SOURCE: Concord Camera Corp

February 08, 2007 09:17 ET

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

HOLLYWOOD, FL -- (MARKET WIRE) -- February 8, 2007 -- Concord Camera Corp. (NASDAQ: LENS) today reported financial results for the second quarter ended December 30, 2006 and the first six months of the fiscal year ending June 30, 2007 (see tables below) and announced that it filed its Quarterly Report on Form 10-Q for the second quarter of fiscal 2007 with the Securities and Exchange Commission.

About Concord Camera Corp.

Concord Camera Corp. ("Concord" or "Company"), 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 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 possible new business initiatives; anticipated financial benefits of de-emphasizing the sale of digital cameras; eliminating reliance on internally designed and manufactured digital cameras and increasing the design, co-development and purchase of digital cameras from outsourced manufacturers and increasing the 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 the Company's business; anticipated revenues or capital expenditures; preliminary estimates of the potential range of royalties the Company may have to pay to two entities for alleged infringement; its expectation of increases in sales to certain customers; its ability to maintain or improve gross profit on the sale of its products; and projected profits or losses and other statements contained in this press release regarding matters that are not historical facts are only estimates or predictions. No assurance can be given that future results will be achieved. Any forward-looking statements contained in this press release represent the Company's estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing estimates as of any subsequent date. While the Company may elect to update forward-looking statements in the future, it disclaims any intent or obligation to do so, even if the estimates change.

Concord Camera Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
                                                December 30,
                                                    2006        July 1,
                                                (Unaudited)      2006
                                                ------------  ------------
Assets
Current Assets:
  Cash and cash equivalents                     $      4,084  $      6,795
  Restricted cash                                      6,200         8,264
  Short-term investments                              32,150        23,550
  Accounts receivable, net                             8,920        16,648
  Inventories                                         16,471        28,260
  Prepaid expenses and other current assets            2,245         3,277
                                                ------------  ------------
    Total current assets                              70,070        86,794
Property, plant and equipment, net                    12,081        13,778
Other assets                                           3,680         4,170
                                                ------------  ------------
    Total assets                                $     85,831  $    104,742
                                                ============  ============

Liabilities and Stockholders' Equity
Current Liabilities:
  Short-term borrowings under financing
   facilities                                   $      3,114  $          -
  Accounts payable                                     8,617        23,366
  Accrued expenses                                    12,542        14,711
  Other current liabilities                            2,003         1,874
                                                ------------  ------------
    Total current liabilities                         26,276        39,951
Other long-term liabilities                            1,391         1,824
                                                ------------  ------------
    Total liabilities                                 27,667        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, 20,000 shares
     authorized; 6,261 and 6,185 shares issued
     as of December 30, 2006 and July 1, 2006,
     respectively                                    143,860       143,518
  Additional paid-in capital                           5,171         5,128
  Deferred share arrangement                             413           624
  Accumulated deficit                                (85,874)      (80,686)
                                                ------------  ------------
                                                      63,570        68,584
  Less: treasury stock, at cost, 347 shares
   as of December 30, 2006 and July 1, 2006           (4,993)       (4,993)
Less: common stock held in trust, 66 and
 102 shares as of December 30, 2006 and
 July 1, 2006                                           (413)         (624)
                                                ------------  ------------
    Total stockholders' equity                        58,164        62,967
                                                ------------  ------------
    Total liabilities and stockholders' equity  $     85,831  $    104,742
                                                ============  ============


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

                      For the Quarter Ended      For the Six Months Ended
                    --------------------------  --------------------------
                    December 30,  December 31,  December 30,  December 31,
                         2006         2005           2006         2005
                    ------------  ------------  ------------  ------------
Net sales           $     19,338  $     41,109  $     48,163  $     85,695
Cost of products
 sold                     17,837        37,088        42,159        77,545
                    ------------  ------------  ------------  ------------
Gross profit               1,501         4,021         6,004         8,150
Selling expenses           2,155         4,016         4,943         7,553
General and
 administrative
 expenses                  3,475         5,495         7,213        11,801
                    ------------  ------------  ------------  ------------
Operating loss            (4,129)       (5,490)       (6,152)      (11,204)
Interest expense              98           107           164           208
Other (income)
 expense, net               (698)           44        (1,163)          (62)
                    ------------  ------------  ------------  ------------
Loss before income
 taxes                    (3,529)       (5,641)       (5,153)      (11,350)
Provision for
 income taxes                 18           138            35           189
                    ------------  ------------  ------------  ------------
Net loss            $     (3,547) $     (5,779) $     (5,188) $    (11,539)
                    ============  ============  ============  ============
Basic and diluted
 loss per common
 share              $      (0.61) $      (0.99) $      (0.89) $      (1.98)
                    ============  ============  ============  ============
Weighted average
common shares
outstanding-basic
 and diluted               5,846         5,838         5,842         5,838
                    ============  ============  ============  ============

Contact Information

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