PHOENIX, Nov. 13, 2007 (PRIME NEWSWIRE) -- InPlay Technologies (Nasdaq:NPLA) today announced financial results for the third quarter ended September 30, 2007.
Total revenue for the third quarter of 2007 was $1.22 million, down from $3.09 million for the third quarter of 2006. Third quarter 2007 revenue includes $1.02 million in revenue from FinePoint and $204,000 from Duraswitch. InPlay reported a net loss for the third quarter of $1.07 million, or $0.09 per share as compared to a net loss of $257,000, or $0.02 per share, for the third quarter of 2006.
Consolidated gross margin was 10 percent for the quarter. FinePoint margin was negatively affected during the quarter due to inventory charges and expenses related to end-of-life of a product line for a major customer. Duraswitch margin was 68 percent, consistent with prior periods.
InPlay chairman and CEO, Steve Hanson, said, "Internally, our company has made significant changes in the last several months. Our new management team has formulated and implemented a strategic plan. We have put the procedures in place that we believe have strengthened our company and position us well to execute on our plan."
"We are augmenting our internal skills through strategic partners," Hanson continued. "We recently announced a partnership with a tier 1 manufacturing partner to support high quality, high volume production of our technology. We have also formed business development and customer support partners in Japan, Asia and India to expand our reach and provide local support in these regions."
"With the foundation that we have put in place, our on-going efforts are aimed at retention and acquisition of customers as well as cash management and profitable growth and sustainability of that growth," Hanson added.
Conference Call
InPlay Technologies will host a conference call today at 5:00 p.m. Eastern Time. To participate on the live call, analysts and investors should dial 800-257-7087 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-262-2139. InPlay Technologies will also offer a live and archived webcast of the conference call, accessible from the "Investor" section of the company's Web site, http://www.inplaytechnologies.com/investors.php. A telephonic replay of the conference call will also be available through November 15 by dialing 800-405-2236 and entering passcode 11100379#
About InPlay Technologies
InPlay Technologies is a developer of innovative human interface devices for electronic products. The company's FinePoint division offers the only digital-based pen-input solution for the rapidly growing mobile computing market. With InPlay's digital technology, OEMs have an almost limitless roadmap for development of new features and functions for their product designs. The Company's Duraswitch(r) brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches enabling OEMs to create ergonomic, space saving input panels for a wide range of applications. Visit www.inplaytechnologies.com for more information.
The InPlay Technologies, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4420
This news release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our estimation of the benefits of and our ability to execute on our strategic plan, our ability to win new business thereby increasing revenue and our ability to manage our cash use. Risks and uncertainties that could cause results to differ materially from those projected include changes in orders or timing from our licensees and OEM customers, inability to secure purchase orders from new customers, general changes in demand in our target industries, unanticipated expenses, unforeseen difficulties related to manufacturing our technologies, challenges to our intellectual property and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2006 as filed with the Securities and Exchange Commission on April 2, 2007. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
----------- ----------- ----------- -----------
NET REVENUE:
FinePoint $ 1,019,423 $ 2,885,685 $ 2,591,440 $ 6,821,748
Duraswitch:
Related party
- Delphi -- -- 7,631,250 --
Non-related
parties 203,780 203,631 711,733 536,713
----------- ----------- ----------- -----------
Total net
revenue 1,223,203 3,089,316 10,934,423 7,358,461
COST OF GOODS SOLD:
FinePoint 1,031,169 2,212,391 2,165,138 5,512,698
Duraswitch 65,596 71,758 287,757 207,606
----------- ----------- ----------- -----------
Total cost of
goods sold 1,096,765 2,284,149 2,452,895 5,720,304
----------- ----------- ----------- -----------
Gross profit 126,438 805,167 8,481,528 1,638,157
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Selling,
general and
administrative 834,401 745,038 3,898,332 2,205,306
Research,
development
and commercial
application
engineering 551,874 340,878 1,294,596 978,056
----------- ----------- ----------- -----------
Total
operating
expenses 1,386,275 1,085,916 5,192,928 3,183,362
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS (1,259,837) (280,749) 3,288,600 (1,545,205)
OTHER INCOME - Net 95,416 23,417 222,382 71,836
----------- ----------- ----------- -----------
INCOME (LOSS)
BEFORE INCOME
TAXES $(1,164,421) $ (257,332) $ 3,510,982 $(1,473,369)
----------- ----------- ----------- -----------
PROVISION FOR
(BENEFIT
FROM) INCOME
TAXES (93,508) -- -- --
----------- ----------- ----------- -----------
NET INCOME (LOSS) $(1,070,913) $ (257,332) $ 3,510,982 $(1,473,369)
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE -
BASIC $ (0.09) $ (0.02) $ 0.30 $ (0.13)
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE -
DILUTED $ (0.09) $ (0.02) $ 0.30 $ (0.13)
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES
OUTSTANDING,
BASIC 11,533,236 11,498,496 11,513,776 11,490,697
=========== =========== =========== ===========
DILUTED 11,533,236 11,498,496 11,574,242 11,490,697
=========== =========== =========== ===========
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2007 December 31, 2006
------------------ -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,874,540 $ 1,591,312
Accounts receivable 207,360 379,369
Inventory 160,441 1,159,629
Prepaid expenses and other
current assets 78,050 190,847
------------------ -----------------
Total current assets 7,320,391 3,321,157
PROPERTY AND EQUIPMENT - Net 479,348 510,167
GOODWILL 1,321,240 1,321,240
PATENTS - Net 1,238,100 1,303,474
OTHER ASSETS 23,422 12,258
------------------ -----------------
TOTAL ASSETS $ 10,382,501 $ 6,468,296
================== =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 530,183 $ 698,600
Accrued salaries and
benefits 606,603 498,090
Accrued purchase commitments 456,000 456,000
Other accrued expenses and
other current liabilities 306,600 192,974
Deferred revenue 25,526 25,526
------------------ -----------------
Total current liabilities 1,924,912 1,871,190
------------------ -----------------
LONG-TERM LIABILITIES:
Other non-current liabilities 250,644 851
------------------ -----------------
Total liabilities 2,175,556 1,872,041
------------------ -----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, no par value,
10,000,000 shares authorized,
no shares issued and
outstanding in 2007 and 2006 -- --
Common stock, $.001 par value,
40,000,000 shares authorized in
2007 and 2006, 11,535,138 and
11,502,315 shares issued and
outstanding in 2007 and 2006,
respectively 11,535 11,502
Additional paid-in capital 31,524,113 31,424,436
Accumulated deficit (23,328,703) (26,839,683)
------------------ -----------------
Total stockholders' equity 8,206,945 4,596,255
------------------ -----------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 10,382,501 $ 6,468,296
================== =================