Insignia Systems Inc. (ISIG, Financial) filed Quarterly Report for the period ended 2012-03-31.
Insignia Sys has a market cap of $23.5 million; its shares were traded at around $1.96 with and P/S ratio of 1.4.
Service revenues from our POPSign programs for the three months ended March 31, 2012, decreased 20.7% to $3,468,000 compared to $4,374,000 for the three months ended March 31, 2011. The decrease was due to a decrease of 30% in the number of signs placed, partially offset by a 3% increase in the average sign price. The decrease in number of signs placed is primarily due to the timing of programs contracted for by customers.
Gross profit from our product sales for the three months ended March 31, 2012, decreased 42.0% to $119,000 compared to $205,000 for the three months ended March 31, 2011. The decrease was primarily due to decreased sales. Gross profit as a percentage of product sales was 22.5% for the three months ended March 31, 2012, compared to 35.8% for the three months ended March 31, 2011. The decrease was due to increased depreciation expense related to the laser die cut system, the restructuring charge and the effect of fixed costs on decreased sales.
The Company has financed its operations with proceeds from public and private stock sales, sales of its services and products and legal settlement proceeds. At March 31, 2012, working capital is $20,755,000 compared to $22,671,000 at December 31, 2011. During the three months ended March 31, 2012, cash and cash equivalents decreased $2,927,000 from $23,202,000 at December 31, 2011, to $20,275,000 at March 31, 2012.
Operating Activities: Net cash used in operating activities during the three months ended March 31, 2012, was $2,805,000. The net loss of $(1,577,000), plus non-cash adjustments of $468,000 and changes in operating assets and liabilities of $(1,696,000) resulted in the $2,805,000 of cash used in operating activities. The non-cash adjustments consisted of depreciation and amortization expense and stock-based compensation expense. The Company expects accounts receivable, accounts payable, accrued liabilities and deferred revenue to fluctuate during future periods depending on the level of POPSign revenues and related business activity as well as billing arrangements with customers and payment terms with retailers.
Read the The complete Report
Insignia Sys has a market cap of $23.5 million; its shares were traded at around $1.96 with and P/S ratio of 1.4.
Highlight of Business Operations:
Concentrations. During the three months ended March 31, 2012, one customer accounted for 37% of the Companys total net sales. At March 31, 2012, this customer accounted for 32% of the Companys total accounts receivable. During the three months ended March 31, 2011, two customers accounted for 29% and 18%, respectively, of the Companys total net sales. At March 31, 2011, these two customers represented 26% and 12%, respectively, of the Companys total accounts receivable.Service revenues from our POPSign programs for the three months ended March 31, 2012, decreased 20.7% to $3,468,000 compared to $4,374,000 for the three months ended March 31, 2011. The decrease was due to a decrease of 30% in the number of signs placed, partially offset by a 3% increase in the average sign price. The decrease in number of signs placed is primarily due to the timing of programs contracted for by customers.
Gross profit from our product sales for the three months ended March 31, 2012, decreased 42.0% to $119,000 compared to $205,000 for the three months ended March 31, 2011. The decrease was primarily due to decreased sales. Gross profit as a percentage of product sales was 22.5% for the three months ended March 31, 2012, compared to 35.8% for the three months ended March 31, 2011. The decrease was due to increased depreciation expense related to the laser die cut system, the restructuring charge and the effect of fixed costs on decreased sales.
The Company has financed its operations with proceeds from public and private stock sales, sales of its services and products and legal settlement proceeds. At March 31, 2012, working capital is $20,755,000 compared to $22,671,000 at December 31, 2011. During the three months ended March 31, 2012, cash and cash equivalents decreased $2,927,000 from $23,202,000 at December 31, 2011, to $20,275,000 at March 31, 2012.
Operating Activities: Net cash used in operating activities during the three months ended March 31, 2012, was $2,805,000. The net loss of $(1,577,000), plus non-cash adjustments of $468,000 and changes in operating assets and liabilities of $(1,696,000) resulted in the $2,805,000 of cash used in operating activities. The non-cash adjustments consisted of depreciation and amortization expense and stock-based compensation expense. The Company expects accounts receivable, accounts payable, accrued liabilities and deferred revenue to fluctuate during future periods depending on the level of POPSign revenues and related business activity as well as billing arrangements with customers and payment terms with retailers.
Read the The complete Report
