SOURCE: Concord Camera Corp.

May 13, 2008 17:24 ET

Concord Camera Corp. Announces the Filing of Its Quarterly Report on Form 10-Q for the Third Quarter of Fiscal 2008

HOLLYWOOD, FL--(Marketwire - May 13, 2008) - Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today reported financial results for the third quarter of fiscal 2008 ended March 29, 2008 and announced that it filed its Quarterly Report on Form 10-Q for the third quarter of fiscal 2008 with the Securities and Exchange Commission (see attached tables).

About Concord Camera Corp.

Concord Camera Corp., through its subsidiaries, is a global provider of easy-to-use single-use and traditional film cameras. Concord currently markets and sells its cameras on a private-label basis and under the POLAROID and POLAROID FUNSHOOTER brands 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. The FUNSHOOTER trademark is a registered trademark of Concord Camera Corp. in the United States and other countries. 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 June 30, 2007 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 cost-reduction initiatives and new business initiatives, anticipated financial benefits of exiting the digital camera market and increasing our focus on the sale of single-use and traditional film cameras, the consequences of the loss of any significant customer, potential new business initiatives, the acquisition of new customers, the development of our business, anticipated revenues or capital expenditures, our ability to improve gross margin percentages on the sale of our products, projected profits or losses, our expectations regarding the amount of expected cash payments related to severance costs, our assessment of and estimates of royalty payments in connection with intellectual property claims, the vesting period over which unrecognized compensation expense will be realized, the sufficiency of our working capital and cash to fund our operations in the next twelve months, our expectations regarding the liquidity of our auction rate securities, our belief regarding the lack of merit in pending litigations or Jenoptik's claim of default under the license agreement, our belief regarding the lack of a material impact that the Jenoptik license agreement cancellation or resolution of routine legal matters will have in our business, coverage from our insurance carrier in connection with pending litigations, our expectation that there is no material tax exposure to the Company on account of our operations in the People's Republic of China and the consequences of the loss of our authorizations in the People's Republic of China 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 of actual results differing from the assumptions underlying such statements. In particular, our expected results could be adversely affected by, among other things, regulatory conditions negatively affecting our product costs, production difficulties or economic conditions negatively affecting our suppliers, customers or the market for our products, by our inability to develop and maintain relationships with suppliers, customers or licensors, by our inability to negotiate favorable terms with our suppliers, customers or licensors, by a further decline in the unit sales or average selling prices of our single-use and traditional film cameras or by the continued failed auctions and the market uncertainty for auction rate securities. Obtaining the results expected from the introduction of any new products or product lines may require successful and timely completion of development, successful and timely ramp-up of full-scale production and customer and consumer acceptance of those products, as to all of which there can be no assurance. In addition, future relationships or agreements may require an ability to meet high quality and performance standards and to implement and sustain production successfully 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)


                                                   March 29,
                                                     2008        June 30,
                                                  (Unaudited)      2007
                                                  -----------  -----------
Assets
Current Assets:
  Cash and cash equivalents                       $     2,761  $     3,853
  Restricted cash                                       6,200        6,200
  Short-term investments                                  800       30,475
  Accounts receivable, net                              6,083       10,702
  Inventories                                          14,411       15,806
  Prepaid expenses and other current assets               928        1,401
                                                  -----------  -----------
      Total current assets                             31,183       68,437
Long-term investments                                  24,400            -
Property, plant and equipment, net                      8,638       10,616
Other assets                                            3,319        3,451
                                                  -----------  -----------
      Total assets                                $    67,540  $    82,504
                                                  ===========  ===========

Liabilities and Stockholders' Equity
Current Liabilities:
  Short-term borrowings under financing
   facilities                                     $     5,653  $     2,756
  Accounts payable                                     10,321       17,042
  Accrued royalties                                     1,021        2,499
  Accrued expenses                                      4,069        5,775
  Other current liabilities                               847        1,346
                                                  -----------  -----------
      Total current liabilities                        21,911       29,418
Other long-term liabilities                             1,152        1,442
                                                  -----------  -----------
      Total liabilities                                23,063       30,860
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 shares issued as of
   March 29, 2008 and June 30, 2007                   143,860      143,860
  Additional paid-in capital                            5,196        5,189
  Deferred share arrangement                               --          413
  Accumulated deficit                                 (99,586)     (92,412)
                                                  -----------  -----------
                                                       49,470       57,050
  Less: treasury stock, at cost, 347
   shares as of March 29, 2008 and June 30, 2007       (4,993)      (4,993)
  Less: common stock held in trust, 0 and
   66 shares as of March 29, 2008 and June 30,
   2007                                                    --         (413)
                                                  -----------  -----------
      Total stockholders’ equity                       44,477       51,644
                                                  -----------  -----------
      Total liabilities and stockholders' equity  $    67,540  $    82,504
                                                  ===========  ===========





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




                        For the Quarter Ended     For the Nine Months Ended
                              (unaudited)                (unaudited)
                        ------------------------  ------------------------
                         March 29,    March 31,    March 29,    March 31,
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------

Net sales               $    12,320  $    16,375  $    52,422  $    64,538

Cost of products sold        11,014       15,242       46,795       57,401
                        -----------  -----------  -----------  -----------

Gross profit                  1,306        1,133        5,627        7,137

Selling expenses              1,445        2,071        5,438        7,388

General and
 administrative
 expenses                     3,087        2,775        8,747        9,614
                        -----------  -----------  -----------  -----------

Operating loss               (3,226)      (3,713)      (8,558)      (9,865)

Interest expense                114           85          316          249

Other income, net              (198)        (436)        (970)      (1,599)
                        -----------  -----------  -----------  -----------

Loss before income
 taxes                       (3,142)      (3,362)      (7,904)      (8,515)

(Benefit) provision
 for income taxes                (6)          (1)        (792)          34
                        -----------  -----------  -----------  -----------

Net loss                $    (3,136) $    (3,361) $    (7,112) $    (8,549)
                        ===========  ===========  ===========  ===========

Basic and diluted loss
 per common share       $     (0.53) $     (0.57) $     (1.20) $     (1.46)
                        ===========  ===========  ===========  ===========

Weighted average
 common shares
 outstanding
 -basic and
 diluted                      5,914        5,914        5,914        5,866
                        ===========  ===========  ===========  ===========

Contact Information

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