COPPELL, Texas, Oct. 31, 2014 /PRNewswire/ -- Costar Technologies, Inc. (the "Company") (OTC Markets Group: CS-TI), reported its unaudited financial results for the quarter ended June 30, 2014 that have been reviewed by the independent accounting firm McGladrey, LLP.
- The Company completed the acquisition of CohuHD on June 6, 2014, the camera products and video solutions division of Cohu, Inc. (NASDAQ: COHU). Financials include the results for CohuHD from June 6 through quarter end.
- Net income of $990, or $0.68 per share, for the three months ended June 30, 2014, as compared to $438, or $0.30 per share, for the three months ended June 30, 2013. For the six months ended June 30, 2014 and 2013 the Company had net income of $2,062, or $1.41 per share, and $1,034, or $0.71 per share, respectively.
- Sales increased 33% for the second quarter of 2014 as compared to the same period for 2013. Sales increased 23% for the six month period ended June 30, 2014 as compared to the same period in 2013.
James Pritchett, President and Chief Executive Officer of the Company, stated, "We are delighted to be able to share the initial results of adding CohuHD to Costar after completing the first quarter of integration. We have identified multiple cross selling opportunities with our full portfolio of products and have been able to leverage our shared engineering talent to the benefit of both Costar Video Systems and CohuHD. The acquisition adds significant shareholder value, with the Company delivering $0.82 per share on an adjusted basis for the second quarter after adding back one-time transaction expenses, and provides a compelling story in the security market."
Financial Results, Second Quarter of 2014 as Compared to Second Quarter of 2013
Revenue for the second quarter of 2014 totaled $8,276, as compared to revenue of $6,219 for the second quarter of the prior year, an increase of 33%. Of the $2,057 increase in revenue, $1,728 was generated by the new acquisition, CohuHD.
Gross profit for the second quarter of 2014 totaled $3,197. This compares to gross profit of $1,828 for the second quarter of 2013, an increase of 75%. The majority of the increase was due to the acquisition of CohuHD.
Selling, general and administrative expenses from operations for the second quarter of 2014 totaled $1,762. This compares to selling, general and administrative expenses from continuing operations of $1,384 for the second quarter of 2013, an increase of 27%. The majority of the $378 increase and all of the $128 in engineering and development expense was due to the new subsidiary, CohuHD. The Company also experienced $205 in transaction and related expense directly tied to the acquisition of CohuHD.
Net income for the second quarter of 2014 was approximately $990, or $0.68 per share. This compares to net income for the second quarter of 2013 of $438, or $0.30 per share. Of the $552 increase in profits, $551 was due to CohuHD.
Acquisition of CohuHD
On June 6, 2014, the Company purchased, CohuHD, the camera products and video solutions division of Cohu, Inc., with the Company's new $7,000 revolving line of credit and $3,000 term loan. As of June 30, 2014, the outstanding balance on the revolving line of credit was $2,705, with $3,000 outstanding on the term loan. Further information can be found in Note 3 and Note 7 of the Company's financial statements for the second quarter of 2014.
The Company's outside independent auditors completed their analysis of the Company's financial condition. The Independent Auditor's Review Report, including financial statements and applicable footnote disclosures, is available on our website at www.costartechnologies.com. This press release is an abridged version. The unabridged version is also on our website.
About Costar Technologies, Inc.
Costar Technologies, Inc. develops, designs and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. The Company also develops, designs and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, the Company's shares currently trade on the OTC Markets Group under the ticker symbol "CSTI".
Cautionary Statement Regarding Forward Looking Statements
This document contains forward-looking statements that involve risks and uncertainties, as well as assumptions, that if they never materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements generally are identified by the words "expects," "anticipates," "believes," "intends," "estimates," "should," "would," "strategy," "plan" and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The risks, uncertainties and assumptions include developments in the marketplace for our products, competition, related products and services and general economic conditions, as well as other risks and uncertainties. Accordingly, we cannot give assurance that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company.
Chief Financial Officer
Costar Technologies, Inc.
SOURCE Costar Technologies, Inc.