SOURCE: Lattice Incorporated

Lattice Incorporated

November 14, 2013 08:00 ET

Lattice Announces Third Quarter Financial Results

Company Reports Positive Net Income for the Quarter; Conference Call Today, November 14 at 2:00 p.m. ET

PENNSAUKEN, NJ--(Marketwired - Nov 14, 2013) - Lattice Incorporated (OTCQB: LTTC) ("Lattice" or the "Company"), a provider of advanced information and communications technology solutions to customers globally, announced its financial results for the third quarter ended September 30, 2013.

Third Quarter Financial Highlights:

  • Revenue increased to $2.2 million
  • Recurring revenues accounted for 69% of total revenues during the quarter
  • Positive EBITDA of $226,000
  • Net income from continuing operations was $61,000
  • Net income of $49,000

Additional information may be found in the Company's 10-Q filing with the U.S. Securities and Exchange Commission.

Third quarter revenue increased 2.4% year-over-year to $2.2 million, compared to $2.1 million in the third quarter of 2012.

Gross margin, as a percentage of revenues, increased to 41.5% from 38.6% for the same period in 2012. Gross margin relationships to revenue were stable with prior periods for both our recurring revenue and wholesaled technology revenue streams. The increase quarter-on-quarter was due to a larger component of total revenues attributable to higher margin technology sales when compared to the prior year. The gross margin for wholesaled technology revenue varies with larger sales orders, but the margins are expected to be in the 60% range on average. Margins from the recurring services component of revenues were consistent with the prior-year period at approximately 30%.

Net income from continuing operations for the second quarter was $61,000 compared to net income of $15,000 for the same period of 2012.

"During the quarter, we continued to build customer depth in our current territories, while gaining market share in new regions," stated Paul Burgess, CEO of Lattice. "One area we are very excited about is our expansion efforts in Canada. Building on our sales momentum, we launched our Canadian operations center late in the quarter to better serve this growing market. While we anticipate significant long-term sales contribution from the Canadian market, we continue to see strong demand for our feature-rich ICON platform from domestic customers as well."

Conference Call

Lattice will host a conference call today, Thursday, November 14, with CEO Paul Burgess and CFO Joseph Noto at 2:00 p.m. Eastern time (11:00 a.m. Pacific). To participate in the call, please dial (877) 941-4776, or (480) 629-9714 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company's website at http://www.latticeincorporated.com, or alternately at http://ViaVid.net.

A replay of the call will be available for two weeks from 5:00 p.m. ET on November 14, 2013, until 11:59 p.m. ET on November 28, 2013. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 4650701. In addition, a recording of the call will be available via the Company's website at http://www.latticeinc.com for one year.

About Lattice Incorporated

Lattice Incorporated provides advanced information and communications technology solutions to customers globally. The Company's innovative, cost-effective solutions leverage its proprietary Nexus platform, a real-time transaction processing engine, to develop and deliver customized cloud-based software applications with military-grade security for markets that require highly secure solutions. For more information, visit http://www.latticeinc.com.

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-Q previously filed with the SEC.

     
     
EBITDA Reconciliation for the three months ended September 30, 2013:    
       
Net income from continuing operations - as reported   $ 60,718
Adjustments to reconcile to EBITDA (a non-GAAP measure):      
depreciation and amortization   $ 99,171
       
interest expense   $ 66,130
EBITDA   $ 226,019
       
       

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