SOURCE: American Defense Systems, Inc.

American Defense Systems, Inc.

August 23, 2011 16:30 ET

American Defense Systems, Inc. Announces Financial Results for the Period Ended June 30, 2011

LILLINGTON, NC--(Marketwire - Aug 23, 2011) - American Defense Systems, Inc. ("ADSI" or the "Company") (NYSE Amex: EAG), a leading provider of advanced transparent and opaque armor, architectural hardening and security products for Defense and Homeland Security, announced today that it has filed with the Securities and Exchange Commission (the "SEC") its Quarterly Report on Form 10-Q for the period ended June 30, 2011.

Summary Consolidated Financial Results for the period ended June 30, 2011

Revenues for the six months ended June 30, 2011 were $4.4 million, a decrease of $15.6 million, or 78%, as compared to revenues of $20.0 million in the comparable period in 2010. Gross profits for the six months ended June 30, 2011 and 2010 were $1.9 million and $6.3 million, respectively. Gross profit margin was 42% and 31% for six months ended June 30, 2011 and 2010, respectively.

Revenues for the three months ended June 30, 2011 were $1.8 million, a decrease of $6.9 million, or 79%, as compared to revenues of $8.7 million in the comparable period in 2010. Gross profits for the three months ended June 30, 2011 and 2010 were $0.7 million and $1.5 million, respectively. Gross profit margin was 39% and 18% for three months ended June 30, 2011 and 2010, respectively.

For the quarter ended June 30, 2011, the Company reported a net loss of $1.8 million, or $0.03 per share, compared to a net loss of $3.7 million, or $0.08 per share, for the same period in 2010. Net loss per share for the quarter ended June 30, 2011 was based on weighted average of 54.4 million shares outstanding, compared to a weighted average of 47.9 million shares outstanding for the comparable period in 2010.

As of June 30, 2011, the Company had a working capital deficit of $(578,841), an accumulated deficit of $16,131,518, shareholders' equity of $504,640 and cash on hand of $133,039. The Company had net cash used in operations of $1,681,284 and $743,772 for the six months ended June 30, 2011 and 2010, respectively. The Company has sought to raise capital and continues its efforts to obtain access to capital sufficient to permit the Company to meet its future cash flow needs, though there can be no assurance that the Company will be able to obtain additional financing on commercially reasonable terms or at all. The Company also continues to explore all sources of increasing revenue. If the Company is unable in the near term to raise capital or increase revenue, it will not have sufficient cash to sustain its operations for the next twelve months.

Certain statements in this release are "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. Forward-looking statements provide current expectations of future events based on certain assumptions and actual results could differ materially from those expected. Forward-looking statements also include any statement that does not directly relate to any historical or current fact. ADSI undertakes no obligation to publicly update any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact Information

  • Company Contacts:
    Gary Sidorsky
    Chief Financial Officer
    American Defense Systems, Inc.
    Tel 516.398.3664
    Email Contact