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Vuzix Corp. reported a second-quarter profit thanks to the sale of its Tactical Display Group in June. However, the company’s sales continued to decline.
The designer and manufacturer of video eyewear reported its results Monday afternoon. The company posted net income of $3.8 million, or a penny a share, compared with a net loss of $900,000, or less than a penny a share, a year earlier.
In June, Vuzix sold the business assets of its Tactical Display Group to Thayer Bancroft Equity Partners, a private-equity firm in Pittsburgh. As part of the deal, Thayer Bancroft established TDG Acquisition Co. LLC, a company based in Rochester that offers the same military and defense products and services for which the Vuzix division was responsible.
The acquisition included equipment, tooling, certain patents and trademarks. Vuzix said the deal had two components: $8.4 million net of adjustments paid at closing and an up to $2.5 million earn-out provision if quarterly and annual revenue benchmarks are reached by TDG. Vuzix reported a net gain of sale, excluding the earn-out provision, of $5.9 million.
Vuzix logged total sales of $1 million, down from $2.3 million. The company’s operating expenses were $1.4 million, down from $1.7 million.
Vuzix reported its cash and cash equivalents as of June 30 were $1.5 million, up from $400,000 at the end of 2011. Still, the company’s total assets were $3.9 million, down from $5.8 million as of Dec. 31.
“The cash proceeds from the sales of the TDG assets provided the company with additional resources to satisfy certain of its debt obligations and should allow us to better execute our new technology and product development plans,” said Paul Travers, president of Vuzix, in a statement. “The company can now better focus on its long-held goal of delivering HD smart video glasses in true sunglass format based on our new waveguide optics HD displays.”
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