Teltronics Announces $5.4 Million Net Income for 2009
Net Income Available to Common Shareholders Increases 200%
PALMETTO, Fla., March 24 /PRNewswire-FirstCall/ -- Teltronics, Inc. (OTC Bulletin Board: TELT) today announces its financial results for the year ended December 31, 2009. Revenues for 2009 were $43.1 million as compared to $34.6 million reported in 2008. The Company reported net income of $5.4 million in 2009 compared to a net loss of $3.3 million in 2008.
As a result of the net gains in 2009, the net income available to common shareholders for 2009 increased by 200% to $4.4 million from a $4.4 loss in 2008 and the Company's diluted net income per share for 2009 was $0.48 as compared to a diluted net loss per share of $0.51 for 2008.
Gross profit margin increased from 33% for 2008 to 41% for 2009. The Company's operating expenses for 2009 decreased $3.8 million from 2008.
"The Company is pleased with our year end results," announces Ewen Cameron, Teltronics' President and Chief Executive Officer. "In 2009, we increased our operating profit by 109% to $6.9 million from a loss of $3.3 million in 2008. We attribute our 2009 accomplishments to our strong relationships with our current customers, combined with the budget cut initiative we implemented in 2008 and our strong team of employees."
Cameron states, "In 2009, we developed new relationships with approximately 50 U.S. strategic partners who have knowledge in the education market. In 2010, we anticipate these partners will promote our bundled communication solution, 'Cerato for Schools'. With the stimulus & E-rate funding now available for technology in the education sector, we believe that we should see some success with this application through these partners."
"Cameron continues, "We should continue to see sales from our current U.S. customers and our international installed base. Our goals for 2010 include building upon our current international distribution channel, expanding our U.S. strategic partner relationships, and growing our current product offerings to reach new vertical industries."
"Also in 2009, we moved into a more cost effective state-of-the-art facility. The new building allows us to showcase our business to worldwide clients, partners and potential business associates thus providing us an additional tool to further increase sales & revenue," Cameron states.
Cameron concludes, "Due to the buying trends of our customers, we do experience some seasonality in our business with the fourth and first quarters being our weakest. We are working to expand our customer base to reduce this affect."
About Teltronics, Inc.
Teltronics, Inc. is a leading, global provider of innovative communications solutions that enable our customers to increase revenues, decrease costs and improve productivity. The Company designs, develops and manufactures electronic equipment and applications software systems that enhance the performance of communications networks. Teltronics develops VoIP and digital voice communications platforms and software and contact center solutions for small-to-large size businesses and government facilities. Teltronics is also recognized as a leading provider of network management solutions enabling enterprises and service providers to effectively monitor and maintain voice and data networks. All products are manufactured in an ISO 9001:2008 certified factory and the Company serves as a contract manufacturing partner to customers nationwide. Further information regarding Teltronics is available at the web site, www.teltronics.com.
A number of statements contained in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, strategies or goals are also forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the timely development and market acceptance of products and technologies, competitive market conditions, payment of the consideration under our acquisition agreements, successful integration of acquisitions and the failure to realize the expected benefits of such acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses ,the ability to make payments under our outstanding indebtedness, the ability to pay dividends on our preferred stock, risks relating to foreign currency translations, and other factors described in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
- See Tables Below –
TELTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
ASSETS
December 31,
------------
2009 2008
---- ----
Current assets:
Cash and cash equivalents $339 $548
Accounts receivable, net 4,856 5,366
Inventories, net 4,823 5,085
Prepaid expenses and other current assets 406 622
------- -------
Total current assets 10,424 11,621
------- -------
Property and equipment, net 751 748
Other assets, net 368 275
Total assets $11,543 $12,644
======= =======
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Line of credit $3,124 $4,291
Current portion of long-term debt and capital
lease obligations 1,220 1,440
Accounts payable 3,316 6,954
Accrued expenses and other current liabilities 3,200 3,372
Deferred revenue 526 499
------- -------
Total current liabilities 11,386 16,556
Long-term liabilities:
Deferred dividends 3,800 3,000
Long-term debt and capital lease obligations,
net of current portion 1,029 2,214
------- -------
Total long-term liabilities 4,829 5,214
Commitments and contingencies
Shareholders' deficiency:
Common stock, $.001 par value, 40,000,000
shares authorized, 8,703,539 issued and
outstanding at December 31, 2009 and 8,647,539
issued and outstanding at December 31, 2008 9 9
Non-voting common stock, $.001 par value,
5,000,000 shares authorized, zero shares
issued and outstanding - -
Preferred Series A stock, $.001 par value,
100,000 shares authorized, 100,000 shares issued
and outstanding - -
Preferred Series B Convertible stock, $.001
par value, 25,000 shares authorized, 12,625
shares issued and outstanding - -
Preferred Series C Convertible stock, $.001
par value, 50,000 shares authorized, 40,000
shares issued and outstanding - -
Additional paid-in capital 24,735 24,725
Other comprehensive loss (169) (239)
Accumulated deficit (29,247) (33,621)
------- -------
Total shareholders' deficiency (4,672) (9,126)
------- -------
Total liabilities and shareholders' deficiency $11,543 $12,644
======= =======
TELTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
Years Ended December 31,
------------------------
2009 2008 2007
---- ---- ----
Net sales
Product sales and installation $32,493 $23,228 $29,035
Maintenance and service 10,599 11,410 11,596
------ ------ ------
43,092 34,638 40,631
Cost of goods sold 25,442 23,196 25,183
------ ------ ------
Gross profit 17,650 11,442 15,448
------ ------ ------
Operating expenses:
General and administrative 4,725 6,112 5,714
Sales and marketing 2,946 3,987 4,785
Research and development 2,826 3,928 4,671
Depreciation and amortization 215 523 271
Impairment of goodwill and
intangible assets - 169 -
10,712 14,719 15,441
------ ------ ------
Income (loss) from operations 6,938 (3,277) 7
Other income (expense):
Interest (1,441) (1,402) (1,948)
Non-operating gain (loss) 49 1,407 (136)
------ ------ ------
(1,392) 5 (2,084)
------ ------ ------
Income (loss) before income taxes 5,546 (3,272) (2,077)
Income taxes 119 9 (7)
Net income (loss) 5,427 (3,281) (2,070)
Dividends on Preferred Series B
and C Convertible stock 1,053 1,095 952
------ ------ ------
Net income (loss) available to common
Shareholders $4,374 $(4,376) $(3,022)
====== ======= =======
Net income (loss) per share:
Basic $0.51 $(0.51) $(0.35)
Diluted $0.48 $(0.51) $(0.35)
Weighted average shares outstanding:
Basic 8,653,090 8,647,539 8,646,706
Diluted 9,730,310 8,647,539 8,646,706
SOURCE Teltronics, Inc.
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