Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the second quarter ended June 30, 2010.
On June 16, 2010 Optibase announced entering into an asset purchase agreement with Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia ("Vitec") pursuant to which Optibase Ltd. and its subsidiary Optibase Inc. (“Optibase”) will sell their entire video business to Vitec. On July 1, 2010 Optibase announced the closing of the sale of its video solutions business. For more information, please see press releases issued by Optibase on those dates.
Until June 30, 2010, Optibase developed, manufactured and sold video over IP solutions, specializing in video encoding, decoding and streaming for federal and state government agencies, Telco operators, enterprise organizations and world's leading broadcast service providers and had also engaged in the fixed income real estate business. Following the closing of the transaction with Vitec on July 1, 2010, Optibase is no longer active in the video business and such activity is presented in Optibase’s financial reports as discontinued operations activity.
Revenues from fixed income real estate totaled $408,000 for the quarter ended June 30, 2010, compared with $396,000 for the previous quarter. Net income for the quarter ended June 30, 2010 was $262,000 or $0.02 per basic and diluted share, compared with a net loss of $86,000 or $0.01 per basic and diluted share for the first quarter of 2010.For the period of six months ended on June 30, 2010, revenues, net income and earnings per basic and diluted share totaled $804,000, $176,000 and $0.01 respectively. The net loss of Optibase’s discontinued operations for the quarter ended on June 30, 2010 was $261,000 or $0.02 per basic and fully diluted share, compared with a net loss of $586,000 or $0.04 per basic and diluted share for the first quarter of 2010 and with a net loss of $1.2 million or $0.07 per basic and diluted share for the second quarter of 2009. Weighted average shares outstanding used in the calculation for the periods were approximately 16.6 million basic and diluted for the second quarter of 2010 and for the first quarter of 2010, and approximately 16.5 million basic and diluted for the second quarter of 2009.