Interphase Corp. (INPH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Interphase Corp. has a market cap of $15.6 million; its shares were traded at around $2.28 with and P/S ratio of 0.6. INPH is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Other loss, net was $78,000 and $3,000 for the three months ended March 31, 2010 and March 31, 2009, respectively. The increase in other loss, net for the three months ended March 31, 2010 primarily relates to the change in market value of our foreign exchange derivative financial instrument, which resulted in a loss of approximately $67,000. There were no foreign exchange contracts outstanding during the three months ended March 31, 2009. See Note 5 in the Notes to Condensed Consolidated Financial Statements for more information on derivative financial instruments.
We reported a net loss of $2.4 million for the three months ended March 31, 2010 and a net income of $707,000 for the three months ended March 31, 2009. Basic loss per share for the three months ended March 31, 2010 was ($0.34). Basic and diluted earnings per share for the three months ended March 31, 2009 was $0.11.
Trends in cash flows from operating activities for the three months ended March 31, 2010 and 2009 are generally similar to the trends in our earnings except for provision for uncollectible accounts and returns, provision for excess and obsolete inventories, depreciation and amortization, amortization of restricted stock and write-off of impaired capitalized software. Cash used in operating activities totaled $1.8 million for the three months ended March 31, 2010, compared to net loss of $2.4 million. Provision for uncollectible accounts and returns decreased $24,000 for the three months ended March 31, 2010 compared to the same period in 2009. Provision for excess and obsolete inventories remained consistent for the three months ended March 31, 2010, compared to the same period in 2009. Depreciation and amortization decreased slightly for the three months ended March 31, 2010, compared to the same period in 2009. Amortization of restricted stock decreased by $20,000 for the three months ended March 31, 2010, compared to the three months ended March 31, 2009. See Note 2 in the Notes to Condensed Consolidated Financial Statements for more information on restricted stock. Write off of impaired capitalized software increased by $2,000 for the three months ended March 31, 2010, compared to the same period in 2009.
Cash provided by investing activities totaled $257,000 and $1.7 million for the three months ended March 31, 2010 and March 31, 2009, respectively. Cash provided by investing activities in each of the periods related principally to proceeds from the sale of marketable securities, disbursements for additions to property and equipment, capitalized software and our investments in marketable securities. Additions to property and equipment and capitalized software were $19,000 for the three months ended March 31, 2010, compared to $51,000 for the three months ended March 31, 2009. The additions for the three months ended March 31, 2010, primarily related to software and equipment purchases for our engineering and sales and marketing functions. The additions for the three months ended March 31, 2009 primarily related to enhancements to our enterprise performance management system. Purchases of marketable securities decreased to $1.6 million for the three months ended March 31, 2010, compared to $2.3 million for the three months ended March 31, 2009. Proceeds from the sale of marketable securities decreased to $1.9 million for the three months ended March 31, 2010, compared to $4.0 million for the three months ended March 31, 2009.
We maintain a $5.0 million revolving bank credit facility maturing December 19, 2013 with an applicable interest rate on any outstanding balances under the credit facility based on LIBOR plus an applicable margin rate of 1.0% to 1.5%, based on certain factors included in our credit agreement. At March 31, 2010 and December 31, 2009, our interest rate on the $3.5 million borrowings under the revolving credit facility was 1.8% and 1.3%, respectively. The unused portion of the credit facility is subject to an unused facility fee ranging from .25% to .75% depending on total deposits with the creditor. All borrowings under this facility are secured by marketable securities. The borrowings of $3.5 million are classified as long-term debt on the accompanying balance sheets.
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Interphase Corp. has a market cap of $15.6 million; its shares were traded at around $2.28 with and P/S ratio of 0.6. INPH is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Total revenue decreased to $3.8 million for the three months ended March 31, 2010, compared to $8.4 million for the same period in the prior year. The decrease was primarily attributable to broadband telecom revenue, which decreased to $3.2 million for the three months ended March 31, 2010, compared to $8.0 million in the comparable period in the prior year. Our professional services revenues decreased to $160,000 for the three months ended March 31, 2010, compared to $249,000 for the same period in the previous year. Our enterprise product revenue increased to $217,000 compared to $89,000 for the same period in the previous year. All other revenues, composed primarily of security, legacy networking, support services and storage product lines, increased to $172,000, compared to $93,000 in the comparable period last year.Other loss, net was $78,000 and $3,000 for the three months ended March 31, 2010 and March 31, 2009, respectively. The increase in other loss, net for the three months ended March 31, 2010 primarily relates to the change in market value of our foreign exchange derivative financial instrument, which resulted in a loss of approximately $67,000. There were no foreign exchange contracts outstanding during the three months ended March 31, 2009. See Note 5 in the Notes to Condensed Consolidated Financial Statements for more information on derivative financial instruments.
We reported a net loss of $2.4 million for the three months ended March 31, 2010 and a net income of $707,000 for the three months ended March 31, 2009. Basic loss per share for the three months ended March 31, 2010 was ($0.34). Basic and diluted earnings per share for the three months ended March 31, 2009 was $0.11.
Trends in cash flows from operating activities for the three months ended March 31, 2010 and 2009 are generally similar to the trends in our earnings except for provision for uncollectible accounts and returns, provision for excess and obsolete inventories, depreciation and amortization, amortization of restricted stock and write-off of impaired capitalized software. Cash used in operating activities totaled $1.8 million for the three months ended March 31, 2010, compared to net loss of $2.4 million. Provision for uncollectible accounts and returns decreased $24,000 for the three months ended March 31, 2010 compared to the same period in 2009. Provision for excess and obsolete inventories remained consistent for the three months ended March 31, 2010, compared to the same period in 2009. Depreciation and amortization decreased slightly for the three months ended March 31, 2010, compared to the same period in 2009. Amortization of restricted stock decreased by $20,000 for the three months ended March 31, 2010, compared to the three months ended March 31, 2009. See Note 2 in the Notes to Condensed Consolidated Financial Statements for more information on restricted stock. Write off of impaired capitalized software increased by $2,000 for the three months ended March 31, 2010, compared to the same period in 2009.
Cash provided by investing activities totaled $257,000 and $1.7 million for the three months ended March 31, 2010 and March 31, 2009, respectively. Cash provided by investing activities in each of the periods related principally to proceeds from the sale of marketable securities, disbursements for additions to property and equipment, capitalized software and our investments in marketable securities. Additions to property and equipment and capitalized software were $19,000 for the three months ended March 31, 2010, compared to $51,000 for the three months ended March 31, 2009. The additions for the three months ended March 31, 2010, primarily related to software and equipment purchases for our engineering and sales and marketing functions. The additions for the three months ended March 31, 2009 primarily related to enhancements to our enterprise performance management system. Purchases of marketable securities decreased to $1.6 million for the three months ended March 31, 2010, compared to $2.3 million for the three months ended March 31, 2009. Proceeds from the sale of marketable securities decreased to $1.9 million for the three months ended March 31, 2010, compared to $4.0 million for the three months ended March 31, 2009.
We maintain a $5.0 million revolving bank credit facility maturing December 19, 2013 with an applicable interest rate on any outstanding balances under the credit facility based on LIBOR plus an applicable margin rate of 1.0% to 1.5%, based on certain factors included in our credit agreement. At March 31, 2010 and December 31, 2009, our interest rate on the $3.5 million borrowings under the revolving credit facility was 1.8% and 1.3%, respectively. The unused portion of the credit facility is subject to an unused facility fee ranging from .25% to .75% depending on total deposits with the creditor. All borrowings under this facility are secured by marketable securities. The borrowings of $3.5 million are classified as long-term debt on the accompanying balance sheets.
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