RUNNEMEDE, N.J., Aug. 15 /PRNewswire-FirstCall/ -- Sielox, Inc.
(OTC:SLXN) (BULLETIN BOARD: SLXN) , a developer, designer and
distributor of security solution and industrial vision products,
announced today its results for the second quarter and six month
periods ended June 30, 2008. Total revenue reached $7.3 million for
the second quarter and $13.9 million for the first six months of
2008, representing increases of 82.5% and 69.5%, respectively, when
compared to the same periods in 2007. Operating income for the
second quarter improved year-over-year by $212 thousand to $12
thousand. The Company's net loss for the second quarter improved
year-over-year by $162 thousand to $(10) thousand. Sam Cassetta,
Chief Executive Officer of Sielox, stated, "I'm pleased to report
significant improvement in Sielox's financial progress in the
second quarter in which the addition of new products, an aggressive
sales strategy and an improved sales force began yielding results.
Sielox's innovative products and world-class support and service
have made the Company the vendor of choice for several Fortune 500
companies who seek to invest in store security and surveillance."
He added, "The integration of Sielox's two divisions, Costar Video
Systems and Sielox LLC, has generated cost efficiencies and
synergies in sales to dealer clients. The Company anticipates
further improvements in revenue growth as we launch new products
and technologies for the security industry." Sielox, Inc. develops
designs and distributes a wide range of security solution products
such as surveillance cameras, lenses, digital video recorders, high
speed domes and access control systems. The Company also develops
designs and distributes industrial vision products to observe
repetitive production and assembly lines, thereby increasing
efficiency by detecting faults in the production process. Founded
in 1986 and headquartered in Runnemede, NJ, Sielox's shares trade
on the OTC market under the ticker symbol "SLXN". A complete copy
of the Company's Form 10-Q for the quarterly period ended June 30,
2008 can be downloaded at http://www.sielox.com/ (click on the
Company Information link, then click on the Investor Relations
link) or at the SEC's web site at http://www.sec.gov/. This release
may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). You can identify
forward-looking statements by the use of the words "believe,"
"expect," "anticipate," "intend," "estimate," "assume" and other
similar expressions which predict or indicate future events and
trends and which do not relate to historical matters. You should
not rely on forward-looking statements, because they involve known
and unknown risks, uncertainties and other factors, some of which
are beyond our control. Our actual results could differ materially
from those set forth in the forward-looking statements.
Forward-looking statements herein are based on information, plans
and estimates at the date of this release, and we do not promise to
update any forward-looking statements to reflect changes in
underlying assumptions or factors, new information, future events
or other changes. CONTACT: Mel Brunt Chief Financial Officer
Sielox, Inc. (856) 861-4579 SIELOX, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS ($ in thousands) June 30, 2008 December
31, 2007 (unaudited) (audited) ASSETS Current assets: Cash and cash
equivalents $716 $1,422 Short-term Investments 405 889 Accounts
receivable, net of allowance for doubtful accounts of $40 and $25
in 2008 and 2007, respectively 4,290 3,920 Inventory, net of
reserve for obsolescence of $201 and $194 in 2008 and 2007,
respectively 5,694 7,005 Prepaid expenses 401 484 Total current
assets 11,506 13,720 Fixed assets, net 292 354 Goodwill 1,229 1,229
Trade Name - Costar 1,587 1,587 Trademark - Sielox, LLC 300 300
Distribution agreement, net 1,321 1,358 Customer relationships, net
1,066 1,198 Proprietary technology, net 443 474 Long-term prepaid
expenses 361 347 Deposits 66 67 Total assets $18,171 $20,634
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $2,401 $3,664 Accrued expenses and other 363 527 Contingent
purchase price, current portion 700 700 Line of credit 1,808 1,761
Total current liabilities 5,272 6,652 Long term liability,
contingent purchase price 349 983 Total liabilities 5,621 7,635
Commitments and Contingencies Stockholders' equity: Common stock,
$0.001 par value; 90,000,000 shares authorized; 42,016,924 shares
issued and outstanding. 42 42 Additional paid-in capital 155,788
155,774 Accumulated other comprehensive income 260 260 Accumulated
deficit (139,070) (138,607) 17,020 17,469 Less: Common stock held
in treasury, at cost; 6,116,241 shares at June 30, 2008 and
December 31, 2007 (4,470) (4,470) Total stockholders' equity 12,550
12,999 Total liabilities and stockholders' equity $18,171 $20,634
SIELOX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS ($ in thousands, unaudited) Three Months Ended Six
Months Ended June 30, June 30, 2008 2007 2008 2007 Net revenues
$7,311 $3,975 $13,895 $8,183 Cost of revenues 5,126 3,122 9,917
6,450 Gross profit 2,185 853 3,978 1,733 Selling, general and
administrative expenses 2,173 1,053 4,403 1,987 Income / (Loss)
from Operations 12 (200) (425) (254) Other Income (expense)
Interest income 9 47 25 82 Interest expense (31) (19) (63) (31)
Total other income (expense), net (22) 28 (38) 51 Net Income /
(Loss) $(10) $(172) $(463) $(203) Net loss per share: Basic $ -
$(0.01) $(0.01) $(0.01) Diluted $ - $(0.01) $(0.01) $(0.01)
Weighted average number of common shares outstanding: Basic and
diluted 35,982 23,692 35,982 23,692 SIELOX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in thousands;
unaudited) Six Months Ended June 30 2008 2007 CASH FLOWS FROM
OPERATING ACTIVITIES: Net Loss $(463) $(203) Adjustments to
reconcile net loss to net cash used in operating activities Stock
based compensation 14 Depreciation and amortization 287 192
Provision for doubtful accounts 14 (1) Change in cash attributable
to changes in operating assets and liabilities Accounts receivable,
net (384) (325) Inventories, net 1,311 (535) Prepaid expense 83 (1)
Long term prepaid expenses (14) 119 Accounts payable (1,263) 99
Accrued expense and other current liabilities (164) 31 Net cash
used in operating activities (579) (624) CASH FLOWS FROM INVESTING
ACTIVITIES: Proceeds from sale of short term investments 484
Purchase of fixed assets (25) (60) Payment of earn out provision
related to Southern Imaging (634) (542) Net cash used in investing
activities (175) (602) CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit 47 399 Deposits 1 Net cash provided by
financing activities 48 399 NET DECREASE IN CASH AND CASH
EQUIVALENTS (706) (827) CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 1,422 2,938 CASH AND CASH EQUIVALENTS, END OF PERIOD $716
$2,111 SUPPLEMENTAL DISCLOSURE CASH FLOW INFORMATION: Cash paid for
interest $39 $33 DATASOURCE: Sielox, Inc. CONTACT: Mel Brunt, Chief
Financial Officer, Sielox, Inc., +1-856-861-4579
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