HMDR news.....(surprise..:)
November 17, 2003
LIVERMORE, Calif., Nov 17, 2003 (BUSINESS WIRE) --
Home Director, Inc. (OTCBB: HMDR), reported results today for its third quarter ended September 30, 2003, reflecting a significant reduction in loss as compared to the comparable quarter of 2002. The Company reported a net loss for the quarter of $438,000, as compared to $2,894,000 in the prior year, a decrease of approximately 85%. The net loss for the third quarter of 2002 included other expense, net of $2,120,000 consisting primarily of costs and expenses associated with the convertible notes that were retired on conversion in December 2002. The Company said its continuing cost-reduction programs contributed to the decline.
Total costs and expenses (before other expense, net) of $2,743,000 were down 20% from $3,423,000 in the third quarter of 2002.
Revenues for the quarter were $2,348,000, compared to $2,656,000 in the third quarter of 2002. For the nine months, revenues were $7,309,000 compared to $8,004,000 in the prior year. The Company attributed the revenue decline primarily to reduced hardware sales which were offset in part by increased integration revenues. The decline in hardware sales reflects the effects of several factors, including the Company's strategic decisions to concentrate on cost reduction measures while re-focusing its marketing efforts on the integration sector and the sale of hardware primarily through the still-developing Sears Connected Home program, as well as increasing price competition.
Don Witmer, Home Director's Chairman and Chief Executive Officer, commented: 'This quarter we entered what we hope will be the final stages of our turnaround by continuing to cut expenses while gearing up for expected revenue growth next year as we begin to feel the impact of the Sears Connected Home program and the additional builder contracts we have added in the past several months. Thus far this year we have signed new contracts to provide networking solutions to Shea Homes, Bright Development, SummerHill Homes, Richmond American Homes-Los Angeles Division, Greystone Homes, Cobblestone Homes and Jonathan Homes. '
Recent accomplishments and highlights included: -- At the Electronic Home Expositions, the Company launched its newest addition to the award winning Network Connection Center product line, the MDU or Multiple Dwelling Unit. -- Three industry veterans joined the sales team to support expanded marketing efforts in North America. They are: Mark Boggs - Director Sales, Michael Zarzeczny - National Sales Manager for Canada, and Steve Smith - Account Manager for Southern California. -- Initial results of the Sears Connected Home program were announced by Sears and reflected strong demand for participation in the program by regional integrators seeking certification to install Home Director systems in the program. About the Sears Connected Home program
As part of the Sears Connected Home program, Home Director is matching approved regional integrators with homebuilders to provide networking solutions in new home developments. Distribution merchandising programs are in place at 12 Sears locations throughout the United States and a national advertising program has resulted in hundreds of integrator applications for the Connected Home program.
About Home Director
Home Director designs, manufactures, sells and installs home networking products that it calls the 'The Power Behind Intelligent Living.'These home networking solutions interconnect security systems, audio systems, video services, utilities, personal computers and the Internet. Its products are primarily for installation as basic infrastructure in new homes. Winner of the 2001 Innovative Technology Award from the National Association of Home Builders and Popular Science Magazine, and the 2001 Mark of Excellence Award from the Home Automation and Networking Association, the Company's home networking solutions have been purchased by more than 60,000 home owners in the United States and Canada. Home Director is located in Livermore, California in California's Silicon Valley. To learn more about Home Director, visit www.homedirector.com or call 1-800-426-7144.
This press release includes statements that are not historical facts and are considered 'forward-looking'within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Home Director's current views about future events. They are identified by their use of terms and phrases such as 'believe,''expect,''plan,''anticipate', 'possibility'and similar expressions identifying their forward-looking character. Investors should not rely on these forward-looking statements as assurances of future events, because such statements are inherently subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from the company's expectations. The factors that may affect the outcome of such expectations include the Company's immediate need for additional working capital and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-KSB for its fiscal year ended December 31, 2002.
======================================================================SELECTED FINANCIAL DATA(in thousands,except per share data)---------------------------------------------------------------------- (unaudited) Quarter ended Nine months ended---------------------------------------------------------------------- Statements of Operations 9/30/03 9/30/02 9/30/03 9/30/02----------------------------------------------------------------------Revenue $ 2,348 $ 2,656 $ 7,309 $ 8,004----------------------------------------------------------------------Cost of revenue 1,614 1,596 4,469 5,209----------------------------------------------------------------------General &administrative 454 674 1,817 2,496----------------------------------------------------------------------Sales &marketing 519 689 1,822 1,857----------------------------------------------------------------------Research &development 54 184 209 546----------------------------------------------------------------------Depreciation &amortization 101 143 296 609----------------------------------------------------------------------Provision for abandonment of facility --- --- 590 -------------------------------------------------------------------------(Gain) on extinguishments of certain liabilities --- 137 --- (4,523)---------------------------------------------------------------------- Total costs and expenses 2,743 3,423 9,203 6,193----------------------------------------------------------------------Income (Loss) from operations (395) (766) (1,894) 1,812----------------------------------------------------------------------Other expense, net (44) (2,127) (57) (3,007)----------------------------------------------------------------------Net income (loss) $ (438) $ (2,894) $ (1,951) $ (1,195)----------------------------------------------------------------------Comprehensive income (loss) $ (438) $ (2,894) $ (1,951) $ (1,195)----------------------------------------------------------------------Shares used in computing basic and diluted income (loss) per share 3,751,467 625,745 3,751,467 621,850----------------------------------------------------------------------Basic and diluted net income (loss) per share $ (0.12) $ (4.62) $ (0.52) $ (1.92)-------------------------------------------------------------------------------------------------------------------------------------------- Condensed Balance Sheet Data 9/30/02 12/31/02----------------------------------------------------------------------Cash &cash equivalents $ 306 $ 2,557----------------------------------------------------------------------Total assets 10,568 12,003----------------------------------------------------------------------Total shareholders'equity 7,204 9,087----------------------------------------------------------------------
SOURCE: Home Director, Inc.
Investor Contact: Home Director Daryl Stemm, 925-245-2068 or Investor Relations Contact: Cameron Associates Lester Rosenkrantz, 212-554-5486 lester@cameronassoc.com
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