By a News Reporter-Staff News Editor at Physics Week -- Inrad Optics, Inc. (OTCBB: INRD) has reported its consolidated financial results for its second quarter and six months ended June 30, 2014.
Revenue for the second quarter was $2.2 million, down 17.3% from $2.7 million in the same period last year. For the six months ended June 30, 2014, revenue was $4.1 million compared to $5.8 million for the comparable period last year as the Company experienced a decrease in shipments in the defense and university & national labs markets. Increased shipments in laser systems and process control & metrology markets partially offset the overall decline. Sales to the Company's top five customers represented approximately 47% of sales in six months ended June 30, 2014, compared to 35% last year.
Orders were $5.4 million and $4.8 million for the six months ended June 30, 2014 and 2013, respectively, an increase of 12.5%.
Gross profit for the second quarter of 2014 was $(141,000) including restructuring costs of $62,000, or (6.3%) of sales, versus $308,000 or 11.4% in the comparable quarter last year. For the six months ended June 30, 2014, gross profit decreased to $(277,000) including $121,000 of restructuring costs, or (6.7%) of sales compared to $1.0 million or 17.4% in 2013. The 2014 decrease in gross profit margin primarily reflects a lower and less profitable sales mix compared to 2013. The six months ended June 30, 2013 was favorably impacted by payroll savings of approximately $79,000, net of severance and other separation costs, related to a reduction in work-force.
The Company had a net loss of $(1,031,000) and $(1,906,000) for the three and six months ended June 30, 2014. This compares with a net loss of $(648,000) and $(817,000) in the comparable periods last year. Net loss per share was $(0.08) and $(0.16), basic and diluted, for the three months and six months ended June 30, 2014. For the three and six months ended June 30, 2013, the basic and diluted net loss per share was $(0.05) and $(0.07), respectively.
Net cash used in operating activities was $1,121,000 for the six months ended June 30, 2014 compared to net cash used of $134,000 last year. The difference primarily reflects the impact of the higher net loss in the six months ended June 30, 2014.
Investing activities in the six months ended June 30, 2014 include capital expenditures of $363,000 primarily related to the consolidation of the Florida operation in Northvale, NJ, net of proceeds from the sale of plant and equipment of $78,000. This compared with capital expenditures of $447,000 in the same period last year related mainly to the purchase of a plasma assist optical coating chamber and related expenditures for additional equipment and installation.
After investing and financing activities, net cash decreased by $1,492,000 versus a decrease of $624,000 last year. At June 30, 2014, the Company had cash and cash equivalents of $960,000.
President and CEO Amy Eskilson remarked "Our Q2 results, while unfavorable, represent a predicted function of our one-time consolidation costs and reduced shipments to our defense and university segment customers. Much more positively, I am pleased to report orders are up 15% in 2014 over the same period in 2013, resulting in a backlog that is up over $1.2 million or 28% from the start of the year. We continue to be successful at diversifying our customer base, represented by new orders in the medical, commercial sensing and inspection markets. Operationally, facility integration efforts are paying off and cost savings are being realized.
Additionally, the development and commercialization of the nuclear detection crystal stilbene continues to demonstrate success. In June, we were honored with two significant awards - a coveted SBIR Tibbetts Award from the Small Business Association, and an award from the US Department of Homeland Security's Domestic Nuclear Detection Office."
Inrad Optics, Inc. was incorporated in New Jersey in 1973. The Company develops, manufactures and markets products and services for use in photonics industry sectors via three distinct but complimentary product areas - "Crystals and Devices", "Custom Optics" and "Metal Optics."
The Company is a vertically integrated organization specializing in crystal-based optical components and devices, custom optical components from both glass and metal, and precision optical and opto-mechanical assemblies. Manufacturing capabilities include solution and high temperature crystal growth, extensive optical fabrication capabilities, including precision diamond turning and the ability to handle large substrates, optical coatings and in-process metrology expertise. Inrad Optics' customers include leading corporations in the defense, aerospace, laser systems, process control and metrology sectors of the photonics industry, as well as the U.S. Government, National Laboratories and Universities worldwide.
Keywords for this news article include: Physics, Photonics, Inrad Optics Inc., Investment and Finance.
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