SOURCE: Integral Vision

August 13, 2009 16:00 ET

Integral Vision, Inc. Announces Second Quarter 2009 Results

WIXOM, MI--(Marketwire - August 13, 2009) - Integral Vision, Inc. (OTCBB: INVI), a leading global supplier of automated display inspection technology, today announced financial results for the second quarter ending June 30, 2009.

Second Quarter 2009 Highlights

--  Integral Vision's main customer continues to order and install
    inspection equipment at their new dedicated production facility.  This
    plant is expected to ramp up production throughout this year and into 2010.
    Integral Vision expects expanded revenue growth as a result of the increase
    in production of the MEMS (Micro Electro-Mechanical Systems) displays at
    this new facility.  The Company currently has its largest installed base of
    equipment at this customer's facility and the current production is only a
    fraction of the mass production planned.  This dedicated MEMS display
    production facility was formally announced on June 15, 2009.
    

Second Quarter 2009 Financial Review

--  Net revenue for the second quarter was $443,000 compared to $803,000
    in first quarter 2009 and $470,000 in the second quarter of 2008.
    
--  Gross margin for the second quarter was 51 percent of sales.  This
    compares with 59 percent of sales for the first quarter of 2009 and 56
    percent of sales for the first half of 2009, all of which are an
    improvement over 46 percent of sales recorded for fiscal year 2008.
    
--  Second quarter net loss was $755,000, or $0.03 per share, compared to
    a net loss of $527,000, or $0.02 per share, in the first quarter of 2009
    and a net loss of $649,000, or $0.02 per share, in the second quarter of
    2008.
    

Charles J. Drake, Chairman and CEO of Integral Vision, Inc. commented, "Revenue for the first half of 2009 is better than the entire year's revenue of 2008. Revenues for the second quarter would have showed a sequential improvement over the first quarter of 2009 had several systems that shipped during the quarter received final acceptance from the customer by the end of the second quarter. In addition, we had several other system shipments delayed from the second quarter to the third quarter due to revised customer specifications."

Looking ahead, Drake added, "Despite the decline in revenues for the second quarter, we remain confident in our forecast and continue to expect 2009 to be the Company's best. Sales growth will extend into 2010 and beyond. Sales penetration into emerging display technologies like MEMS and e-Paper will be the primary reason for expanded sales, with LCD inspection also providing a positive impact. These markets are very large and a modest market penetration will substantially and quickly improve the Company's financial position."

TO ACCESS THE LIVE CONFERENCE CALL

Integral Vision will host a live conference call at 4:30 p.m. (ET) on Thursday, August 13, 2009. To access the conference call, please call 1-480-629-9713 or 1-877-941-2069 approximately 5 to 10 minutes prior to the scheduled start time.

TO ACCESS A REPLAY OF THE CONFERENCE CALL

If you are unable to listen to the live conference call, it will be archived for replay. Shortly after the call, a telephonic replay will be available through Saturday, August 15, 2009 by dialing 1-303-590-3030 or 1-800-406-7325. The confirmation code 4136923 is required for the telephonic replay.

COMPANY'S INVESTOR E-MAIL LIST

To be added to Integral Visions investor email list, please contact Laura Guerrant-Oiye of Guerrant Associates at lguerrant@guerrantir.com.

ABOUT INTEGRAL VISION

Integral Vision, Inc. (OTCBB: INVI) offers display inspection technology that provides analysis of functional and cosmetic defects in the display to assure quality in the manufacturing process as well as verification of the final product. Integral Vision has been inspecting displays since 1992 and is an industry leader committed to providing automated solutions to the quality issues Microdisplay, OLED and LCD manufacturers face in today's competitive marketplace. More information can be found at Website: www.iv-usa.com.

"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such factors and uncertainties include, but are not limited to: competitive conditions in the Company's markets and the effect of competitive products and pricing; technological development by the Company, its customers and its competition; the Company's available cash and access to debt and equity financing; and general economic conditions and conditions in the specific industries in which the company has significant customers. As a result, the Company's results may fluctuate. Additional information concerning risk factors that could cause actual results to differ materially from those projected in the forward-looking statements are contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's best estimates as of the date of this press release. The Company assumes no obligation to update such estimates except as required by the rules and regulations of the Securities and Exchange Commission.

FINANCIAL INFORMATION

The summary financial information contained in this press release, including the following information in tabular form, should be read in conjunction with the more detailed information contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2009 and the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 13, 2009.

                              Balance Sheet
                           Integral Vision, Inc.
                              June 30, 2009


                                                    June 30,   December 31,
                                                      2009         2008
                                                  (Unaudited)
                                                  -----------  -----------
                                                       (in thousands)

Assets

Current assets:
  Cash                                            $        14  $       144
  Accounts receivable                                     225          208
  Inventories                                             313          325
  Other                                                    75          131
                                                  -----------  -----------
Total current assets                                      627          808

Property and equipment:
  Building Improvements                                     4            4
  Production and engineering equipment                    347          234
  Furniture and fixtures                                   80           80
  Computer equipment                                      191          191
  Marketing/demonstration equipment                       139          139

                                                  -----------  -----------
                                                          761          648
  Less accumulated depreciation                          (536)        (491)
                                                  -----------  -----------
Net property and equipment                                225          157

Other assets -  net of accumulated amortization
 of $1,537,000 ($1,519,000 for 2008)                       68           72
                                                  -----------  -----------
                                                  $       920  $     1,037
                                                  -----------  -----------
Current liabilities:
  Notes payable                                    $    2,495  $     1,786
  Accounts payable                                        199          141
  Customer deposits                                       110            -
  Accrued compensation and related costs                  279          283
  Accrued interest                                        554          446
  Accrued product warranty                                114           84
  Other accrued liabilities                                40           54
  Deferred revenue for product sales                      175          656
                                                   ----------   ----------
Total current liabilities                               3,966        3,450


Long-term debt                                          4,051        3,671

                                                   ----------   ----------
Total liabilities                                       8,017        7,121
                                                   ----------   ----------

Stockholders' deficit:
  Preferred stock, 400,000 shares authorized; none
   issued                                                   -            -
  Common stock, without par value, stated value $.20
   per share; 90,000,000 shares authorized;
   30,066,409 shares issued and outstanding             6,013        5,913
  Additional paid-in capital                           47,560       47,391
  Accumulated deficit                                 (60,670)     (59,388)
                                                   ----------   ----------
Total stockholders’ deficit                            (7,097)      (6,084)
                                                   ----------   ----------
                                                   $      920   $    1,037
                                                   ==========   ==========




                      Statements of Operations
                        Integral Vision, Inc.
              (in thousands, except per share data)
                            (unaudited)

                                  Quarter Ended          Six Months Ended
                          ----------------------------  ------------------
                          June 30,  March 31, June 30,  June 30,  June 30,
                            2009      2009      2008      2009      2008
                          --------  --------  --------  --------  --------
Revenue:
  Net product sales       $    443  $    803  $    445  $  1,246  $    455
  Net revenue from product
   development agreements        -         -        25         -        25
                          --------  --------  --------  --------  --------
  Total revenues               443       803       470     1,246       480
Costs of sales:
  Costs of sales for
   products                    212       326       215       538       259
  Depreciation and
   amortization                  5         2         4         7         8
                          --------  --------  --------  --------  --------
Total costs of sales           217       328       219       545       267
                          --------  --------  --------  --------  --------
Gross margin                   226       475       251       701       213

Other costs and expenses:
  Marketing                    130       136       191       266       339
  General and
   administrative - net        392       400       340       792       672
  Engineering and
   development - net           251       288       228       539       460
                          --------  --------  --------  --------  --------
Total other costs and
 expenses                      773       824       759     1,597     1,471
                          --------  --------  --------  --------  --------
Operating loss                (547)     (349)     (508)     (896)   (1,258)
Other income (deductions)       (2)        2         1         -         -
Extinquishment loss from
 exchange of debt
 instruments                     -       (18)        -       (18)        -
Interest expense              (206)     (162)     (142)     (368)     (237)
                          --------  --------  --------  --------  --------
Net loss                  $   (755) $   (527) $   (649) $ (1,282) $ (1,495)
                          ========  ========  ========  ========  ========

Basic and diluted loss
 per share:
  Net loss                $  (0.03) $  (0.02) $  (0.02) $  (0.04) $  (0.05)
                          ========  ========  ========  ========  ========


Weighted average number
 of shares of common
 stock and common stock
 equivalents, where
 applicable                 30,066    30,066    29,566    30,066    29,566
                          ========  ========  ========  ========  ========

Contact Information

  • Contacts:
    Corporation:
    Integral Vision, Inc.
    Charles J. Drake
    (248) 668-9230
    Email Contact

    Investors and Media:
    Guerrant Associates
    Laura Guerrant-Oiye
    (808) 882-1467
    Email Contact