Revenue of $16.4 million, 34% Increase Over the First Quarter of 2007
TEL AVIV, Israel, May 5 /PRNewswire-FirstCall/ -- Scopus Video Networks Ltd. (NASDAQ:SCOP), a provider of digital video networking products, today announced its results for the first quarter of 2008, ending March 31, 2008.
First Quarter Highlights: - Revenue reached a first quarter record of $16.4 million, a 34% increase over the first quarter of 2007 - Net income of $0.3 million on a non-GAAP basis (excluding the cost of options) - Net loss of $1 thousand on a GAAP basis - Positive operating cash flow of $0.9 million in the quarter - Continued improvement in business fundamentals First Quarter 2008 Results Summary Revenue for the first quarter totaled $16.4 million, a 34% increase from the $12.3 million reported in the first quarter of 2007. The breakdown of revenue by region was 52% in EMEA, 20% in Asia and Pacific Rim and 28% in North and Latin America.
Gross profit for the first quarter of 2008 was $8.0 million compared with $6.1 million in the first quarter 2007. Gross profit as a percentage of revenues was 48.7%, compared with 49.6% in the first quarter of 2007.
Pro-forma net income for the first quarter of 2008, which excludes expenses related to stock based compensation was $310 thousand, or $0.02 per diluted share, compared to a net loss of $730 thousand, or $0.05 per basic share, in the first quarter of 2007.
Net loss on a GAAP basis for the first quarter of 2008 was $1 thousand, or $0.00 per share, compared with a net loss of $1.2 million, or $0.09 per share in the first quarter of 2007.
The Company ended the first quarter of 2008 with net cash, cash equivalents and short-term securities of $35.8 million, compared with $35.5 million as of December 31, 2007. The Company generated a positive operating cash flow of $897 thousand during the quarter.
"We had a fantastic start to 2008. I am excited by our continued progress and financial results, which topped our expectations in all parameters: revenue, margins, positive operating and net income, and strong cash flow," commented Dr. Yaron Simler, CEO of Scopus. "Our continued focus on our systems' offering has improved our traction in the market for our newly released products and systems. This, coupled with our solid execution across the board, has been instrumental in enabling us to maintain our positive momentum. At the same time, we believe we are well positioned to benefit from additional opportunities derived from the emerging trends of our industry." The press release contains non-GAAP financial measures. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to regulations promulgated by the Securities and Exchange Commission, the Company has provided reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The pro-forma results provided in the press release exclude the cost of options. Due to recent changes in US GAAP regulations, in accordance with FAS123R guidelines, from the first quarter of 2006 and onwards, we have been implementing and recording options expenses as part of our P&L, management believes that the presentation of the pro forma information provides investors with a better understanding of Scopus' financial results going forward and assists investors in comparing Scopus' historical, current and future expected results.
Conference Call Details The Company will also be hosting a conference call later today, May 5th, 2008 at 1:00pm ET (10:00am Pacific Time, 6:00pm UK Time, 8:00pm Israel Time). On the call, management will review and discuss the results, and will be available to answer investor questions. To participate, please call one of the following teleconferencing numbers:
US Dial-in Number: 1-866-652-8972
International Dial-in Number: +972-3-918-0691
For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Scopus' website, at: http://www.scopus.net/ About Scopus Video Networks Scopus Video Networks (NASDAQ:SCOP) develops, markets and supports digital video networking solutions that enable network operators to offer advanced video services to their subscribers. Scopus' solutions support digital television, HDTV, live event coverage and content distribution.
Scopus comprehensive digital video networking solutions offer intelligent video gateways, encoders, decoders and network management platforms. Scopus' solutions are designed to allow network operators to increase service revenues, improve customer retention and minimize capital and operating expenses.
Scopus' customers include satellite, cable and terrestrial operators, broadcasters and telecom service providers. Scopus' products are used by hundreds of network operators worldwide.
For more information visit: http://www.scopus.net/ This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the evolving market for digital video in general and the infancy of the video-over-IP in particular and the ability to successfully demonstrate to service providers integrated solutions, general economic conditions and other risk factors. Scopus does not undertake any obligation to update forward-looking statements made herein.
SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands) March 31, December 31
2008 2007 2007
(Unaudited)
ASSETS CURRENT ASSETS:
Cash and cash equivalents $ 30,064 $ 23,467 $ 23,090
Short-term deposits - 6,509 7,227
Trading securities 5,717 - 5,230 Trade accounts receivable
(net of allowance for
doubtful accounts of $139
and $442 and $152
respectively) 13,386 10,247 12,409 Inventories 7,545 11,427 7,774
Other receivables
and current assets 2,062 1,699 2,151 Total current assets 58,774 53,349 57,881 Fixed assets, net 3,913 2,998 3,453 Deposits in general
severance fund 237 215 230 Other assets 114 71 105 TOTAL ASSETS $ 63,038 $ 56,633 $ 61,669 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES:
Trade accounts payable $ 7,062 $ 5,448 $ 6,221
Other payables
and current liabilities 11,095 8,386 11,184 Total current liabilities 18,157 13,834 17,405 Liabilities for vacation
and severance pay 2,095 1,762 1,945 SHAREHOLDERS' EQUITY:
Ordinary shares 4,523 4,352 4,517
Additional paid-in capital 77,790 74,807 77,428
Other comprehensive income 172 - 72
Accumulated deficit (39,699) (38,122) (39,698) TOTAL SHAREHOLDERS' EQUITY 42,786 41,037 42,319 TOTAL LIABILITIES
AND SHAREHOLDERS EQUITY $ 63,038 $ 56,633 $ 61,669 SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands, except share and per share data) Three months ended March Year ended
31, December 31
2008 2007 2007
(Unaudited) Revenues $ 16,426 $ 12,255 $ 57,477
Cost of revenues 8,425 6,172 29,901
Gross profit 8,001 6,083 27,576 Research and development
expenses, net of grants
from the OCS 3,291 2,485 10,675
Sales and marketing
expenses 3,782 3,953 15,601
General and administrative
expenses 1,142 1,192 5,692 Operating loss (214) (1,547) (4,392) Financing income, net 214 359 1,673 Loss before income taxes 0 (1,188) (2,719)
Income tax expense (1) (13) (58) Net loss (1) (1,201) (2,777) Basic and diluted net
loss per ordinary share (0.00) (0.09) (0.20) Weighted average number
of ordinary shares
outstanding used in basic
and diluted loss per
ordinary share
calculation 13,939,415 13,394,766 13,595,346 Company Contact:
Moshe Eisenberg
Chief Financial Officer,
Tel: +972-3-900-7100, ; Investor Relations Contact:
Ehud Helft / Kenny Green
GK Investor Relations
Tel: (US) +1-646-201-9246, DATASOURCE: Scopus Video Networks Ltd CONTACT: Company Contact: Moshe Eisenberg, Chief Financial Officer, Tel: +972-3-900-7100, ; Investor Relations Contact: Ehud Helft / Kenny Green, GK Investor Relations, Tel: (US) +1-646-201-9246,
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