Interphase Announces Fourth Quarter and 2012 Full Year Financial Results

  Interphase Announces Fourth Quarter and 2012 Full Year Financial Results

Business Wire

PLANO, Texas -- February 14, 2013

Interphase Corporation (NASDAQ: INPH), a diversified information and
communications technology company, today reported financial results for its
fourth quarter and full year ended December 31, 2012.

Revenues for the fourth quarter of 2012 were $3.2 million, a decrease of
approximately 11% when compared to $3.6 million for the fourth quarter of
2011. Revenues in the quarter were primarily derived from telecommunications
product revenues, which decreased to $2.4 million in the fourth quarter of
2012 compared to $2.6 million for the fourth quarter of 2011. Services
revenues decreased to $710,000 in the fourth quarter of 2012 compared to
$754,000 for the fourth quarter of 2011. Gross margin for the fourth quarter
of 2012 was 39% compared to 40% for the fourth quarter of 2011. Fourth quarter
2012 operating expenses included a $253,000 personnel related restructuring
charge. These charges relate to a plan entered into by the Company in October
of 2012 intended to result in savings of approximately $1.0 million to $1.6
million of annualized operating costs. The company reported a net loss of $1.2
million, or ($0.17) per share in the fourth quarter of 2012 compared to a net
loss of $1.1 million, or ($0.16) per share in the fourth quarter of 2011.

For the full year of 2012, revenues decreased to $13.9 million, compared to
$22.0 million for the full year of 2011. Gross margin decreased to 44% for the
year ended December 31, 2012, compared to 48% for the year ended December 31,
2011. Net loss for 2012 was $3.8 million, or ($0.54) per share for 2012,
compared to a net loss of $505,000, or ($0.07) per share for 2011. On December
31, 2012, the company’s working capital position was $11.6 million, including
cash and marketable securities of $8.8 million.

“Our 2012 results reflect a general slowdown in telecommunications spending
worldwide,” said Gregory B. Kalush, CEO and President of Interphase. “While
our top-line was significantly impacted in 2012 by this slowdown, we made good
progress toward executing upon our strategy of building future revenue streams
that are less dependent upon a single market and a small group of customers
for our success. During 2012 we made excellent progress in building a
foundation for our engineering design and manufacturing services business
which should result in solid revenue growth in 2013 for this business. In
fact, we expect that the revenue generated from manufacturing services in the
first quarter of 2013 alone will nearly equal the amount generated in all of
2012. Additionally, we are very excited to announce that we have made terrific
progress on our penveu^® product, and are currently building the
pre-production run of penveu. These units will satisfy our needs for beta
testing which we expect to begin in the first quarter.”

About Interphase

Interphase Corporation (NASDAQ: INPH) is a diversified information and
communications technology company, committed to innovation through the process
of identifying, developing and introducing new products and services. The
Company delivers customers best in class solutions for connectivity,
interworking, packet processing, electronic manufacturing services, and
electronic engineering design services. Clients of the Company’s
communications networking products include Alcatel-Lucent, Emerson Network
Power, Fujitsu Ltd., Genband, Hewlett Packard, Oracle, and Samsung. Interphase
recently expanded its business to include penveu^®, a handheld device that
enhances the functionality of installed projectors and large screen displays;
making any flat surface, from pull down screens to HDTVs, an interactive
display system. It’s an affordable and portable solution that targets the
education and enterprise markets. The Company, founded in 1974, is
headquartered in Plano, Texas, with manufacturing facilities in Carrollton,
Texas, and sales offices throughout the Americas and Europe. For more
information, please visit our websites at www.iphase.com and www.penveu.com.

Forward-Looking Statements

This press release contains forward-looking statements about the business,
financial condition and prospects of the Company. These statements are made
under the “safe harbor” provisions of the Private Securities Litigation Reform
Act of 1995. The actual results of the Company could differ materially from
those indicated by the forward-looking statements because of various risks and
uncertainties, including (without limitation) effects of the ongoing issues in
global credit and financial markets, our reliance on a limited number of
customers, the lack of spending improvements in the telecommunications and
computer networking industries, significant changes in product demand, the
development and introduction of new products and services, changes in
competition, various inventory risks due to changes in market conditions and
other risks and uncertainties indicated in the Company’s filings and reports
with the Securities and Exchange Commission. All of the foregoing risks and
uncertainties are beyond the ability of the Company to control, and in many
cases, the Company cannot predict the risks and uncertainties that could cause
its actual results to differ materially from those indicated by the
forward-looking statements. When used in this press release, the words
“believes,” “plans,” “expects,” “will,” “intends,” and “anticipates” and
similar expressions as they relate to the Company or its management are
intended to identify forward-looking statements.

Interphase, the Interphase logo, and penveu are trademarks or registered
trademarks of Interphase Corporation. All other trademarks are the property of
their respective owners.

Condensed Consolidated Financial Statements


Interphase Corporation
                                                             
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
                                                                   
                    Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31,
                      2012          2011        2012           2011   
Revenues            $  3,204         $ 3,607      $  13,855        $  21,993
Gross margin           1,259           1,437         6,149            10,531
Research and           814             843           3,290            3,814
development
Sales and              658             788           3,358            3,498
marketing
General and            715             762           3,034            3,529
administrative
Restructuring         253           -           253            -      
charge
Total operating        2,440           2,393         9,935            10,841
expenses
Loss from              (1,181  )       (956   )      (3,786  )        (310   )
operations
Loss before            (1,181  )       (949   )      (3,773  )        (288   )
income tax
Net loss               (1,193  )       (1,112 )      (3,785  )        (505   )
Net loss per        $  (0.17   )     $ (0.16  )   $  (0.54   )     $  (0.07  )
diluted share
Weighted average
common and             7,003           6,895         6,975            6,857
dilutive shares


Selected Consolidated Balance Sheet Information
(amounts in thousands)
                                                 
                                    Dec. 31, 2012   Dec. 31, 2011
Cash and marketable securities      $    8,803      $    11,825
Accounts receivable, net                 2,781           2,998
Inventories                              2,219           1,556
Net property, plant and equipment        334             369
Total assets                             15,178          17,818
Total liabilities                        6,125           6,476
Total shareholders' equity          $    9,053      $    11,342

Contact:

Interphase Corporation
Media Contact:
Lisa Bascom, 214-654-5000
pr@iphase.com
or
Investor Contact:
Joseph Hassett, 866-630-INPH
ir@iphase.com
 
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