-Product Revenues Increase 136%-
'Fiscal 2008 product revenues grew 136% over last fiscal year. This growth
is primarily attributed to the fulfillment of orders from existing, long-term
contracts,' said
'As a result of outsourcing our assemblies, standardizing the costs for the build out of the PDR2000 and adhering to ISO-9000 practices, we lowered our product costs as a percentage of revenues to 38% in fiscal 2008 from 73% in fiscal 2007. We believe these operational efficiencies and decreased costs, combined with increased demand for our digital products, positions us to narrow our net losses with goal of profitability in fiscal 2009,' added Benou.
Product revenue for the fiscal year ended
For fiscal year ended
Total operating expenses for the fiscal year ended
Other expenses for the fiscal year ended
As a result of the foregoing, the Company reported a net loss of
About Conolog Corporation
Conolog Corporation is a provider of digital signal processing and digital security solutions to electric utilities worldwide. The Company designs and manufactures electromagnetic products to the military and provides engineering and design services to a variety of industries, government organizations and public utilities nationwide. The Company's INIVEN division manufactures a line of digital signal processing systems, including transmitters, receivers and multiplexers.
Contact: Conolog Corporation:
Forward-looking statements in this release are made pursuant to the 'safe
harbor' provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of the
Company's products, increased levels of competition, new products introduced
by competitors, and other risks detailed from time to time in the Company's
periodic reports filed with the Securities and Exchange Commission. There can
be no assurance that the Company's revenue for the year ending
Financial tables follow.
CONOLOG CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEARS ENDED JULY 31, 2008 AND 2007
2008 2007
OPERATING REVENUES
Product revenue $1,220,993 $517,705
Cost of product revenue
Materials and labor used in production 467,081 378,563
Write down of obsolete inventory parts 112,171 1,256,155
Total Cost of product revenue 579,252 1,634,718
Gross Profit (Loss) from Operations 641,741 (1,117,013)
Selling, general and administrative expenses
General and administrative 2,094,819 2,149,542
Stock compensation 1,319,400 184,500
Stock compliance 230,396 444,465
Research and development 150,173 372,723
Professional fees 412,119 252,850
Marketing and trade shows 166,171 151,680
Total selling, general and administrative
expenses 4,373,078 3,555,760
Loss Before Other Income (Expenses) (3,731,337) (4,672,773)
OTHER INCOME (EXPENSES)
Interest expense (77,922) -
Interest income 92,485 141,390
Induced conversion cost (1,387,087) (2,705,457)
Write off of discount on converted debt (864,892) -
Amortization of deferred loan discount (606,598) (812,147)
Amortization of deferred financing fees (504,740) (363,676)
Total Other Income (Expense) (3,348,754) (3,739,890)
Loss before provision for income taxes (7,080,091) (8,412,663)
Benefit for income taxes 112,485 291,596
NET LOSS APPLICABLE TO COMMON SHARES $(6,967,606) $(8,121,067)
NET LOSS PER BASIC AND DILUTED COMMON SHARE $(4.70) $(12.78)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 1,483,380 653,511
CONSOLIDATED BALANCE SHEETS
ASSETS July 31 July 31
2008 2007
Current Assets:
Cash and cash equivalents $680,647 $687,011
Certificate of deposit 600,182 2,037,330
Accounts receivable, net of allowance 360,846 64,768
Prepaid expenses 26,477 2,320
Current portion of note receivable 14,864 14,864
Inventory 850,507 538,854
Other current assets 568,529 445,136
Total Current Assets 3,102,052 3,790,283
Property and equipment:
Machinery and equipment 1,357,053 1,357,053
Furniture and fixtures 429,765 429,765
Automobiles 34,097 34,097
Computer software 209,380 209,380
Leasehold improvements 30,265 30,265
Total property and equipment 2,060,560 2,060,560
Less: accumulated depreciation (1,951,725) (1,927,725)
Net Property and Equipment 108,835 132,835
Other Assets:
Deferred financing fees, net of
amortization 295,030 799,770
Note receivable, net of current portion 80,495 94,140
Total Other Assets 375,525 893,910
TOTAL ASSETS $3,586,412 $4,817,028
LIABILITIES AND STOCKHOLDERS' EQUITY
2008 2007
Current Liabilities:
Accounts payable $165,601 $134,112
Accrued expenses 61,957 27,433
Current Convertible debenture, net of
discount 824,853 -
Total Current Liabilities 1,052,411 161,545
Non-Current Liabilities:
Convertible debenture, net of discount - 1,226,605
Total Liabilities 1,052,411 1,388,150
Stockholders' Equity:
Preferred stock, par value $.50; Series A;
4% cumulative; 500,000 shares authorized;
155,000 shares issued and outstanding at
July 31, 2008 and 2007 , respectively. 77,500 77,500
Preferred stock, par value $.50; Series B;
$.90 cumulative; 500,000 shares authorized;
1,197 shares issued and outstanding at
July 31, 2008 and 2007 , respectively. 597 597
Common stock, par value $0.01; 30,000,000
shares authorized; 2,787,469 and 968,886
shares issued and outstanding at July 31,
2008 and 2007 respectively including 9
shares held in treasury. 27,875 9,692
Contributed capital 50,003,695 44,765,149
Accumulated deficit (46,819,932) (39,852,326)
Treasury shares at cost (131,734) (131,734)
Deferred compensation (604,110) (1,319,400)
Prepaid consulting (19,890) (120,600)
Total Stockholders' Equity 2,534,001 3,428,878
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,586,412 $4,817,028
SOURCE Conolog Corporation
