SOLON, Ohio, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Energy Focus, Inc. (OTCBB:EFOI) today announced financial results for the second quarter ended June 30, 2012.
Financial results for the second quarter of 2012 include the following:
- Net sales were $7.7 million compared to $8.2 million for the second quarter of 2011.
- Gross margins improved to 22.2 percent of net sales compared to 18.9 percent of net sales for the second quarter of 2011.
- The net loss of $0.9 million improved $0.3 million compared to the second quarter's 2011 net loss of $1.2 million on $0.5 million lower sales.
Net sales decreased during the second quarter of 2012 as compared to the prior year's second quarter as a result of lower sales from our Solutions business. This reduction was partially offset by a $0.7 million increase in our Products business as a result of increased sales of LED products.
Joe Kaveski, Chief Executive Officer, commented, "Our second quarter sales fell within our guidance of $7 - $8 million. We are encouraged by the 45 percent sequential increase in net sales and the 7.4 percentage point increase in gross profit margins from the first quarter of 2012. Furthermore, we expect to see significant increases in sales during the remainder of 2012. This is due to our expanded proposal pipeline in our Solutions business, additional shipments to the US Navy from our $23 million contract and from continued sales of our LED products anticipated in our second half of 2012."
The Company expects sales for the third quarter to range between $9.5 million and $10.5 million and forecasts to be EBITDA positive in the second half of 2012.
Energy Focus, Inc. will host a conference call on Tuesday, August 14, 2012, at 4:30 p.m. EDT (1:30 p.m. PDT) to review the second quarter of 2012 financial results, followed by a Q & A session. The call can be accessed by dialing (888) 599-8658 (US and Canada) or 1-913-981-5529 (International/Local). The conference ID number is 6634578. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins.
A recording of the conference call will be available through the investor relations section of the Company's web site at http://www.energyfocusinc.com/uploads/investors.html starting August 14, 2012, and will remain available for 3 months.
Forward Looking Statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For more information about potential factors that could affect the financial results of Energy Focus, please refer to the Company's SEC reports, including its Annual Reports on Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any forward-looking statements.
About Energy Focus, Inc.
Energy Focus, Inc. is a leading provider of energy efficient LED lighting products and turnkey energy efficient lighting solutions, holding 75 lighting patents. Our solutions provide energy savings, aesthetics, safety and maintenance cost benefits over conventional lighting. Our long-standing relationship with the U.S. Government includes numerous research and development projects for the DOE and DARPA, creating energy efficient LED lighting systems for the U.S. Navy fleet. Customers include supermarket chains, the U.S. Government, state and local governmental agencies, retail stores, museums, theme parks and casinos, hotels, swimming pool builders and many others. Company headquarters are located in Solon, OH, with additional offices in Nashville, TN, Pleasanton, CA, and the United Kingdom. For more information, see our web site at www.energyfocusinc.com.
The Energy Focus, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6633
| ENERGY FOCUS, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (amounts in thousands except share and per share amounts) | ||
| June 30, | December 31, | |
| 2012 | 2011 | |
| ASSETS | (unaudited) | |
| Current assets: | ||
| Cash and cash equivalents | $ 627 | $ 2,136 |
| Trade accounts receivable less allowances of $339 and $447, respectively | 4,576 | 2,738 |
| Retainage receivable | 397 | 474 |
| Inventories, net | 2,362 | 2,429 |
| Costs in excess of billings | 66 | 171 |
| Prepaid and other current assets | 1,797 | 881 |
| Total current assets | 9,825 | 8,829 |
| Property and equipment, net | 1,898 | 2,105 |
| Goodwill | 672 | 672 |
| Intangible assets, net | 817 | 1,027 |
| Collateralized assets | 1,000 | 1,000 |
| Other assets | 103 | 145 |
| Total assets | $ 14,315 | $ 13,778 |
| LIABILITIES | ||
| Current liabilities: | ||
| Accounts payable | $ 3,797 | $ 5,653 |
| Accrued liabilities | 2,206 | 1,995 |
| Deferred revenue | 1,048 | 1,373 |
| Billings in excess of costs | 505 | 154 |
| Credit line borrowings | 2,064 | 701 |
| Current maturities of long-term debt | 474 | 855 |
| Total current liabilities | 10,094 | 10,731 |
| Other liabilities | 31 | 71 |
| Acquisition-related contingent liabilities | -- | 553 |
| Long-term debt | 552 | 955 |
| Total liabilities | 10,677 | 12,310 |
| SHAREHOLDERS' EQUITY | ||
| Preferred stock, par value $0.0001 per share: | ||
| Authorized: 2,000,000 shares in 2012 and 2011 | ||
| Issued and outstanding: no shares in 2012 and 2011 | -- | -- |
| Common stock, par value $0.0001 per share: | ||
| Authorized: 60,000,000 shares in 2012 and 2011 | ||
| Issued and outstanding: 44,542,000 at June 30, 2012 | ||
| and 24,913,000 at December 31, 2011 | 5 | 1 |
| Additional paid-in capital | 80,884 | 75,962 |
| Accumulated other comprehensive income | 431 | 420 |
| Accumulated deficit | (77,682) | (74,915) |
| Total shareholders' equity | 3,638 | 1,468 |
| Total liabilities and shareholders' equity | $ 14,315 | $ 13,778 |
| ENERGY FOCUS, INC. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (amounts in thousands except per share amounts) | ||||
| Three months ended | Six months ended | |||
| June 30, | June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net sales | $ 7,672 | $ 8,193 | $ 12,974 | $ 13,653 |
| Cost of sales | 5,968 | 6,645 | 10,485 | 10,946 |
| Gross profit | 1,704 | 1,548 | 2,489 | 2,707 |
| Operating expenses: | ||||
| Research and development | (61) | (131) | (15) | 134 |
| Sales and marketing | 1,390 | 1,636 | 2,661 | 3,571 |
| General and administrative | 1,114 | 1,044 | 2,268 | 2,622 |
| Valuation of equity instruments | -- | -- | -- | 56 |
| Total operating expenses | 2,443 | 2,549 | 4,914 | 6,383 |
| Loss from operations | (739) | (1,001) | (2,425) | (3,676) |
| Other income (expense): | ||||
| Other (expense) income | (44) | 22 | (72) | 71 |
| Interest income | -- | 2 | 1 | 3 |
| Interest expense | (114) | (192) | (265) | (375) |
| Loss before income taxes | (897) | (1,169) | (2,761) | (3,977) |
| Provision for income taxes | (3) | (4) | (6) | (9) |
| Net loss | $ (900) | $ (1,173) | $ (2,767) | $ (3,986) |
| Net loss per share - basic and diluted | $ (0.02) | $ (0.04) | $ (0.07) | $ (0.16) |
| Shares used in computing net loss per share - | ||||
| basic and diluted | 44,513 | 24,754 | 38,067 | 24,490 |