LaserCard: Fiscal 4Q10 Financial Results

LaserCard Corporation announced financial results for its fiscal 2010 fourth quarter and fiscal year ended March 31, 2010.

Revenues for the fourth quarter of fiscal 2010 were $14.2 million, compared with $12.4 million in the prior quarter and $14.7 million in the same quarter a year ago. GAAP net income for the fourth quarter of fiscal 2010 was $853,000, or $0.07 per diluted share, compared with GAAP net income of $1.3 million, or $0.11 per diluted share in the prior quarter, and GAAP net income of $944,000, or $0.08 per diluted share, in the same quarter a year ago.

For the fiscal year ended March 31, 2010, LaserCard reported revenues of $58.6 million, compared with prior fiscal year revenues of $49.8 million. GAAP net income for fiscal 2010 was $6.0 million, or $.49 per diluted share, compared with a GAAP net loss of $0.9 million, or ($0.08) per diluted share in the prior year.

Revenue from optical security media cards totaled $43.3 million in fiscal 2010, up 40% from $30.9 million in fiscal 2009. Revenue from specialty cards and printers totaled $14.1 million in fiscal 2010 versus $15.8 million in fiscal 2009, with the remaining revenues coming from professional services and other products and services within the drive systems and services segment. Optical security media card backlog at March 31, 2010 totaled $10.4 million.

LaserCard Corporation’s cash, cash equivalents, and short-term investments, net of short-term debt with UBS Financial Services, Inc. (UBS), were $37.2 million at March 31, 2010. The short-term debt will be extinguished by UBS with a portion of the proceeds from the sale of student loan auction rate securities to UBS expected to occur on June 30, 2010. Cash provided by operating activities totaled $16.7 million for the year ended March 31, 2010.

Non-GAAP Results
Non-GAAP net income for the fourth quarter of fiscal 2010 was $1.4 million, or $.11 per diluted share, compared with non-GAAP net income of $1.6 million, or $0.13 per diluted share, for the same quarter a year ago.

Non-GAAP net income for fiscal 2010 was $7.4 million, or $.60 per diluted share, compared with non-GAAP net income of $1.7 million, or $0.14 per diluted share, for the previous year.

Non-GAAP net income and net income per diluted share exclude expenses related to ASC 718 (formerly SFAS123R) stock-based compensation, the unrealized income (expense) relating to the fair value adjustment of auction rate securities and UBS put option agreement, and the gain on a contract termination.

“We are very pleased with our fiscal 2010 financial results,” said Robert DeVincenzi, President and CEO. “Full year revenues grew 18% over the prior year reflecting the continued acceptance of our technology and solutions offerings. Through our continuous innovation program, we advanced our core technology and its applications. In addition, we strengthened our sales, marketing and professional services organizations, which deepened our market presence.”