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Conolog Corp. (CNLG) filed Annual Report for the period ended 2011-07-31.
Conolog Corp. has a market cap of $2.8 million; its shares were traded at around $0 .
This is the annual revenues and earnings per share of CNLG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CNLG.
Highlight of Business Operations:
The majority of the Company’s sales revenue has been generated from sales of the PDR-2000 Teleprotection products. Our total sales revenue increased approximately $513,000 or 43.5% for the fiscal year ended July 31, 2011 to $1,692,000, compared to total revenues of approximately $1,179,000 for the fiscal year ended July 31, 2010. Our PDR-2000 sales increased approximately $725,500 or 97% over the prior year. The increase in our PDR-2000 sales revenues was partially offset by sales declines in all of our other lines of products. PTR-1500 decrease approximately $19,700 or 36% as customers are switching from old analog technology to digital technology, telemetry sales decline of approximately $90,350 or 50% due natural rhythm of our markets, we expect this category to further decline in the coming years, military sales decreased approximately $93,300 due to a military supply contract being completed in the beginning of 2011 and cut backs in the governments military spending for 2011. Spare parts and other sales make up the remaining decrease of approximately $11,000 as compared to the prior year.Total product cost of goods sold for the fiscal year ended July 31, 2011 amounted to approximately $1,175,000 compared to approximately $694,600 for the fiscal year ended July 31, 2010, an increase of approximately $480,400 or 69.%. The increase in cost of goods sold is a result of the following: (a) sales volume increased 44% versus the prior year resulting in an expected volume increase in cost of goods of approximately $269,400; (b) costs used in material and labor increased slightly but with the additional sales volume material and labor associated manufacturing increased approximately $236,000; (c) inventory obsolescence expense for the year ended July 31, 2011 was $50,000 compared to approximately $75,500 for fiscal year 2010, a decline of approximately $26,000. This decline in the obsolescence expense can be attributed to significant write-down of inventory taken in 2010 due to significant quantities of inventory that were purchased in prior years and now qualified per the Company’s inventory policy to be written-off in 2010.
The Company recorded a net loss of approximately $4,323,000 for the fiscal year ended July 31, 2011, as compared to a net loss of approximately $24,911,000 for fiscal year ended July 31, 2010. The decrease in net loss of approximately $20,588,000 can mainly be attributed to noncash transactions related to the subscription agreement entered into in August 2009, which resulted in a loss on derivative financial instrument of approximately $18,959,000. For the fiscal year ended July 31, 2011 gross profit increased approximately $33,000, general and administrative costs were approximately $1,074,000 lower than the prior fiscal year, research and development was also down versus the prior period in the approximate amount of $72,000 but selling expense was approximately $149,000 higher. As a result of the foregoing, the Company reported a net loss applicable to common shares of ($0.43) basic and diluted loss per share compared to ($5.36) basic and diluted loss per share for the fiscal year ended July 31, 2010.
At July 31, 2011, the Company had total current assets of approximately $900,000 and total current liabilities of approximately $1,666,000, resulting in working capital deficit of approximately $766,000 compared to working capital of approximately $1,508,000 at year ended July 31, 2010. The Company’s current assets consists of $7,907 in cash and cash equivalent, approximately $476,000 in accounts receivable, $389,000 in inventory and approximately $26,000 in prepaid expenses and other current assets. Accounts receivable increased from approximately $68,000 at July 31, 2010 to approximately $476,000 at July 31, 2011, resulting from a sales increase of approximately $513,000 for the fiscal year ended July 31, 2011 and the timing of collections.
Cash expenditures have exceeded revenues for the prior year and Management expects this consumption of cash to continue into next year. Our operations have been and will continue to be funded from existing cash balances and private placements of equity funding. During our fiscal year ended July 31, 2011, we have raised $100,000 from the sale of common stock and $316,350 from loans made to the company by Robert Benou. Mr. Benou has received repayments totaling $60,000 during the fiscal year ended July 31, 2011. We are dependent on improved operating results and raising additional funds over the next twelve month period. There are no assurances that we will be able
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