TEL-AVIV, November 7 /PRNewswire-FirstCall/ -- Scopus Video Networks Ltd. (NASDAQ:SCOP), a provider of digital video networking products, today announced its results for the third quarter of 2007, ending September 30, 2007.
Third quarter highlights: - Total revenues reached a record $15.2 million, a 33% year over year increase - Company reached profitability on a non-GAAP basis
- Record positive operating cash flow of $2.7 million
- Continued improvement in the business fundamentals
- Strong pipeline of deals leads management to expect continued revenue growth Third Quarter 2007 Results Summary Revenues for the third quarter totaled $15.2 million, a 12.3% sequential increase from the $13.5 million revenues in the prior quarter, and a 33% increase from the third quarter of 2006. The breakdown of revenue by region was 51% in EMEA, 30% in Asia and the Pacific Rim and 19% in the Americas.
Gross profit in the third quarter of 2007 was $7.3 million compared with $6.5 million in the prior quarter, and $5.2 million in the third quarter of 2006. Gross profit as a percentage of revenues was 48%.
Pro-forma net profit for the third quarter of 2007, which excludes expenses related to stock based compensation as defined under FAS123R was $0.4 million, or $0.02 per diluted share, compared to a net loss of $0.7 million, or $0.05 loss per share, in the prior quarter, and a net loss of $0.9 million, or $0.07 per share, in the third quarter of 2006.
Net loss on a GAAP basis for the third quarter of 2007 was $0.1 million, or $0.01 per share, compared with $1.2 million, or $0.09 per share, in the prior quarter and a net loss of $1.4 million, or $0.11 per share in the third quarter of 2006.
The Company achieved a record positive operating cash flow of $2.7 million during the quarter, and ended the third quarter with cash and cash equivalents plus short term investments of $33.8 million. This is compared with $31.0 million on June 30th, 2007.
"In the third quarter, we continued the strong progress we have made throughout the year," commented Dr. Yaron Simler, CEO of Scopus. "Most significantly, we reached our goal of becoming profitable. The quarter also marked our continued improvement in the business fundamentals demonstrated by our lower inventory levels and better DSOs which led to our record operating cash flow in the quarter of $2.7 million. Our strong pipeline of new features and products, together with our penetration of larger customers with bigger deals, gives us confidence in our continued revenue growth." Conference Call Details The Company will also be hosting a conference call later today at 11am EST (8:00am Pacific Time, 4:00pm UK Time, 6:00pm 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: 1-888-407-2553
UK Dial-in Number: 0-800-917-5108
Israel Dial-in Number: 03-918-0692
International Dial-in Number: +972-3-918-0692 A replay of the call will also 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 products that enable network operators to offer advanced video services to their subscribers. Scopus' products support digital television, HDTV, live event coverage and content distribution.
Scopus provide a comprehensive digital video networking product offering, including intelligent video gateways, encoders, decoders and network management products. Scopus' products 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.
Tables to follow SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED
BALANCE SHEET
(Dollars in thousands) September 30, December 31,
2007 2006 2006
(Unaudited)
ASSETS CURRENT ASSETS:
Cash and cash equivalents $ 10,464 $ 30,672 $ 29,950
Short-term investments 23,361 - -
Trade accounts receivable
(net of allowance for
doubtful
accounts of $455, $886 and
$428 respectively) 8,934 11,052 10,268
Inventories 8,888 11,360 11,727
Other receivables and
current assets 2,061 1,105 1,015 Total current assets 53,708 54,189 52,960 Fixed assets, net 3,050 2,856 2,928 Deposits in general
severance fund 218 192 204
Other assets 92 110 72 TOTAL ASSETS $ 57,068 $ 57,347 $ 56,164 LIABILITIES AND
SHAREHOLDERS EQUITY CURRENT LIABILITIES:
Trade accounts payable $ 4,435 $ 7,158 $ 5,738
Other payables and current
liabilities 9,350 6,841 7,246 Total current liabilities 13,785 13,999 12,984 Liabilities for vacation
and severance pay 1,740 1,661 1,661
SHAREHOLDERS' EQUITY:
Ordinary shares 4,454 4,293 4,322
Additional paid-in capital 76,528 73,535 74,118
Accumulated deficit (39,439) (36,141) (36,921) TOTAL SHAREHOLDERS' EQUITY 41,543 41,687 41,519 TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY $ 57,068 $ 57,347 $ 56,164
SCOPUS VIDEO NETWORKS
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
(Dollars in thousands,
except share and per
share data) Nine month Three month Year ended
ended September ended September December
30, 30, 31, 2007 2006 2007 2006 2006
(Unaudited) (Unaudited) Revenues $ 40,944 $ 35,166 $ 15,175 $ 11,394 $ 47,272
Cost of
revenues 21,064 18,172 7,848 6,180 24,274
Gross profit 19,880 16,994 7,327 5,214 22,998
Research and
development
expenses, net
of grants from
the OCS 7,808 7,366 2,742 2,343 10,240
Sales and
marketing
expenses 11,618 9,506 3,747 3,255 12,602
General and
administrative
expenses 4,113 3,796 1,563 1,229 4,876
Operating loss (3,659) (3,674) (725) (1,613) (4,720)
Financing
income, net 1,206 684 619 193 963
Loss before
income taxes (2,453) (2,990) (106) (1,420) (3,757)
Income tax
expense (65) (22) (39) (3) (35)
Net loss (2,518) (3,012) (145) (1,423) (3,792) Basic and
diluted net
loss per
ordinary share (0.19) (0.23) (0.01) (0.11) (0.29) Weighted
average number
of ordinary
shares
outstanding
used in basic
and diluted
loss per
ordinary share
calculation 13,509,988 13,166,641 13,651,381 13,261,853 13,204,500
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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