ability to handle large substrates, optical coatings and in-process metrology expertise.  Inrad Optics' customers include leading corporations in the defense, aerospace, laser systems, process control and metrology sectors of the photonics industry, as well as the U.S. Government, National Laboratories and Universities worldwide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "should", "will", "plan", "anticipate", "probably", "targeting" or similar words.  Such forward-looking statements, such as our expectation for revenues, new orders, and improved results involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward looking statements are, but are not limited to, uncertainties in market demand for the company's products or the products of its customers, future actions by competitors, inability to deliver product on time, inability to develop new business, inability to retain key employees or hire new employees, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended December 31, 2011. The forward looking statements made in this news release are made as of the date hereof and Inrad Optics, Inc. does not assume any obligation to update publicly any forward looking statement.

INRAD OPTICS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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INRAD OPTICS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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INRAD OPTICS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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SOURCE Inrad Optics, Inc.