ISCO International Reports Financial Results for the First
Quarter 2005
ELK GROVE VILLAGE, Ill., April 20 /PRNewswire-FirstCall/ -- ISCO
International, Inc. (AMEX:ISO), a leading supplier of RF management and
interference-control solutions for the wireless telecommunications industry,
today reported financial results for the first quarter 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010321/CGW036LOGO ) ISCO reported consolidated net revenues of $3,293,000 for the quarter- ended
March 31, 2005, versus $422,000 during the comparable period of 2004. Gross
margin for these two periods increased to 42%, from 27%, due in part to
volume-related efficiencies. The consolidated net loss improved to $482,000
for the quarter-ended March 31, 2005, versus $1,958,000 during the same period
of 2004. The improvement in net loss was primarily due to the improvement in
revenue and resulting gross margins.
"These first quarter results are a step in the right direction for our
company," said John Thode, CEO of ISCO. "Non-cash charges during the first
quarter related to stock option expense, deprecation and amortization were
$291,000. Additionally, we accrued $293,000 in interest expense that should be
reduced on a quarterly basis going forward with the reduction in the credit
line interest rate from 14% to 9%, beginning April 1st. Those two items
combined to account for more than 100% of our $482,000 net loss for the
quarter.
"That means that the Company has been able to generate a positive cash flow
from operations, albeit a small one, during the first quarter, something it has
never accomplished. We entered the second quarter with $1.5 million in order
backlog, a number which we have continued to build upon during April." An investor call will be held today, April 20th, at 5pm eastern. To
participate in the call domestically, dial 1-800-905-0392. International
callers should dial 1-785-832-2422. The conference name is "ISCO." The call
will be replayed for 30 days at 1-888-566-0828 (or 1-402-220-0124 for
international callers).
Following the presentation, a short question and answer session will be held.
Participants are asked to dial in 10 minutes prior to the beginning of the
call. The call will be webcast live and then archived for 30 days. ISCO will
provide a link to the call on its web site ( http://www.iscointl.com/ ) for
both the live and archived versions. A copy of the webcast link is below.
Webcast link:
http://phx.corporate-ir.net/playerlink.zhtml?c=148967&s=wm&e=1052665 Safe Harbor Statement
Because the Company wants to provide investors with meaningful and useful
information, this news release contains, and incorporates by reference, certain
"forward-looking statements" that reflect the Company's current expectations
regarding the future results of operations, performance and achievements of the
Company. The Company has tried, wherever possible, to identify these
forward-looking statements by using words such as "anticipates," "believes,"
"estimates," "expects," "plans," "intends" and similar expressions. These
statements reflect the Company's current beliefs and are based on information
currently available to it. Accordingly, these statements are subject to
certain risks, uncertainties and contingencies, which could cause the Company's
actual results, performance or achievements to differ materially from those
expressed in, or implied by, such statements. These factors include, among
others, the following: market acceptance of the Company's technology; the
spending patterns of wireless network operators in connection with the build
out of 2.5G and 3G wireless systems; the Company's ability to obtain additional
financing in the future; the Company's history of net losses and the lack of
assurance that the Company's earnings will be sufficient to cover fixed charges
in the future; uncertainty about the Company's ability to compete effectively
against better capitalized competitors and to withstand downturns in its
business or the economy generally; continued downward pressure on the prices
charged for the Company's products due to the competition of rival
manufacturers of front-end systems for the wireless telecommunications market;
the timing and receipt of customer orders; the Company's ability to attract and
retain key personnel; the Company's ability to protect its intellectual
property and the risks of legal proceedings. A more complete description of
these risks, uncertainties and assumptions is included in the Company's filings
with the Securities and Exchange Commission, including those described under
the heading "Risk Factors" in the Company's Annual Report on Form 10-K. You
should not place undue reliance on any forward-looking statements. The Company
undertakes no obligation to release publicly the results of any revisions to
any such forward-looking statements that may be made to reflect events or
circumstances after the date of this Report or to reflect the occurrence of
unanticipated events.
Three Months Ending
March 31, March 31,
2005 2004
UNAUDITED Net sales $3,293,000 $422,000
Costs and expenses:
Cost of sales 1,921,000 309,000
Research and development 347,000 234,000
Selling and marketing 366,000 224,000
General and administrative 852,000 1,233,000 Total costs and expenses 3,486,000 2,000,000 Operating loss $(193,000) $(1,578,000) Other income (expense):
Interest income 4,000 2,000
Non-cash interest expense -- (250,000)
Other interest expense (293,000) (131,000)
Total other income (expense) $(289,000) $(380,000) Net loss $(482,000) $(1,958,000) Basic and diluted loss per common share $(0.00) $(0.01) Weighted average number of common shares
outstanding 161,217,000 154,233,000 Selected Balance Sheet Information: (unaudited)
March 31, December 31,
2005 2004 Cash and equivalents $839,000 $402,000
Working Capital excl. Debt $2,066,000 $1,017,000
Total Assets $18,032,000 $16,986,000
Debt, short term and long term,
including related accrued interest $9,936,000 $8,643,000
Stockholders' Equity $7,020,000 $7,248,000
Web site: http://www.iscointl.com/ http://www.newscom.com/cgi-bin/prnh/20010321/CGW036LOGO http://photoarchive.ap.org/ DATASOURCE: ISCO International, Inc.
CONTACT: Mr. Frank Cesario of ISCO International, Inc., +1-847-391-9492, Web site: http://www.iscointl.com/
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