XNN Xenonics Holdings,

XENONICS HOLDINGS, INC. (NYSE Amex:XNN) today announced a net loss for the third quarter ended June 30, 2010 of $188,000, or $0.01 per share, on revenue of $1,421,000. This compares to a net loss for the third quarter of fiscal 2009 of $240,000, or $0.01 per share.

"Based on orders in hand and current shipment schedules, we expect to report a profit for the fourth quarter," said Chairman Alan Magerman.

Gross profit margin improved to 51% for this year's third quarter versus 46% for the third quarter of 2009. Selling, general and administrative expenses decreased 32% to $709,000 compared to $1,049,000 last year, reflecting decreases in salaries and benefits, consulting services, and marketing and travel expenses.

Magerman continued, "We have reduced our costs dramatically during the past year, but have not lost focus on developing new products and winning new business. Monthly shipments that began in May of NightHunters for inclusion in non-lethal force protection kits for the U.S. Marine Corps under a $2.9 million purchase order from Aardvark Tactical will continue through the end of 2010. In addition, we also recently announced NightHunter orders totaling $1 million from the U.S. Army and Aardvark, with shipments to the Army already underway and delivery under the Aardvark order scheduled in mid-October. We are optimistic that we will win significant additional orders for both our NightHunter and SuperVision products in the months to come."

At June 30, 2010, Xenonics reported working capital of $3,265,000, a current ratio of 5.3, and shareholders' equity of $3,574,000. At September 30, 2009, working capital was $2,436,000, the current ratio was 2.6, and shareholders' equity was $2,649,000. During April 2010 the Company completed the sale of common stock for gross proceeds of $2,000,000.

Conference Call

Xenonics has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its results for the third quarter of fiscal 2010. The dial-in number is (866) 770-7129 and the passcode is #50733514. A simultaneous webcast of the conference call can be accessed from the Webcast Center of the Investor Relations link at www.xenonics.com. A replay will be available after 1:00 p.m. EDT at this same Internet address. For a telephone replay, dial (888) 286-8010, passcode #84582163, after 1:00 p.m. EDT.

About Xenonics

Xenonics Holdings, Inc. (NYSE Amex:XNN) develops and produces advanced, lightweight and compact ultra-high-intensity illumination and low-light vision products for military, law enforcement, public safety, and commercial and private sector applications. Xenonics' NightHunter line of illumination products is used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision high-definition night vision is designed for commercial and military applications. Employing patented technologies, Xenonics provides innovative solutions for customers who must see farther so they can do their jobs better and safer. Xenonics' products represent the next generation in small, high intensity, high efficiency illumination and low-light vision systems. Visit Xenonics on the web at www.xenonics.com.

Forward-Looking Statements

Except for the historical statements, statements in this release may constitute forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions identify forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties, and actual results may differ materially from the outcomes contained in any forward-looking statement. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of new products, and other risks and uncertainties discussed in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. Xenonics Holdings undertakes no obligation to update or revise any forward-looking statements.

 

XENONICS HOLDINGS, INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

June 30,

 

June 30,

 

 

2010

 

2009

 

2010

 

2009

Rounded in thousands, except per share amounts

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

Revenues

$

1,421,000

 

$

2,132,000

 

$

2,786,000

 

$

5,288,000

 

 

 

 

 

 

 

 

Cost of goods sold

 

692,000

 

 

 

1,142,000

 

 

 

1,433,000

 

 

 

2,918,000

 

 

 

 

 

 

 

 

 

Gross profit

729,000

 

990,000

 

1,353,000

 

2,370,000

 

 

 

 

 

 

 

 

Selling, general and administrative

709,000

 

1,049,000

 

2,198,000

 

3,629,000

 

 

 

 

 

 

 

 

Research and development

 

171,000

 

 

 

158,000

 

 

 

625,000

 

 

 

501,000

 

 

 

 

 

 

 

 

 

Loss from operations

(151,000

)

 

(217,000

)

 

(1,470,000

)

 

(1,760,000

)

 

 

 

 

 

 

 

 

 

Other income/(expense):

 

 

 

 

 

 

 

 

Gain (loss) on derivative revaluation

--

 

(33,000

)

 

38,000

 

(52,000

)

 

Other income

--

 

6,000

 

--

 

10,000

 

Interest income

1,000

 

4,000

 

3,000

 

14,000

 

Interest (expense)

 

(38,000

)

 

 

--

 

 

 

(113,000

)

 

 

(7,000

)

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

(188,000

)

 

 

(240,000

)

 

 

(1,542,000

)

 

 

(1,795,000

)

 

 

 

 

 

 

 

 

Income tax provision

 

--

 

 

 

--

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

Net loss

$

(188,000

)

 

$

(240,000

)

 

$

(1,544,000

)

 

$

(1,797,000

)

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

Basic and fully-diluted

$

(0.01

)

 

$

(0.01

)

 

$

(0.07

)

 

$

(0.09

)

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic and fully-diluted

 

24,719,000

 

 

 

20,459,000

 

 

 

22,247,000

 

 

 

20,387,000

    XENONICS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS         June 30, September 30, 2010 2009 Rounded in thousands, except par value (unaudited)   Assets  

Current Assets:

 

 

 

 

Cash

$

502,000

 

$

126,000

 

Accounts receivable, net

1,277,000

 

1,634,000

 

Inventories, net

2,022,000

 

2,069,000

 

Other current assets

 

216,000

 

 

 

119,000

 

 

 

 

 

 

 

Total Current Assets

4,017,000

 

3,948,000

 

 

 

 

 

 

 

 

 

 

 

Equipment, furniture and fixtures, net

90,000

 

130,000

 

Goodwill

375,000

 

375,000

 

Other assets

 

199,000

 

 

 

--

 

 

 

 

 

 

 

Total Assets

$

4,681,000

 

 

$

4,453,000

      Liabilities and Shareholders' Equity   Current Liabilities: Accounts payable $ 537,000 $ 1,000,000 Accrued expenses 77,000 157,000 Accrued payroll and related taxes 138,000 156,000 Accrued derivative liability   --     199,000     Total Current Liabilities 752,000 1,512,000   Notes payable   355,000     292,000     Total Liabilities   1,107,000     1,804,000     Commitments and contingencies   Shareholders' Equity: Preferred shares, $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding -- -- Common shares, $0.001 par value, 50,000,000 shares authorized; 25,622,000 shares issued and 25,509,000 shares outstanding at June 30, 2010; 20,571,000 issued and 20,459,000 outstanding at September 30, 2009 26,000 20,000 Additional paid-in capital 26,941,000 24,478,000 Accumulated deficit   (23,087,000 )   (21,543,000 )   3,880,000 2,955,000   Less treasury shares, at cost, 113,000 shares   (306,000 )   (306,000 )   Total Shareholders' Equity   3,574,000     2,649,000     Total Liabilities and Shareholders' Equity $ 4,681,000   $ 4,453,000