Optibase Ltd. Announces Third Quarter Results
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HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (NASDAQ: OBAS) a leader in advanced digital video solutions today announced financial results for the third quarter ended September 30, 2009.
Revenues for the third quarter ended September 30, 2009 were $3.2 million compared with $3.3 million for the second quarter of 2009 and $6.6 million for the third quarter of 2008.
Net loss for the third quarter ended September 30, 2009, was $0.7 million or $0.04 per basic and fully diluted share, compared with a net loss of $1 million or $0.06 per basic and fully diluted share for the second quarter of 2009 and with a net loss of $1.8 million or $0.11 per basic and fully diluted share for the third quarter of 2008. Weighted average shares outstanding used in the calculation for the periods were approximately 16.5 million basic and fully diluted for the third quarter of 2009, the second quarter of 2009, and for the third quarter of 2008.
For the nine months ended September 30, 2009, revenues totaled $10 million, compared with $16.3 million for the nine months ended September 30, 2008. Net income for the period was $1.2 million or $0.07 per basic and fully diluted share, compared to a net loss of $6.8 million or $0.46 per basic and fully diluted share for the nine months ended September 30, 2008. Weighted average shares outstanding used in the calculation for the periods were approximately 16.5 million basic and fully diluted and 14.7 million basic and fully diluted respectively.
As of September 30, 2009, the Company had cash, cash equivalents, and other financial investments, net, of $34 million, and shareholders' equity of $36.4 million, compared with $38 million, and $37 million as of June 30, 2009.
Commenting on the quarter, CFO of Optibase, Amir Philips, said, "Revenues, while down year-over-year, remained stable compared to last quarter and we were able to improve our bottom line. Over the past year, we have been adjusting our business strategy to adapt to the changing business environment, which has not yet fully recovered from the global economic downturn. The changes that we have implemented have helped stabilize revenue and allowed for better management of costs in this daunting environment."
He concluded by saying, "Our recent decision to diversify our business has recently moved forward with the acquisition of a commercial building located in Rumlang, Switzerland. This transaction is representative of the real estate opportunities we are seeing in today's markets. We will continue to look for more investment opportunities around the globe and may invest in those prospects that we believe will bring value to our shareholders in the long run."
About Optibase
Optibase provides video over IP solutions, specializing in video encoding, decoding and streaming for federal and state government agencies, Telco operators, enterprise organizations and the world's leading broadcast service providers. With a collection of open, standards-based products, Optibase enables its customers to take full advantage of video distribution over their IP network, ensuring superb video quality in a scale of bit-rates for simple and effective video streaming to desktops, STBs and VOD applications. Optibase has recently resolved to diversify its operations by entering into the fixed-income real-estate sector. For further information, please visit www.optibase.com.
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 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 video technologies market in general, and the evolving IPTV market in particular, competition, our ability to manage growth and expansion, difficulties in finding suitable real-estate properties for investment, availability of financing for the acquisition of real-estate, difficulties in leasing of real-estate properties, insolvency of tenants, difficulties in the disposition of real-estate projects, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein.
This release and prior releases are available on the Company's Web site at www.optibase.com.
This release and prior releases are also available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.
Optibase Ltd.
Condensed Consolidated Statement of Operations
For the Period Ended September 30, 2009
Nine months ended Three months ended
September September September September
30 30 30 30
2009 2008 2009 2008
$ $ $ $
Unaudited Unaudited Unaudited Unaudited
Revenues 10,050 16,345 3,175 6,575
Gross profit 4,818 8,456 1,686 3,492
Operating
expenses:
Research and 2,855 5,075 778 1,786
development, net
Selling, general and 6,106 9,095 1,820 2,994
administrative
Total operating expenses 8,961 14,170 2,598 4,780
Operating loss (4,143) (5,714) (912) (1,288)
Other income (expenses) 4,778 (1,204) - (499)
Financial income, net 551 128 173 12
Net income (loss) from 1,186 (6,790) (739) (1,775)
continuing operations
Income related to - 20 - -
discontinued operations
Net income (loss) 1,186 (6,770) (739) (1,775)
Other comprehensive
income
Unrealized holding losses on - (267) - -
available for sale securities
Total comprehensive 1,186 (7,037) (739) (1,775)
income (loss)
Net income (loss) per
share:
Basic and diluted $0.07 ($0.46) ($0.04) ($0.11)
Number of shares used in computing
Earning per share 16,533 14,711 16,535 16,518
Basic
Diluted 16,544 14,711 16,535 16,518
Amount in thousands
Optibase Ltd.
Condensed Consolidated Balance Sheets
September 30 December 31
2009 2008
Unaudited Audited
Assets
Current Assets:
Cash, cash equivalents and short term investments, 34,082 11,386
net
Trade receivables net of allowance for bad 2,021 3,241
debts
Inventories 2,709 4,373
Other receivables and prepaid expenses 4,500 690
Total current assets 43,312 19,690
Other long term investments 2,441 26,388
Fixed assets, net 730 1,228
Total assets 46,483 47,306
Liabilities and shareholders' equity
Current Liabilities:
Trade payables 1,319 2,276
Accrued expenses and other liabilities 6,769 7,642
Liabilities Related To Discontinued 162 162
Operations
Total current liabilities 8,250 10,080
Accrued severance pay 1,852 2,215
Total shareholders' equity 36,381 35,011
Total liabilities and shareholders' equity 46,483 47,306
Amounts in thousands
Source: Optibase Ltd.
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