Inrad Optics, Inc. Reports Financial Results For Second Quarter And Six Months 2013

NORTHVALE, N.J., Aug. 19, 2013 /PRNewswire/ -- Inrad Optics, Inc. (OTC Bulletin Board: INRD) has reported its consolidated financial results for its second quarter and six months ended June 30, 2013.

Revenue for the second quarter was $2.7 million, down 6.4% from $2.9 million in the same period last year.  For the six months ended June 30, 2013, revenue of $5.8 million was up slightly compared to $5.7 million for the comparable period last year.

Orders were $2.7 million and $4.8 million for the three and six months ending June 30, 2013, down 19.3% and 23.8% compared to the respective periods last year. Orders from longtime aerospace and defense customers continued to decline, and were off a total of 15% as compared to the same period in 2012.

Gross profit for the second quarter was $308,000 or 11.4% of sales, down from $567,000 or 19.7% in the comparable quarter last year.  For the six months ended June 30, 2013, gross profit decreased to $1 million or 17.4% of sales compared to $1.3 million or 22.9% in 2012. The 2013 decrease in gross profit margin primarily reflects a less profitable sales mix compared to 2012 as well as the impact of the Company's relatively fixed overhead structure.  Sales to the Company's top five customers represented approximately 34% of sales in six months ended June 30, 2013, down from 43% last year.

The net loss was $648,000 and $817,000 for the three and six months ended June 30, 2013. This compares with a net loss of $333,000 and $482,000, in the comparable periods last year.  The Company had a net loss per share of $0.05, basic and diluted, for the three months ended June 30, 2013 compared to a net loss of $0.03 last year.  For the six months ended June 30, 2013 and 2012, the basic and diluted net loss per share was $0.07 and $0.04, respectively. 

Net cash used in operating activities was $134,000 for the six months ended June 30, 2013 compared to net cash used of $96,000  last year.  The difference mainly reflects the impact of a higher net loss in the six months ended June 30, 2013 offset by a $200,000 decrease in inventory during the current period.  For the six months ended June 30, 2013, the lower net loss was negatively impacted by an increase of $413,000 in inventory. 

Investing activities in the six months ended June 30, 2013 included final payment of $325,000 on the purchase of a plasma assist optical coating chamber and related expenditures for additional equipment and installation of $92,000.  The coating chamber became operational in the second quarter of 2013.

After investing and financing activities, net cash decreased by $624,000 versus a decrease of $277,000 in net cash last year.  At June 30, 2013, the Company had cash and cash equivalents of $2.5 million. 

President and CEO, Amy Eskilson commented, "Following on my remarks last quarter, our second quarter and year-to-date results continue to reflect the impact of planned cuts to defense spending under the 2011 Budget Control Act, as well as the burden of additional cuts as part of the 2013 budget sequestration.   Despite these challenges, we saw a modest increase in year-to-date sales over the same period last year.  The sales mix included a number of orders with up-front development costs.  However, we believe this work presents significant future opportunity.  Our recent investment in new coating capabilities is showing early promise and we continue to execute on focused operational initiatives.  With this said, we still see a challenging path forward for the remainder of 2013."

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, 2012. 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.

www.inradoptics.com

SOURCE Inrad Optics, Inc.