Optibase (Nasdaq:OBAS), which provides digital streaming solutions over broadband networks, today revealed a quantum leap in its quarterly losses, to $8.4 million including costs and charges.
Revenues for the second quarter ended June 30, 2002 were $5.1 million, slightly above the lower edge of its guidance, issued when warning of a disappointing second quarter. That figure is 27% below its first quarter performance.
For the first half of 2002, the company reported revenue of $12.1 million, 20% down from the parallel six months of 2001.
Revenues in the parallel quarter of 2001 were $7.1 million, and $7.0 million in the first quarter of 2002.
"Pro forma net loss for the second quarter, excluding the effects of acquisition-related costs, stock options charges, impairment of intangibles and equity in loss of affiliate and cumulative effect of changes in accounting principle" its loss excluding costs and charges was $700,000, or 6 cents per share. But when the costs and charges are included, that figure climbs to $8.4 million, or 69 cents per share.
For the half year, the loss including costs and charges is 83 cents per basic and diluted share, based on about 12.1 million weighted average shares outstanding, the company said.
In the parallel quarter of 2001 the comparable loss was $4.9 million, or 40 cents per share.
Acquisition-related costs in the second quarter consisted of about $497,000 of amortization of acquisition-related intangibles and costs, the company said.
Charges on stock options for employees were $377,000 this quarter.
The company had to adjust the book value of technology purchased from ViewGraphics, taking a charge of about $6.8 million.
During the second quarter, Optibase completed its goodwill impairment analysis and recognized a "transitional goodwill impairment loss" of $854,000 as of January 1, 2002, it said.
As of June 30, 2002, the company had cash, cash equivalents and other financial investments of $45.5 million, and shareholders' equity of $51.2 million.
Manager Zvi Halperin said orders were down by half because of the tough world technology market, and because of lagging orders by a specific customer. Visibility remains low, he cautioned, but the industry is showing enthusiasm for Optibase's products. Although corporate spending is low these days, the company is running plenty of pilot projects that bear significant growth potential, he said.