SOURCE: Integral Vision

November 16, 2009 16:00 ET

Integral Vision, Inc. Announces Third Quarter 2009 Results

WIXOM, MI--(Marketwire - November 16, 2009) - Integral Vision, Inc. (OTCBB: INVI), a leading global supplier of automated display inspection technology, today announced financial results for the third quarter ending September 30, 2009.

Third Quarter 2009 Highlights

--  Integral Vision's largest customer continued to place orders for
    systems and engineering.  One of these orders, the Module Test System, is
    for the inspection of the final encapsulated display, and is significant as
    it may represent large volumes of repeat system orders.  We currently
    provide inspection in two locations in the production process of the
    display.  This customer has planned expansion that includes filling to
    capacity one recently built plant and adding a second plant before the end
    of 2010.
    
--  The Company has experienced substantially improved revenues and gross
    margin in the third quarter and in the nine months of 2009 over 2008.
    

Third Quarter 2009 Financial Review

--  Net revenue for the third quarter was $234,000 compared to $11,000 in
    the third quarter of 2008.
    
--  Third quarter operating loss was $536,000 compared to an operating
    loss of $927,000 in the third quarter of 2008.
    

Charles J. Drake, chairman and CEO of Integral Vision, Inc. commented, "Our improvement in results is representative of product traction. More significant is the emergence of several new display technologies such as MEMS, e-Paper and OLED. We are well positioned for multiple repeat orders from a number of customers that should make our near term revenue growth much improved."

Looking ahead, Drake added, "We have experienced a significant increase in activity, and the release of repeat orders from a variety of customers should be completed in this calendar year."

TO ACCESS THE LIVE CONFERENCE CALL

Integral Vision will host a live conference call at 4:30 p.m. (ET) on Monday, November 16, 2009. To access the conference call, please call 1-480-629-9761 or 1-877-941-4775 approximately 5 to 10 minutes prior to the scheduled start time.

TO ACCESS A REPLAY OF THE CONFERENCE CALL

If you are unable to listen to the live conference call, it will be archived for replay. Shortly after the call, a telephonic replay will be available through Wednesday, November 18, 2009 by dialing 1-303-590-3030 or 1-800-406-7325. The confirmation code 4174747 is required for the telephonic replay.

COMPANY'S INVESTOR E-MAIL LIST

To be added to Integral Visions investor email list, please contact Laura Guerrant-Oiye of Guerrant Associates at lguerrant@guerrantir.com.

ABOUT INTEGRAL VISION

Integral Vision, Inc. (OTCBB: INVI) offers display inspection technology that provides analysis of functional and cosmetic defects in the display to assure quality in the manufacturing process as well as verification of the final product. Integral Vision has been inspecting displays since 1992 and is an industry leader committed to providing automated solutions to the quality issues Microdisplay, OLED and LCD manufacturers face in today's competitive marketplace. More information can be found at Website: www.iv-usa.com.

"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such factors and uncertainties include, but are not limited to: competitive conditions in the Company's markets and the effect of competitive products and pricing; technological development by the Company, its customers and its competition; the Company's available cash and access to debt and equity financing; and general economic conditions and conditions in the specific industries in which the company has significant customers. As a result, the Company's results may fluctuate. Additional information concerning risk factors that could cause actual results to differ materially from those projected in the forward-looking statements are contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's best estimates as of the date of this press release. The Company assumes no obligation to update such estimates except as required by the rules and regulations of the Securities and Exchange Commission.

FINANCIAL INFORMATION

The summary financial information contained in this press release, including the following information in tabular form, should be read in conjunction with the more detailed information contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2009 and the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 16, 2009.

                          INTEGRAL VISION, INC.
                        Condensed Balance Sheets
                           September 30, 2009

                                              September 30,  December 31,
                                                  2009           2008
                                               (Unaudited)
                                              -------------  -------------
                                                     (in thousands)

Assets

Current assets:
  Cash                                        $          17  $         144
  Accounts receivable                                   102            208
  Inventories                                           275            325
  Other                                                 106            131
                                              -------------  -------------
Total current assets                                    500            808

Property and equipment:
  Building Improvements                                   4              4
  Production and engineering equipment                  347            234
  Furniture and fixtures                                 80             80
  Computer equipment                                    191            191
  Marketing/demonstration equipment                     139            139

                                              -------------  -------------
                                                        761            648
  Less accumulated depreciation                        (558)          (491)
                                              -------------  -------------
Net property and equipment                              203            157

Other assets -  net of accumulated
 amortization of $1,546,000
 ($1,519,000 for 2008)                                   62             72
                                              -------------  -------------
                                              $         765  $       1,037
                                              =============  =============



                          INTEGRAL VISION, INC.
                  Condensed Balance Sheets -Continued
                           September 30, 2009


                                              September 30,  December 31,
                                                  2009           2008
                                               (Unaudited)
                                              -------------  -------------
                                                     (in thousands)
Liabilities and Stockholders' Deficit:

Current liabilities:
  Notes payable-current                       $       7,082  $       1,786
  Notes payable-officers                                 19              -
  Accounts payable                                       90            141
  Accrued compensation and related costs                265            283
  Accrued interest                                      574            446
  Accrued product warranty                              126             84
  Other accrued liabilities                              81             54
  Customer deposits                                      36              -
  Deferred revenue for product sales                    250            656
                                              -------------  -------------
Total current liabilities                             8,523          3,450


Long-term debt                                            -          3,671

                                              -------------  -------------
Total liabilities                                     8,523          7,121
                                              -------------  -------------

Stockholders' deficit:
  Preferred stock, 400,000 shares authorized;
   none issued                                            -              -
  Common stock, without par value, stated
   value $.20 per share; 90,000,000 shares
   authorized; 30,066,409 shares issued
   and outstanding (29,566,409 in 2008)               6,013          5,913
  Additional paid-in capital                         47,652         47,391
  Accumulated deficit                               (61,423)       (59,388)
                                              -------------  -------------
Total stockholders' deficit                          (7,758)        (6,084)
                                              -------------  -------------
                                              $         765  $       1,037
                                              =============  =============



                   Condensed Statement of Operations
                           September 30, 2009


                                                  Three Months Ended
                                                     September 30,
                                                  2009           2008
                                              -------------  -------------
                                                      (Unaudited)
                                                (In thousands, except per
Revenue:                                               share data)
  Net product sales                           $         234  $          11
  Net revenue from product development
   agreements                                             -              -
                                              -------------  -------------
  Total revenues                                        234             11
Costs of sales:
  Costs of sales for products                           130             35
  Depreciation and amortization                           5              4
                                              -------------  -------------
Total costs of sales                                    135             39
                                              -------------  -------------
Gross margin                                             99            (28)

Other costs and expenses:
  Marketing                                             110            160
  General and administrative - net                      340            470
  Engineering and development - net                     185            269
                                              -------------  -------------
Total other costs and expenses                          635            899
                                              -------------  -------------
Operating loss                                         (536)          (927)
Other income (loss)                                      (2)             3
Interest expense                                       (215)          (466)
Extinguishment loss from modification and
 exchanges of debt instruments                            -         (2,644)
Modification and issue of warrants to PIPE
 Equity Investors                                         -         (4,217)
                                              -------------  -------------
Net loss                                      $        (753) $      (8,251)
                                              =============  =============

Basic and diluted loss per share:
  Net loss                                    $       (0.03) $       (0.28)
                                              =============  =============


Weighted average number of shares of common
 stock and common stock equivalents, where
 applicable                                          30,066         29,566
                                              =============  =============



                          INTEGRAL VISION, INC.
                   Condensed Statements of Operations


                                                   Nine Months Ended
                                                     September 30,
                                                  2009           2008
                                              -------------  -------------
                                                      (Unaudited)
                                                (In thousands, except per
Revenue:                                              share data)
  Net product sales                           $       1,479  $         466
  Net revenue from product development
   agreements                                             -             25
                                              -------------  -------------
  Total revenues                                      1,479            491
Costs of sales:
  Costs of sales for products                           667            292
  Depreciation and amortization                          12             13
                                              -------------  -------------
Total costs of sales                                    679            305
                                              -------------  -------------
Gross margin                                            800            186

Other costs and expenses:
  Marketing                                             375            499
  General and administrative - net                    1,133          1,143
  Engineering and development - net                     724            729
                                              -------------  -------------
Total other costs and expenses                        2,232          2,371
                                              -------------  -------------
Operating loss                                       (1,432)        (2,185)
Other income (loss)                                      (2)             3
Interest expense                                       (583)          (703)
Extinguishment loss from modification and
 exchange of debt instruments                           (18)        (2,644)
Modifications and issuance of warrants to
 PIPE Equity Investors                                    -         (4,217)
                                              -------------  -------------
Net loss                                      $      (2,035) $      (9,746)
                                              =============  =============

Basic and diluted loss per share:
  Net loss                                    $       (0.07) $       (0.33)
                                              =============  =============


Weighted average number of shares of common
 stock and common stock equivalents, where
 applicable                                          30,066         29,566
                                              =============  =============

Contact Information

  • Contacts:

    Corporation:
    Integral Vision, Inc.
    Charles J. Drake
    (248) 668-9230
    Email Contact

    Investors and Media:
    Guerrant Associates
    Laura Guerrant-Oiye
    (808) 882-1467
    Email Contact