Xenonics Holdings Inc. (XNN)

[Wheeeeee]

+13% in rev. Loss down to 0.01 from 0.04 previous q
http://dotnet.sys-con.com/node/1071843



XENONICS HOLDINGS, INC. (NYSE AMEX:XNN) today announced financial results for the third quarter of fiscal 2009, highlighted by a 13% increase in revenue to $2,132,000 compared to $1,892,000 for the third quarter of fiscal 2008. Gross profit increased 53% and gross margin rose to 46% of revenue from 34%, while selling, general and administrative expenses decreased 9%. As a result, the net loss for the third quarter of fiscal 2009 narrowed to $0.01 per share versus a net loss of $0.04 per share for the third quarter of fiscal 2008.

"Xenonics is transitioning to a new operating model built around the exclusive U.S. distribution agreement we signed last month with Aardvark Tactical, Inc. (ATI) for Xenonics' NightHunter high-intensity illumination systems and its SuperVision high-definition night vision devices, as well as expanded programs for international distribution. We believe the ATI agreement marks the beginning of a significant expansion of our business with Aardvark, and shows how we can leverage Aardvark's proven sales and marketing and distribution capabilities to grow our company," said Chairman Alan Magerman.

"With the ATI agreement now in place, we also have moved quickly to eliminate redundant in-house sales and marketing expenses. This is expected to reduce operating costs by approximately $1.5 million annually, beginning in the current quarter. We are convinced that Xenonics' future is brighter than ever. We currently expect improved top and bottom line performance in the fourth quarter versus prior year, and we believe the combination of Xenonics' best-in-class illumination and night vision products, ATI's professional and highly effective marketing capabilities, our expanded international distribution programs, and our substantially reduced cost structure is the right formula for long-term growth and profitability," Magerman said.

For the nine months ended June 30, 2009, revenue was $5,288,000 compared to $9,074,000 for the first nine months of fiscal 2008. The net loss for the first nine months of fiscal 2009 was $1,797,000, or $0.09 per share. This compares to a net loss for the first nine months of fiscal 2008 of $249,000, or $0.01 per share.

At June 30, 2009, Xenonics reported working capital of $1,923,000 and a current ratio of 2.0.

Conference Call

Xenonics has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its third quarter results. The dial in number is [phone] and the passcode is 90325369. A simultaneous webcast of the conference call can be accessed from the Webcast Center of the Investor Relations link at www.xenonics.com. A replay will be available after 1:00 p.m. EDT at this same Internet address. For a telephone replay, dial [phone], passcode 17434458, after 1:00 p.m. EDT.

About Xenonics

Xenonics Holdings, Inc. (AMEX:XNN) develops and produces advanced, lightweight and compact ultra-high-intensity illumination and low-light vision products for military, law enforcement, public safety, and commercial and private sector applications. Xenonics' NightHunter line of illumination products is used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision high-definition night vision is designed for commercial and military applications. Employing patented technologies, Xenonics provides innovative solutions for customers who must see farther so they can do their jobs better and safer. Xenonics' products represent the next generation in small, high intensity, high efficiency illumination and low-light vision systems. Visit Xenonics on the web at www.xenonics.com.

Forward-Looking Statements

Except for the historical statements, statements in this release may constitute forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions identify forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties, and actual results may differ materially from the outcomes contained in any forward-looking statement. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of new products, and other risks and uncertainties discussed in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. Xenonics Holdings undertakes no obligation to update or revise any forward-looking statements.

XENONICS HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








Three months ended





Nine months ended




June 30,





June 30,




2009





2008





2009





2008


Rounded in thousands, except per share amounts


(unaudited)





(unaudited)























Revenues


$


2,132,000





$


1,892,000





$


5,288,000





$


9,074,000













Cost of goods sold


1,142,000





1,244,000





2,918,000





4,995,000













Gross profit


990,000





648,000





2,370,000





4,079,000













Selling, general and administrative


1,049,000





1,149,000





3,629,000





3,735,000













Research and development


158,000





289,000





501,000





630,000













Income (loss) from operations


(217,000


)





(790,000


)





(1,760,000


)





(286,000


)












Other income/(expense):






















Gain (loss) on derivative revaluation


(33,000


)





--





(52,000


)





--


Other income


6,000





--





10,000





--


Interest income


4,000





7,000





14,000





39,000


Interest (expense)


--





--





(7,000


)





--




































Income (loss) before provision for income taxes


(240,000


)





(783,000


)





(1,795,000


)





(247,000


)












Income tax provision


--





--





2,000





2,000













Net income (loss)


$


(240,000


)





$


(783,000


)





$


(1,797,000


)





$


(249,000


)












Net income (loss) per share:






















Basic


$


(0.01


)





$


(0.04


)





$


(0.09


)





$


(0.01


)

Fully-diluted


$


(0.01


)





$


(0.04


)





$


(0.09


)





$


(0.01


)












Weighted average shares outstanding:






















Basic


20,459,000





19,871,000





20,387,000





19,900,000


Fully-diluted


20,459,000





19,871,000





20,387,000





19,900,000


XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS




June 30,
September 30,
2009 2008
Rounded in thousands, except par value (unaudited)


Assets


Current Assets:










Cash


$


514,000





$


325,000


Accounts receivable, net


1,228,000





954,000


Inventories


1,971,000





1,745,000


Other current assets


112,000





375,000













Total Current Assets


3,825,000





3,399,000













Investments in marketable securities


--





1,000,000


Equipment, furniture and fixtures, net


154,000





161,000


Goodwill


375,000





--













Total Assets


$


4,354,000





$


4,560,000



Liabilities and Shareholders' Equity


Current Liabilities:










Accounts payable


$


1,350,000





$


539,000


Accrued expenses


344,000





94,000


Accrued payroll and related taxes


208,000





173,000













Total Current Liabilities


1,902,000





806,000


Commitments and contingencies


Shareholders' Equity:










Preferred shares, $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding


--





--


Common shares, $0.001 par value, 50,000,000 shares authorized; 20,572,000 shares issued and 20,459,000 shares outstanding at June 30, 2009; 20,296,000 issued and 20,184,000 outstanding at September 30, 2008


20,000





20,000


Additional paid-in capital


24,239,000





23,744,000


Accumulated deficit


(21,501,000


)





(19,704,000


)















2,758,000





4,060,000













Less treasury stock, at cost, 113,000 shares at June 30, 2009 and September 30, 2008


(306,000


)





(306,000


)












Total Shareholders' Equity


2,452,000





3,754,000













Total Liabilities and Shareholders' Equity


$


4,354,000





$


4,560,000


Published August 14, 2009
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