LaserCard: Fiscal 2Q10 Financial Results

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	13.5	15.7	24.2	32.0
*Growth*		17%		*32%*
Net income (loss)	0.2	1.8	(1.0)	3.8

LaserCard Corporation announced the financial results for its fiscal 2010 second quarter ended September 30, 2009.

Revenues for the second quarter of fiscal 2010 were $15.7 million, compared with $16.3 million in the prior quarter and $13.5 million in the same quarter a year ago. Net income for the second quarter of fiscal 2010 was $1.8 million, or $0.15 per diluted share, compared with net income of $1.9 million, or $0.16 per diluted share, in the prior quarter, and net income of $0.2 million, or $0.02 per diluted share, in the same quarter a year ago.

LaserCard optical memory card revenues for the quarter were $11.9 million compared with $8.6 million in the second quarter of fiscal 2009. Revenues from specialty cards and printers totaled $3.7 million compared with $3.9 million from the same quarter a year ago. Drives, systems and services segment revenue for the quarter was $0.1 million, compared with $0.9 million in the second quarter of the prior year.

LaserCard Corporation’s cash, cash equivalents, and investments were $40.7 million at September 30, 2009 compared with $29.3 million at March 31, 2009. Debt at September 30, 2009 totaled $9.3 million compared with $8.9 million at March 31, 2009.

Non-GAAP Results
The non-GAAP net income for the second quarter of fiscal 2010 was $1.9 million, or $0.15 per diluted share, compared to non-GAAP net income of $2.2 million, or $0.18 per diluted share, in the prior quarter, and a non-GAAP net income of approximately $0.8 million, or $0.07 per diluted share, in the same quarter a year ago.

Non-GAAP net income and net income per diluted share exclude expenses related to SFAS123R stock-based compensation, the unrealized income relating to the fair value adjustment of auction rate securities and UBS put option agreement, and exclude the gain related to the termination of a contract.

“We are pleased to have achieved such strong operating results over the past three quarters,” said Robert DeVincenzi, President and CEO of LaserCard. “Our performance in the first half of our current fiscal year represents the result of reductions in our overall expense levels combined with the benefit of unusually high demand in a couple of our key programs. Our program revenue and financial results will continue to be subject to fluctuations on a quarterly basis. From a program standpoint, we have successfully made the transition from planning to implementation in the Angola National ID program with our initial shipments of credentials in the quarter. We are on track for delivery of the $8.8 million initial card order scheduled to be completed this fiscal year.”