SOURCE: Concord Camera Corp.

May 11, 2006 11:07 ET

Concord Camera Corp. Announces the Filing of Its Quarterly Report on Form 10-Q for the Third Quarter and Nine Months of Fiscal 2006

HOLLYWOOD, FL -- (MARKET WIRE) -- May 11, 2006 -- Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today reported (see attached tables) financial results for the third quarter and first nine months of Fiscal 2006 which ended April 1, 2006 and announced that it filed its Quarterly Report on Form 10-Q for the Third Quarter 2006 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, digital and 35mm traditional cameras. Concord markets and sells its cameras under the trademarks POLAROID, CONCORD, CONCORD EYE Q and JENOPTIK through direct sales offices in the United States, Canada, Germany, Hong Kong, the Peoples Republic of China, the United Kingdom, Japan and France and through independent sales agents. 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 which 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, as amended, for the fiscal year ended July 2, 2005 and subsequently filed reports. Such forward-looking statements include, without limitation, statements regarding our ability to meet expected filing dates for our periodic reports; statements regarding our ability to meet customer demands and fulfill customer service obligations; statements regarding anticipated or expected results of the implementation of our strategic plan, including the 2005 restructuring initiatives, the 2005 and 2006 cost-reduction initiatives, additional cost-reduction initiatives, possible new business initiatives and anticipated financial benefits of de-emphasizing the sale of digital cameras and eliminating our reliance on internally designed and manufactured digital cameras and increasing the design, co-development and purchase of digital cameras from contract manufacturers, the viability of marketing and selling digital cameras and competing in the digital camera market and the cost structure requirements needed to maintain a presence in the digital camera market and to market and sell digital cameras; and statements regarding the development of our business, anticipated revenues or capital expenditures, expected cost reductions, our ability to improve gross profit margin on the sale of our 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)

                                                    April 1,   July 2,
                                                      2006      2005
                                                  (Unaudited)
                                                   ---------  ---------
Assets
Current Assets:
  Cash and cash equivalents                        $   5,081  $   8,016
  Restricted cash                                      8,199          -
  Short-term investments                              24,450     35,200
  Accounts receivable, net                            11,491     31,860
  Inventories                                         26,093     36,382
  Deferred compensation assets                           543      8,711
  Prepaid expenses and other current assets            3,109      2,708
                                                   ---------  ---------
      Total current assets                            78,966    122,877
Property, plant and equipment, net                    15,912     16,672
Other assets                                           5,852      7,207
                                                   ---------  ---------
      Total assets                                 $ 100,730  $ 146,756
                                                   =========  =========

Liabilities and Stockholders' Equity
Current Liabilities:
  Short-term borrowings under financing facilities $   1,564  $   2,936
  Accounts payable                                    15,619     32,257
  Accrued expenses                                    13,227     14,108
  Deferred compensation liabilities                      494      8,688
  Other current liabilities                            1,723      3,127
                                                   ---------  ---------
      Total current liabilities                       32,627     61,116
Other long-term liabilities                            1,746      3,337
                                                   ---------  ---------
      Total liabilities                               34,373     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 April 1, 2006 and July 2, 2005              143,518    143,518
  Additional paid-in capital                           5,185      4,853
  Deferred share arrangement                             624        624
  Accumulated deficit                                (77,353)   (61,075)
                                                   ---------  ---------
                                                      71,974     87,920
  Less: treasury stock, at cost, 1,735
   shares as of April 1, 2006 and July 2, 2005        (4,993)    (4,993)
  Less: common stock held in trust, 509
   shares as of April 1, 2006 and July 2, 2005          (624)      (624)
                                                   ---------  ---------
      Total stockholders' equity                      66,357     82,303
                                                   ---------  ---------
      Total liabilities and stockholders' equity   $ 100,730  $ 146,756
                                                   =========  =========


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


                                For the quarter          For the nine
                                      ended              months ended

                              April 1,    April 2,    April 1,    April 2,
                                2006        2005        2006        2005
                             ---------   ---------   ---------   ---------
Net sales                    $  18,870   $  26,150   $ 104,565   $ 123,498
Cost of products sold           17,073      31,663      94,618     132,137
                             ---------   ---------   ---------   ---------
Gross profit (deficit)           1,797      (5,513)      9,947      (8,639)
Selling expenses                 2,641       3,586      10,194      12,676
General and administrative
 expenses                        4,171       5,803      15,972      17,551
                             ---------   ---------   ---------   ---------
Operating loss                  (5,015)    (14,902)    (16,219)    (38,866)
Interest expense                   106         223         314         767
Other income, net                 (422)       (363)       (483)     (2,682)
                             ---------   ---------   ---------   ---------
Loss before income taxes        (4,699)    (14,762)    (16,050)    (36,951)
Provision  for  income taxes        40         110         228         250
                             ---------   ---------   ---------   ---------
Net loss                     $  (4,739)  $ (14,872)  $ (16,278)  $ (37,201)
                             =========   =========   =========   =========
Basic and diluted loss per
 common share                $   (0.16)  $   (0.51)  $   (0.56)  $   (1.28)
                             =========   =========   =========   =========

Weighted average
 common shares
 outstanding -- basic
 and diluted                    29,190      29,190      29,190      29,146
                             =========   =========   =========   =========

Contact Information

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