HOLLYWOOD, FL -- 03/31/08 --
Concord Camera Corp. ("Concord" or "Company")
(NASDAQ: LENS) today reported financial results for the second quarter of
fiscal 2008 ended December 29, 2007 and announced that it filed its
Quarterly Report on Form 10-Q for the second quarter of fiscal 2008 with
the Securities and Exchange Commission (see attached tables).
About Concord Camera Corp.
Concord Camera Corp., through its subsidiaries, is a global provider of
easy-to-use single-use and traditional film cameras. Concord currently
markets and sells its cameras on a private-label basis and under the
POLAROID and POLAROID FUNSHOOTER brands through in-house sales and
marketing personnel and independent sales representatives. The POLAROID
trademark is owned by Polaroid Corporation and is used by Concord under
license from Polaroid. The FUNSHOOTER trademark is a registered trademark
of Concord Camera Corp. in the United States and other countries. Learn
more about Concord Camera Corp. at www.concord-camera.com.
Except for the historical information contained herein, statements in this
press release are forward-looking and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that forward-looking statements involve risks and
uncertainties that may affect the Company's business and prospects,
including the risks discussed under "Risk Factors" and disclosures in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30,
2007 and subsequently filed reports We wish to caution the reader that
these forward-looking statements, including, without limitation, statements
regarding expected cost reductions, anticipated or expected results of the
implementation of our cost-reduction initiatives and new business
initiatives, anticipated financial benefits of exiting the digital camera
market and increasing our focus on the sale of single-use and traditional
film cameras, the consequences of the loss of any significant customer,
potential new business initiatives, the acquisition of new customers, the
development of our business, anticipated revenues or capital expenditures,
our ability to improve gross margin percentages on the sale of our
products, projected profits or losses, our expectations regarding the
amount of expected cash payments related to severance costs, our assessment
of and estimates of royalty payments in connection with intellectual
property claims, the vesting period over which unrecognized compensation
expense will be realized, the sufficiency of our working capital and cash
to fund our operations in the next twelve months, our expectations
regarding the liquidity of our auction rate securities, our belief
regarding the lack of merit in pending litigations, our belief regarding
the lack of a material impact that the resolution of routine legal matters
will have in our business, coverage from our insurance carrier in
connection with pending litigations, our expectation that there is no
material tax exposure to the Company on account of our operations in the
People's Republic of China and the consequences of the loss of our
authorizations in the People's Republic of China and other statements
contained in this report regarding matters that are not historical facts,
are only estimates or predictions. No assurance can be given that future
results will be achieved. Actual events or results may differ materially
as a result of risks facing us or of actual results differing from the
assumptions underlying such statements. In particular, our expected
results could be adversely affected by, among other things, regulatory
conditions negatively affecting our product costs, production difficulties
or economic conditions negatively affecting our suppliers, customers or the
market for our products, by our inability to develop and maintain
relationships with suppliers, customers or licensors, by our inability to
negotiate favorable terms with our suppliers, customers or licensors, by a
further decline in the unit sales of our single-use and traditional film
cameras, by a further decrease in the average selling price of our film
camera products, or by the continued failed auctions and the market
uncertainty for auction rate securities. Obtaining the results expected
from the introduction of any new products or product lines may require
successful and timely completion of development, successful and timely
ramp-up of full-scale production and customer and consumer acceptance of
those products, as to all of which there can be no assurance. In addition,
future relationships or agreements may require an ability to meet high
quality and performance standards and to implement and sustain production
successfully at greatly increased volumes, as to all of which there can be
no assurance. There also can be no assurance that products and new
business initiatives under consideration or development will be
successfully developed or that once developed such products and initiatives
will be commercially successful. Any forward-looking statements contained
in this report represent our estimates only as of the date of this report,
or as of such earlier dates as are indicated herein, and should not be
relied upon as representing our estimates as of any subsequent date. While
we may elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if our
estimates change.
Concord Camera Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
December 29,
2007 June 30,
(Unaudited) 2007
---------- ----------
Assets
Current Assets:
Cash and cash equivalents $ 4,479 $ 3,853
Restricted cash 6,200 6,200
Short-term investments 2,550 30,475
Accounts receivable, net 7,772 10,702
Inventories 13,534 15,806
Prepaid expenses and other current assets 1,121 1,401
---------- ----------
Total current assets 35,656 68,437
Long-term investments 25,200 -
Property, plant and equipment, net 9,207 10,616
Other assets 3,437 3,451
---------- ----------
Total assets $ 73,500 $ 82,504
========== ==========
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings under financing facilities $ 7,438 $ 2,756
Accounts payable 9,286 17,042
Accrued royalties 2,614 2,499
Accrued expenses 4,341 5,775
Other current liabilities 1,011 1,346
---------- ----------
Total current liabilities 24,690 29,418
Other long-term liabilities 1,198 1,442
---------- ----------
Total liabilities 25,888 30,860
Commitments and contingencies
Stockholders' equity:
Blank check preferred stock, no par value,
1,000 shares authorized, none issued - -
Common stock, no par value, 20,000 shares
authorized; 6,261 shares issued as of
December 29, 2007 and June 30, 2007 143,860 143,860
Additional paid-in capital 5,195 5,189
Deferred share arrangement - 413
Accumulated deficit (96,450) (92,412)
---------- ----------
52,605 57,050
Less: treasury stock, at cost, 347 shares as of
December 29, 2007 and June 30, 2007 (4,993) (4,993)
Less: common stock held in trust, 0 and 66 shares
as of December 29, 2007 and June 30, 2007 - (413)
---------- ----------
Total stockholders' equity 47,612 51,644
---------- ----------
Total liabilities and stockholders' equity $ 73,500 $ 82,504
========== ==========
Concord Camera Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
For the Quarter Ended
(unaudited) For the Fiscal Year Ended
------------------------ --------------------------
December 29, December 30, December 29, December 30,
2007 2006 2007 2006
----------- ----------- ------------ -----------
Net sales $ 18,404 $ 19,338 $ 40,102 $ 48,163
Cost of products
sold 17,098 17,837 35,781 42,159
----------- ----------- ------------ -----------
Gross profit 1,306 1,501 4,321 6,004
Selling expenses 1,821 2,344 3,994 5,317
General and
administrative
expenses 2,817 3,286 5,659 6,839
----------- ----------- ------------ -----------
Operating loss (3,332) (4,129) (5,332) (6,152)
Interest expense 124 98 201 164
Other income, net (456) (698) (772) (1,163)
----------- ----------- ------------ -----------
Loss before income
taxes (3,000) (3,529) (4,761) (5,153)
(Benefit) provision
for income taxes (787) 18 (785) 35
----------- ----------- ------------ -----------
Net loss $ (2,213) $ (3,547) $ (3,976) $ (5,188)
=========== =========== ============ ===========
Basic and diluted
loss per common
share $ (0.37) $ (0.61) $ (0.67) $ (0.89)
=========== =========== ============ ===========
Weighted average
common shares
outstanding - basic
and diluted 5,914 5,846 5,914 5,842
=========== =========== ============ ===========
CONTACT:
Concord Camera Corp.
Blaine Robinson
Vice President - Finance and Treasurer
(954) 331-4238
