EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

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Melissa Woods

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melissa.woods@icxt.com

ICx Technologies Reports First-Half 2010 Results

ARLINGTON, Va. (August 16, 2010) - ICx Technologies, Inc. (Nasdaq GM: ICXT), a developer of advanced sensor technologies for homeland security, force protection and commercial applications, announced today its operating and financial results for the first six months and second-quarter ended June 30, 2010.

First-Half Financials

For the first six months ended June 30, 2010, ICx reported revenues of $77 million, compared to $92 million for the same six months last year. The Company also reported an increase in funded backlog, up 38% to $73 million from the beginning of the year. In addition, adjusted EBITDA remained positive at $1.5 million for the first six months of 2010 compared to adjusted EBITDA of $3.7 million for the same period last year.

Second-Quarter

For the second quarter of 2010, revenue was $36 million and adjusted EBITDA was a loss of ($0.6) million. Last year, the Company reported revenue of $45 million and adjusted EBITDA of $2.9 million.


Merger Agreement Announcement

As reported in a separate press release today, ICx has entered into a definitive merger agreement with FLIR Systems, Inc. pursuant to which ICx would be acquired through a cash tender offer, followed by a merger with a subsidiary of FLIR, for a price of $7.55 per share in cash, subject to the terms and conditions of the merger agreement.

ICx has cancelled the previously scheduled August 16 call to discuss its earnings.

About ICx® Technologies

ICx Technologies is a leader in the development and integration of advanced sensor technologies for homeland security, force protection and commercial applications. Our proprietary sensors detect and identify chemical, biological, radiological, nuclear and explosive threats, and deliver superior awareness and actionable intelligence for wide-area surveillance, intrusion detection and facility security. We then leverage our unparalleled technical expertise and government funding to address other emerging challenges of our time, ranging from a cleaner environment and alternative energy to life science.

Safe-Harbor Statement

All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company’s revenues and EPS for fiscal 2010; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, demand for the Company’s products and services; the ability of the Company to successfully develop and expand its products, services, technologies and markets; the ability of the Company to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions; changes in U.S. government funding levels to purchase the Company’s products and services; the ability of the Company to sell its products to original equipment manufacturers, prime contractors and system integrators; seasonality; competition; the ability of the Company to develop innovative products; the ability of the Company to attract, retain and motivate key personnel; the ability of the Company to secure and maintain key contracts and relationships, including contracts with the U.S. government; general economic, market and business conditions, uncertainties and other factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.


Use of Non-GAAP Financial Measures

In evaluating its business, ICx considers and uses Adjusted EBITDA as a supplemental measure of its operating performance. The Company defines Adjusted EBITDA as earnings from continuing operations before interest, taxes, depreciation and amortization, plus non-cash equity compensation. The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than ICx, limiting their usefulness as comparative tools. ICx compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally.


ICx TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Net Loss

(Unaudited)

(dollars in thousands, except per share amounts)

 

     Unaudited
Three Months  Ended June 30,
    Unaudited
Six Months  Ended June 30,
 
     2010     2009     2010     2009  

Revenues:

        

Product revenues

   $ 19,584      $ 22,122      $ 41,299      $ 38,443   

Contract research and development revenues

     10,147        12,692        22,308        23,974   

Service and other revenue

     6,248        10,173        12,942        29,961   
                                

Total revenues

     35,979        44,987        76,549        92,378   
                                

Cost of revenues:

        

Cost of product revenues

     8,633        10,837        16,998        18,937   

Cost of contract research and development revenues

     7,441        9,565        16,394        17,879   

Cost of service and other revenues

     4,031        7,335        8,852        21,529   
                                

Total cost of revenue

     20,105        27,737        42,244        58,345   
                                

Gross profit

     15,874        17,250        34,305        34,033   
                                

Operating expenses:

        

General and administrative

     7,248        6,717        14,288        13,906   

Sales and marketing

     6,281        5,840        12,589        12,194   

Research and development

     4,228        3,105        7,988        6,621   

Depreciation and amortization

     1,872        2,996        3,825        6,019   
                                

Total operating expenses

     19,629        18,658        38,690        38,740   
                                

Operating loss

     (3,755     (1,408     (4,385     (4,707
                                

Other income (expense):

        

Interest income

     15        39        27        91   

Interest expense

     (17     (37     (45     (55

Other, net

     587        344        834        401   
                                

Total other income

     585        346        816        437   
                                

Loss before income taxes

     (3,170     (1,062     (3,569     (4,270

Income tax expense

     509        122        789        235   
                                

Loss from continuing operations

   $ (3,679   $ (1,184   $ (4,358   $ (4,505

Loss on discontinued operations, net of tax

     (9     (87     (322     (241

Loss on sale of discontinued operations, net of tax

     (29     —          (29     —     
                                

Net loss

   $ (3,717   $ (1,271   $ (4,709   $ (4,746
                                

Other comprehensive income

        

Foreign currency translation adjustment, net of tax

     (768     (136     (1,041     (915
                                

Comprehensive loss

   $ (4,485   $ (1,407   $ (5,750   $ (5,661
                                

Net loss per common share

        

Basic and diluted

   $ (0.11   $ (0.04   $ (0.13   $ (0.14
                                

Reconciliation of Non-GAAP Measure:

        

Net loss

   $ (3,717   $ (1,271   $ (4,709   $ (4,746

Add (subtract)

        

Loss from discontinued operations

     38        87        351        241   

Income tax expense (benefit)

     509        122        789        235   

Interest income

     (15     (39     (27     (91

Interest expense

     17        37        45        55   

Depreciation and amortization

     1,872        2,996        3,825        6,019   

Stock-based compensation expense

     655        955        1,185        1,985   
                                

Adjusted EBITDA

   $ (641   $ 2,887      $ 1,459      $ 3,698   
                                


ICx TECHNOLOGIES, INC. AND SUBSIDIARIES

Condensed Balance Sheets

(Unaudited)

(dollars in thousands)

 

     June 30,
2010
   December 31,
2009

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 37,739    $ 22,257

Restricted cash

     3,866      8,465

Trade accounts receivable, net

     20,737      36,751

Unbilled revenue

     9,268      8,957

Inventories

     28,929      22,491

Other current assets

     5,519      4,553

Current assets of discontinued operations

     —        1,065
             

Total current assets

     106,058      104,539

Property, plant and equipment, net

     9,432      9,673

Goodwill and intangibles, net

     77,802      80,176

Other noncurrent assets

     4,307      3,671

Noncurrent assets of discontinued operations

     —        365
             

Total assets

   $ 197,599    $ 198,424
             

Liabilities and Stockholders’ Equity

     

Current liabilities

   $ 30,568    $ 26,142

Current liabilities of discontinued operations

     —        879

Noncurrent liabilities

     513      966
             

Total liabilities

     31,081      27,987
             

Total stockholders’ equity

     166,518      170,437
             

Total liabilities and stockholders’ equity

   $ 197,599    $ 198,424
             


ICx TECHNOLOGIES, INC. AND SUBSIDIARIES

Selected Segment Information

(Unaudited)

(dollars in thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2010     2009     2010     2009  

Detection

        

Product revenue

   $ 11,912      $ 10,886      $ 26,321      $ 20,181   

Contract research and development revenue

     9,706        12,573        21,296        23,657   

Service and other revenue

     1,300        864        2,459        1,683   
                                

Total revenue

   $ 22,918      $ 24,323      $ 50,076      $ 45,521   

Gross profit %

     42.1     40.2     44.6     40.2
                                

Surveillance

        

Product revenue

   $ 5,912      $ 9,415      $ 11,955      $ 14,526   

Contract research and development revenue

     441        119        1,012        317   

Service and other revenue

     610        3,855        1,272        14,625   
                                

Total revenue(1)

   $ 6,963      $ 13,389      $ 14,239      $ 29,468   

Gross profit %

     57.0     35.8     55.5     34.1
                                

Solutions

        

Product revenue

   $ 1,746      $ 1,831      $ 3,027      $ 3,769   

Contract research and development revenue

     59        121        96        156   

Service and other revenue

     4,516        5,624        9,428        13,915   
                                

Total revenue(2)

   $ 6,321      $ 7,576      $ 12,551      $ 17,840   

Gross profit %

     35.7     35.4     32.4     31.7
                                

 

(1)

Includes $0 and $8 of intersegment revenue that has been eliminated in the Consolidated Statement of Operations and Net Loss for the three and six months ended June 30, 2010 and 2009, respectively

(2)

Includes $223 and $293 of intersegment revenue that has been eliminated in the Consolidated Statement of Operations and Net Loss for the three months ended June 30, 2010 and 2009, respectively; and $317 and $443 of intersegment revenue that has been eliminated in the Consolidated Statement of Operations and Net Loss for the six months ended June 30, 2010 and 2009, respectively