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IntelliCheck Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 3, 2011 04:07PM

IntelliCheck Inc (IDN) filed Quarterly Report for the period ended 2011-06-30. Intellicheck Mobilisa Inc has a market cap of $33.3 million; its shares were traded at around $1.23 with and P/S ratio of 2.7.



Highlight of Business Operations:

The increase in Identity Systems revenues in the second quarter of 2011 is primarily a result of a significant access control order from a large systems integrator. The decrease in Wireless R&D revenues is because the current funding of the FAN/buoy contract has expired. We have submitted a bid for the continuation of this R&D contract and we are awaiting the results of the bidding process, however there is no guaranty that the contract will be awarded to the Company. Total booked orders were $2.2 million in the second quarter of 2011 compared to $2.0 million in the second quarter of 2010. As of June 30, 2011, our backlog, which represents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $0.8 million compared to $4.9 million at June 30, 2010. The prior year backlog was primarily related to the remaining funding on the Wireless R&D contract.

Operating expenses, which consist of selling, general and administrative and research and development expenses, decreased 22% to $2,021,000 for the three months ended June 30, 2011 from $2,595,000 for the three months ended June 30, 2010. As previously stated, during the first quarter of 2011, we made reductions in our operating expenses which approximated $2 million on an annualized basis, which began to impact our reported results during the second quarter. These changes included reductions in both personnel and the use of outside consultants. Selling expenses increased by $29,000 principally as a result of increased personnel, which was offset by a reversal of $51,000 of previously booked noncash compensation from contingent stock options. General and administrative expenses decreased by $601,000 principally due to the cost reductions that began in Q1, as well as the elimination of $50,000 in contracted consulting fees to the former Positive Access principals and lower legal fees of $142,000 primarily related to the Eid Passport litigation. Research and development costs decreased by $1,000, which was principally a result of an increase in personnel, offset by a reversal of $52,000 of previously booked noncash compensation from contingent stock options.

As a result of the factors noted above, our net income was $125,000 for the three month ended June 30, 2011 as compared to a net loss of $602,000 for the three months ended June 30, 2010.

Operating expenses, which consist of selling, general and administrative and research and development expenses, decreased 13% to $4,462,000 for the six months ended June 30, 2011 from $5,157,000 for the six months ended June 30, 2010. Selling expenses increased by $35,000 principally as a result of increased personnel, which was offset by a reversal of $51,000 of previously booked noncash compensation from contingent stock options. General and administrative expenses decreased by $705,000 principally due to the cost reductions that began in Q1, as well as the elimination of $100,000 in contracted consulting fees to the former Positive Access principals and lower legal fees of $348,000 primarily related to the Eid Passport litigation. Research and development costs decreased by $25,000, principally resulting from an increase in personnel, offset by a reversal of $52,000 of previously booked noncash compensation from contingent stock options.

As of June 30, 2011, the Company had cash and cash equivalents of $1,475,000, working capital (defined as current assets minus current liabilities) of $872,000, total assets of $22,883,000 and stockholders equity of $19,227,000.

During the first six months of 2011, the Company decreased its use of net cash to $14,000 from $731,000 in the first six months of 2010. The Company used net cash of $13,000 in operating activities in the first six months of 2011 as compared to a net use of cash of $743,000 in the same period last year. The decrease in 2011 is primarily driven by a lower net loss. Cash used by investing activities was $33,000 for the first half of 2011 compared to $136,000 in the same period last year due to lower capital expenditures. Cash provided by financing activities was $32,000 in the period ended June 30, 2011 compared to $148,000 in the same period last year. The decrease in 2011 is due to a reduction in the amount of stock option exercises.

Read the The complete Report



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