Optelecom-NKF, Inc., Reports Fourth Quarter And Full Year 2009 Results And Restructures Subordinated Debt
GERMANTOWN, Md., March 9 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), a leading global provider of Siqura® surveillance solutions, today reported results for the fourth quarter and full year of 2009.
Revenue for the fourth quarter totaled $9.3 million, a decrease of 21% compared to revenue of $11.8 million for the same period a year ago. Revenue increased 12% on a sequential basis from the $8.3 million reported for the prior quarter ending September 30, 2009. For the full year of 2009, revenue totaled $36.2 million compared to revenue of $45.2 million for 2008.
The net loss for the fourth quarter of 2009 was $234 thousand, or ($0.06) per diluted share, compared to a net loss of $3.0 million, or ($0.81) per share for the same period in 2008. The fourth quarter of 2008 included non-cash charges of $3.5 million, primarily for the write-down of deferred tax assets. For all of 2009, Optelecom-NKF reported a net loss of $2.4 million, or ($0.66) per diluted share, compared to a net loss of $1.8 million, or ($0.48), in 2008.
Optelecom-NKF also announced the restructuring of subordinated debt held by Draka Holding, N.V. Under terms of the agreement, Optelecom-NKF will make quarterly interest payments at an annual interest rate of 10% and provide Draka with additional collateral and a pledge of assets. In exchange, Optelecom-NKF received a one year extension of the term to March 8, 2011. Prior to the execution of the restructuring agreement with Draka, Optelecom-NKF paid off and terminated the senior term loan and line of credit facilities with M&T Bank."While we showed improvement quarter-to-quarter and restructured our debt, it's clear we must continue to take steps to support long term growth and contain costs," said Dave Patterson, Optelecom-NKF's president and CEO. "Our ongoing focus is on improving global sales performance. We'll continue to strengthen our Siqura brand, streamline how we work, and work to improve our insight into the evolving needs of our customers." "During the business downturn, we implemented a reduction-in-force and cut overhead to a level more in line with our revenues. We also made changes in our sales leadership and structure. We now have fewer levels from the bottom to top, improving the flow of information and increasing the speed of decision making. While the business environment seems to be improving, we have yet to see capital spending commitments by customers rebound to pre-crisis levels. Appropriately, we've laid out a conservative plan for 2010, anticipating that we can quickly adapt should conditions exceed our expectation."
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