Lattice Announces Fiscal Year 2013 Financial Results
Conference Call Today, March 31 at 2:00 p.m. ET
PENNSAUKEN, NJ--(Marketwired - Mar 31, 2014) - Lattice
Incorporated (OTCQB: LTTC) ("Lattice" or the "Company"), a
cloud-solutions provider of inmate management network systems for
correction facilities, announced its financial results for the
fiscal year ended December 31, 2013.
Fiscal Year 2013 Financial Highlights:
- Total revenue increased 10% to $8.3 million
- Recurring revenues accounted for 72% of total revenue
- Gross margin percentage improved to 34%
- Company had positive adjusted operating income for fiscal
2013
"We're pleased to report that we exceeded our top-line growth
objective for fiscal 2013 with revenue increasing 10% to $8.3
million," stated Paul Burgess, CEO of Lattice. "By divesting our
government services segment in the second quarter, we were able to
focus resources on our expanding communications business, which
addresses a $1.5 billion per year market in the U.S. alone,
resulting in positive adjusted operating income for fiscal 2013 and
setting the stage for our move toward profitability in 2014. We've
also begun to accelerate our expansion into international markets
and will continue to partner with established companies to
implement our next generation cloud based services and technology
to take advantage of these growing opportunities."
Burgess continued, "We launched the first version of our
Integrated Corrections Operations Network ("ICON") in the second
quarter of 2013 and we anticipate subsequent releases to continue
this year. ICON is a true state-of-the-art platform that includes a
full suite of services and products, available in modules that
enable service providers and correctional facilities to choose from
a variety of services that best fits their needs. To further
improve our service offering, we also launched a new in-house call
center to better serve our growing customer base. As of year-end
2013, we were operating in 11 states and the number of inmates
using our service domestically surpassed 50,000. We are also
currently operating internationally in Canada, the U.K., Asia, and
the Caribbean."
Total revenue for fiscal 2013 increased 10% year-over-year to
$8.3 million, compared to $7.5 million in 2012, while recurring
revenues increased 5% year-over-year to 72% of total revenue.
Gross margin, as a percentage of revenues, increased to 34% in
2013 from 32% in 2012. Gross margin for the Company's technology
sales remained consistent in the 60% to 65% range and are
anticipated to remain stable at these levels. Gross margin from
recurring revenues was also consistent with prior year results at
approximately 25%.
Adjusted operating income for the fiscal year was $44,000
compared to an adjusted operating loss of $92,000 for the fiscal
year 2012.
Cash and cash equivalents increased to $313,000 at December 31,
2013, up from $30,000 at December 31, 2012. Net cash provided by
operating activities increased 45% to $575,000 for fiscal 2013, up
from $396,000 in fiscal 2012.
"With the Company turning back to positive adjusted operating
income in 2013 and continuing growth of our communications
business, we can now work to improve our balance sheet," continued
Burgess. "We believe the many accomplishments of 2013 and the
growing demand for our products and services sets the stage for
ongoing financial improvements in 2014 that will lead to a
significant in shareholder value."
Additional information may be found in the Company's 10-K filing
with the U.S. Securities and Exchange Commission.
Conference Call
Lattice will host a conference call today, Monday, March 31,
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 (888)
846-5003, or (480) 629-9856 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.latticeinc.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 March 31, 2014, until 11:59 p.m. ET on April 14, 2014.
The number for the replay is (877) 870-5176, or (858) 384-5517 for
international calls; the passcode for the replay is 4676799. 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 corrections facilities
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 facilities
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.
|
|
Adjusted Operating Income (non-GAAP)
Reconciliation |
|
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
Loss
from operations, as reported |
|
$ |
(619,393 |
) |
|
$ |
(474,059 |
) |
add
back non-cash and non-recurring items: |
|
|
|
|
|
|
|
|
depreciation and amortization |
|
$ |
426,487 |
|
|
$ |
376,511 |
|
share
based comp |
|
$ |
163,027 |
|
|
$ |
5,684 |
|
AR Reserve allowances |
|
$ |
73,965 |
|
|
|
- |
|
Adjusted operating income |
|
$ |
44,086 |
|
|
$ |
(91,864 |
) |
Contact: Investor Relations Brendan Hopkins RedChip Companies,
Inc. Tel: +1-800-733-2447, ext. 134 bhopkins@redchip.com
http://www.redchip.com
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