Xenonics Reports Third Quarter Results

CARLSBAD, Calif.--(BUSINESS WIRE)--XENONICS HOLDINGS, INC. (OTCBB:XNNH) (OTCQB:XNNH) today announced financial results for the third quarter and first nine months of fiscal 2012.

Revenue for the three months ended June 30, 2012 was $403,000. This compares to revenue of $775,000 for the third quarter of fiscal 2011. The net loss for the third quarter of fiscal 2012 was $630,000, or $0.03 per share. This compares to a net loss for the third quarter of fiscal 2011 of $597,000, or $0.02 per share.

Selling, general and administrative expenses decreased 12% to $527,000 for this year's third quarter compared to $601,000 for the same period last year. Research and development expenses decreased to $191,000 for this year's third quarter compared to $198,000 a year ago.

For the nine months ended June 30, 2012, revenue was $1,200,000 compared to $6,323,000 for the first nine months of fiscal 2011. The net loss for the first nine months of fiscal 2012 was $1,857,000, or $0.07 per share. This compares to net income for the first nine months of fiscal 2011 of $377,000, or $0.02 per share. SG&A decreased 15% to $1,587,000 compared to $1,878,000 for last year's first nine months.

At June 30, 2012, Xenonics reported working capital of $893,000, and a current ratio of 1.4-to-1.

"Our defense markets remained sluggish in the third fiscal quarter and we experienced further delays in the receipt of several substantial, funded orders. However, the military business appears to be improving and the Company received approximately $1,000,000 in new military purchase orders in the current quarter and we have shipped over $700,000 of these orders, including an order for 200 SuperVision units for the US Army Military Police. This is the first significant order for SuperVision placed by the US Military. Our inventory is in excess of $2,000,000 in anticipation of the receipt of large funded military orders which are working their way through the procurement process", said Chairman Alan Magerman.

Conference Call

Xenonics has scheduled a conference call at 11:00 a.m. EDT this morning to discuss its results for fiscal 2012. The dial-in number is [phone] and the passcode is #44638557. A simultaneous webcast of the conference call can be accessed from the Webcast Center of the Investor Relations link at www.xenonics.com. A replay will be available after 1:00 p.m. EDT at this same Internet address. For a telephone replay, dial [phone], passcode #76744701, after 1:00 p.m. EDT.

About Xenonics

Xenonics Holdings, Inc. develops and produces advanced, lightweight and compact ultra-high-intensity illumination and low-light vision products for military, law enforcement, public safety, and commercial and private sector applications. Xenonics' NightHunter line of illumination products is used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision high-definition night vision is designed for commercial and military applications. Employing patented technologies, Xenonics provides innovative solutions for customers who must see farther so they can do their jobs better and safer. Xenonics' products represent the next generation in small, high intensity, high efficiency illumination and low-light vision systems. Visit Xenonics on the web at www.xenonics.com.

Forward-Looking Statements

Except for the historical statements, statements in this release may constitute forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions identify forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties, and actual results may differ materially from the outcomes contained in any forward-looking statement. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of new products, and other risks and uncertainties discussed in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. Xenonics Holdings undertakes no obligation to update or revise any forward-looking statements.

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
		Three months ended						Nine months ended
		June 30,						June 30,
		2012			2011			2012			2011
Rounded in thousands, except per share amounts		(unaudited)						(unaudited)
Revenues		$	403,000		$	775,000		$	1,200,000		$	6,323,000
	Cost of goods sold		254,000			537,000			741,000			3,463,000
Gross profit			149,000			238,000			459,000			2,860,000
	Selling, general and administrative		527,000			601,000			1,587,000			1,878,000
	Research and development		191,000			198,000			588,000			495,000
Income (loss) from operations			(569,000	)		(561,000	)		(1,716,000	)		487,000
Other income/(expense):
	Interest income		--			2,000			--			5,000
	Interest (expense)		(61,000	)		(38,000	)		(139,000	)		(113,000	)
Income (loss) before
provision for income taxes			(630,000	)		(597,000	)		(1,855,000	)		379,000
Income tax provision			--			--			2,000			2,000
Net income (loss)		$	(630,000	)	$	(597,000	)	$	(1,857,000	)	$	377,000
Net income (loss) per share:
	Basic	$	(0.03	)	$	(0.02	)	$	(0.07	)	$	0.02
	Fully-diluted	$	(0.03	)	$	(0.02	)	$	(0.07	)	$	0.02
Weighted average shares outstanding:
	Basic		24,976,000			25,088,000			24,976,000			25,107,000
	Fully-diluted		24,976,000			25,088,000			24,976,000			25,107,000

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
		June 30,			September 30,
		2012			2011
Rounded in thousands, except par value		(unaudited)
Assets
Current Assets:
	Cash	$	302,000		$	738,000
	Accounts receivable		325,000			273,000
	Inventories		2,226,000			2,542,000
	Other current assets		190,000			144,000
	Total Current Assets		3,043,000			3,697,000
	Equipment, furniture and fixtures, net		17,000			35,000
	Goodwill		375,000			375,000
	Other assets		42,000			116,000
	Total Assets	$	3,477,000		$	4,223,000
Liabilities and Shareholders' Equity
Current Liabilities:
	Accounts payable	$	433,000		$	414,000
	Accrued expenses		111,000			99,000
	Accrued payroll and related taxes		84,000			96,000
	Notes payable, net of debt discount		1,522,000			--
	Total Current Liabilities		2,150,000			609,000
Notes payable, net of debt discount			--			459,000
	Total Liabilities		2,150,000			1,068,000
Commitments and contingencies
Shareholders' Equity:
	Preferred shares, $0.001 par value, 5,000,000
	shares authorized, 0 shares issued and outstanding		--			--
	Common shares, $0.001 par value, 50,000,000
	shares authorized; 24,976,000 shares issued and
	outstanding as of June 30, 2012 and September 30, 2011		25,000			25,000
	Additional paid-in capital		26,681,000			26,652,000
	Accumulated deficit		(25,379,000	)		(23,522,000	)
	Total Shareholders' Equity		1,327,000			3,155,000
	Total Liabilities and Shareholders' Equity	$	3,477,000		$	4,223,000