- Revenues at a five year high - SOMERVILLE, N.J., March 18
/PRNewswire-FirstCall/ -- Conolog Corporation (NASDAQ:CNLGD)
announced today the results for the six months ended January 31,
2009. Product revenues for the six months ended January 31, 2009
totaled $945,640, representing an increase of 81% from $522,727
reported for the same six month period last year. The Company
attributes this to increased orders. Product cost (material and
direct labor) for the six months ended January 31, 2009 totaled
$234,363, or 25% of Product revenues, a net reduction of 13% from
the previous year. The Company attributes this improvement to
continued use of improved assembly standards under ISO-9000. Gross
profit for the six months ended January 31, 2009 amounted to
$711,277, or 75%, a direct result of increased sales this fiscal
year. Selling, general and administrative expenses for the six
months ended January 31, 2009 amounted to $1,133,547, a 50%
reduction or $1,055,443 from the same period last year. Non-cash
non-operating expenses for the six-month period amounted to
$543,459 which included induced conversion cost; amortization of
deferred debenture discount and debenture costs. As a result of the
above, the Company reported a net loss from operations of
($665,924) compared to a loss of ($4,177,068), or a per share loss
of ($.21) compared to a ($3.36) per share loss for the six months
ended January 31, 2009 and 2008, respectively. About Conolog
Corporation Conolog Corporation is a provider of digital signal
processing and digital security solutions to electric utilities
worldwide. The Company designs and assembles electromagnetic
products to the military and provides engineering and design
services to a variety of industries, government organizations and
public utilities nationwide. The Company's INIVEN division is a
provider of a line of digital signal processing systems, including
transmitters, receivers and multiplexers. Contact: Conolog
Corporation: Robert Benou, Chairman, 908/722-8081 Forward-looking
statements in this release are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward looking statements
involve risks and uncertainties, including, without limitation,
continued acceptance of the Company's products, increased levels of
competition, new products introduced by competitors, and other
risks detailed from time to time in the Company's periodic reports
filed with the Securities and Exchange Commission. [Financial
Tables Follow] CONOLOG CORPORATION AND SUBSIDIARIES Condensed
Consolidated Balance Sheets ASSETS January 31, 2009 July 31, 2008
------ (Unaudited) (Audited) ----------- --------- Current Assets:
Cash and cash equivalents $728,668 $680,647 Certificate of deposit
- 600,182 Accounts receivable, net of allowance 298,261 360,846
Prepaid expenses 374,835 26,477 Current portion of note receivable
14,864 14,864 Inventory 1,087,055 850,507 Other current assets
551,937 568,529 ------- ------- Total Current Assets 3,055,620
3,102,052 --------- --------- Property and equipment: Machinery and
equipment 1,357,053 1,357,053 Furniture and fixtures 429,765
429,765 Automobiles 34,097 34,097 Computer software 209,380 209,380
Leasehold improvements 30,265 30,265 ------ ------ Total property
and equipment 2,060,560 2,060,560 Less: accumulated depreciation
(1,955,725) (1,951,725) ---------- ---------- Net Property and
Equipment 104,835 108,835 ------- ------- Other Assets: Deferred
financing fees, net of amortization 59,006 295,030 Note receivable,
net of current portion 73,062 80,495 ------ ------ Total Other
Assets 132,068 375,525 ------- ------- TOTAL ASSETS $3,292,523
$3,586,412 ========== ========== LIABILITIES AND STOCKHOLDERS'
EQUITY ------------------------------------ January 31, 2009 July
31, 2008 (Unaudited) (Audited) ----------- --------- Current
Liabilities: Accounts payable $188,304 $165,601 Accrued expenses -
61,957 Current convertible debenture, net of discount 575,485
824,853 ------- ------- Total Current Liabilities 763,789 1,052,411
------- --------- ------- --------- Total Liabilities 763,789
1,052,411 ------- --------- Stockholders' Equity Preferred stock,
par value $.50; Series A; 4% cumulative; 500,000 shares authorized;
155,000 shares issued and outstanding at January 31, 2009 and July
31, 2008 , respectively. 77,500 77,500 Preferred stock, par value
$.50; Series B; $.90 cumulative; 2,000,000 shares authorized; 1,197
shares issued and outstanding at January 31, 2009 and July 31, 2008
, respectively. 597 597 Common stock, par value $0.01; 30,000,000
shares authorized; 2,882,215 and 2,787,469 shares issued and
outstanding at January 31, 2009 and July 31, 2008 respectively
including 9 shares held in treasury. 28,823 27,875 Contributed
capital 50,039,403 50,003,695 Accumulated deficit (47,485,855)
(46,819,932) Treasury shares at cost (131,734) (131,734) Deferred
compensation - (604,110) Prepaid consulting - (19,890) -- -------
Total Stockholders' Equity 2,528,734 2,534,001 --------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,292,523 $3,586,412
========== ========== CONOLOG CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited) For the
Three Months For the Six Months Ended January 31, Ended January 31,
2009 2008 2009 2008 ---- ---- ---- ---- OPERATING REVENUES Product
revenue $488,959 $338,174 $945,640 $522,727 -------- --------
-------- -------- Cost of product revenue Materials and Labor used
in production 130,331 93,453 234,363 196,602 Write down of obsolete
inventory parts - - - 100,000 -- -- -- ------- Total Cost of
product revenue 130,331 93,453 234,363 296,602 ------- ------
------- ------- Gross Profit (Loss) from Operations 358,628 244,721
711,277 226,125 Selling, general and administrative expenses
614,403 1,316,604 1,133,547 2,188,990 ------- --------- ---------
--------- Loss Before Other Income (Expenses) (255,775) (1,071,883)
(422,270) (1,962,865) -------- ---------- -------- ---------- OTHER
INCOME (EXPENSES) Interest expense (14,140) (11,313) (69,274)
(11,351) Interest income 2,483 32,293 13,812 48,907 Induced
conversion cost (25,406) - (205,911) (944,362) Write off of
discount on converted debt - - - (705,088) Amortization of deferred
loan discount (50,762) (141,016) (101,524) (349,939) Amortization
of deferred loan cost (118,012) (126,185) (236,024) (252,370)
-------- -------- -------- -------- Total Other Income (Expense)
(205,837) (246,221) (598,921) (2,214,203) -------- --------
-------- ---------- Loss before provision for income taxes
(461,612) (1,318,104) (1,021,191) (4,177,068) Provision for income
taxes (355,267) - (355,267) - -------- -- -------- -- NET LOSS
APPLICABLE TO COMMON SHARES $(106,345) $(1,318,104) $(665,924)
$(4,177,068) ========= =========== ========= =========== NET LOSS
PER BASIC AND DILUTED COMMON SHARE $(0.03) $(0.92) $(0.21) $(3.36)
====== ====== ====== ====== WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 3,127,079 1,427,076* 3,123,736 1,241,363*
========= ========= ========= ========= * Represents retroactive
application of 1:4 reverse stock split. DATASOURCE: Conolog
Corporation CONTACT: Robert Benou, Chairman of Conolog Corporation,
+1-908-722-8081 Web Site: http://www.conolog.com/
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