Nashua, N.H. (August 10, 2006) - Ezenia! Inc. (OTCBB:EZEN.OB), a leading market provider of real-time collaboration solutions for corporate and government networks and eBusiness, today reported financial results for its second quarter and six month period ended June 30, 2006.
The Company generated revenues of approximately $3.6 million for the second quarter of 2006, an 8.7% increase from approximately $3.3 million for the second quarter of 2005. For the six months ended June 30, 2006, revenue was approximately $7.2 million, an increase of 12.7% when compared to the six months ended June 30, 2005. Revenue from the InfoWorkSpace product line increased 11.1% and 17.9% for the quarter and six-month period ended June 30, 2006, respectively, as compared to the
quarter and six-month period ended June 30, 2005.
Income from operations for the quarter ended June 30, 2006 was approximately $949 thousand as compared to approximately $885 thousand, for the same period of 2005. For the six-month period ended June 30, 2006, income from operations was approximately $2.0 million, compared to approximately $1.5 million for the same period of 2005.
Net income for the quarter ended June 30, 2006 was approximately $979 thousand, or $0.07 per share, as compared to net income of approximately $929 thousand, or $0.06, for the same period of 2005. For the six-month period ending June 30, 2006 net income was approximately $2.4 million, or $0.16 per share, as compared to approximately $1.6 million, or $0.11 per share, for the same period of 2005.
GAAP net income for the second quarter of fiscal 2006 includes: $77 thousand of income tax expense and approximately $108 thousand of stock based compensation expense relating to the Company's implementation of Statement of Financial Accounting Standards (SFAS) 123R "Share Based Payments" in the first quarter. There was no income tax or equity-based compensation expense for the period ended June
30, 2005.
Net working capital increased approximately 83% to approximately $10.1 million for the period ended June 30, 2006 from approximately $5.5 million for the period ended June 30, 2005. For the six-month period ended June 30, 2006 total cash and net collectible accounts receivable balance was approximately $13.2 million, an increase of approximately $3.8 million or 40.6%, from the period ended June 30, 2005.
"The second quarter delivered many positives including a 64% increase in orders booked compared to the same period of 2005, an eleventh consecutive quarter of profitability, continued improvement in our gross margin for the quarter and six-month period year-to-year, as well as receiving the prestigious 2006 Armed Forces Communications and Electronics Association Golden Link award in recognition for our
flagship InfoWorkSpace products' role in the success of the Multinational Experiment 4 ("MNE 4") exercise," noted Khoa Nguyen, Ezenia Chairman and Chief Executive Officer. "In addition, we continued to make improvements to our overall infrastructure as we added engineering resources, strengthened our management team, engaged a new audit firm and new legal advisor, and established a new banking relationship. Finally, with the positive acceptance we have received in the
marketplace with the release of InfoWorkSpace Version 3.0, we have made a significant investment in the expansion of our sales force since the close of the quarter. We continue on track in making the underlying improvements necessary to meet our long-term objectives while still meeting current fiscal year earnings per share growth targets."
About Ezenia! Inc.
Ezenia! Inc. (OTC Bulletin Board: EZEN.OB), founded in 1991, is a leading provider of real-time collaboration solutions, bringing new and valuable levels of interaction and collaboration to corporate networks and the Internet. By integrating voice, video and data collaboration, the Company's award-winning products enable groups to interact through a natural meeting experience regardless of geographic distance. Ezenia! products allow dispersed groups to work together in real-time using powerful capabilities such as instant messaging, white boarding, screen sharing and text chat. The ability to discuss projects, share information and modify documents allows users to significantly improve team communication and accelerate the decision-making process. More information about Ezenia! Inc. and its product offerings can be found at the company's Web site,www.Ezenia.com.
Note to Investors Regarding Forward-Looking Statements
Statements included herein that are not historical facts may be considered forward-looking statements. You can identify these forward-looking statements by use of the words “expects,” “anticipates,” “estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” and similar words. Such forward-looking statements, including statements regarding our business and financial outlook, long-term strategy, improvements in our infrastructure, and proposed earnings per share growth targets, involve risks and uncertainties that could cause actual operating results to differ materially from those indicated by such forward-looking statements. These risks and uncertainties include the considerations that are discussed in the Company's 2005 Annual Report on Form 10-K as amended for the year ended December 31, 2005, such as its dependence on the United States government as its largest customer, adverse changes in available funding and discretionary spending within the Department of Defense, its dependence on other major customers, the evolution of Ezenia!'s market, rapid technological change and competition within the collaborative software market, its reliance on third-party technology, protection of its propriety technology, acceptance of IWS in the commercial market, retention of key employees, stock price volatility, customer acceptance of Version 3.0 of InfoWorkSpace, its history of liquidity concerns and operating losses, and other considerations that are discussed further in such report. You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to update forward-looking statements after the date of such statements.
Note: Ezenia! is a registered trademark of Ezenia! Inc., and the Ezenia! Logo and InfoWorkSpace are trademarks of Ezenia! Inc. Additional information on Ezenia! and its products is available at our website http://www.ezenia.com.