Performance Technologies Inc. (PTIX, Financial) filed Quarterly Report for the period ended 2009-09-30.
Performance Technologies is a global supplier of integrated IP-based platforms and solutions for advanced communications networks and innovative computer system architectures. Company's Embedded Systems Group offers robust application-ready platforms that incorporate open-standards based software and hardware providing significantly accelerated end product deployment benefits for equipment manufacturers. Its Signaling Systems Group offers the SEGway product suite which includes IP STPs SS7 over IP transport solutions and signaling gateways that enable lower operating costs through utilization of IP networks thereby creating competitive advantages for carriers in existing and emerging markets. Performance Technologies Inc. has a market cap of $31 million; its shares were traded at around $2.8 with and P/S ratio of 0.8.
The Company incurred a net loss for the nine months ended September 30, 2009 amounting to ($6.5 million), or ($.58) per basic share, based on 11.1 million shares outstanding. This loss includes a non-cash income tax charge amounting to $.30 per share for an income tax valuation allowance recorded against the Companys U.S. deferred tax assets. The loss also includes a restructuring charge of $.06 per share, discrete income tax benefits of $.02 per share and stock-based compensation expense of $.04 per share. Net income for the nine months ended September 30, 2008 amounted to $.13 per diluted share, including stock-based compensation expense of $.03 per share and a discrete income tax benefit of $.03 per share, based on 11.7 million shares outstanding.
Cash used by operating activities amounted to $.3 million in the nine months ended September 30, 2009, while cash provided by operating activities amounted to $6.0 million in nine months ended September 30, 2008. The period-over-period decrease in cash generated from operating activities amounted to $6.3 million and is primarily attributable to the net loss of ($6.5 million) in the nine months ended September 30, 2009, compared to net income of $1.5 million for the corresponding period in 2008, less the increase in non-cash deferred income tax provision of $2.3 million in 2009, over 2008. Also contributing to the decrease in cash generated from operating activities was a $.5 million decrease in accounts payable and accrued expenses in 2009, compared to a $1.0 million increase in 2008. These were partially offset by a $1.1 million reduction in inventories in 2009, compared to 2008, and a year-over-year increase in depreciation and amortization of $.2 million in 2009.
Computing products revenue amounted to $2.3 million and $2.9 million in the third quarter 2009 and 2008, respectively; and $5.3 million and $9.4 million in the nine months ended September 30, 2009 and 2008, respectively. The decreases in revenue of $.6 million, or 21%, in the third quarter 2009 and $4.1 million, or 44%, in the nine months ended September 30, 2009, over the comparable 2008 periods are primarily due to decreases in shipments to Data Connection Ltd. of $.5 million and $2.8 million for the three- and nine-month periods, plus declines in shipments to other OEM telecommunications customers, attributable to the weak global economy.
Switch revenue totaled $.5 million and $1.4 million in the third quarter 2009 and 2008, respectively. This decrease of $.9 million, or 64%, primarily reflects a $.8 million decrease of shipments to Alcatel-Lucent. Switch revenue amounted to $1.9 million and $4.2 million in the nine months ended September 30, 2009 and 2008, respectively. This decrease of $2.3 million, or 55%, was principally due to lower switch shipments to Alcatel-Lucent, which declined by $1.5 million.
Total Operating Expenses. Total operating expenses for the third quarter 2009 amounted to $4.9 million (including restructuring charges of $.2 million) compared to $5.5 million in the third quarter 2008. Total operating expenses for the first nine months of 2009 were $15.4 million (including restructuring charges of $.6 million) compared to $16.9 million for the first nine months of 2008.
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Performance Technologies is a global supplier of integrated IP-based platforms and solutions for advanced communications networks and innovative computer system architectures. Company's Embedded Systems Group offers robust application-ready platforms that incorporate open-standards based software and hardware providing significantly accelerated end product deployment benefits for equipment manufacturers. Its Signaling Systems Group offers the SEGway product suite which includes IP STPs SS7 over IP transport solutions and signaling gateways that enable lower operating costs through utilization of IP networks thereby creating competitive advantages for carriers in existing and emerging markets. Performance Technologies Inc. has a market cap of $31 million; its shares were traded at around $2.8 with and P/S ratio of 0.8.
Highlight of Business Operations:
The Company incurred a net loss in the third quarter 2009 amounting to ($.3 million), or ($.03) per basic share, based on 11.1 million shares outstanding. This loss includes a discrete income tax benefit of $.01 per share, a restructuring charge of $.02 per share and stock compensation expense of $.01 per share. Net income in the third quarter 2008 amounted to $.02 per diluted share, including stock-based compensation expense of $.01 per share and a discrete income tax benefit of $.03 per share, based on 11.6 million shares outstanding.The Company incurred a net loss for the nine months ended September 30, 2009 amounting to ($6.5 million), or ($.58) per basic share, based on 11.1 million shares outstanding. This loss includes a non-cash income tax charge amounting to $.30 per share for an income tax valuation allowance recorded against the Companys U.S. deferred tax assets. The loss also includes a restructuring charge of $.06 per share, discrete income tax benefits of $.02 per share and stock-based compensation expense of $.04 per share. Net income for the nine months ended September 30, 2008 amounted to $.13 per diluted share, including stock-based compensation expense of $.03 per share and a discrete income tax benefit of $.03 per share, based on 11.7 million shares outstanding.
Cash used by operating activities amounted to $.3 million in the nine months ended September 30, 2009, while cash provided by operating activities amounted to $6.0 million in nine months ended September 30, 2008. The period-over-period decrease in cash generated from operating activities amounted to $6.3 million and is primarily attributable to the net loss of ($6.5 million) in the nine months ended September 30, 2009, compared to net income of $1.5 million for the corresponding period in 2008, less the increase in non-cash deferred income tax provision of $2.3 million in 2009, over 2008. Also contributing to the decrease in cash generated from operating activities was a $.5 million decrease in accounts payable and accrued expenses in 2009, compared to a $1.0 million increase in 2008. These were partially offset by a $1.1 million reduction in inventories in 2009, compared to 2008, and a year-over-year increase in depreciation and amortization of $.2 million in 2009.
Computing products revenue amounted to $2.3 million and $2.9 million in the third quarter 2009 and 2008, respectively; and $5.3 million and $9.4 million in the nine months ended September 30, 2009 and 2008, respectively. The decreases in revenue of $.6 million, or 21%, in the third quarter 2009 and $4.1 million, or 44%, in the nine months ended September 30, 2009, over the comparable 2008 periods are primarily due to decreases in shipments to Data Connection Ltd. of $.5 million and $2.8 million for the three- and nine-month periods, plus declines in shipments to other OEM telecommunications customers, attributable to the weak global economy.
Switch revenue totaled $.5 million and $1.4 million in the third quarter 2009 and 2008, respectively. This decrease of $.9 million, or 64%, primarily reflects a $.8 million decrease of shipments to Alcatel-Lucent. Switch revenue amounted to $1.9 million and $4.2 million in the nine months ended September 30, 2009 and 2008, respectively. This decrease of $2.3 million, or 55%, was principally due to lower switch shipments to Alcatel-Lucent, which declined by $1.5 million.
Total Operating Expenses. Total operating expenses for the third quarter 2009 amounted to $4.9 million (including restructuring charges of $.2 million) compared to $5.5 million in the third quarter 2008. Total operating expenses for the first nine months of 2009 were $15.4 million (including restructuring charges of $.6 million) compared to $16.9 million for the first nine months of 2008.
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