SAN JOSE, Calif., Aug. 11 /PRNewswire-FirstCall/ -- NOVT Corporation today announced a net loss of $499,000 or $0.12 loss per share for the three months ended June 30, 2006, as compared to a net loss of $2,580,000 or $0.63 loss per share for the three months ended June 30, 2005. NOVT Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2006 December 31, (Unaudited) 2005 (1) ASSETS Current assets: Cash and cash equivalents $7,522 $10,449 Restricted cash - 1,864 Short-term investments - 349 Accounts receivable and other receivable 824 476 Inventory, net - 19 Assets held for sale - 419 Prepaid expenses and other current assets 159 431 Total current assets 8,505 14,007 Property and equipment, net - 81 $8,505 $14,088 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $270 $571 Accrued expenses 1,141 2,862 Unearned revenue - 367 Total current liabilities 1,411 3,800 Stockholders’ equity: Common stock 41 41 Additional paid-in capital 187,980 187,971 Accumulated other comprehensive loss (6) - Accumulated deficit (180,749) (177,552) Treasury stock, at cost, 10,733 shares (172) (172) Total stockholders’ equity 7,094 10,288 $8,505 $14,088 (1) Amounts are derived from the December 31, 2005 audited financial statements. NOVT Corporation UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data) Three months ended Six months ended June 30, June 30, 2006 2005 2006 2005 Net sales $ - $2,299 $406 $5,712 Cost of sales - 895 411 5,014 Gross margin (loss) - 1,404 (5) 698 Operating expenses: Research and development - 102 55 536 Sales and marketing - 938 321 3,640 General and administrative 589 3,105 3,655 5,982 Total operating expenses 589 4,145 4,031 10,158 Loss from operations (589) (2,741) (4,036) (9,460) Interest income and other 90 161 836 325 Net loss $(499) $(2,580) $(3,200) $(9,135) Basic and diluted net loss per share $(0.12) $(0.63) $(0.78) $(2.24) Shares used in computing basic and diluted net income (loss) per share 4,084 4,084 4,084 4,084 About NOVT Corporation
On March 9, 2006, NOVT completed the sale of substantially all the assets of its vascular brachytherapy business. NOVT’s strategic plan is to redeploy its existing resources to identify and acquire new business operations. NOVT’s redeployment strategy will involve the acquisition of one or more operating businesses with existing or prospective taxable earnings. This strategy may allow NOVT to realize future cash flow benefits from its net operating loss carry-forwards (“NOLs”). In connection with the redeployment strategy, NOVT from time to time may review potential acquisitions, conduct due diligence, enter into letters of intent or similar agreements or otherwise evaluate potential acquisitions, and if it deems advisable, negotiate definitive acquisition agreements. No assurance can be given that the Company will find suitable candidates, and if it does, that it will be able to utilize its existing NOLs. NOVT’s common stock is currently traded in the Pink Sheets under the symbol NOVT.PK. For general company information, please visit NOVT’s website at NOVTCorporation.com.
Safe Harbor Warning
Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release, which are not strictly historical statements, constitute forward-looking statements. Actual results or events could differ materially from those anticipated in forward-looking statements. These risks and uncertainties include the Company’s ability to succeed in its redeployment strategy, as well as risks and uncertainties that are set forth from time to time in the Company’s SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in the Company’s expectations or events, conditions or circumstances on which any such statement may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
NOVT Corporation
CONTACT: Terry Gibson of NOVT Corporation, +1-408-236-7517
