Xenonics Reports First Quarter Results

CARLSBAD, Calif.--(BUSINESS WIRE)--XENONICS HOLDINGS, INC. (OTCBB:XNNH) (OTCQB:XNNH) today announced financial results for the first quarter of fiscal 2013.

Revenue for the three months ended December 31, 2012 was $157,000. This compares to revenue of $325,000 for the first quarter of fiscal 2012. The net loss for the first quarter of fiscal 2013 was $494,000, or $0.02 per share. This compares to a net loss for the first quarter of fiscal 2012 of $653,000, or $0.03 per share.

Selling, general and administrative expenses decreased to $416,000 for the first quarter of fiscal 2013 from $526,000 for the first quarter of fiscal 2012.

At December 31, 2012, Xenonics reported working capital of $193,000, and a current ratio of 1.1-to-1. Inventories were $2,173,000. In January 2013, the Company completed a debt financing for $450,000.

"Our fiscal first quarter is historically our seasonally weakest quarter of the year, and this quarter was no exception. We expect improved performance going forward. The entire $1,000,000 NightHunter order we previously announced is scheduled to ship in the current quarter. We expect additional substantial orders for our NightHunter and SuperVision products to be announced in the coming months. As always, we remain focused on cost control as we pursue a variety of opportunities for renewed growth and profitability in fiscal 2013," said Chairman Alan Magerman.

Conference Call

Xenonics has scheduled a conference call at 11:00 a.m. EST this morning to discuss its results for the first quarter of fiscal 2013. The dial-in number is [phone], passcode #84453921. 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. EST at this same Internet address. For a telephone replay, dial [phone], passcode #30617190, after 1:00 p.m. EST.

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.

(tables attached)

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three months ended
	December 31,
		2012			2011
Rounded in thousands, except per share amounts	(unaudited)
Revenue	$	157,000		$	325,000
Cost of goods sold		74,000			231,000
Gross profit		83,000			94,000
Selling, general and administrative		416,000			526,000
Research and development		119,000			181,000
Income (loss) from operations		(452,000	)		(613,000	)
Other income/(expense):
Interest (expense)		(40,000	)		(38,000	)
Income (loss) before provision for income taxes		(492,000	)		(651,000	)
Income tax provision		2,000			2,000
Net income (loss)	$	(494,000	)	$	(653,000	)
Net income (loss) per share:
Basic and fully-diluted	$	(0.02	)	$	(0.03	)
Weighted average shares outstanding:
Basic and fully-diluted		24,976,000			24,976,000

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31,			September 30,
		2012			2012
Rounded in thousands, except par value	(unaudited)
Assets
Current Assets:
Cash	$	49,000		$	367,000
Accounts receivable, net		10,000			58,000
Inventories		2,173,000			2,117,000
Other current assets		68,000			82,000
Total Current Assets		2,300,000			2,624,000
Equipment, furniture and fixtures at cost, net		11,000			14,000
Goodwill		375,000			375,000
Other assets		17,000			17,000
Total Assets	$	2,703,000		$	3,030,000
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable	$	440,000		$	281,000
Accrued expenses		91,000			134,000
Accrued payroll and related taxes		68,000			95,000
Notes payable, net of debt discount		1,508,000			1,000,000
Total Current Liabilities		2,107,000			1,510,000
Notes payable		--			525,000
Total Liabilities		2,107,000			2,035,000
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 December 31, 2012 and September 30, 2012		25,000			25,000
Additional paid-in capital		26,776,000			26,681,000
Accumulated deficit		(26,205,000	)		(25,711,000	)
Total Shareholders' Equity		596,000			995,000
Total Liabilities and Shareholders' Equity	$	2,703,000		$	3,030,000