Optibase, Ltd., a leader in advanced digital video solutions today announced financial results for the third quarter ended September 30, 2006.
Revenues for the third quarter ended September 30, 2006 were $4.3 million, comparable to $4.3 million in the second quarter of 2006 and, as compared with $5 million for the same period a year ago.
Net loss for the quarter ended September 30, 2006, was $589,000 or $0.04 per basic and fully diluted share, compared with a net loss of $1.1 million or $0.08 per basic and fully diluted share for the second quarter of 2006 and with a net loss of $176,000 or $0.01 per basic and fully diluted share for the third quarter of 2005. Weighted average shares outstanding used in the calculation for the periods were approximately 13.5 million basic and fully diluted for the third quarter of 2006, 13.4 million basic and fully diluted for the second quarter of 2006 and approximately 13.2 million basic and fully diluted for the third quarter of 2005.
For the nine months ended September 30, 2006, revenues totaled $12.6 million, compared with $18.5 million for the same period in 2005. Net loss for the period was $3 million or $0.22 per basic and fully diluted share, compared to a net loss of $237,000 or $0.02 per basic and fully diluted share for the nine months ended September 30, 2005. Weighted average shares outstanding used in the calculation for the periods were approximately 13.4 million and 13.2 million respectively.
As of September 30, 2006, the Company had cash, cash equivalents and long term investments in marketable securities and other financial investments, net, of $42.1 million, and shareholders? equity of $43.6 million.
Danny Lustiger, CFO of Optibase, said, ?This quarter we saw a number of encouraging signs from carriers and operators in Europe, Asia and North America. There were a number of important developments and achievements for Optibase that helped our positioning in the IPTV market and we enter the fourth quarter with a healthy backlog. We received a follow-on order from MTNL in India for an additional 74 channels, bringing to 100 the total number of MPEG-4 H.264 channels offered in India?s largest IPTV deployment to date. Additionally, this quarter, we provided our IPTV solution to a leading IPTV system provider and operator in the Chinese market, VCOM. VCOM and China NetCom are integrating our technology to stream live and pre-recorded MPEG-2 satellite feeds into video servers, which VCOM will distribute to subscribers over NetCom's xDSL platform.?
He concluded, ?We remain confident in the long-term growth potential of the IPTV market and believe that our range of advanced technology solutions is able to effectively meet the emerging needs of carriers and other service providers as this space continues to mature.?
Optibase has scheduled a conference call for 9 a.m. EDT today, November 30, to discuss the third quarter results. For those unable to participate there will be replay available from 12:00 p.m. EDT October 30, 2006, through 11:59 p.m. EDT, November 6, 2006. Please call: 1-973-341-3080 (Domestic & International), ID REPLAY CODE: 8046322.
Interested parties may access the conference call over the Internet via, www.kcsa.com. To listen to the live call, please go to the KCSA Web site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
Optibase provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company?s platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase?s breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in, Japan, China, India and Singapore. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For further information, please visit www.optibase.com.