Optelecom-NKF, a provider of Siqura advanced IP-video network solutions, announced fourth quarter and full year 2008 results. Strong IP product sales in 2008 pushed company revenue to record levels for the year.
Revenues for the fourth quarter totaled US$11.8 million compared to $13 million for the same quarter of 2007. For the full year 2008, revenue totaled a record $45.2 million compared to $42.5 million in 2007, an increase of 6 percent. IP-related revenue in the fourth quarter totaled $4.1 million, a 4 percent increase compared to IP-related revenue of $4 million in the fourth quarter of last year. For the full year 2008, IP-related revenue increased 41 percent to $14.5 million compared to $10.3 million in 2007.
"We reported solid revenue and reduced operating expense in the fourth quarter of 2008. Income from operations totaled $1.2 million for the quarter and $2.5 million for the full year,” said Ed Ludwig, Optelecom-NKF Chairman of the Board and CEO. “As with other companies, however, we are not immune to global economic forces. Given the circumstances, we decided to record a full write-down of the company's U.S. deferred tax assets. This non-cash charge eliminates uncertainty in our future financial statements. Going forward, we believe we are positioned to compete and to succeed in this environment.”
The company reported a net loss of $3 million, or $(0.81) per share, in the quarter ending Dec 31, 2008, including non-cash charges of $3.5 million primarily for the write-down of deferred tax assets. This compares to net income of $873 thousand, or $0.24 per share, one year earlier. For the full year 2008 the net loss totaled $1.8 million or $0.48 per share, compared to net income of $1.3 million or $0.37 per share in 2007.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter (as defined in the addendum to this release) was $1.6 million in the fourth quarter 2008 compared to $2 million for the same quarter in 2007. For the full year adjusted EBITDA totaled $4.2 million compared to $4.7 million one year earlier.
At year-end, Optelecom-NKF completed a reduction in force in select business units. The reduction in force will reduce costs in mature areas of the company's technology offerings while focusing critical investments in growing Video over IP products. The company recorded pre-tax charges of approximately $525 thousand in connection with the reduction in force during the fourth quarter of 2008.
"We are sized appropriately for the opportunities at hand,” Ludwig said. “Our team is dedicated to staying on top of operations and we are prepared to respond quickly to changing market conditions. Efforts in our technology development area will lead to a continuing flow of new products that meet our customers' needs and drive our success. This has positioned us to capture business as stimulus plans take shape at home and abroad.”
"We continue to address our sales effectiveness and we plan to gain market share as some competitors, lacking our strength, have to reign in their efforts. Our management team was strengthened by bringing David Patterson on board as our new president and as my successor designee,” Ludwig said.