Nothing new here, but thought I would post this from S&P. I would really like to see the net new orders mentioned in the last paragraph improve going forward. Seems like some of the distributed shares are still being sold. I haven't had any problem getting shares at my bid price recently.


S&P FinancialWriter Frank Barone


Operational Review August 14, 2009 Revenue/Earnings Data

Income Statement Analysis & Financial Review

Revenues for the six months ended June 30, 2009 were $71.2 million vs. $94.1 million in the prior year, declining 24% year over year. Gross margin widened 3%, despite lower revenues. Selling, general & administrative expenses fell 7%, and operating loss was $0.1 million, vs. operating income of $5.1 million for last year. Pre-tax loss was $0.2 million, vs. pre-tax income last year of $4.9 million. Income tax credit was $0.1 million, against income tax of $1.6 million, and for the first two quarters of the fiscal year, loss from continuing operations was $0.1 million ($0.02 a share), vs. income from continuing operations of $3.3 million ($0.56 a share) in 2008.

In the second quarter, revenues were $35 million vs. $48.7 million in the prior year, falling 28% year to year. Gross margin widened 6%, despite lower revenues. Selling, general & administrative expenses fell 2%, and operating loss for the quarter was $0.4 million, vs. operating income of $3 million in the prior-year period. Pre-tax loss was $0.5 million, vs. pre-tax income in last year's quarter of $2.9 million. Income tax credit was $0.2 million, against income tax of $0.9 million for last year, and net loss was $0.3 million ($0.06 a share), vs. net income of $2 million ($0.34 a share) in the second quarter of 2008.

Key Operating Information
The company's second quarter results included restructuring charges of $534,000, which related to severance costs necessary to downsize staff and overhead expenses in line with current business levels. For the six months ended June 30, 2009, cash provided by operating activities from continuing operations was $3,472,000, compared to $1,800,000 for the same period in 2008. The net change in cash for the six months ended June 30, 2009 was $2,389,000, compared to a decrease in cash of $733,000 for the same period last year.

Recent Developments
The company reported net new orders of $30.0 million in the second quarter of 2009, compared to net new orders of $49.7 million in the second quarter of 2008. Backlog at June 30, 2009 was $51.5 million, as compared to $61.7 million a year earlier.