EST Reports Second Quarter Results
NEWBURY PARK, Calif., Aug 08, 2007 (BUSINESS WIRE) -- EST (OTCBB: ESNR) reported
2nd quarter revenues of $690,500, up 11.1% from the same quarter of 2006 and up
44.7% from a disappointing first quarter of 2007. Year to date revenues were
$1,167,800 or 1.2% higher than the previous year. Excluding the non-cash effect
of derivative liabilities the loss for the 2nd quarter was $579,100 compared to
$633,300 in 2006 and $897,100 in the first quarter. Net loss and loss per share
were $2,183,800 and $0.04, respectively versus, $1,024,800 and $0.02 in 2006 and
$1,353,400 and $0.02 in the first quarter.
"While we have a long way to go, we made considerable progress in the past
quarter," said Barry S. Howe, President and Chief Executive Officer. "Business
continues strong in China and we received multiple orders from an international
consumer products company. We have added sales representatives covering the
midwest, southeast, California and pacific northwest to join our existing
representative in the northeast. We have also appointed a distributor to cover
Europe." Mr. Howe added, "We are excited about our newly introduced Air
Guardian, which we expect to be able to begin shipping to customers in the
fourth quarter."
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
(Unaudited)
----------------------------------------------------------------------
Six Months Ended Three Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Revenues $ 1,167,778 $ 1,154,224 $ 690,504 $ 621,407
Costs and expenses
Cost of revenues 585,105 592,714 331,262 291,122
Research and
development 411,109 416,144 192,322 204,345
Selling, general
and
administrative 1,386,748 1,436,961 609,289 656,651
----------- ----------- ----------- -----------
Total costs and
expenses 2,382,962 2,445,819 1,132,873 1,152,118
----------- ----------- ----------- -----------
Loss from
operations (1,215,184) (1,291,595) (442,369) (530,711)
----------- ----------- ----------- -----------
Other income -
derivative 459,043 1,683,119 332,013 462,922
Interest expense
and other, net (1,427,701) (1,416,279) (720,057) (685,887)
----------- ----------- ----------- -----------
Net loss $(2,183,842) $(1,024,755) $ (830,413) $ (753,676)
=========== =========== =========== ===========
Loss per share:
Basic $ (0.04) $ (0.02) $ (0.02) $ (0.01)
Diluted $ (0.05) $ (0.02) $ (0.02) $ (0.01)
Weighted average
number of
shares:
Basic 54,173,745 54,159,945 54,173,745 54,173,745
Diluted 54,173,745 54,159,945 54,173,745 54,173,745
CONDENSED CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------------
(Unaudited)
----------------------------------------------------------------------
Jun 30, Dec 31,
2007 2006
----------- -----------
ASSETS
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Current assets:
Cash and cash equivalents $ 108,180 $ 1,094,141
Certificate of deposit 723,082 702,082
Certificate of deposit-restricted 250,000 250,000
Accounts receivable, net 533,052 300,413
Other current assets 1,212,038 1,364,460
----------- -----------
Total current assets 2,826,352 3,711,096
----------- -----------
Deferred financing costs, net 438,741 529,515
Property and equipment, net 294,479 197,788
Security deposits 12,817 12,817
----------- -----------
Total Assets $ 3,572,389 $ 4,451,216
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
----------------------------------------------------------------------
Current liabilities:
Short-term obligations and current
maturities of long-term obligations $ 2,526,155 $ 495,585
Derivative liabilities 2,906,180 3,356,473
----------- -----------
Total Current Liabilities 5,432,335 3,852,058
----------- -----------
Convertible debentures - long-term portion,
net of unamortized discount 2,138,889 2,527,777
Long-term obligation under capital lease 41,268 -
----------- -----------
Total liabilities 7,612,492 6,379,835
-----------
Total Shareholders' Deficit (4,040,103) (1,928,619)
----------- -----------
Total Liabilities and Shareholders'
Deficit $ 3,572,389 $ 4,451,216
=========== ===========
RECONCILIATION OF IMPACT OF DERIVATIVES AND DEBT DISCOUNT ON NET
INCOME
----------------------------------------------------------------------
Six Months Ended Three Months Ended
June 30, June 30,
------------------------ --------------------
2007 2006 2007 2006
----------- ----------- --------- ---------
Net loss $(2,183,842) $(1,024,755) $(830,413) $(753,676)
Adjustments:
Amortization of debt
discount 1,166,667 1,166,667 583,333 583,333
Change in derivative
liabilities (459,043) (1,683,119) (332,013) (462,922)
----------- ----------- --------- ---------
Adjusted net loss (1,476,218) (1,541,207) (579,093) (633,265)
=========== =========== ========= =========
About Electronic Sensor Technology:
Founded in 1995, Electronic Sensor Technology has developed a patented chemical
vapor analytical process that enables analysis of nearly any odor, fragrance, or
chemical vapor within ten seconds. We believe that the Company's product line is
strategically positioned to address key vulnerabilities in the homeland security
market, and is also suited for environmental and quality assurance applications.
SEC Filings and Forward-Looking Statements
This press release includes forward-looking statements, including the Company's
expectations regarding its ability to develop and access capital markets and its
ability to achieve expected results in the chemical detection and analysis
industry. The forward-looking statements are identified through use of the words
"potential," "anticipate," "expect," "planned" and other words of similar
meaning. These forward-looking statements may be affected by the risks and
uncertainties inherent in the chemical detection and analysis industry and in
the Company's business. The Company cautions readers that certain important
factors may have affected and could in the future affect the Company's beliefs
and expectations and could cause the actual results to differ materially from
those expressed in any forward-looking statement made by or on behalf of the
Company. For a discussion of these factors, please refer to our recent filings
with the Securities and Exchange Commission, including our most recent report on
form 10-KSB. The Company undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date hereof.
SOURCE: Electronic Sensor Technology
CONTACT: Electronic Sensor Technology
Frank Zuhde, 805-480-1994, ext. 135
Copyright Business Wire 2007
KEYWORD: United States
North America
California
INDUSTRY KEYWORD: Government
Defense
Government Agencies
Other Government
Manufacturing
Aerospace
Natural Resources
Environment
SUBJECT CODE: Earnings
