Home Director’s 2Q Revenues Fall 12%
LIVERMORE, Calif.
Home Director Inc. reported results for the quarter ended June 30. The designer, manufacturer, seller and installer of home networking products had revenues of $2.5 million, a decrease of 12 percent from $2.8 million in the same period last year. Excluding certain one-time items, net loss was $462,000, or 12 cents per share, vs. a net loss of $1.4 million, or $2.20 per share, in the second quarter of 2002. In the 2003 quarter, Home Director reported a charge of $590,000 related to the closure of a facility. In the 2002 quarter, the company recorded a gain of $4.7 million for the extinguishment of certain liabilities, offset by interest and other expenses of $900,000 related to issuance of convertible debt. The company reported a net loss in the quarter ended June 30 of $1.1 million, or 28 cents per share vs. a gain of $2.4 million, or $3.88 per share, in the same period of 2002. Gross margins improved to 44 percent in the second quarter of 2003, as compared to 31 percent for the same quarter last year. Excluding certain one-time items, operating expenses decreased 32 percent to $1.5 million in this year’s second quarter as compared to $2.2 million for the second quarter of 2002.
For the six months ended June 30, revenues of $5 million represented a 7-percent decrease from revenues of $5.3 million in the six months ended June 30, 2002. Gross margin improved to 42 percent as compared to 32 percent the prior year and, excluding the certain one-time items, operating expenses of $3 million represent a 21-percent decrease from $3.8 million in the six months ended June 30, 2002. Excluding the certain one-time items, net loss decreased to $922,000 in the first six months of 2003 from $2.1 million for the first six months of 2002. The company reported a net loss of $1.5 million, or 40 cents per share, in the 2003 period vs. a gain of $1.7 million, or $2.74 per share, in the same period of 2002.
Cash used in the six months ended June 30, 2003 totaled $2.3 million. Of that amount, approximately $730,000 was used for payments of expenses related to the Netword merger completed in late 2002. The balance was primarily used to fund the cash operating loss $909,000 and an increase in accounts receivable $724,000.
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