SOURCE: Integral Vision

November 16, 2010 17:00 ET

Integral Vision, Inc. Announces Third Quarter 2010 Results

WIXOM, MI--(Marketwire - November 16, 2010) - Integral Vision, Inc. (OTCBB: INVI), a leading global supplier of automated display inspection technology, today announced financial results for the third quarter ending September 30, 2010.

Third Quarter 2010 Highlights

--  Integral Vision continues to receive orders for its SharpEye™
    systems and is shipping systems to its largest customer.  This customer
    has announced its 2011 investment and production plans for this display
    product.
--  Integral Vision has established a support structure in Asia to serve
    its customers in Taiwan, China and Korea.

Third Quarter 2010 Financial Review

--  Net revenue for the third quarter was $743,000, compared with $240,000
    in the second quarter 2010 and $234,000 in the third quarter of 2009.

--  Gross margin for the third quarter was 62 percent of sales.  This
    compares with 59 percent of sales for the second quarter of 2010, all
    of which is an improvement over the 50 percent gross margin recorded
    for fiscal year 2009.

--  Operating loss for the third quarter was $123,000, compared with
    $627,000 in the second quarter 2010 and $536,000 in the third quarter
    of 2009.

--  Third quarter net loss was $431,000, or $0.01 per share, compared with
    a net loss of $801,000, or $0.02 per share, in the second quarter of
    2010 and a net loss of $753,000, or $0.03 per share, in the third
    quarter of 2009.

Charles J. Drake, chairman and CEO of Integral Vision, Inc., commented, "Our financial results for the third quarter reflect increased customer acceptance of our display systems. Revenues for the third quarter improved substantially, and we are particularly pleased with our increased margins. Modest increases in sales will make us cash flow positive.

"Integral Vision has been very active with other disruptive display technologies including Organic Light-Emitting Diode (OLED) and e-Paper. OLED is mainly used in high-end mobile phones such as smartphones, and industry experts expect them to expand to large-sized displays such as flat-screen TVs, while e-readers and other consumer electronic devices primarily drive the e-paper market. In addition, we have had significant involvement with the small LCD manufacturers for automated inspection. We expect that these growth markets will translate into sales opportunities for Integral Vision in 2011." Mr. Drake concluded, "We are now exposed to larger sales opportunities than in any previous years and remain confident in our expectations for the future."

Conference Call

The Company will announce the date of a conference call to review the third quarter's financial results and other events within the next few weeks.

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 (SEC) on March 31, 2010 and our Form 10-K/A filed with the SEC on April 30, 2010 and the Company's Quarterly Report on Form 10-Q filed with the SEC on November 15, 2010.

-tables follow-



                       INTEGRAL VISION, INC.
                     Condensed Balance Sheets



                                                 September 30, December 31,
                                                      2010        2009
                                                  (Unaudited)
                                                  -----------  -----------
                                                       (in thousands)

Assets

Current assets:
 Cash                                             $        98  $        28
 Accounts receivable                                      156           50
 Inventories                                              147          190
 Other                                                    105           98
                                                  -----------  -----------
Total current assets                                      506          366

Property and equipment:
 Building Improvements                                      4            4
 Production and engineering equipment                     357          354
 Furniture and fixtures                                    80           80
 Computer equipment                                       202          193
 Marketing/demonstration equipment                        139          139

                                                  -----------  -----------
                                                          782          770
 Less accumulated depreciation                           (647)        (580)
                                                  -----------  -----------
Net property and equipment                                135          190

Other assets -  net of accumulated amortization
 of $1,579,000
($1,559,000 for 2009)                                      46           61
                                                  -----------  -----------
                                                  $       687  $       617
                                                  ===========  ===========



                      INTEGRAL VISION, INC.
             Condensed Balance Sheets - Continued


                                                 September 30, December 31,
                                                      2010        2009
                                                  (Unaudited)
                                                  -----------  -----------
                                                       (in thousands)
Liabilities and Stockholders' Deficit:

Current liabilities:
  Notes Payable
    Others                                        $     2,727  $     2,086
    Related parties                                     5,243        4,880
    Directors and Officers                                423          411
  Accounts payable                                        178          114
  Accrued compensation and related costs                  285          276
  Accrued sales commissions                                48            -
  Accrued interest                                      1,158          774
  Accrued product warranty                                132          108
  Accrued professional fees                               103           95
  Other accrued liabilities                                12            -
  Customer deposits                                       197          249
  Deferred revenue for product sales                        -           72
                                                  -----------  -----------
Total current liabilities                              10,506        9,065


Long-term debt                                              -            -

                                                  -----------  -----------
Total liabilities                                      10,506        9,065
                                                  -----------  -----------

Stockholders' deficit:
  Preferred stock, 400,000 shares authorized;
   none issued                                              -            -
  Common stock, without par value, 90,000,000
   shares authorized; 35,675,409 shares issued
   and outstanding (30,866,409 in 2009)                54,018       53,701
  Accumulated deficit                                 (63,837)     (62,149)
                                                  -----------  -----------
Total stockholders' deficit                            (9,819)      (8,448)
                                                  -----------  -----------
                                                  $       687  $       617
                                                  -----------  -----------




                  INTEGRAL VISION, INC.
            Condensed Statements of Operations



                                                    Three Months Ended
                                                       September 30,
                                                      2010         2009
                                                  -----------  -----------
                                                        (Unaudited)
                                                    (In thousands, except
Revenue:                                               per share data)
  Net product sales                               $       743  $       234
Costs of sales:
  Costs of sales for products                             279          130
  Depreciation and amortization                             5            5
                                                  -----------  -----------
Total costs of sales                                      284          135
                                                  -----------  -----------
Gross margin                                              459           99

Other costs and expenses:
  Marketing                                                87          110
  General and administrative                              296          340
  Engineering and development                             199          185
                                                  -----------  -----------
Total other costs and expenses                            582          635
                                                  -----------  -----------
Operating loss                                           (123)        (536)

Other income (loss)                                        (1)          (2)
Interest expense                                         (307)        (215)
                                                  -----------  -----------

Net loss                                          $      (431) $      (753)
                                                  ===========  ===========

Basic and diluted loss per share:
  Net loss                                        $     (0.01) $     (0.03)
                                                  ===========  ===========


Weighted average number of shares of common stock
 and common stock equivalents, where applicable        35,675       30,066
                                                  ===========  ===========




                    INTEGRAL VISION, INC.
             Condensed Statements of Operations



                                                      Nine Months Ended
                                                        September 30,
                                                      2010         2009
                                                  -----------  -----------
                                                        (Unaudited)
                                                    (In thousands, except
Revenue:                                              per share data)
  Net product sales                               $     1,513  $     1,479
Costs of sales:
  Costs of sales for products                             571          667
  Depreciation and amortization                            13           12
                                                  -----------  -----------
Total costs of sales                                      584          679
                                                  -----------  -----------
Gross margin                                              929          800

Other costs and expenses:
  Marketing                                               322          375
  General and administrative                              959        1,133
  Engineering and development                             611          724
                                                  -----------  -----------
Total other costs and expenses                          1,892        2,232
                                                  -----------  -----------
Operating loss                                           (963)      (1,432)
Other income (loss)                                         1          (20)
Interest expense                                         (726)        (583)
                                                  -----------  -----------
Net loss                                          $    (1,688) $    (2,035)
                                                  ===========  ===========

Basic and diluted loss per share:
  Net loss                                        $     (0.05) $     (0.07)
                                                  ===========  ===========


Weighted average number of shares of common stock
 and  common stock equivalents, where applicable       33,898       30,066
                                                  ===========  ===========

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