Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth quarter ended December 31, 2010.

Revenues from fixed income real estate totaled $447,000 for the quarter ended December 31, 2010, compared with $400,000 for the previous quarter. Net loss for the quarter ended December 31, 2010 was $806,000 or $0.05 per basic and fully diluted share, compared with a net income of $5.9 million or $0.36 per basic and diluted share for the third quarter of 2010.

This quarter results include $600,000 of other loss from the impairment of the Company's investment in Mobixell Networks.

For the year ended on December 31, 2010, revenues, net income and earnings per share totaled $1.7 million, $4.5 million, $0.27 per basic and fully diluted share, respectively.

As previously indicated, following the closing of the transaction with Vitec on July 1, 2010, Optibase is no longer active in the video solutions business and a capital gain of approximately $6.3 million representing the gain from the sale of the video solutions business is presented in Optibase’s financial reports as discontinued operations activity.

The net income of Optibase’s discontinued operations for the quarter ended on December 31, 2010 was $98,000 or $0.01 per basic and fully diluted share, compared with a net loss of $157,000 or $0.01 per basic and fully diluted share for the third quarter of 2010 and with a net loss of $702,000 or $0.04 per basic and fully diluted share for the fourth quarter of 2009. Weighted average shares outstanding used in the calculation for the periods were approximately 16.6 million basic and 16.7 million fully diluted for the fourth quarter of 2010 and approximately 16.6 million basic and fully diluted for the third quarter of 2010, and approximately 16.5 million basic and fully diluted for the fourth quarter of 2009.

For the year ended December 31, 2010, net income from discontinued operations was $5.4 million or $0.33 per basic and $0.32 per fully diluted share, compared to a net income of $472,000 or $0.03 per basic and diluted share for the year ended December 31, 2009. Weighted average shares outstanding used in the calculation for the periods were approximately 16.6 million basic and 16.7 million diluted and 16.5 million basic and fully diluted respectively.

As of December 31, 2010, the Company had cash, cash equivalents, and other financial investments, net, in the amount of $30 million, and shareholders' equity of $40 million, compared with $39 million, and $41 million, respectively as of September 30, 2010.

Commenting on the quarter, CFO of Optibase, Amir Philips, said, “As announced on January 3, 2011, we have concluded 2010 with a transaction in Miami, FL after a period in which we were engaged with the sale of our video business. Consequentially we are now fully engaged actively searching for new real estate transactions to add to our existing portfolio. As in the third quarter, we have presented a small operating loss in the fourth quarter as well. During the fourth quarter we have reevaluated our investment in Mobixell Networks. Based on recent financing rounds done by Mobixell Networks, we have decided to partially impair our investment which resulted at a loss of $600,000. Additionally, our EBITDA for the quarter remains positive as in the previous quarter and so is our Funds From Operations ("FFO") from the real estate business. Our primary indicators in our real estate operations are FFO and Earnings Before Interest, Taxes, Amortization and Depreciation ("EBITDA"). FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFO should not be considered as a substitute for net income determined in accordance with U.S. GAAP as a measure of financial performance." He concluded, “We are currently evaluating several interesting opportunities, but at the same time we are witnessing a slight change in the markets we are active at as yields are decreasing and the challenge to find the right transaction increases.”

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and Miami, FL, and is currently looking for additional real estate investment opportunities. Optibase was previously engaged in the field of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia ("Vitec") in July 2010. For further information, please visit www.optibase-holdings.com.

This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, difficulties in finding suitable real-estate properties for investment, availability of financing for the acquisition of real-estate, difficulties in leasing of real-estate properties, insolvency of tenants, difficulties in the disposition of real-estate projects, risk relating to collaborative arrangements with our partners relating to our real-estate properties, risks relating to the full consummation of the transaction for the sale of our video solutions business, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein.
Optibase Ltd.
Condensed Consolidated Statement of Operations

For the Period Ended December 31, 2010
       
Year ended Three months ended
December 31   December 31 December 31   December 31
2010 2009 2010 2009
$ $ $ $
Unaudited Audited Unaudited Unaudited
Fixed income real estate 1,650 272 447 272
 
Cost and expenses:
Cost of real estate operation 59 11 18 11
Real estate depreciation and amortization 695 115 188 115
 
General and administrative 1,502 1,175 421 637
Total cost and expenses 2,256 1,301 627 763
Operating loss (606 ) (1,029 ) (180 ) (491 )
 
Other loss, net (600 ) - (600 ) -
 
Financial income (loss), net 304 617 (89 ) 66
 
Taxes on income 43 - 35 -
 
Net loss from continuing operation (945 ) (412 ) (904 ) (425 )
 
Net income (loss) from discontinued operation 5,399 472 98 (702 )
 
Net income (loss) 4,454 60 (806 ) (1,127 )
 
 
Net loss per share from continuing operation:
Basic and Diluted ($0.06 ) ($0.02 ) ($0.05 ) ($0.03 )
 
Net income (loss) per share from discontinued operation:
Basic $ 0.33 $ 0.03 $ 0.01 ($0.04 )
Fully Diluted $ 0.32 $ 0.03 $ 0.01 ($0.04 )
 
 
 
Net income (loss) per share:
Basic and Fully Diluted $ 0.27 $ 0 ($0.05 ) ($0.07 )
 
Number of shares used in computing

Earning per share
Basic 16,555 16,534 16,557 16,534
Fully Diluted 16,683 16,540 16,685 16,534
 
Amount in thousands except per share data
 
Optibase Ltd.

Condensed Consolidated Balance Sheets
     

December 31,

2010
December 31,

2009

Unaudited

Audited

Assets
Current Assets:
Cash, cash equivalents and short term investments, net 30,260 28,651
 
   
Other receivables and prepaid expenses 334 4,113
Assets related to discontinued operation 966 7,072
Total current assets 31,560 39,836
 
Other long term investments 256 800
 
Fixed assets, net 4 -
Other assets, net 552 634
Property, net 32,353 22,080
Total assets 64,725 63,350
 

Liabilities and shareholders' equity
Current Liabilities:
Current maturities 400 365
Trade payables 31 29
Accrued expenses and other liabilities 1,707 1,908
Liabilities related to discontinued operations 3,006 7,913
Total current liabilities 5,144 10,215
 
Long term liabilities:
Long term loans, net of current maturities 19,189 17,897
 
Total shareholders’ equity 40,392 35,238
Total liabilities and shareholders’ equity 64,725 63,350
 
Amounts in thousands

Copyright Business Wire 2010