- Revenues at a five year high -
SOMERVILLE, N.J., March 18 /PRNewswire-FirstCall/ -- Conolog Corporation (Nasdaq: CNLGD) announced today the results for the six months ended January 31, 2009.
Product revenues for the six months ended January 31, 2009 totaled $945,640, representing an increase of 81% from $522,727 reported for the same six month period last year. The Company attributes this to increased orders.
Product cost (material and direct labor) for the six months ended January 31, 2009 totaled $234,363, or 25% of Product revenues, a net reduction of 13% from the previous year. The Company attributes this improvement to continued use of improved assembly standards under ISO-9000. Gross profit for the six months ended January 31, 2009 amounted to $711,277, or 75%, a direct result of increased sales this fiscal year. Selling, general and administrative expenses for the six months ended January 31, 2009 amounted to $1,133,547, a 50% reduction or $1,055,443 from the same period last year. Non-cash non-operating expenses for the six-month period amounted to $543,459 which included induced conversion cost; amortization of deferred debenture discount and debenture costs.
As a result of the above, the Company reported a net loss from operations of ($665,924) compared to a loss of ($4,177,068), or a per share loss of ($.21) compared to a ($3.36) per share loss for the six months ended January 31, 2009 and 2008, respectively.
About Conolog Corporation
Conolog Corporation is a provider of digital signal processing and digital security solutions to electric utilities worldwide. The Company designs and assembles electromagnetic products to the military and provides engineering and design services to a variety of industries, government organizations and public utilities nationwide. The Company's INIVEN division is a provider of a line of digital signal processing systems, including transmitters, receivers and multiplexers.
Contact: Conolog Corporation: Robert Benou, Chairman, 908/722-8081
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
[Financial Tables Follow]
CONOLOG CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
ASSETS January 31, 2009 July 31, 2008
------
(Unaudited) (Audited)
----------- ---------
Current Assets:
Cash and cash equivalents $728,668 $680,647
Certificate of deposit - 600,182
Accounts receivable, net of allowance 298,261 360,846
Prepaid expenses 374,835 26,477
Current portion of note receivable 14,864 14,864
Inventory 1,087,055 850,507
Other current assets 551,937 568,529
------- -------
Total Current Assets 3,055,620 3,102,052
--------- ---------
Property and equipment:
Machinery and equipment 1,357,053 1,357,053
Furniture and fixtures 429,765 429,765
Automobiles 34,097 34,097
Computer software 209,380 209,380
Leasehold improvements 30,265 30,265
------ ------
Total property and equipment 2,060,560 2,060,560
Less: accumulated depreciation (1,955,725) (1,951,725)
---------- ----------
Net Property and Equipment 104,835 108,835
------- -------
Other Assets:
Deferred financing fees, net of
amortization 59,006 295,030
Note receivable, net of current
portion 73,062 80,495
------ ------
Total Other Assets 132,068 375,525
------- -------
TOTAL ASSETS $3,292,523 $3,586,412
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------ January 31, 2009 July 31, 2008
(Unaudited) (Audited)
----------- ---------
Current Liabilities:
Accounts payable $188,304 $165,601
Accrued expenses - 61,957
Current convertible debenture,
net of discount 575,485 824,853
------- -------
Total Current Liabilities 763,789 1,052,411
------- ---------
------- ---------
Total Liabilities 763,789 1,052,411
------- ---------
Stockholders' Equity
Preferred stock, par value $.50;
Series A; 4% cumulative;
500,000 shares authorized;
155,000 shares issued and
outstanding at January 31, 2009
and July 31, 2008 , respectively. 77,500 77,500
Preferred stock, par value $.50;
Series B; $.90 cumulative;
2,000,000 shares authorized;
1,197 shares issued and outstanding
at January 31, 2009
and July 31, 2008 , respectively. 597 597
Common stock, par value $0.01;
30,000,000 shares authorized;
2,882,215 and 2,787,469 shares
issued and outstanding at
January 31, 2009 and July 31, 2008
respectively including 9 shares
held in treasury. 28,823 27,875
Contributed capital 50,039,403 50,003,695
Accumulated deficit (47,485,855) (46,819,932)
Treasury shares at cost (131,734) (131,734)
Deferred compensation - (604,110)
Prepaid consulting - (19,890)
-- -------
Total Stockholders' Equity 2,528,734 2,534,001
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $3,292,523 $3,586,412
========== ==========
CONOLOG CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
For the Three Months For the Six Months
Ended January 31, Ended January 31,
2009 2008 2009 2008
---- ---- ---- ----
OPERATING REVENUES
Product revenue $488,959 $338,174 $945,640 $522,727
-------- -------- -------- --------
Cost of product revenue
Materials and Labor
used in production 130,331 93,453 234,363 196,602
Write down of obsolete
inventory parts - - - 100,000
-- -- -- -------
Total Cost of
product revenue 130,331 93,453 234,363 296,602
------- ------ ------- -------
Gross Profit (Loss)
from Operations 358,628 244,721 711,277 226,125
Selling, general and
administrative
expenses 614,403 1,316,604 1,133,547 2,188,990
------- --------- --------- ---------
Loss Before Other
Income (Expenses) (255,775) (1,071,883) (422,270) (1,962,865)
-------- ---------- -------- ----------
OTHER INCOME (EXPENSES)
Interest expense (14,140) (11,313) (69,274) (11,351)
Interest income 2,483 32,293 13,812 48,907
Induced conversion
cost (25,406) - (205,911) (944,362)
Write off of discount
on converted debt - - - (705,088)
Amortization of
deferred loan discount (50,762) (141,016) (101,524) (349,939)
Amortization of
deferred loan cost (118,012) (126,185) (236,024) (252,370)
-------- -------- -------- --------
Total Other
Income (Expense) (205,837) (246,221) (598,921) (2,214,203)
-------- -------- -------- ----------
Loss before provision
for income taxes (461,612) (1,318,104) (1,021,191) (4,177,068)
Provision for
income taxes (355,267) - (355,267) -
-------- -- -------- --
NET LOSS APPLICABLE
TO COMMON SHARES $(106,345) $(1,318,104) $(665,924) $(4,177,068)
========= =========== ========= ===========
NET LOSS PER BASIC
AND DILUTED
COMMON SHARE $(0.03) $(0.92) $(0.21) $(3.36)
====== ====== ====== ======
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING 3,127,079 1,427,076* 3,123,736 1,241,363*
========= ========= ========= =========
* Represents retroactive application of 1:4 reverse stock split.
SOURCE Conolog Corporation
For further information: Robert Benou, Chairman of Conolog Corporation, +1-908-722-8081
© PR Newswire
