Optibase Announces Second Quarter 2006 IPTV Results

July 25, 2006 – Optibase, a digital video solutions provider, has announced their financial results for the second quarter ended June 30, 2006.

Revenues for the second quarter ended June 30, 2006 were $4.3 million compared with $4 million for the first quarter of 2006 and $6.5 million for the second quarter of 2005. 

Net loss for the quarter ended June 30, 2006, was $1.1 million or $0.08 per basic and diluted share. This compares with a net loss of $1.3 million or $0.09 per basic and diluted share for the first quarter of 2006, and a net income of $113,000 or $0.01 per basic and diluted share for the second quarter of 2005. Weighted average shares outstanding used in the calculation for both the first and second quarters of 2006 were approximately 13.4 million and for the second quarter of 2005, 13.2 million basic and 13.8 million diluted shares.

For the six months ended June 30, 2006, revenues totaled $8.3 million, compared with $13.5 million for the six months ended June 30, 2005. Net loss for the period was $2.4 million or $0.18 per basic and diluted share, compared to a net loss of $61,000 or $0.0 per basic and diluted share for the six months ended June 30, 2005. Weighted average shares outstanding used in the calculation for the periods were approximately 13.4 million and 13.2 million respectively.

As of June 30, 2006, the Company had cash, cash equivalents, and long term investments in marketable securities and other financial investments, net, of $41 million, and shareholders’ equity of $42 million.

Danny Lustiger CFO of Optibase, said, “During the second quarter there were continued efforts to expand Optibase’s business in the emerging IPTV market and to strengthen our position as a leader in video technologies. We are currently deploying our MGW 5100 IPTV head-end solution at MTNL, India's state-owned major telecom and as recently announced, have made further inroads in Asia, with the deployment of our IPTV solutions for the monitoring market by Korea Highway Corporation. Additionally, we expanded our install base across the globe with customer wins such as Lifetime Entertainment Services, one of the top-rated basic cable television networks in the United States and CANAL+ Group, France's leading pay TV operator.
“As the emerging IPTV market evolves, we believe Optibase has the right technology and the right solution to grow in tandem with the industry.”