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August 14, 2006 - 11:02 AM EDT
Patron Announces Second Quarter Revenue of $319 Thousand up 278% from prior year and First Half Revenue of $581 Thousand
BOULDER, Colo., Aug. 14 /PRNewswire-FirstCall/ -- Patron Systems, Inc. (OTC Bulletin Board: PTRN), a leading provider of enterprise software to create, manage and share electronic forms and messages, announced today its second quarter 2006 financial results. Revenue for the second quarter ended June 30, 2006 was $318,960 compared to $84,413 in the same period in 2005. For the six months ended June 30, 2006, Patron reported revenue of $580,745 compared to $90,843 in the same period in 2005.
The net loss available to common stockholders for the three months ended June 30, 2006 was $1,621,017 or $0.75 per share on 2,170,653 weighted average shares outstanding compared to $5,028,505 or $2.47 per share on 2,032,823 weighted average shares outstanding in the three months ended June 20, 2005. For the six months ended June 30, 2006, the net loss available to common stockholders was $6,021,091 or $2.83 per share on 2,127,543 weighted average shares outstanding compared to $7,232,300 or $3.93 per share on 1,838,106 weighted average shares outstanding for the six months ended June 30, 2005.
'The results of the second quarter of 2006 have been very significant for the future of Patron Systems,' noted CEO Robert Cross. 'During this quarter, we received a record amount of new customer contracts and purchase orders ($1,235,000) and we disposed of our LucidLine business unit after changing our business focus to Active Message Management. Combined with our first quarter results, we have generated during 2006 nearly 140% of the revenue generated in all of 2005 when measured on a continuing operations basis. Additionally, we continued to add additional creditors and claimants to the amounts settled under the Creditor and Claimant Liabilities Restructuring, bringing the total amount of debts, claims and other liabilities settled to $29.1 million as of June 30, 2006.'
'In addition to these results, since June 30, 2006, our stockholders approved the reverse split of Patron's common stock on a 1-for-30 basis and as of August 4, 2006, the reverse split became effective. We also announced that the Creditor and Claimant Liabilities Restructuring program has been completed. With the completion of this program, we have settled debts, claims and other liabilities totaling $29.6 million for Series A-1 Preferred Stock which has now been converted into 12,330,355 shares of Patron common stock upon the August 4, 2006 effective date of the reverse stock split. Additionally, Patron has settled $383,000 of liabilities for $12,140 in cash payments. The total of all debts, claims and other liabilities settled is nearly $30 million,' continued Cross.
The improvement in the Company's net loss available to common stockholders includes the increased revenues described above, improved operating expenses, reduced interest expense and the sale of the Company's discontinued LucidLine business unit. For the three months ended June 30, 2006, operating expenses were reduced $909,000 to $1,625,000. This reduction includes an increase of $159,000 associated with increased staffing levels, a $64,000 increase associated with employee stock option compensation expense and an increase of $263,000 in general and administrative expense. These were offset by a $444,000 reduction in expense associated with the amortization of stock-based compensation arrangements, a reduction of $284,000 associated with work performed in 2005 to bring the Company's SEC filings into compliance and expenses associated with the 2005 acquisitions and a reduction of $686,000 associated with 2005 penalties under stock-based accommodation agreements and penalties under a collateralized financing arrangement.
Interest expense during the three months ended June 30, 2006 was $88,000 which is compared to $1,702,000 for the three months ended June 30, 2005. This reduction is principally related to the issuance, in the three months ended June 30, 2005, of the Bridge II Notes and the associated amortization of deferred financing costs and the accretion of debt discounts incurred with that financing not being incurred in the three months ended June 30, 2006. Additionally the interest expense associated with the outstanding Acquisition Notes and Bridge I Notes in the three months ended June 30, 2005 was reduced with the exchange of a substantial portion of these notes for Series A-1 Preferred stock as of March 31, 2006.
On April 18, 2006, the Company entered into an agreement to sell, effective April 1, 2006, its LucidLine, Inc. business unit to Walnut Valley, Inc. During the three months ended June 30, 2006, the Company reported a net loss on discontinued operations of $0 compared to $748,000 in the three months ended June 30, 2005.
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