IPIX Reports Results for First Quarter 2005
RESTON, Va .- May 11, 2005 -IPIX Corporation
(NASDAQ: ), a premier supplier of 360°, immersive imaging technologies, announced today financial results for the quarter ended March 31, 2005, and comparable prior year results:
For the Three Months Ended March 31, 2005 2004
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(in thousands, except per share data)
Revenue $ 668 $ 476
Operating expenses $4,928 $1,986
Loss from continuing operations $4,521 $1,803
Loss from discontinued operations, net of taxes $1,360 $1,407
Net loss per common share, basic and diluted ($0.27) ($0.41)
Revenue increased 40% for the quarter ended March 31, 2005, compared to the same period in the prior year, primarily due to sales of 360° cameras from the immersive video product line. Also of note, IPIX completed the sale of its AdMission business unit on February 11, 2005, which is reported as discontinued operations in 2005 and prior years.
Operating expenses increased due to sales and marketing expenditures focused on building strong direct and channel sales for the immersive video product line, as well as increased marketing and trade show activities. General and administrative expenses increased in the first quarter of 2005 as a result of additional resources of accounting and legal consultants assisting in the reporting of discontinued operations and Sarbanes-Oxley compliance.
The first quarter of 2005 included the launch of IPIX's new CommandView(TM) Day/Night Camera at the ISC-West Conference in Las Vegas, as well as technology partnerships with VistaScape and ObjectVideo, two leading providers of intelligent video surveillance software.
"Our new technology and distribution partnerships, as well as the launch of our Day/Night camera, are representative of the significant investment we have made to meeting marketplace demand, building sales channels, and re-establishing our core operations and infrastructure," said IPIX President and CEO Clara Conti. "All of these have been essential elements for achieving our business and sales objectives."
About IPIX Corporation
IPIX Corporation is a premium provider of immersive imaging products for government and commercial applications. We combine experience, patented technology and strategic partnerships to deliver visual intelligence solutions worldwide. IPIX's immersive, 360° imaging technology has been used to create high-resolution digital still photography and video products for surveillance, visual documentation and forensic analysis. www.ipix.com
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors under those sections. In some cases, you can identify forward-looking statements by terminology such as "expect," "believe," "may," "will," "plans" and "anticipate," or the negative of such terms or comparable terminology. Forward-looking statements appearing herein include statements concerning operating and profitability plans and goals and restructuring efforts and are based on current expectations.
Actual results may differ materially from those projected in the forward-looking statements based upon a number of factors including:
- changes in the demand for our products and services,
- our third-party supplier's ability to deliver high quality components to us in a timely fashion,
- our ability to control or effect reductions in costs,
- uncertainty regarding our ability to continue as a going concern,
- our ability to raise capital and fund our operations,
- our ability to attract and retain highly qualified personnel,
- our ability to design, manufacture and deliver high quality products in a timely fashion or
- the burdens and costs of defending against potential infringement claims.
The matters discussed in this press release also involve risks and uncertainties described from time to time in documents filed with the Securities and Exchange Commission, including but not limited to Form 10-Ks, Form 10-K/As, Form 10-Qs, Form S-3s and Form 8-Ks ().
IPIX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, Dec. 31,
2005 2004
----------- ---------
(unaudited) (1)
(in thousands, except share amounts)
ASSETS
Cash and cash equivalents $8,896 $12,784
Restricted cash and short term investments 1,180 550
Short term investments 895 895
Accounts receivable, net 293 414
Inventory, net 2,401 2,334
Prepaid expenses and other current assets 1,678 1,512
Assets held for sale for discontinued operations -- 321
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Total current assets 15,343 18,810
Computer hardware, software and other, net 912 716
Restricted cash and other long term assets 88 718
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Total assets $16,343 $20,244
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $696 $1,043
Accrued liabilities 3,818 3,376
Deferred revenue 137 84
Liabilities held for sale for discontinued
operations -- 164
Current portion of obligations under capital
leases -- 220
----------- ---------
Total current liabilities 4,651 4,887
Other long term liabilities 109 142
----------- ---------
Total liabilities 4,760 5,029
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STOCKHOLDERS' EQUITY:
Preferred stock , $0.001 par value, 5,001,100
authorized, 290,347 shares issued and
outstanding......
(Aggregate liquidation value: $7,440 and $7,325) -- --
Common stock, $0.001 par value, 50,000,000
authorized, 22,239,154 and 21,539,058 shares
issued and outstanding 22 22
Additional paid-in capital 535,908 533,659
Accumulated deficit (524,347) (518,466)
----------- ---------
Total stockholders' equity 11,583 15,215
----------- ---------
Total liabilities and stockholders' equity $16,343 $20,244
=========== =========
(1) The December 31, 2004 balances were derived from the audited
consolidated financial statements.
IPIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended
March 31,
-------------------
2005 2004
--------- ---------
(in thousands, except per share data)
Revenue:
Hardware $317 $213
Licenses and other 351 263
--------- ---------
Total revenue 668 476
--------- ---------
Cost of revenue:
Hardware 170 145
Licenses and other 196 152
--------- ---------
Total cost of revenue 366 297
--------- ---------
Gross profit 302 179
--------- ---------
Operating expenses:
Sales and marketing 1,715 847
Research and development 666 446
General and administrative 2,294 693
Loss on impairment of investment 253 --
--------- ---------
Total operating expenses 4,928 1,986
--------- ---------
Loss from operations (4,626) (1,807)
Other 105 4
--------- ---------
Loss from continuing operations (4,521) (1,803)
Loss from discontinued operations, net of taxes (1,360) (1,407)
--------- ---------
Net loss (5,881) (3,210)
Preferred stock dividends (115) (400)
--------- ---------
Net loss available to common stockholders $(5,996) $(3,610)
========= =========
Basic and diluted loss per share:
Continuing operations $(0.21) $(0.25)
Discontinued operations (0.06) (0.16)
--------- ---------
Net loss per common share to common stockholders -
basic and diluted $(0.27) $(0.41)
Weighted average common shares, basic and diluted 21,938 8,901About IPIX
IPIX Corporation ("IPIX") is a premium provider of immersive imaging products for government and commercial applications. We combine experience, patented technology and strategic partnerships to deliver visual intelligence solutions worldwide. Our immersive, 360° imaging technology has been used to create high-resolution digital still photography and video products for surveillance, visual documentation and forensic analysis. www.ipix.com
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IPIX Media Contact
Susan Diegelman
(703) 287-7816
sdiegelman@sheahedges.comBest viewed in IE 6, Mozilla 1.7x, Netscape 7.x and above. plug-ins are required for some content.
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