Breaking News

U.K. August Inflation Slows to 1.5%, Matching Median Estimate

Interphase Announces Second Quarter 2013 Financial Results

  Interphase Announces Second Quarter 2013 Financial Results

Business Wire

PLANO, Texas -- July 25, 2013

Interphase Corporation (NASDAQ: INPH), a diversified information and
communications technology company, today reported financial results for its
second quarter ended June 30, 2013.

Revenues for the second quarter of 2013 were $3.8 million, an increase of 10%
when compared to revenues from the second quarter of 2012 of $3.5 million. On
a sequential basis, revenues increased 16% compared to revenues from the first
quarter of 2013 of $3.3 million. Revenues in the quarter were primarily
derived from telecommunications and enterprise product revenues, which
increased slightly to $2.8 million in the second quarter of 2013 compared to
$2.7 million for the second quarter of 2012. Services revenues increased 42%
to $1.0 million for the second quarter of 2013 compared to $708,000 for the
second quarter of 2012. Gross margin was 37% for the second quarter of 2013
compared to 45% for the second quarter of 2012. The decrease in gross margin
percentage was primarily due to a revenue mix shift toward lower margin
products and services and an increase of $69,000 in excess and obsolete
inventory charges, partially offset by increased utilization of our
manufacturing facility. The Company reported a net loss of $895,000, or
($0.13) per share in the second quarter of 2013 compared to a net loss of $1.1
million, or ($0.16) per share in the second quarter of 2012.

“We are pleased with the achievement of double digit revenue growth, both
sequentially and year over year for our second quarter of 2013,” said Gregory
B. Kalush, CEO and President of Interphase. “The primary driver of this
revenue growth is coming from our services offerings, specifically our
electronics manufacturing services which increased 268% year over year and 47%
sequentially. We expect this revenue growth trend to continue for our services
business. Additionally, our telecommunications and enterprise products are
contributing to revenue growth with a slight year over year increase and a
strong 9% sequential increase. We have made solid progress with penveu^®, and
in June we demonstrated penveu at ISTE, the world’s leading education
technology conference. The response from attendees at this show was very
positive, as are the initial results from our external beta testing of penveu
which began recently. We are very excited about the prospects that this
product will have in the marketplace.”

For the first six months of 2013, revenues decreased to $7.1 million, compared
to $7.5 million for the first six months of 2012. Gross margin decreased to
38% for the six months ended June 30, 2013, compared to 46% for the same
period in 2012. The Company reported a net loss of $2.3 million, or ($0.33)
per share for the first six months of 2013 compared to a net loss for the
first six months of 2012 of $2.1 million, or ($0.30) per share. On June 30,
2013, the Company’s working capital position was $9.7 million, including cash
and marketable securities of $7.3 million.

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 provides its customers solutions for connectivity, interworking and
packet processing. Clients of the Company’s communications networking products
include Alcatel-Lucent, Fujitsu Ltd., Genband, Hewlett Packard, Oracle, and

The Company also offers engineering design and manufacturing services to
customers from a wide variety of industries within the electronics market.

Interphase recently expanded its business to include penveu^®, a handheld
device that adds interactivity to the installed base of projectors and large
screen displays, making any flat surface, from pull down screens to HDTVs, an
interactive display system. penveu is 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 in the United
States and Europe. For more information, please visit our websites at and

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 Item 1A of the Company’s Annual
Report on Form 10-K and in the Company’s other 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 June 30,   Six Months Ended June 30,
                       2013         2012        2013       2012   
Revenues             $  3,818       $  3,470        $  7,098      $ 7,484
Gross margin            1,395           1,577           2,665         3,426
Research and            857             854             1,687         1,786
Sales and               732             1,128           1,408         2,042
General and             691             731             1,579         1,671
Restructuring          -            -             (67     )   -      
Total operating         2,280           2,713           4,607         5,499
Loss from               (885   )        (1,136 )        (1,942  )     (2,073 )
Loss before             (887   )        (1,127 )        (2,285  )     (2,060 )
income tax
Net loss                (895   )        (1,122 )        (2,305  )     (2,051 )
Net loss per         $  (0.13  )     $  (0.16  )     $  (0.33   )   $ (0.30  )
diluted share
Weighted average
common and              7,000           6,982           7,003         6,948
dilutive shares

Selected Consolidated Balance Sheet Information
(amounts in thousands)

                                    June 30, 2013   Dec. 31, 2012
Cash and marketable securities        $    7,311      $    8,803
Accounts receivable, net                   3,179             2,781
Inventories                                2,429             2,219
Net property, plant and equipment          287               334
Total assets                               14,659            15,178
Total liabilities                          7,536             6,125
Total shareholders' equity            $    7,123        $    9,053


Interphase Corporation
Media Contact:
Lisa Bascom, 214-654-5000
Investor Contact:
Joseph Hassett, 866-630-INPH
Press spacebar to pause and continue. Press esc to stop.