Inrad Optics, Inc. Reports First Quarter 2014 Financial Results
NORTHVALE, NJ—Inrad Optics, Inc. has reported its consolidated financial results for the first quarter of 2014.
Revenue for the three months ending on March 31, 2014 was $1.9 million, down 38.1 percent from $3.8 million in the first quarter last year, as the Company experienced a decrease in shipments in the defense and university & national labs markets. Increased shipments in laser systems and process control & metrology markets partially offset the overall decline.
Bookings totaled $2.5 million in the first quarter of 2014, an increase of 17.3 percent from $2.1 million in the corresponding quarter of 2013. Bookings from a key defense prime contractor and two key semiconductor customers in Q1 offset a general contraction in both market segments.
Gross margin in the first quarter of 2014 was $36,000 or 7.1 percent of sales. This compares to a gross margin of $699,000 or 22.7 percent in the comparable quarter last year. However, the decrease in revenue was not fully offset by a corresponding decrease in the Company's manufacturing overhead costs, which are relatively fixed.
The Company reported a net loss of $875,000 in the first quarter of 2014, including $59,000 of restructuring costs related to the relocation of our Florida operations to the New Jersey facility. This compares to a net loss of $169,000 last year. The 2013 first quarter net loss reflects net severance and other costs of $67,000 after payroll savings in connection with a reduction in work force implemented by the Company. First quarter basic and diluted loss per share was $0.07 and $0.01 for the three months ending March 31, 2014 and 2013, respectively
Net cash used in operating activities was $323,000 and $204,000, for the three months ending March 31, 2014 and 2013, respectively. The increase in cash used in operating activities in first quarter of 2014 resulted primarily from the higher net loss generated in the current period partially offset by working capital improvements.
After investing and financing activities, net cash decreased by $455,000 and $493,000 in the three months ending March 31, 2014 and 2013, respectively. By March 31, 2014, the Company had cash and cash equivalents of approximately $2.0 million.
"My outlook for 2014 continues to be cautiously optimistic despite the decrease in first quarter 2014 revenue." said Amy Eskilson, president and CEO. "Our Q1 bookings were higher than anticipated, and quote activity was also higher compared with the first quarter of 2013. We continue to add customers and replace legacy, end-of-lifecycle programs with new orders. I am also happy to report that our Sarasota consolidation remains on schedule and on budget. The benefits of that effort will be manifest in the coming months."
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