Inrad Optics, Inc. Announces First Quarter 2013 Financial Results

NORTHVALE, N.J., May 21, 2013 /PRNewswire/ -- Inrad Optics, Inc. (OTCBB: INRD) has reported its consolidated financial results for the three months ended March 31, 2013.

Revenue for the three months ended March 31, 2013 was $3.1 million, up 8.3% from $2.8 million in the first quarter last year.

Bookings totaled $2.1 million in the first quarter of 2013, down from $3.4 million in the fourth quarter of 2012 and $3 million in the same period last year.  Despite indications of improving strength in the overall economy and the addition of several new customers, the effects of ongoing contraction in the defense sector and continued softness in specific segments of the semiconductor industry have had a significant negative impact on bookings.

Gross profit for the first quarter of 2013 was $699,000 or 22.7% of sales, down from $740,000 or 26% in the comparable quarter last year.  The decrease is mainly due to a less favorable, more labor intensive product mix.

The Company reported a net loss of $(169,000) in the first quarter of 2013 compared to a net loss of $(149,000) last year.  First quarter basic and diluted loss per share was $(0.01) and $(0.01) for the three months ended March 31, 2013 and 2012, respectively.  The 2013 first quarter net loss reflects net severance and other costs of $67,000 after payroll savings in connection with an 11% reduction in work force implemented by the Company. 

Net cash used in operating activities was $204,000 for the three months ended March 31, 2013 versus net cash provided by operating activities of $595,000 last year.  The difference primarily reflects the impact of changes in working capital which increased by $203,000 in the first quarter of 2013 compared to a decrease of $330,000, in the comparable period last year.   

After investing and financing activities, net cash decreased by $493,000 versus an increase of $469,000 in net cash, last year.  Investing activities in the three months ended March 31, 2013 includes an installment payment of $243,000 on the purchase of a new plasma assist optical coating chamber which the Company expects to have fully operational in the second quarter of 2013.  At March 31, 2013, the Company had cash and cash equivalents of $2.6 million. 

President and CEO Amy Eskilson commented, "As I recently noted in the Company's 2012 Annual Report, the U.S. budget sequestration and the slow pace of economic recovery continues to impact demand from our legacy defense and semi-conductor customers. This was evident in lower than expected first quarter 2013 bookings.  Despite this, I was encouraged by the increase in first quarter revenues which were the highest since the fourth quarter of 2011.  In addition, recent initiatives to right-size the workforce, ongoing sales and marketing efforts to expand our customer base and our strategic investment in new coating equipment which will enhance our thin film coating capability should have a positive impact in the coming months.  Overall, I am confident we are on the right track and remain excited about the growth opportunities for Inrad Optics." 

Inrad Optics, Inc. (formerly Photonic Products Group, Inc.) was incorporated in New Jersey in 1973. In January 2012, the Company's Board of Directors and shareholders approved the name change to Inrad Optics, Inc. The Company develops, manufactures and markets products and services for use in photonics industry sectors via three distinct but complimentary product areas - "Crystals and Devices", "Custom Optics" and "Metal Optics."

The Company is a vertically integrated organization specializing in crystal-based optical components and devices, custom optical components from both glass and metal, and precision optical and opto-mechanical assemblies.  Manufacturing capabilities include solution and high temperature crystal growth, extensive optical fabrication capabilities, including precision diamond turning and the ability to handle large substrates, optical coatings and in-process metrology expertise.  Inrad Optics' customers include leading corporations in the defense, aerospace, laser systems, process control and metrology sectors of the photonics industry, as well as the U.S. Government, National Laboratories and Universities worldwide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "should", "will", "plan", "anticipate", "probably", "targeting" or similar words.  Such forward-looking statements, such as our expectation for revenues, new orders, and improved results involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward looking statements are, but are not limited to, uncertainties in market demand for the company's products or the products of its customers, future actions by competitors, inability to deliver product on time, inability to develop new business, inability to retain key employees or hire new employees, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended December 31, 2012. The forward looking statements made in this news release are made as of the date hereof and Inrad Optics, Inc. does not assume any obligation to update publicly any forward looking statement.

SOURCE Inrad Optics, Inc.