Optex Systems Holdings, Inc. Releases Third Quarter 2013 Results

Optex Systems Holdings, Inc. Releases Third Quarter 2013 Results 
RICHARDSON, TX  -- (Marketwired) -- 08/14/13 --  Optex Systems
Holdings, Inc. (OTCBB: OPXS), a leading manufacturer of optical
sighting systems and assemblies primarily for Department of Defense
applications, reported operating results for the three and nine
months ended June 30, 2013. 
Revenues for the three months ended June 30, 2013 were $4.4 million
as compared to revenues during the same period one year ago of $3.5
million, an increase of $0.9 million or 25.7%. The increase in
revenue was primarily due shipments of gunner head assemblies for
$0.8 million to the U.S. Government and increased sighting systems of
$0.4 million primarily due to deliveries of production units against
the five year M36 contract. These increases were partially offset by
a decrease in revenues of $(0.3) million in our periscope product
line attributable to lower customer demand of the ICWS program. The
gross margin during the three months ended June 30, 2013 was $0.67
million or 15.2% of revenues as compared to a gross margin of $0.67
million or 19.1% for the three months ended July 1, 2012. The
decreased in gross margin percentage for the quarter as compared to
the prior year is primarily due to a shift in product mix toward less
profitable programs during the third fiscal quarter of 2013 as
compared to the prior year period. During the three months ended June
30, 2013, we recorded a net loss applicable to common shareholders of
$(0.08) million as compared to net loss applicable to common
shareholders of $(0.14) million during the three months ended July 1,
2012. The decrease in net loss of $(0.06) million is primarily
attributable to increased operating income of $0.02 million combined
with favorable changes in deferred income taxes of $0.04 million in
the current year period as compared to the prior year.  
Revenues for the nine months ended June 30, 2013 were $12.0 million
as compared to revenues during the same period one year ago of $11.6
million, an increase $0.4 million or 3.4%. The increase in revenue is
primarily due to shipments of gunner head assemblies for $1.1 million
not in the prior year, increases in the periscope shipments of $0.1
million, sighting systems increases of $0.5 million primarily for
producti
on units shipped against the five year M36 contract, and
other products of $0.4 million. The increased revenue was offset by
the completion of the M137 Howitzer program in FY2012 of $(1.7)
million. The gross margin during the nine months ended June 30, 2013
was $2.0 million or 16.7% of revenues as compared to a gross margin
of $2.0 million or 17.2% for the nine months ended July 1, 2012. The
decrease in gross margin percentage for the year as compared to the
prior year is primarily due to a shift in product mix toward less
profitable programs. We expect gross margins to improve in the last
fiscal quarter of 2013, and the gross margin percentage for the year
to be consistent or slightly above the prior year trend. During the
nine months ended June 30, 2013, we recorded a net loss applicable to
common shareholders of $(0.15) million, as compared to $(0.15)
million for the nine months ended July 1, 2012, representing a net
change of zero. The net loss was unchanged from the prior year period
despite the increase in operating loss primarily as a result of
changes in deferred tax benefits of $0.2 million which was partially
offset by changes in the accrued dividends on preferred stock of
$(0.11) million due to the waiver in February 2012.  
Backlog as of June 30, 2013, was $15.0 million as compared to a
backlog of $16.9 million as of July 1, 2012, representing a decrease
of $1.9 million or 11.2%. In the nine months ending June 30, 2013,
Optex Systems Holdings received $8.0 million in new orders consisting
of a $6.5 million of periscopes and $0.2 million in sighting systems
and of $1.3 million in other product lines. The Company anticipates
that buying trends from the U.S. Government will continue to be more
reactive with shorter production scheduling and delivery schedules,
thus reducing traditional Backlog planning.  
As of June 30, 2013, we had cash and cash equivalents of $0.9
million. During the period from October 1, 2012 through June 30,
2013, we decreased cash and cash equivalents by $(0.75) million
primarily attributable to increased purchases and inventory in
support of new periscope orders and the M36 production schedule,
which was partially offset by advances against the credit facility
and receipts against customer deposits. 
"As the U.S. defense industry adapts to the reduced government
spending, we continue to find opportunities, both domestically and
worldwide, for our periscopes and sighting systems" stated Optex CEO
Danny Schoening. "I am pleased that our investments in developing
next generation sighting products are well received by potential
purchasers; we continue to believe that when defense purchasing
cycles improve, Optex will be ready with both legacy and new,
technology-driven products for the modern military."  
ABOUT OPTEX SYSTEMS 
Optex, which was founded in 1987, is a Richardson, Texas based ISO
9001:2008 certified concern, which manufactures optical sighting
systems and assemblies, primarily for Department of Defense (DOD)
applications. Its products are installed on various types of U.S.
military land vehicles, such as the Abrams and Bradley fighting
vehicles, Light Armored and Armored Security Vehicles, and have been
selected for installation on the Stryker family of vehicles. Optex
also manufactures and delivers numerous periscope configurations,
rifle and surveillance sights and night vision optical assemblies.
Optex delivers its products both directly to the military services
and to prime contractors. For additional information, please visit
the Company's website at www.optexsys.com. 
Safe Harbor Statement 
This press release and other written reports and oral statements made
from time to time by the Company may contain so-called
"forward-looking statements," all of which are subject to risks and
uncertainties. You can identify these forward-looking statements by
their use of words such as "expects," "plans," "will," "estimates,"
"forecasts," "projects" and other words of similar meaning. You can
identify them by the fact that they do not relate strictly to
historical or current facts. These statements are likely to address
the Company's growth strategy, financial results and product and
development programs. You must carefully consider any such statement
and should understand that many factors could cause actual results to
differ from the Company's forward-looking statements. These factors
include inaccurate assumptions and a broad variety of other risks and
uncertainties, including some that are known and some that are not.
No forward-looking statement can be guaranteed and actual future
results may vary materially. 
The Company does not assume the obligation to update any
forward-looking statement. You should carefully evaluate such
statements in light of factors described in the Company's filings
with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various
filings the Company has identified important factors that could cause
actual results to differ from expected or historic results. You
should understand that it is not possible to predict or identify all
such factors. Consequently, you should not consider any such list to
be a complete list of all potential risks or uncertainties. 


 
                                                                            
                        Optex Systems Holdings, Inc.                        
                        Consolidated Balance Sheets                         
                                                                            
                                                                            
                                                        (Thousands)         
                                               June 30, 2013  September 30, 
                                                (Unaudited)        2012     
                                               -------------  ------------- 
                                                                            
                     ASSETS                                                 
                                                                            
Current Assets                                                              
Cash                                           $         901  $       1,653 
Accounts Receivable                                    1,543          1,843 
Net Inventory                                          8,191          7,094 
Prepaid Expenses                                         133             28 
                                               -------------  ------------- 
                                                                            
Total Current Assets                           $      10,768  $      10,618 
                                                                            
Property and Equipment                                                      
Property Plant and Equipment                   $       1,624  $       1,584 
Accumulated Depreciation                              (1,444)        (1,392)
                                               -------------  ------------- 
                                                                            
Total Property and Equipment                   $         180  $         192 
                                                                            
Other Assets                                                                
Deferred Tax Asset - Long Term                 $       1,225  $       1,157 
Prepaid Royalties - Long Term                            188            210 
Security Deposits                                         21             21 
                                               -------------  ------------- 
                                                                            
Total Other Assets                             $       1,434  $       1,388 
                                               -------------  ------------- 
                                                                            
Total Assets                                   $      12,382  $      12,198 
                                               =============  ============= 
                                                                            
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
                                                                            
Current Liabilities                                                         
Accounts Payable                               $         951  $       1,109 
Accrued Expenses                                         557            754 
Accrued Warranties                                        25             25 
Customer Advance Deposits - Short Term                 1,134            776 
Credit Facility                                          323              - 
                                               -------------  ------------- 
Total Current Liabilities                      $       2,990  $       2,664 
                                               -------------  ------------- 
                                                                            
Other Liabilities                                                           
Customer Advance Deposits - Long Term                  1,828          1,944 
                                               -------------  ------------- 
                                                                            
Total Other Liabilities                        $       1,828  $       1,944 
                                               -------------  ------------- 
                                                                            
Total Liabilities                              $       4,818  $       4,608 
                                                                            
Stockholders' Equity                                                        
Optex Systems Holdings, Inc. - (par $0.001,                                 
 2,000,000,000 authorized, 157,346,607 and                                  
 152,346,607 shares issued and outstanding,                                 
 respectively)                                 $         157  $         152 
Optex Systems Holdings, Inc. Preferred Stock                                
 ($0.001 par 5,000 authorized, 1,016 and 1,027                              
 series A preferred issued and outstanding,                                 
 respectively)                                             -              - 
Additional Paid-in-capital                            17,913         17,799 
Retained Earnings (Deficit)                          (10,506)       (10,361)
                                               -------------  ------------- 
                                                                            
Total Stockholders' Equity                     $       7,564  $       7,590 
                                               -------------  ------------- 
                                                                            
Total Liabilities and Stockholders' Equity     $      12,382  $      12,198 
                                               =============  ============= 
                                                                            
                                                                            
 The accompanying notes are an integral part of these financial statements  
 

 
                                                                            
                        Optex Systems Holdings, Inc.                        
                   Consolidated Statements of Operations                    
                                                                            
                                          (Thousands)                       
                        Three months ended           Nine months ended      
                   June 30, 2013  July 1, 2012  June 30, 2013  July 1, 2012 
                    (Unaudited)    (Unaudited)   (Unaudited)    (Unaudited) 
                   -------------  ------------  -------------  ------------ 
                                                                            
Revenues           $       4,358  $      3,476  $      11,978  $     11,608 
                                                                            
Total Cost of Sales        3,688         2,807          9,955         9,602 
                   -------------  ------------  -------------  ------------ 
                                                                            
Gross Margin       $         670  $        669  $       2,023  $      2,006 
                                                                            
General and                                                                 
 Administrative              766           787          2,208         2,108 
                   -------------  ------------  -------------  ------------ 
                                                                            
Operating Income                                                            
 (Loss)            $         (96) $       (118) $        (185) $       (102)
                                                                            
Other Expenses                                                              
                                                                            
Interest Expense -                                                          
 Net                          22             2             28            19 
   
                -------------  ------------  -------------  ------------ 
Total Other        $          22  $          2  $          28  $         19 
                                                                            
Income Before Taxes$        (118) $       (120) $        (213) $       (121)
                                                                            
Deferred Income                                                             
 Taxes (Benefit)             (39)           17            (68)          135 
                   -------------  ------------  -------------  ------------ 
                                                                            
Net Income (Loss)                                                           
 After Taxes       $         (79) $       (137) $        (145) $       (256)
                   =============  ============  =============  ============ 
                                                                            
Less preferred                                                              
 stock dividend                                                             
 (accrued) waived  $           -  $          -  $           -  $        106 
                                                                            
Net income (loss)                                                           
 applicable to                                                              
 common                                                                     
 shareholders      $         (79) $       (137) $        (145) $       (150)
                                                                            
                   -------------  ------------  -------------  ------------ 
Basic and diluted                                                           
 income (loss) per                                                          
 share             $       (0.00) $      (0.00) $       (0.00) $      (0.00)
                   =============  ============  =============  ============ 
                                                                            
Weighted Average                                                            
 Common Shares                                                              
 Outstanding         157,346,607   144,444,939    154,216,977   141,697,686 
                                                                            
 The accompanying notes are an integral part of these financial statements  

  
Contact: 
Optex Systems Holdings, Inc.
Stanley Hirschman, President
(972) 644-0722
ir@optexsys.com
1420 Presidential Drive
Richardson, TX 75081