SOURCE: Concord Camera Corp.

September 14, 2006 17:10 ET

Concord Camera Corp. Announces the Filing of Its Annual Report on Form 10-K for the Fiscal Year Ended July 1, 2006

HOLLYWOOD, FL -- (MARKET WIRE) -- September 14, 2006 -- Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today reported financial results for the fourth quarter and fiscal year ended July 1, 2006 ("Fiscal 2006") and announced that it filed its Annual Report on Form 10-K for Fiscal 2006 with the Securities and Exchange Commission (see attached tables).

About Concord Camera Corp.

Concord Camera Corp., through its subsidiaries, is a global provider of popularly priced, single-use, digital and 35mm traditional film cameras. Concord markets and sells its cameras under the trademarks POLAROID, CONCORD, CONCORD EYE Q and JENOPTIK through in-house sales and marketing personnel who make the majority of the direct sales to its customers and by use of independent sales representatives to serve specific geographic areas worldwide. The POLAROID trademark is owned by Polaroid Corporation and is used by Concord under license from Polaroid. CONCORD and CONCORD EYE Q are trademarks and/or registered trademarks of Concord Camera Corp. in the United States and/or other countries. The JENOPTIK trademark is owned by Jenoptik AG and is used by Concord under license from Jenoptik AG. Learn more about Concord Camera Corp. at www.concord-camera.com.

Except for the historical information contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the Company's business and prospects, including the risks discussed under "Risk Factors" and disclosures in the Company's Annual Report on Form 10-K for the fiscal year ended July 1, 2006 and subsequently filed reports. Such forward-looking statements include, without limitation, statements regarding expected cost reductions, anticipated or expected results of the implementation of the Company's restructuring initiatives, cost-reduction initiatives, and new business initiatives, anticipated financial benefits of de-emphasizing the sale of digital cameras and eliminating its reliance on internally designed and manufactured digital cameras and increasing the design, co-development and purchase of digital cameras from outsourced manufacturers, the viability of marketing and selling digital cameras and competing in the digital camera market, the cost structure requirements needed to maintain a presence in the digital camera market and to market and sell digital cameras, the development of its business, anticipated revenues or capital expenditures, its ability to improve gross margin percentages on the sale of its products and projected profits or losses. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements in the future, we disclaim any intent or obligation to do so, even if our estimates change.

Concord Camera Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)

                                                   July 1,      July 2,
                                                     2006        2005
                                                  -----------  -----------
Assets
Current Assets:
   Cash and cash equivalents                      $     6,795  $     8,016
   Restricted cash                                      8,264            -
   Short-term investments                              23,550       35,200
   Accounts receivable, net                            16,648       31,860
   Inventories                                         28,260       36,382
   Deferred compensation assets                           372        8,711
   Prepaid expenses and other current assets            2,905        2,708
                                                  -----------  -----------
      Total current assets                             89,794      122,877
Property, plant and equipment, net                     13,778       16,672
Other assets                                            4,170        7,207
                                                  -----------  -----------
      Total assets                                $   104,742  $   146,756
                                                  ===========  ===========

 Liabilities and Stockholders’ Equity
Current Liabilities:
   Short-term borrowings under financing
    facilities                                    $         -  $     2,936
   Accounts payable                                    23,366       32,257
   Accrued expenses                                    14,711       14,108
   Deferred compensation liabilities                      315        8,688
   Other current liabilities                            1,559        3,127
                                                  -----------  -----------
      Total current liabilities                        39,951       61,116
   Other long-term liabilities                          1,824        3,337
                                                  -----------  -----------
      Total liabilities                                41,775       64,453
Commitments and contingencies

 Stockholders’ equity:
  Blank check preferred stock, no par value,
   1,000 shares authorized, none issued                    -             -
   Common stock, no par value, 100,000
    shares authorized; 30,925 shares issued
    as of July 1, 2006 and July 2, 2005               143,518      143,518
   Additional paid-in capital                           5,128        4,853
   Deferred share arrangement                             624          624
   Accumulated deficit                                (80,686)     (61,075)
                                                  -----------  -----------
                                                       68,584       87,920
   Less: treasury stock, at cost, 1,735
    shares as of July 1, 2006 and July 2, 2005         (4,993)      (4,993)
   Less: common stock held in trust, 509
    shares as of July 1, 2006 and July 2, 2005           (624)        (624)
                                                  -----------  -----------
      Total stockholders’ equity                       62,967       82,303
                                                  -----------  -----------
      Total liabilities and stockholders’ equity  $   104,742  $   146,756
                                                  ===========  ===========


Concord Camera Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)

                     For the Quarter Ended
                         (unaudited)            For the Fiscal Year Ended
                    --------------------------  --------------------------
                      July 1,        July 2,      July 1,       July 2,
                      2006            2005         2006           2005
                    ------------  ------------  ------------  ------------
Net sales           $     32,964  $     50,851  $    137,529  $    174,348

Cost of products
 sold                     28,310        47,993       122,928       180,130
                    ------------  ------------  ------------  ------------

Gross profit
 (deficit)                 4,654         2,858        14,601        (5,782)

Selling expenses           3,701         4,170        13,895        16,846

General and
 administrative
   expenses                5,006         5,398        20,978        22,948
                    ------------  ------------  ------------  ------------

Operating loss            (4,053)       (6,710)      (20,272)      (45,576)

Interest expense              60           164           374           931

Other (income)
 expense, net               (659)          911        (1,142)       (1,770)
                    ------------  ------------  ------------  ------------

Loss before income
 taxes                    (3,454)       (7,785)      (19,504)      (44,737)

Provision (benefit)
 for income taxes           (121)          (64)          107           186
                    ------------  ------------  ------------  ------------

Net loss            $     (3,333) $     (7,721) $    (19,611) $    (44,923)
                    ============  ============  ============  ============

Basic and diluted
 loss per common
 share              $      (0.11) $      (0.26) $      (0.67) $      (1.54)
                    ============  ============  ============  ============

Weighted average
 common shares
outstanding
 –basic and diluted       29,190        29,190        29,190        29,157
                    ============  ============  ============  ============


Contact Information

  • CONTACT:
    Concord Camera Corp.
    Blaine Robinson
    Vice President Finance and Treasurer
    (954) 331-4238