SOURCE: CYBRA Corporation

September 21, 2010 09:00 ET

CYBRA Corporation Reports 59% Revenue Increase and Cash Flow Positive

YONKERS, NY--(Marketwire - September 21, 2010) -  CYBRA Corporation (OTCBB: CYRP), a software developer, publisher and systems integrator focused on Auto Identification technology solutions, reported strong top and bottom line improvements during its fiscal second quarter ended June 30, 2010.

Financial Highlights:

  • Revenues increased 59% from $306,181 in the second quarter of 2009 to $487,578 in the 2010 quarter.
  • Gross margins as a percentage of sales increased 65% quarter-over-quarter.
  • Non-GAAP net income (loss) rose from a loss of $(55,029) in the 2009 quarter to a profit of $89,412 in the 2010 quarter.
  • Operating cash flows rose 769% to $56,823 in the second quarter of 2010.
  • Completed debt restructuring.

Revenues for the three-month period ended June 30, 2010 increased 59% over the 2009 quarter as new features previously released for CYBRA's flagship MarkMagic product were met with a positive reception from new and existing customers. Sales of EdgeMagic, the company's new RFID product, also began to pick up, mirroring the general trend of increased market acceptance of RFID technology.

Gross margins as a percentage of sales increased 65% during the second quarter over the prior year as more profitable software product sales were up 109%. The company expects margins to continue to improve into the third quarter of 2010 due to lower reliance on low-margin equipment sales.

Although the company recognized a second-quarter net loss of $634,128 on a GAAP basis, non-GAAP net income, adjusted to remove the impact of the debt restructuring and other non-cash transactions, showed an improvement of $144,441. The company incurred a debt settlement expense of approximately $695,000 from restructuring a portion of its 8% convertible debentures. This resulted from the exchange of old Class B warrants issued in connection with the original debentures and valued at $1,261,000 for new Class B warrants issued in connection with restated Debentures and valued at $1,956,000. The company also incurred a beneficial conversion cost in connection with 490,999 shares of common stock issued in payment of accrued interest of $245,499 due on the original debentures at $0.50 compared to the fair market value of those shares on the June 8, 2010 issuance date of $0.59. Reconciliation from the GAAP to the non-GAAP financial measures is set forth at the end of this press release.

"Despite weakness in our end markets, CYBRA reported yet another quarter of increased revenues and attained profitability on a cash-basis," said CEO Harold Brand. "Looking forward, we expect to continue to benefit from a recovering economy, superior technology, and an emerging trend towards RFID integration among retailers following Wal-Mart's latest moves to require certain of its vendors to begin using RFID tags on their products."

About CYBRA Corporation
CYBRA Corporation is a leader in bar code and RFID technology for IBM Power Systems and other major computing platforms. An IBM Business Partner and Motorola/Symbol Partner, CYBRA is represented by a network of value added resellers throughout the United States and is represented internationally by sales and support offices.

MarkMagic™ Bar Code Labels, RFID Tags and Forms Software is used by thousands of customers worldwide, and has been selected as the bar code print engine of such leading software developers as Manhattan Associates™, Infor™ and VAI™. MarkMagic helps customers easily integrate barcode, RFID technology and electronic forms into their business systems.

CYBRA's latest product, EdgeMagic® is an integrated RFID control solution. EdgeMagic helps customers build any type of RFID system, from complying with the full range of RFID mandates to closed loop asset management RFID applications.

CYBRA software solutions run on all major computing platforms including IBM Power Systems (System i, iSeries, AS/400, AIX) as well as Linux, Unix, and Microsoft Windows.

CYBRA Corporation is located at One Executive Boulevard, Yonkers, NY 10701. Product information is available toll free at 1-800-CYBRA-88. CYBRA's web site is located at http://www.cybra.com. To request information via e-mail, write to: info@cybra.com.

Forward-Looking Statements
This release and other statements issued or made from time to time by the company or its representatives contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our industry, our beliefs and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks" and "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

These forward-looking statements include statements regarding projected revenue and income in future quarters and our beliefs with respect to the growth in the demand for our products. Other risks and uncertainties that may affect our business include our ability to expand beyond the IBM System i market for MarkMagic and expand into the radio frequency identification ("RFID") market with EdgeMagic; our ability to penetrate the emerging and competitive market for bar code and RFID encoding software; our ability to introduce, produce, improve and market new products, such as MarkMagic and EdgeMagic, and the market acceptance of these and other products; the impact of competitive products and pricing; and our timely development of new products and market acceptance of those products. Actual results may differ from those expressed or implied in our forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. In addition to the statements described above, such forward-looking statements include the risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.

About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for net income that exclude non-cash items. Net income excluding non-cash items is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States ("GAAP") and has limitations as an analytical tool. The company believes the presentation of net income excluding non-cash expense is relevant and useful by enhancing the readers' ability to understand the company's operating performance. The company's management utilizes net income excluding non-cash expense as a means to measure operating performance. You should not consider it in isolation or as a substitute for net income or any other measure calculated in accordance with GAAP. In addition, it should be noted that other companies may calculate adjusted net income differently and, therefore, adjusted net income as presented for the company may not be comparable to the calculations of adjusted net income reported by other companies. The table below reconciles adjusted net income (loss) excluding non-cash expense, a non-GAAP measure, to GAAP net income (loss) for the three months ended June 30, 2010 and June 30, 2009.

  Three Months Ended 
  June 30,     
  2010     2009  
           
GAAP Net Income (Loss) ($634,128 )   ($242,197 )
  Loss on debt restructuring 695,094     -  
  Beneficial conversion cost in connection with issuance of common stock in exchange for interest payable 44,190     -  
  Reversal on liquidated damages (63,835 )   -  
  Depreciation 61,546     62,952  
  Amortization 52,792     73,309  
  Debenture valuation adjustment (66,247 )   50,907  
Adjusted Net Income (Loss) $89,412     ($55,029 )

Contact Information

  • Media Contact:
    Sheldon R. Reich
    V.P., Solutions
    CYBRA Corporation
    Tel 914-963-6600 x 209
    sreich@cybra.com

    Investor Relations:

    Harold Brand
    CEO
    CYBRA Corporation
    (914) 963-6600
    investors@cybra.com