SOURCE: Lattice Incorporated

Lattice Incorporated

August 19, 2009 09:15 ET

Lattice Announces Second Quarter Gains in Revenue and Gross Profit Reflecting Enhanced Sales and Marketing Efforts

PENNSAUKEN, NJ--(Marketwire - August 19, 2009) - Lattice Incorporated (OTCBB: LTTC) (www.latticeincorporated.com), a provider of advanced technological solutions to key government agencies and enterprise customers, announced today the company's financial results for the second quarter ended June 30.

Revenue in the second quarter ended June 30, 2009 rose 11.77% to $4.2 million from $3.7 million reported in the second quarter a year ago. For the six months ended June 30, 2009, revenue was up 9.0% to $8.0 million from $7.3 million a year earlier.

Gross profit for the quarter rose 26.3% to $1.3 million from $1.0 million a year ago. For the six months, gross profit was up 18% to $2.5 million from $2.2 million in last year's second quarter.

The quarter showed a net loss of ($172,000) compared with net income of $4.2 million in the second quarter of 2008. For the first six months of 2009, the net loss was $575,000 against net income a year earlier of $4.1 million. The large swing in net income to net loss was due to last year's non-cash derivative income of $2.3 million and a gain on extinguishment of $2.6 million related to the exchange of Preferred Series C stock for outstanding warrants held by Baron Partners, L.P. Excluding those amounts, the year ago net income would have shown a net loss of ($730,000).

CEO Paul Burgess said, "We recorded a solid second quarter gain in gross profit of more than 26% reflecting the initial returns from the investments we have made in the past few quarters in sales and marketing and an improvement in gross margin from government services related to pricing on our cost-plus contract vehicles. Revenues from government contracts accounted for approximately $7,367,000 or 92% of our overall revenues for the six months ended June 30, 2009. Of our total government contract revenues, approximately 90% were from prime contract vehicles.

"We plan to continue expanding our sales efforts both within the federal government secure software solutions space and commercial accounts. We are building on our recent success in these markets by expanding our marketing efforts through our direct sales strategy. Our strong contract backlog also has given us an opportunity to expand our existing revenue base," Burgess said.

The company will host a conference call with CEO Paul Burgess and CFO Joseph Noto today, August 19 at 2:00 p.m. Eastern. To participate in this call, dial 1-877-941-2333 any time after 1:50 p.m. ET. International callers should dial 1-480-629-9724.

An MP3 file of the call will be available at http://www.hawkassociates.com for approximately 90 days after the call.

About Lattice Incorporated

Lattice Incorporated is a provider of advanced information and communications technology solutions to the government and commercial markets. The company's technology services division designs, deploys and manages advanced technological solutions at key government agencies and for mid- to large-sized enterprises. Lattice's technology products division consists of several core proprietary platforms used to develop customized software applications with military grade security in a number of different markets. For more information, visit http://www.latticeincorporated.com.

An investment profile about Lattice Incorporated may be found at http://www.hawkassociates.com/lttcprofile.aspx.

An online investor relations kit including copies of press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com. To receive free e-mail notification of future releases for this company, sign up at http://www.hawkassociates.com/about/alert/.

Safe Harbor Statement

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-K previously filed with the SEC.

Contact Information

  • Investor Relations contact:
    Hawk Associates
    Frank Hawkins
    305-451-1888
    e-mail: Email Contact