PHOENIX, Aug. 13, 2007 (PRIME NEWSWIRE) -- InPlay Technologies (Nasdaq:NPLA) today announced financial results for the second quarter ended June 30, 2007.
Total revenue for the second quarter of 2007 was $645,000, down from $2.55 million for the second quarter of 2006. Second quarter 2007 revenue includes $404,000 in revenue from FinePoint and $241,000 from Duraswitch. InPlay reported a net loss for the second quarter of $1.65 million, or $0.14 per share as compared to a net loss of $684,000, or $0.06 per share, for the first quarter of 2006.
Consolidated gross margin was 33 percent for the quarter, including 32 percent for the FinePoint segment and 35 percent for the Duraswitch segment.
Commenting on the quarter, Steve Hanson, InPlay chairman and CEO said, "Our revenue is down as our largest customer winds down production of our pen and digitizer technology for its older convertible notebook line. We remain confident in our ability to win new customers and grow this business. Until that happens, however, we are very mindful of our cash position."
"In addition, our net loss for the quarter was impacted by two charges," continued Hanson. "First, we accrued approximately $800,000 for severance related to changes in management of the company. Second, Duraswitch cost of goods sold includes a $90,000 one-time expense for tooling, impacting margin and gross profit for this side of our business."
"Our biggest asset is our differentiating technology. Over the last several months we have made significant advances in technology development. Now we need to focus on execution, winning new business and being smart about allocating our resources. We are operating with a sense of urgency. I believe in the opportunity and am focused on doing everything possible to create a profitable, growing business," Hanson concluded.
Conference Call
InPlay Technologies will host a conference call today at 5:00 p.m. Eastern Time. To participate on the live call, analysts and investors should dial 800-240-6709 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-262-2130. InPlay Technologies will also offer a live and archived webcast of the conference call, accessible from the "Investor" section of the company's Web site, www.inplaytechnologies.com/investor.asp. A telephonic replay of the conference call will also be available through August 15 by dialing 800-405-2236 and entering passcode 11095330#.
About InPlay Technologies
InPlay Technologies is a developer of innovative user interface solutions for electronic products. The company's FinePoint division offers the only digital-based pen-input solution for the rapidly growing mobile computing market. With InPlay's digital technology, OEMs have an almost limitless roadmap for development of new features and functions for their product designs. The Company's Duraswitch(r) brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches enabling OEMs to create ergonomic, space saving input panels for a wide range of applications. Visit www.inplaytechnologies.com for more information.
This news release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our ability to win new business thereby increasing revenue, our ability to manage our cash use, our estimation of the benefits of our technologies, the market opportunity for our technologies and our ability to successfully execute on our strategic plan. Risks and uncertainties that could cause results to differ materially from those projected include changes in orders or timing from our licensees and OEM customers, inability to secure purchase orders from new customers, general changes in demand in our target industries, unanticipated expenses, unforeseen difficulties related to manufacturing our technologies, challenges to our intellectual property and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2006 as filed with the Securities and Exchange Commission on April 2, 2007. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006
----------- ----------- ----------- -----------
NET REVENUE:
FinePoint $ 403,982 $ 2,370,694 $ 1,572,017 $ 3,936,063
Duraswitch:
Related party -
Delphi -- -- 7,631,250 --
Non-related
parties 240,983 180,456 507,953 333,082
----------- ----------- ----------- -----------
Total net
revenue 644,965 2,551,150 9,711,220 4,269,145
COST OF GOODS SOLD:
FinePoint 276,596 2,110,291 1,133,970 3,300,307
Duraswitch 155,837 74,080 222,161 135,848
----------- ----------- ----------- -----------
Total cost of
goods sold 432,433 2,184,371 1,356,131 3,436,155
----------- ----------- ----------- -----------
Gross profit 212,532 366,779 8,355,089 832,990
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Selling, general
and
administrative 1,579,945 743,490 3,063,931 1,460,268
Research,
development and
commercial
application
engineering 404,565 325,279 742,723 637,178
----------- ----------- ----------- -----------
Total operating
expenses 1,984,510 1,068,769 3,806,654 2,097,446
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS (1,771,978) (701,990) 4,548,435 (1,264,456)
OTHER INCOME - Net 88,385 18,344 126,967 48,419
----------- ----------- ----------- -----------
INCOME (LOSS)
BEFORE INCOME
TAXES $(1,683,593) $ (683,646) $ 4,675,402 $(1,216,037)
----------- ----------- ----------- -----------
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES (33,672) -- 93,508 --
----------- ----------- ----------- -----------
NET INCOME (LOSS) $(1,649,921) $ (683,646) $ 4,581,894 $(1,216,037)
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE -
BASIC $ (0.14) $ (0.06) $ 0.40 $ (0.11)
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE -
DILUTED $ (0.14) $ (0.06) $ 0.40 $ (0.11)
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES
OUTSTANDING,
BASIC 11,505,382 11,491,896 11,503,886 11,486,733
=========== =========== =========== ===========
DILUTED 11,505,382 11,491,896 11,551,333 11,486,733
=========== =========== =========== ===========
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2007 2006
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 7,825,624 $ 1,591,312
Accounts receivable 371,685 379,369
Inventory 594,338 1,159,629
Prepaid expenses and other
current assets 91,054 190,847
------------ ------------
Total current assets 8,882,701 3,321,157
PROPERTY AND EQUIPMENT - Net 516,347 510,167
GOODWILL 1,321,240 1,321,240
PATENTS - Net 1,262,274 1,303,474
OTHER ASSETS 24,422 12,258
------------ ------------
TOTAL ASSETS $ 12,006,984 $ 6,468,296
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 654,141 $ 698,600
Accrued salaries and benefits 1,004,181 498,090
Accrued purchase commitments 456,000 456,000
Other accrued expenses and
other current liabilities 324,672 192,974
Deferred revenue 40,124 25,526
------------ ------------
Total current liabilities 2,479,118 1,871,190
------------ ------------
LONG-TERM LIABILITIES:
Other non-current liabilities 295,161 851
------------ ------------
Total liabilities 2,774,279 1,872,041
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, no par value,
10,000,000 shares authorized,
no shares issued and
outstanding in 2007 and 2006 -- --
Common stock, $.001 par value,
40,000,000 shares authorized
in 2007 and 2006, 11,515,138
and 11,502,315 shares issued
and outstanding in 2007 and
2006, respectively 11,515 11,502
Additional paid-in capital 31,478,980 31,424,436
Accumulated deficit (22,257,790) (26,839,683)
------------ ------------
Total stockholders' equity 9,232,705 4,596,255
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 12,006,984 $ 6,468,296
============ ============