COPPELL, Texas, Oct. 31, 2014 /PRNewswire/ -- Costar
Technologies, Inc. (the "Company") (OTC Markets Group: CS-TI),
reported its unaudited financial results for the quarter ended
June 30, 2014 that have been reviewed
by the independent accounting firm McGladrey, LLP.
Highlights
- The Company completed the acquisition of CohuHD on June 6, 2014, the camera products and video
solutions division of Cohu, Inc. (NASDAQ: COHU). Financials include
the results for CohuHD from June 6
through quarter end.
- Net income of $990, or
$0.68 per share, for the three months
ended June 30, 2014, as compared to
$438, or $0.30 per share, for the three months ended
June 30, 2013. For the six months
ended June 30, 2014 and 2013 the
Company had net income of $2,062, or
$1.41 per share, and $1,034, or $0.71
per share, respectively.
- Sales increased 33% for the second quarter of 2014 as compared
to the same period for 2013. Sales increased 23% for the six month
period ended June 30, 2014 as
compared to the same period in 2013.
James Pritchett, President and
Chief Executive Officer of the Company, stated, "We are delighted
to be able to share the initial results of adding CohuHD to Costar
after completing the first quarter of integration. We have
identified multiple cross selling opportunities with our full
portfolio of products and have been able to leverage our shared
engineering talent to the benefit of both Costar Video Systems and
CohuHD. The acquisition adds significant shareholder value, with
the Company delivering $0.82 per
share on an adjusted basis for the second quarter after adding back
one-time transaction expenses, and provides a compelling story in
the security market."
Financial Results, Second Quarter of 2014 as Compared to
Second Quarter of 2013
Revenue for the second quarter of 2014 totaled $8,276, as compared to revenue of $6,219 for the second quarter of the prior year,
an increase of 33%. Of the $2,057
increase in revenue, $1,728 was
generated by the new acquisition, CohuHD.
Gross profit for the second quarter of 2014 totaled $3,197. This compares to gross profit of
$1,828 for the second quarter of
2013, an increase of 75%. The majority of the increase was due to
the acquisition of CohuHD.
Selling, general and administrative expenses from operations for
the second quarter of 2014 totaled $1,762. This compares to selling, general and
administrative expenses from continuing operations of $1,384 for the second quarter of 2013, an
increase of 27%. The majority of the $378 increase and all of the $128 in engineering and development expense was
due to the new subsidiary, CohuHD. The Company also experienced
$205 in transaction and related
expense directly tied to the acquisition of CohuHD.
Net income for the second quarter of 2014 was approximately
$990, or $0.68 per share. This compares to net income for
the second quarter of 2013 of $438,
or $0.30 per share. Of the
$552 increase in profits,
$551 was due to CohuHD.
Acquisition of CohuHD
On June 6, 2014, the Company
purchased, CohuHD, the camera products and video solutions division
of Cohu, Inc., with the Company's new $7,000 revolving line of credit and $3,000 term loan. As of June 30, 2014, the outstanding balance on the
revolving line of credit was $2,705,
with $3,000 outstanding on the term
loan. Further information can be found in Note 3 and Note 7 of the
Company's financial statements for the second quarter of 2014.
The Company's outside independent auditors completed their
analysis of the Company's financial condition. The Independent
Auditor's Review Report, including financial statements and
applicable footnote disclosures, is available on our website at
www.costartechnologies.com. This press release is an abridged
version. The unabridged version is also on our website.
About Costar Technologies, Inc.
Costar Technologies, Inc. develops, designs and distributes a
range of security solution products including surveillance cameras,
lenses, digital video recorders and high-speed domes. The Company
also develops, designs and distributes industrial vision products
to observe repetitive production and assembly lines, thereby
increasing efficiency by detecting faults in the production
process. Headquartered in Coppell,
Texas, the Company's shares currently trade on the OTC
Markets Group under the ticker symbol "CSTI".
Cautionary Statement Regarding Forward Looking
Statements
This document contains forward-looking statements that involve
risks and uncertainties, as well as assumptions, that if they never
materialize or prove incorrect, could cause the results of the
Company to differ materially from those expressed or implied by
such forward-looking statements. Forward-looking statements
generally are identified by the words "expects," "anticipates,"
"believes," "intends," "estimates," "should," "would," "strategy,"
"plan" and similar expressions. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. The risks, uncertainties and
assumptions include developments in the marketplace for our
products, competition, related products and services and general
economic conditions, as well as other risks and uncertainties.
Accordingly, we cannot give assurance that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the
results of operations or financial condition of the Company.
CONTACT:
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Scott
Switzer
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Chief Financial
Officer
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Costar Technologies,
Inc.
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(469)
635-6800
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SOURCE Costar Technologies, Inc.