Press Release Source: VIASPACE Inc.
VIASPACE Announces First Quarter Financial Results Tuesday May 15, 4:30 pm ET
PASADENA, Calif., May 15 /PRNewswire-FirstCall/ -- VIASPACE Inc. (OTC Bulletin Board: VSPC - News), a company that transforms proven space and defense technologies from NASA and the Department of Defense into hardware and software solutions, announced today financial results for the quarter ended March 31, 2007. ADVERTISEMENT Revenue for the first quarter of 2007 was $239,000, as compared with $113,000 in the same quarter of 2006, an increase of $126,000. Gross profit for the first quarter of 2007 was $36,000 compared with $8,000 for the comparable quarter of 2006.
Operating expenses for the first quarter of 2007 was $2,057,000 compared to $1,423,000 in the same quarter of 2006. Included in operating expenses for the first quarter of 2007 was $673,000 of stock and warrant compensation expense compared with $378,000 for the same period in 2006. First quarter of 2007 operating expenses included $391,000 in research and development expense and $1,666,000 in selling, general and administrative expense. In the first quarter of 2006, there was $182,000 in research and development expense and $1,241,000 in selling, general and administrative expense. Loss from operations for the first quarter of 2007 was $2,021,000 compared to $1,415,000 in the same quarter of 2006.
Other income/expense including minority interest in consolidated subsidiaries was a loss of $1,891,000 for the first quarter of 2007 compared to income of $19,000 for the same period in 2006. The first quarter of 2007 included non-cash expenses, net, of $2,070,000 representing adjustments related to the derivative nature and restructuring of convertible debentures during the quarter. The convertible debenture transaction was restructured on March 8, 2007 whereby the existing convertible debentures were converted to common stock and additional cash proceeds of $910,800 were received. As a result of the restructuring, the Company recorded an increase to stockholders' equity of approximately $8,078,000 during the first quarter of 2007. Please see the Company's Form 10-Q filed on May 15, 2007 for more detailed information.
Net loss on a generally accepted accounting principles (GAAP) basis was $3,919,000 for the first quarter of 2007, compared to net loss of $1,387,000 for the same quarter of 2006. The Company's loss per basic and fully diluted share was $.01 during the first quarter of 2007 and less than $0.01 in the fourth quarter of 2006.
The Company's non-GAAP net loss for the first quarter of 2007 was $1,176,000 compared with a non-GAAP net loss of $1,009,000 in the first quarter of 2006. The Company's non-GAAP net loss for the first quarter of 2007 excludes $673,000 of stock and warrant compensation expense and $2,070,000 of non-cash expenses related to the derivative nature and restructuring of convertible debentures. The Company's non-GAAP net loss for the first quarter of 2006 excludes $378,000 of stock and warrant compensation expense.
Commenting on first quarter results, Dr. Carl Kukkonen, CEO of VIASPACE said, "We believe that the restructuring of the convertible debenture completed in March 2007 into common stock is favorable to the Company as it removes debt from our balance sheet and converts it to stockholders' equity."
About VIASPACE: Originally founded in 1998 with the objective of transforming proven space and defense technologies from NASA and the Department of Defense into hardware and software solutions that solve today's complex problems, VIASPACE benefits from important patent and software licenses from Caltech, which manages NASA's Jet Propulsion Laboratory. For more information, please visit our website at www.VIASPACE.com |