FOR IMMEDIATE RELEASE
CONTACT: Scott Switzer
March 29, 2013
Chief Financial Officer
Costar Technologies, Inc.
(469) 635-6800
Costar
Technologies, Inc. Announces Financial Results for the Fourth
Quarter and Year Ended December 31,
2012
($ in
thousands)
Coppell, Texas – November 12, 2012 – Costar Technologies, Inc.,
formerly Sielox, Inc. (the “Company”) (OTC Markets Group: CSTI),
today announced its unaudited financial results for the years ended
December 31, 2012 and 2011 that have been reviewed by the
independent accounting firm Rothstein, Kass & Company,
P.C.
Highlights
- The Company more
than tripled its net income to $592 in the year ended December 31,
2012 from $162 in the year ended December 31, 2011, resulting in
its second consecutive profitable year.
- Revenue of
$19,581, an increase of $2,240 or 12.9% from the year ended
December 31, 2011.
- Earnings per
share (shown in whole amounts), for the twelve months ended
December 31, 2012 were $0.41 compared to $0.11 per share for the 12
months ended December 31, 2011.
Financial
Results, Fourth Quarter of 2012 Compared to Fourth Quarter of
2011
Revenue for the
fourth quarter of 2012 totaled $4,220 compared to revenue of $5,289
for the fourth quarter of 2011, a decrease of 20.2%. Management
estimates that the large order in the first quarter of 2012, as
disclosed in the press release dated May 15, 2012, pulled forward
approximately $933 in revenue from the fourth quarter of
2012. Adjusting for
the impact of the large order, revenue would have decreased 2.6%
year-over-year.
Gross profit for
the fourth quarter of 2012 totaled $1,215. This compares to gross
profit of $1,161 for the fourth quarter of 2011, an increase of
4.7%. The increased gross profit for the Company’s was driven by a
better product mix from its security customers.
Selling, general
and administrative expenses from continuing operations for the
fourth quarter of 2012 totaled $1,285. This compares to selling,
general and administrative expenses from continuing operations of
$1,192 for the fourth quarter of 2011, an increase of 7.8%. The
increase of $93 was primarily due to hiring six employees in the
last 16 months, including two sales and marketing personnel, to
support Company growth and future initiatives.
Other income
(expense) for the fourth quarter of 2012 totaled $11. This compares
to other income (expense) of $191 for the fourth quarter of 2011. For the fourth quarter
of 2012, interest expense was $14 compared to interest
expense of $55 for the fourth quarter of 2011.
Net (loss) for
the fourth quarter of 2012 was approximately $(59), or ($0.04)
earnings per share. This compares to a profit for the fourth
quarter of 2011 of $160, or $0.11 earnings per
share.
Financial Results, Year Ended
December 31, 2012 Compared to Year Ended December 31,
2011
Revenue for the
year ended December 31, 2012 totaled $19,581, an increase of 12.9%
compared to revenue of $17,341 for the same period last year. The
IVS acquisition provided approximately $615 of the increase and the
remaining $1,625 was caused by an uptick from our existing customer
base.
Gross profit for
the year ended December 31, 2012 totaled $5,673. This compares to
gross profit of $4,200 for the year ended December 31,
2011.
Selling, general
and administrative expenses for the year ended December 31, 2012
totaled $4,987. This compares to selling, general and
administrative expenses of $4,156 for the year ended December 31,
2011, an increase of 20%. Again, the increase was largely a result
of hiring six employees in the last 16 months, including two sales
and marketing personnel, to support Company growth and future
initiatives. The remainder of the increase was due to increased
commissions and other incentive compensation due to the Company’s
profitable year.
Other income
(expense) for the year ended December 31, 2012 totaled $(94). This
compares to other income (expense) of $119 for the year ended
December 31, 2011. For the year ended December 31, 2012 interest
expense was $139, compared to interest expense of $143 for the year
ended December 31, 2011.
Net profit for
the year ended December 31, 2012 was approximately $592, or $0.41
earnings per share, compared to $162 for the same period in 2011,
or $0.11 earnings per share.
James Pritchett,
President and Chief Executive Officer of the Company, stated, “Our
year-over-year improvement in a difficult economic environment
marked a turnaround year for Costar Technologies, Inc. as we added
salespeople and new network product offerings. We delivered on our
commitment to increase revenue and profits. Most importantly,
we are well positioned to extend our track record of strong
earnings growth year-over-year and achieve double digit sales
growth in 2013.”
The Company’s
outside independent accountants completed their analysis of the
Company’s financial condition. The Independent Accountants Review
Report, including financial statements and applicable footnote
disclosures, is available on our website at www.costartechnologies.com.
About Costar
Technologies, Inc.
Costar
Technologies, Inc. develops, designs and distributes a range of
security solution products including surveillance cameras, lenses,
digital video recorders and high-speed domes. 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. Headquartered in Coppell, Texas, the Company’s shares
currently trade on the OTC Markets Group under the ticker symbol
“CSTI”.
Cautionary
Statement Regarding Forward Looking
Statements
This document
contains forward-looking statements that involve risks and
uncertainties, as well as assumptions, that if they never
materialize or prove incorrect, could cause the results of the
Company to differ materially from those expressed or implied by
such forward-looking statements. Forward-looking statements
generally are identified by the words “expects,” “anticipates,”
“believes,” “intends,” “estimates,” “should,” “would,” “strategy,”
“plan” and similar expressions. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. The risks, uncertainties and
assumptions include developments in the marketplace for our
products, competition, related products and services and general
economic conditions, as well as other risks and uncertainties.
Accordingly, we cannot give assurance that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the
results of operations or financial condition of the
Company.
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