|By Marketwired .||
|August 14, 2013 09:45 AM EDT||
PENNSAUKEN, NJ -- (Marketwired) -- 08/14/13 -- Lattice Incorporated (OTCQB: LTTC) ("Lattice" or the "Company"), a provider of advanced information and communications technology solutions to customers globally, announced its financial results for the second quarter ended June 30, 2013.
Second Quarter Financial Highlights:
- Revenue increased to $1.9 million
- Recurring revenues accounted for 79% of total revenues during the quarter
- EBITDA of $422,000
- Net income from continuing operations was $175,000
- Net income of $51,160
Additional information may be found in the Company's 10-Q filing with the U.S. Securities and Exchange Commission.
Second quarter revenue increased 4.0% year-over-year to $1.9 million, compared to $1.8 million in the second quarter of 2012. New orders for recurring services were received toward the end of the current quarter. The associated revenue growth from these orders will be reflected in the upcoming quarters and fiscal year results.
Gross margin, as a percentage of revenues, decreased slightly to 33.7% from 34.4% for the same period in 2012. Gross margin relationships to revenue were stable with prior periods for both recurring revenues and wholesaled technology revenue streams. The gross margin for wholesaled technology revenues varies with larger sales orders but the margins are expected to be in the 60% range on average. Margins from the recurring services component of revenues were consistent with the prior-year period at approximately 30%.
Net income from continuing operations for the second quarter was $175,000 compared to a net income of $95,000 for the same period of 2012. Included in net income and EBITDA for the current quarter was a $521,000 one-time gain recorded on the sale of the Company's government segment assets on April 2, 2013. The prior-year quarter included one-time other income of $256,000.
"With the successful sale of our government assets, we are well-positioned to focus on accelerating the expansion of our communications business which we believe will drive long-term growth for the Company," stated Paul Burgess, CEO of Lattice. "In addition, our new cloud-based ICON platform, which we introduced during the second quarter, continues to gain traction with a strong backlog of orders in place. This should lead to solid revenue expansion as we complete these installations in the second half of the year."
Lattice will host a conference call today, Wednesday, August 14, with CEO Paul Burgess and CFO Joseph Noto at 4:15 p.m. Eastern time (1:15 p.m. Pacific time). To participate in the call, please dial (877) 941-1429, or (480) 629-9665 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company's website at http://www.latticeincorporated.com, or alternately at http://ViaVid.net.
A replay of the call will be available for two weeks from 7:15 p.m. ET on August 14, 2013, until 11:59 p.m. ET on August 29, 2013. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 4635786. In addition, a recording of the call will be available via the Company's website at http://www.latticeinc.com for one year.
About Lattice Incorporated
Lattice Incorporated provides advanced information and communications technology solutions to customers globally. The Company's innovative, cost-effective solutions leverage its proprietary Nexus platform, a real-time transaction processing engine, to develop and deliver customized cloud-based software applications with military-grade security for markets that require highly secure solutions. For more information, visit http://www.latticeinc.com.
Safe Harbor Statement
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-Q previously filed with the SEC.
EBITDA Reconciliation: Net income from continuing operations - as reported $ 174,520 $ 93,434 add back non cash items: depreciation and amortization $ 89,171 $ 178,343 share based comp $ 10,936 $ 13,255 interest expense $ 147,963 $ 238,504 ---------- ---------- EBITDA $ 422,590 $ 523,536