2009 third quarter net sales increased by 75.5% as compared to the same period in 2008.
PALMETTO, Fla., Nov. 16 /PRNewswire-FirstCall/ -- On November 12, 2009, Teltronics, Inc. (OTC Bulletin Board: TELT) announced its financial results for the three months and nine months ended September 30, 2009.
Sales for the three months ended September 30, 2009 were $14.2 million, as compared to $8.1 million reported for the same period in 2008. Sales for the nine months ended September 30, 2009 were $35.6 million, as compared to $26.1 million for the same period in 2008. Gross profit margin for the three months ended September 30, 2009 was 41.1% as compared to 38.8% for the same period in 2008. Gross profit margin for the nine months ended September 30, 2009 was 40.4%, as compared to 35.3% for the same period in 2008.
Operating expenses for the three months ended September 30, 2009 were $2.9 million, as compared to $2.8 million for the same period in 2008. Operating expenses for the nine months ended September 30, 2009 were $8.0 million, as compared to $11.2 million for the same period in 2008.
Net income for the three months ended September 30, 2009 was $2.6 million or $0.23 per fully diluted share, as compared to $75,000 or $(0.02) per fully diluted share, for the same period in 2008. Net income for the nine months ended September 30, 2009 was $5.3 million or $0.48 per fully diluted share, as compared to a net loss of $1.4 million or $(0.26) per fully diluted share, for the same period in 2008.
Net income available to common shareholders for the three months ended September 30, 2009 was $2.3 million, as compared to a net loss of $188,000 for the same period in 2008. Net income available to common shareholders for the nine months ended September 30, 2009 was $4.5 million as compared to a net loss of $2.3 million for the same period in 2008.
"Teltronics is delighted with our third quarter results," proclaims Ewen Cameron, Teltronics' President and CEO. "With a focus on expense control, reduced operation redundancies and improving processes for increased efficiencies, the company has met its goal to increase gross margin and decrease operating costs during the 9 month period," continues Cameron. "We also concentrated on increasing worldwide sales on higher gross margin products which has resulted in an increase in orders of our switching products (Cerato & 20-20)."
About Teltronics:
Teltronics, Inc. is a leading, global provider of innovative communications solutions that enable our customers to increase revenues, decrease costs and improve productivity. The Company designs, develops and manufactures electronic equipment and applications software systems that enhance the performance of communications networks. Teltronics develops VoIP and digital voice communications platforms and software and contact center solutions for small-to-large size businesses and government facilities. Teltronics is also recognized as a leading provider of network management solutions enabling enterprises and service providers to effectively monitor and maintain voice and data networks. All products are manufactured in an ISO 9000:2008 certified factory and the Company serves as a contract manufacturing partner to customers nationwide. Further information regarding Teltronics is available at the web site, www.teltronics.com.
A number of statements contained in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, strategies or goals are also forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the timely development and market acceptance of products and technologies, competitive market conditions, payment of the consideration under our acquisition agreements, successful integration of acquisitions and the failure to realize the expected benefits of such acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses ,the ability to make payments under our outstanding indebtedness, the ability to pay dividends on our preferred stock, risks relating to foreign currency translations, and other factors described in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
- See Tables Below -
TELTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands, except shares and per share amounts
ASSETS
September 30, December 31,
2009 2008
(Unaudited)
Current assets:
Cash and cash equivalents $1,309 $548
Accounts receivable, net 8,397 5,366
Inventories, net 4,711 5,085
Prepaid expenses and other current assets 400 622
--- ---
Total current assets 14,817 11,621
Property and equipment, net 755 748
Other assets 365 275
--- ---
Total assets $15,937 $12,644
======= =======
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Line of credit $5,096 $4,291
Current portion of long-term debt and
capital lease obligations 1,228 1,440
Accounts payable 5,263 6,954
Accrued expenses and other current
liabilities 3,966 3,871
----- -----
Total current liabilities 15,553 16,556
Long-term liabilities:
Deferred dividends 3,600 3,000
Long-term debt and capital lease
obligations net of current portion 1,335 2,214
----- -----
Total long-term liabilities 4,935 5,214
Commitments and contingencies
Shareholders' deficiency:
Capital stock 9 9
Additional paid-in capital 24,730 24,725
Accumulated deficit and other
comprehensive loss (29,290) (33,860)
------- -------
Total shareholders' deficiency (4,551) (9,126)
Total liabilities and shareholders'
deficiency $15,937 $12,644
======= =======
The accompanying notes are an integral part of these condensed consolidated financial statements.
TELTRONICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except shares and per share amounts
Three Months Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
Net sales
Product sales and
installation $11,513 $5,097 $27,603 $17,656
Maintenance and service 2,692 2,999 7,994 8,528
----- ----- ----- -----
14,205 8,096 35,597 26,184
Cost of goods sold 8,367 4,954 21,209 16,934
----- ----- ------ ------
Gross profit 5,838 3,142 14,388 9,250
----- ----- ------ -----
Operating expenses:
General and administrative 1,270 1,075 3,562 4,617
Sales and marketing 839 798 2,184 3,088
Research and development 752 794 2,096 3,043
Depreciation and amortization 38 92 144 440
-- -- --- ---
2,899 2,759 7,986 11,188
----- ----- ----- ------
Income (loss) from
operations 2,939 383 6,402 (1,938)
Other income (expense):
Interest (339) (299) (1,118) (924)
Other (14) (3) 13 1,406
Minority interest income --- --- -- 38
--
(353) (302) (1,105) 520
---- ---- ------ ---
Income (loss) before
income taxes 2,586 81 5,297 (1,418)
Income taxes 5 6 17 16
--- --- -- --
Net income (loss) 2,581 75 5,280 (1,434)
Dividends on Preferred Series B
and C Convertible stock 263 263 791 832
--- --- --- ---
Net income (loss) available
to common shareholders $2,318 $(188) $4,489 $(2,266)
====== ===== ====== =======
Net income (loss) per common
share:
Basic $0.27 $(0.02) $0.52 $(0.26)
Diluted $0.23 $(0.02) $0.48 $(0.26)
Weighted average common shares
outstanding:
Basic 8,648,361 8,647,539 8,647,810 8,647,539
Diluted 11,230,761 8,647,539 11,044,528 8,647,539
The accompanying notes are an integral part of these condensed consolidated financial statements.
TELTRONICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands, except shares and per share amounts
Nine Months Ended
September 30,
-------------
2009 2008
---- ----
NET CASH FLOWS PROVIDED BY OPERATING
ACTIVITIES $1,334 $1,468
INVESTING ACTIVITIES - NET (180) 1,524
FINANCING ACTIVITIES:
Net borrowings (repayments) on line of
credit 805 (1,238)
Net principal repayments on loan, notes
and capital leases (887) (1,646)
Repayment of loan from related party (203) (177)
Dividends paid on Preferred Series B
Convertible Stock (189) (189)
---- ----
Net cash flows provided by (used in)
financing activities (474) (3,250)
Effect of exchange rate changes on cash
and cash equivalents 81 (80)
-- ---
Net increase (decrease) in cash and cash
equivalents for the period 761 (338)
Cash and cash equivalents - Beginning of
Period 548 1,123
--- -----
Cash and cash equivalents - End of Period $1,309 $785
====== ====
The accompanying notes are an integral part of these condensed consolidated financial statements.
SOURCE Teltronics, Inc.
For further information: Ewen Cameron, President & CEO, +1-941-753-5000, ecameron@teltronics.com
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