SOURCE: Concord Camera Corp.

November 13, 2006 19:10 ET

Concord Camera Corp. Announces the Filing of Its Quarterly Report on Form 10-Q for the First Quarter of Fiscal 2007

HOLLYWOOD, FL -- (MARKET WIRE) -- November 13, 2006 -- Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today reported (see attached tables) financial results for the first quarter of Fiscal 2007 which ended September 30, 2006 and announced that it filed its Quarterly Report on Form 10-Q for the first quarter of Fiscal 2007 with the Securities and Exchange Commission.

About Concord Camera Corp.

Concord Camera Corp., through its subsidiaries, is a global provider of popularly priced, single-use and 35mm traditional film cameras. Concord markets and sells its cameras under the trademarks POLAROID, CONCORD and JENOPTIK through in-house sales and marketing personnel and independent sales representatives. The POLAROID trademark is owned by Polaroid Corporation and is used by Concord under license from Polaroid. CONCORD is a trademark and/or registered trademark 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.

The statements contained in this report that are not historical facts are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995), which can be identified by the use of forward-looking terminology such as: "estimates," "projects," "anticipates," "expects," "intends," "believes," "plans," "forecasts" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors. For a discussion of some of the factors that could cause actual results to differ, see the discussion under "Risk Factors" below and in our Form 10-K for the fiscal year ended July 1, 2006 and subsequently filed reports. We wish to caution the reader that these forward-looking statements, including, without limitation, statements regarding expected cost reductions, anticipated or expected results of the implementation of our restructuring initiatives, cost-reduction initiatives, and possible new business initiatives, anticipated financial benefits of de-emphasizing the sale of digital cameras, eliminating our reliance on internally designed and manufactured digital cameras and increasing the design, co-development and purchase of digital cameras from outsourced manufacturers and increasing our emphasis on the sale of single-use and 35mm traditional film cameras, the viability of marketing and selling cameras and competing in the camera market, the cost structure requirements needed to maintain a presence in the camera market and to market and sell cameras, the development of our business, anticipated revenues or capital expenditures, our ability to maintain or improve gross margin percentages on the sale of our products, projected profits or losses and other statements contained in this report regarding matters that are not historical facts, are only estimates or predictions. No assurance can be given that future results will be achieved. Actual events or results may differ materially as a result of risks facing us or actual results differing from the assumptions underlying such statements. In particular, our expected results could be adversely affected by, among other things, production difficulties or economic conditions negatively affecting the market for our products, by our inability to develop and maintain relationships on favorable terms with component and material suppliers and contract manufacturers or by our inability to negotiate favorable terms with our licensors. Obtaining the results expected from the introduction of any new products or product lines may require timely completion of development, successful ramp-up of full-scale production on a timely basis and customer and consumer acceptance of those products. In addition, future relationships or agreements may require an ability to meet high quality and performance standards, to successfully implement production at greatly increased volumes and to sustain production at greatly increased volumes, as to all of which there can be no assurance. There also can be no assurance that products and new business initiatives under consideration or development will be successfully developed or that once developed such products and initiatives will be commercially successful. Any forward-looking statements contained in this report represent our estimates only as of the date of this report, or as of such earlier dates as are indicated herein, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

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


                                                  September 30,
                                                      2006       July 1,
                                                  (Unaudited)      2006
                                                  -----------  -----------
Assets
   Current Assets:
   Cash and cash equivalents                      $     6,383  $     6,795
   Restricted cash                                      9,199        8,264
   Short-term investments                              26,625       23,550
   Accounts receivable, net                            10,893       16,648
   Inventories                                         21,428       28,260
   Prepaid expenses and other current assets            2,397        3,277
                                                  -----------  -----------
      Total current assets                             76,925       86,794
Property, plant and equipment, net                     12,959       13,778
Other assets                                            3,816        4,170
                                                  -----------  -----------
      Total assets                                $    93,700  $   104,742
                                                  ===========  ===========

Liabilities and Stockholders’ Equity
Current Liabilities:
   Short-term borrowings under financing
    facilities                                    $     2,545  $        --
   Accounts payable                                    13,208       23,366
   Accrued expenses                                    12,716       14,711
   Other current liabilities                            2,024        1,874
                                                  -----------  -----------
      Total current liabilities                        30,493       39,951
Other long-term liabilities                             1,854        1,824
                                                  -----------  -----------
      Total liabilities                                32,347       41,775
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
    September 30, 2006 and July 1, 2006               143,518      143,518
   Additional paid-in capital                           5,154        5,128
   Deferred share arrangement                             413          624
   Accumulated deficit                                (82,326)     (80,686)
                                                  -----------  -----------
                                                       66,759       68,584
   Less: treasury stock, at cost, 1,735 shares as
    of September 30, 2006 and July 1, 2006             (4,993)      (4,993)
   Less: common stock held in trust, 331 and 509
    shares as of September 30, 2006 and July 1,
    2006                                                 (413)        (624)
                                                  -----------  -----------
      Total stockholders’ equity                       61,353       62,967
                                                  -----------  -----------
      Total liabilities and stockholders’ equity  $    93,700  $   104,742
                                                  ===========  ===========




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


                                                   For the quarter ended
                                                  ------------------------

                                                 September 30,  October 1,
                                                      2006         2005
                                                  -----------  -----------

Net sales                                         $    28,825  $    44,586

Cost of products sold                                  24,322       40,457
                                                  -----------  -----------

Gross profit                                            4,503        4,129

Selling expenses                                        2,787        3,537

General and administrative expenses                     3,738        6,306
                                                  -----------  -----------
Operating loss                                         (2,022)      (5,714)

Interest expense                                           66          101

Other income, net                                        (465)        (105)
                                                  -----------  -----------

Loss before income taxes                               (1,623)      (5,710)
Provision for income taxes                                 17           50
                                                  -----------  -----------

Net loss                                          $    (1,640) $    (5,760)
                                                  ===========  ===========

Basic and diluted loss per common share           $     (0.06) $     (0.20)
                                                  ===========  ===========

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

Contact Information

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