New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
ICX TECHNOLOGIES, INC. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 16, 2009 04:20PM

ICX TECHNOLOGIES, INC. (ICXT) filed Quarterly Report for the period ended 2009-09-30. ICx develops advanced technologies for effective security solutions. ICx sensors detect and identify chemical, biological, radiological, nuclear and explosive materials. ICx surveillance products discern people and objects invisible to human senses and conventional cameras. ICx software and systems connect, command and control these security devices, while its intelligence and special-operations experts provide the unique insight that drives the company's innovation. ICx has manufacturing and research facilities in the United States, Canada and Europe. Icx Technologies, Inc. has a market cap of $179.6 million; its shares were traded at around $5.16 with and P/S ratio of 1.05.

Highlight of Business Operations:

Operating Loss. Operating loss decreased $2.8 million, or 72%, to $1.1 million in the third quarter of 2009 from $3.9 million in the third quarter of 2008. The decrease in operating loss primarily resulted from a reduction in operating expenses. The reduction in operating expenses resulted from reduced spending on internal research and development because more of our technical resources were dedicated to externally funded contract research and development projects and reduced sales, marketing, and general and administrative expenses primarily from reductions in personnel as we continued to make progress towards integrating our business units and eliminating redundancies in our operations. Operating income (loss) excluding depreciation and amortization is a non-GAAP financial measure that is derived by reducing our operating loss by depreciation and amortization. Amortization primarily represents costs associated with our business acquisitions that do not correspond to an outlay of current and future cash flow. Accordingly, we believe operating income (loss) excluding depreciation and amortization is a more meaningful measure of our recurring operations and an indicator of our working capital requirements. Operating income (loss) excluding depreciation and amortization increased $2.1 million, or 420%, to $1.6 million in the third quarter of 2009 from a loss of $(0.5) million in the third quarter of 2008 due to reduced operating expenses as explained earlier in this section.

Loss from Continuing Operations. Our loss from continuing operations decreased $2.2 million, or 63%, from $3.5 million loss in the third quarter of 2008 to a $1.3 million loss in the third quarter of 2009 primarily due to reduced operating expenses as explained under “Operating Loss” above.

Loss from Discontinued Operations. In the third quarter of 2009, our Board of Directors adopted a plan of sale and put the assets of PureTech Systems, Inc. (PureTech), a unit in the Solutions segment, up for sale, as the business model of this unit no longer aligned with our strategic plans. We expect to complete the sale of PureTech in the fourth quarter of 2009. In connection with this plan, we recognized a loss on discontinued operations of $2.5 million which included a goodwill impairment charge of $1.3 million, a $0.8 million impairment charge to write down PureTech’s intangible assets and a $0.2 million impairment charge to write down PureTech’s long-lived assets.

Net Loss. Net loss increased $0.1 million, or 3%, to $3.9 million in the third quarter of 2009 from $3.8 million in the third quarter of 2008. The net loss for the third quarter of 2009 included $2.3 million in impairment charges in connection with the discontinued operations of PureTech. Without the impact of discontinued operations, our net loss was reduced compared to the third quarter last year primarily because of a decrease in operating expenses as explained under “Operating Loss” above.

Operating Loss. Operating loss decreased $0.3 million, or 50%, to $0.3 million in the third quarter of 2009 from $0.6 million in the third quarter of 2008. A $2.6 million decrease in operating expenses was offset by a decrease in gross profit of $2.2 million over the comparable quarter. The decrease in gross profit is due to a higher percentage of revenue from contract research and development projects which carry lower gross margins than revenue from product sales. The decrease in operating expenses resulted from reduced spending on internal research and development because more of our technical resources were dedicated to externally funded contract research and development projects, and reduced sales and marketing expenses primarily from reductions in personnel as we continued to make progress towards integrating our business units and eliminating redundancies in our operations.

Operating Loss. Operating loss decreased $0.6 million, or 35%, to $1.1 million in the third quarter of 2009 from $1.7 million in the third quarter of 2008. The improvement primarily resulted from a $1.0 million decrease in operating expenses due to reductions in personnel as we continued to make progress towards integrating our business units and eliminating redundancies in our operations.

Read the The complete Report

ICXT is in the portfolios of Richard Snow of Snow Capital Management, L.P..


Stocks Discussed: ICXT,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial