DURHAM, N.C., April 1, 2014 (GLOBE NEWSWIRE) -- EMRISE CORPORATION (OTCQB:EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced preliminary, unaudited financial results for its fourth quarter and year ended December 31, 2013. The Company also announced that it has filed a Form 12b-25 with the Securities and Exchange Commission (SEC) on March 31, 2014, for a 15-day extension to file its 2013 Annual Report on Form 10-K, and it expects to file its Form 10-K on or before April 15, 2014, in compliance with Rule 12b-25. The Company will announce in advance, the date when it expects to issue a news release announcing its audited financial results and file its 2013 Form 10-K with the SEC.
Preliminary, unaudited net sales in the 2013 fourth quarter were $9.5 million compared to net sales of $9.7 million in the 2012 fourth quarter, and were up sequentially more than 43 percent from the third quarter of 2013. Preliminary, unaudited net sales in 2013 were $31.9 million compared to net sales of $34 million in the prior year. The year-over-year declines in net sales for the quarter and the year were due in large part to a substantial decrease in sales of RF (Radio Frequency) devices throughout 2013 because of project timing delays. Preliminary, unaudited net income in the fourth quarter of 2013 was $621,000, compared to net income in the 2012 fourth quarter of $466,000. Preliminary, unaudited net loss in 2013 was $392,000, compared to net income in 2012 of $94,000. Net income in 2102 included a $275,000 gain on the extinguishment of debt, and a $473,000 insurance settlement of a fire insurance claim. No such gains were recorded in 2013.
Chairman and CEO Carmine T. Oliva said, "While we faced a number of challenges in 2013, our performance bounced back in the fourth quarter and we believe there are a number of reasons to be encouraged. The rate of incoming orders continues to be strong and on a preliminary, unaudited basis in 2013, we recorded year over year increases in operating income in both periods and a profit for the fourth quarter. Operating expenses, on a preliminary, unaudited basis in 2013 declined year over year 10 percent for the quarter and 6 percent for the year and gross margin in the fourth quarter improved from the prior year period. Also, while there was a considerable increase in net sales in the fourth quarter compared to the 2013 third quarter, because of our strong order rate we ended the year with a solid backlog. The preliminary, unaudited backlog at the end of 2013 was $25.7 million up from $23.1 in the 2013 third quarter and $22.6 million at the end of 2012."
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; radio frequency (RF) and microwave signal processing; and network access to public and private communications networks. The use of its network products in public and private, legacy and latest Ethernet and Internet Protocol (IP) networks is a primary growth driver for the Company's Communications Equipment business units. The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board In-Flight Entertainment and Connectivity systems is a primary growth driver for the Company's Electronic Devices business units. EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France. For more information on EMRISE, go to www.emrise.com.
EMRISE common stock trades under the symbol EMRI on OTCQB, the venture marketplace for companies that are current in their reporting with a U.S. regulator. Investors can find Real-Time quotes and market information for EMRISE at www.otcmarkets.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, certain matters discussed in this press release, including but not limited the Company's beliefs that it will file its Form 10-K on or before April 15, 2014, in compliance with Rule 12b-25; there are a number of reasons to be encouraged; the rate of incoming orders continues to be strong; that it recorded year over year increases in operating income in both periods and a profit for the fourth quarter; operating expenses, declined year over year in both periods and gross margin in the fourth quarter improved; because of its strong order rate it ended the year with a solid backlog; and other future-oriented matters are all forward looking statements within the meaning of the Private Securities Litigation Reform Act. The actual future results of EMRISE could differ materially from those statements. Factors that could cause or contribute to such differences include, but are not limited to: failure to meet working capital needs that causes supply interruptions or delays in shipments to customers; cost reductions that do not result in the anticipated level of cost savings; whether the Company can meet its term debt obligations; whether global economic conditions will have a further negative impact on the Company's sales and/or, overall operations; the impact on the Company's consolidated results of fluctuations in currency exchange rate of the U.S. dollar against the British Pound Sterling and the Euro; inability to develop new products; unexpected costs, cost increases or lack of expected savings that affect the future profitability of EMRISE; or unexpected delays which prevent timely shipment of current or future orders as expected. The Company also refers you to those factors contained in the "Risk Factors" section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2012, the Company's Quarterly Report on Form 10-Q for the third quarter ended September 30, 2013, its recent Current Reports on Form 8-K, and other EMRISE filings with the SEC.
|Selected Consolidated Financial Data|
|(Preliminary and unaudited; $ in thousands)|
|Statement of Operations Data:||Year Ended|
|Net sales||$ 31,898||$ 34,047|
|Total operating expenses||9,466||10,061|
|Income (Loss) from operations||249||(55)|
|Total other income/(expense), net||(529)||472|
|Net income/(loss)||$ (392)||$ 94|
|Balance Sheet Data:||December 31, 2013||December 31, 2012|
|Cash and cash equivalents||$ 1,170||$ 1,519|
|Accounts receivable||$ 7,435||$ 6,784|
|Inventories, net||$ 6,357||$ 7,255|
|Total current assets||$ 15,905||$ 16,824|
|Total assets||$ 26,459||$ 24,398|
|Accounts payable and accrued expenses||$ 7,460||$ 6,729|
|Total debt||$ 6,532||$ 5,097|