Currently viewing and reading

Conolog Reports Results for Fiscal Year Ended July 31, 2009

Posted by Dana in November 16th 2009

Conolog Corporation (NASDAQ: CNLG) reported its financial results for the fiscal year ended July 31, 2009.

Product revenue for the fiscal year ended July 31, 2009 totaled $1,485,298 an increase of 21.7% or $264,305 from the product revenue reported for the fiscal year ended July 31, 2008 of $1,220,993. The Company attributes this increase in revenues to an increase in sales.

Product cost (Material and Direct labor) for the fiscal year ended July 31, 2009 amounted to $470,392 or 31.7% of product revenues, compared to $467,081 or 38.2% for the fiscal year ended July 31, 2008. The Company attributes the decrease in the current year’s product cost percentage to the standardizing of costs to build our new PDR-2000 system and the outsourcing of assemblies.

For fiscal year ended July 31, 2009 the Company, in compliance with its inventory management policy, the Company recognized $82,138 of cost relating to obsolete inventory parts. This compares to $112,171 of obsolete inventory parts expensed during the fiscal year July 31, 2008.

Total Operating expenses for fiscal July 31, 2009 were $2,672,943 a decrease of $1,700,135 from the $4,373,078 reported for fiscal July 31, 2008. The Company attributes this decrease to the forgiveness of Officers’ salary, reduced legal fees and a decrease in the value of stock compensation costs.

Other expenses for the fiscal year ended July 31, 2009 decreased by $2,540,274 to $695,995 from $3,236,269 for fiscal July 31, 2008. Included in this expense is a non-cash expense related to the induced conversion benefit of $552,370; a non-cash interest expense related to conversion of debt for $286,584; and the amortization of fees related to the conversion of debt for $123,274.

As a result of the foregoing, the Company reported a net loss applicable to common shares of $2,354,032 or $0.98 per share for fiscal 2009, compared to a net loss applicable to common shares of $6,967,606 or $23.49 per share (as restated for the stock reversal for fiscal 2009.

*The net loss applicable to common shares for fiscal 2008 has been restated to reflect the one-for-five reverse split of the Company’s common stock, approved by the shareholders on February 25, 2009. Total shares outstanding were 1,842,485 and 558,448 (as adjusted to reflect the reverse splits) for the years ended July 31, 2009 and 2008, respectively.