Interphase announces 2006 profits up on last year

Interphase Corporation, a supplier of next-generation networking technologies, has reported financial results for its fourth quarter and full year ended 31st December, 2006. Revenues for the fourth quarter of 2006 were $8.1 million, representing an 8% increase over revenues for the fourth quarter of 2005 of $7.6 million. Fourth quarter 2006 revenues increased 5% compared to revenues of $7.8 million in the third quarter of 2006.

The fourth quarter revenues included a one-time project cancellation fee of $575,000 for unique customer requirements for product development work that was discontinued.

Interphase revenues continue to be driven by its broadband telecom product portfolio, which rose 30% to $6.4 million in the fourth quarter of 2006 compared with $4.9 million for the fourth quarter of 2005.

Slotoptimiser product line revenues declined to $600,000 compared with $1.9 million on a year to year basis.

Gross margin for the fourth quarter of 2006 was 56% compared with 50% for the fourth quarter of 2005.

The company recorded a fourth quarter 2006 net income of $458,000, or $0.07 per share, compared with a loss of $(1.1) million, or $(0.19) per share in the fourth quarter of 2005.

For the full year 2006, revenues were $33.4 million compared to $30.9 million for the full year 2005 representing 8% year to year growth.

Gross margin for the year ended December 31, 2006 was 54% compared to 52% for the year ended December 31, 2005.

Net income for 2006 was $2.1 million or $0.33 per share, compared to a net loss of $(2.3) million or $(0.40) per share for 2005.

The company's balance sheet continues to be solid with a working capital position of $26.9 million, including an improved cash and marketable securities position of $22.5 million on December 31, 2006.

'Interphase culminates a profitable 2006, with a profitable quarter, well established as a key player in the growing AdvancedTCA and MicroTCA markets', says Greg Kalush, President and Chief Executive Officer of Interphase Corporation.

'While our operating results were essentially break-even for the fourth quarter, they represent roughly a $1 million improvement over the fourth quarter 2005 operating results and a $2.9 million improvement on a full year basis'.

'Our strategy has been to invest in research and development resources aimed at new high-growth market opportunities such as AdvancedTCA and MicroTCA with product solutions to satisfy design win opportunities at our key customer accounts and capitalise on revenue-generating applications and services, while maintaining operational excellence in serving our current customers with our extensive line of products'.

'In 2006, Interphase enhanced its product portfolio with the addition of a number of AdvancedMC products and also introduced its 1/10 gigabit Ethernet AdvancedTCA carrier card; during the year Interphase also introduced new PCI-X and PCI-Express products for use in telecommunication server platforms across multiple applications'.

'In addition, we successfully delivered RoHS compatible PMC and PCI products into Europe and Asia in advance of the July 1, 2006 European deadline, earning acclaim from our customers'.

'Interphase also expanded its customer base as well as extended its reach into the marketplace with key alliances and partnerships'.

'Despite the ongoing merger and integration activity facing the industry today, the Interphase team executed effectively to deliver top line and bottom line growth during the year'.

'We are finishing 2006 with a strong product portfolio to address the needs of our customers as they gear up for their next generation of AdvancedTCA and MicroTCA solutions'.

'I am very proud of the performance of this team in 2006, and look forward with anticipation to solid execution in 2007'.