Cyalume Technologies Holdings, Inc. Reports Fourth Quarter And Fiscal Year 2012 Financial Results

Cyalume Technologies Holdings, Inc. (OTCBB: CYLU) (“the Company” or “Cyalume”) today reported its financial results for the fourth quarter and year ended December 31, 2012.
                         

$ in thousands (except per share data)
      3 Months Ended  

Change**
    Year Ended  

Change**
      12/31/12   12/31/11       12/31/12   12/31/11    
Revenues       $ 11,630   $ 8,348   39.3%     $ 38,642   $ 34,703   11.4%  
Gross profit       $ 5,561   $ 3,393   63.9%     $ 17,112   $ 16,135   6.1%  
Gross margin         47.8%     40.6%   717 bps       44.3%     46.5%   (221) bps  
Net income (loss) **       $ (1,692)   $ (1,133)   (49.3%)     $ (50,218)   $ 327   NM*  
Adjusted EBITDA       $ 1,682   $ 844   99.3%     $ 4,167   $ 6,679   (37.6)%  

* NM – Not meaningful

** The year ended 12/31/12 includes $47.4 million of non-cash impairment charges related to an acquisition made several years ago. Both the net loss for the three months ended and the year ended 12/31/2012 include expense of approximately $3.1 million and $3.4 million, respectively relating to contingent consideration for earn-out provisions of a 2011 acquisition.
 

Adjusted EBITDA is an important measure because it presents a view of our performance on an ongoing basis without regard to capital structure, capital investment cycles and corresponding ages of related assets among comparable companies. A more detailed description of Adjusted EBITDA and a reconciliation to GAAP net income (loss) is contained later in this release.
                         

Revenues by product category ($ in millions)
      3 Months Ended  

Change***
    Year Ended  

Change***
      12/31/12   12/31/11       12/31/12   12/31/11    
Military (non-ammunition)       $ 8.0   $ 5.0   $ 3.0       $ 24.3   $ 23.8   $ 0.5    
Ammunition       $ 0.0   $ 1.0   $ (1.0 )     $ 2.1   $ 5.2   $ (3.1 )  
Law enforcement / commercial public safety       $ 1.4   $ 0.8   $ 0.6       $ 4.0   $ 3.8   $ 0.2    
Specialty products       $ 2.3   $ 1.5   $ 0.8       $ 8.2   $ 1.9   $ 6.3    
Total ***       $ 11.7   $ 8.3   $ 3.4       $ 38.6   $ 34.7   $ 3.9    

*** Numbers may not add exactly due to rounding
 

Cyalume’s President & CEO, Zivi Nedivi noted, “We are pleased to report that the 2012 fourth quarter was the strongest period of the year in terms of revenues, due to several major initiatives and strategies we put in place earlier in the year to first turnaround and then rebuild our business. Fourth quarter revenues grew by 15%, 30% and 46% as compared to revenues reported for the 2012 third, second and first quarters, respectively.