COSTA MESA, Calif., Feb. 20 /PRNewswire-FirstCall/ -- Irvine
Sensors Corporation (Nasdaq: IRSN; Boston Stock Exchange: ISC)
today reported operating results for its first quarter of fiscal
2007, the 13 weeks ended December 31, 2006. The current period
included consolidation of Optex Systems, Inc., Irvine Sensors'
subsidiary acquired December 30, 2005. Total revenues were
$8,119,500, up approximately 70% from $4,781,000 for the prior
year's first fiscal quarter, the 13 weeks ended January 1, 2006.
The current period revenue increase reflected the Optex
consolidation, which did not impact revenues in the first quarter
of fiscal 2006 since the Optex acquisition did not occur until the
end of that quarter. Net loss for the current quarter was
$6,427,500, a 471% increase from $1,125,100 net loss of the fiscal
2006 first quarter. The increase in net loss in the current period
was largely the result of approximately $4.4 million of
non-recurring debt extinguishment loss, most of which was non-cash,
which was incurred as a result of Irvine Sensors' restructuring of
its bank debt and subordinated convertible notes on December 29,
2006. Absent the debt service and debt restructuring expenses, the
loss from operations in the current period was $1,196,500,
approximately comparable to the $1,112,600 loss from operations in
the prior year's first quarter. The debt restructuring was the
primary contributor to an increase in stockholders' equity at
December 31, 2006, most of which is a timing effect derived from
the valuation of warrants and a beneficial conversion feature in
the Company's convertible notes. Irvine Sensors' CEO John Carson
and CFO John Stuart will host a web cast conference call to discuss
the fiscal 2007 first quarter results on Monday, February 26, 2007
at 8:30 AM Pacific Time. The call will be broadcast live over the
Internet and can be listened to by all interested parties via a
link on Irvine Sensors' homepage at http://www.irvine-sensors.com/,
which should be accessed at least fifteen minutes prior to the
start of the call to register, download, and install any necessary
audio software. For those unable to monitor the live broadcast, a
conference call replay will be available shortly after the
conclusion of the call, and remain archived on the Irvine Sensors
site through Friday, March 9, 2007. Irvine Sensors Corporation,
headquartered in Costa Mesa, California, is a vision systems
company engaged in the development and sale of miniaturized
infrared and electro-optical cameras, image processors and stacked
chip assemblies, the manufacture and sale of optical systems and
equipment for military applications through its Optex subsidiary
and research and development related to high density electronics,
miniaturized sensors, optical interconnection technology, high
speed network security, image processing and low-power analog and
mixed-signal integrated circuits for diverse systems applications.
IRVINE SENSORS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31, October 1, 2006 2006 Assets Current assets: Cash and
cash equivalents $1,278,000 $582,800 Restricted cash 39,500 42,800
Accounts receivable, net of allowance for doubtful accounts of
$131,000 and $131,000, respectively 3,545,700 4,102,100 Unbilled
revenues on uncompleted contracts 1,106,100 1,908,500 Inventory,
net 8,686,100 6,735,100 Other current assets 318,000 120,900 Total
current assets 14,973,400 13,492,200 Property and equipment, net
5,320,700 5,537,900 Intangible assets, net 3,672,800 2,948,800
Goodwill 12,119,200 9,103,600 Deferred costs 930,800 295,500
Deposits 117,800 117,800 Total assets $37,134,700 $31,495,800
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable $5,338,100 $5,269,700 Accrued expenses 2,624,400 1,806,000
Success fee payable to related party 500,000 500,000 Accrued
estimated loss on contracts 98,600 68,300 Advance billings on
uncompleted contracts 200,400 181,600 Deferred revenue 55,800
144,100 Settlement fee payable -- 1,250,000 Income taxes payable
124,600 205,800 Net deferred tax liabilities 501,400 485,800
Capital lease obligations - current portion 65,400 70,000 Total
current liabilities 9,508,700 9,981,300 Note payable - senior term,
net of discounts 6,730,000 6,031,600 Notes payable - convertible,
net of discounts -- 8,998,800 Promissory note - related party
400,000 -- Capital lease obligations, less current portion 35,100
49,100 Minority interest in consolidated subsidiaries 409,600
2,105,100 Total liabilities 17,083,400 27,165,900 Stockholders'
equity: Common stock, $0.01 par value, 80,000,000 shares
authorized; 24,726,000 and 19,965,900 shares issued and
outstanding, respectively 247,300 199,700 Common stock warrants;
5,444,900 and 2,227,100 warrants outstanding, respectively -- --
Deferred stock-based compensation (1,067,100) -- Common stock held
by Rabbi Trust (1,144,000) (939,000) Deferred compensation
liability 1,144,000 939,000 Paid-in capital 147,704,200 124,535,800
Accumulated deficit (126,833,100) (120,405,600) Total stockholders'
equity 20,051,300 4,329,900 $37,134,700 $31,495,800 IRVINE SENSORS
CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 13
Weeks Ended December 31, January 1, 2006 2006 Revenues: Contract
research and development revenue $4,004,200 $4,256,700 Product
sales 4,111,400 508,700 Other revenue 3,900 15,600 Total revenues
8,119,500 4,781,000 Cost and expenses: Cost of contract research
and development revenue 3,358,000 3,371,000 Cost of product sales
3,296,600 382,200 General and administrative expense 2,530,000
2,071,000 Research and development expense 131,400 69,400 Total
costs and expenses 9,316,000 5,893,600 Loss from operations
(1,196,500) (1,112,600) Interest expense (910,200) (8,300) Loss on
extinguishment of debt (4,398,000) -- Interest and other income 400
1,600 Loss before minority interest and provision for income taxes
(6,504,300) (1,119,300) Minority interest in loss of subsidiaries
84,700 300 Provision for income taxes (7,900) (6,100) Net loss
$(6,427,500) $(1,125,100) Basic and diluted net loss per common
share $(0.32) $(0.06) Weighted average number of common shares
outstanding 20,123,500 19,194,300 DATASOURCE: Irvine Sensors
Corporation CONTACT: Investor Relations, Irvine Sensors
Corporation, +1-714-444-8718, Web site:
http://www.irvine-sensors.com/
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