Quadlogic Controls Corporation Reports Financial Results for the years ended February 29, 2012 and F

Quadlogic Controls Corporation Reports Financial Results for the years ended February 29, 2012 and February 28, 2011

LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)-- Quadlogic Controls Corporation (OTC Markets: QDLC), today announced its financial results for the years ended February 29, 2012 and February 28, 2011.

Total revenues for the year ended February 29, 2012 were $17.3 million as compared to $15.2 million for the year ended February 28, 2011. The Company reported net income for the year ended February 29, 2012 of $1.8 million, or 10.6% of total revenues. This was an improvement of approximately $465,000 when compared to net income of $1.4 million, or 9% of total revenues, for the year ended February 28, 2011.


Detailed audited annual financial statements may be downloaded atwww.quadlogic.comorhttp://www.otcmarkets.com.

About Quadlogic

The Company has been engaged in the business of electricity metering, monitoring and control since 1982. All Quadlogic metering products feature the Company's proprietary robust power line communications technology. The business consists of three segments. First is the design, manufacture and sale of the Transmeter® "smart" metering system, a line of digital, microprocessor-controlled meters that, in communication with the Quadlogic Transponder, measures and remotely monitors the time and amount of electricity consumption and other diagnostics. The second segment supports the first and consists of technical services including meter reading, customer billing, and system repair and maintenance. The third segment, the Energy Guard ™ system of concentrated metering, is sold primarily to utilities in countries where electricity theft is common. It consists of pole-mounted sealed panels of meters, remote data concentrators and sub-station based data collectors capable of remote metering, theft and tamper detection and remote power disconnect and reconnect. The Company's customers include real estate development and construction companies, owners and operators of multi-tenant commercial and residential buildings, distributors and foreign electric utility companies.

Future financial statement releases: The Company intends to release financial results twice per year upon completion of our audited annual financial statements and our unaudited interim six month financial statements. Dates to be determined and will be posted on our website.

Forward Looking Statements: This press release may contain forward-looking information concerning Quadlogic's plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding Quadlogic's past financial performance including but not limited to lists of customers, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. Quadlogic's future results will depend on many factors, including Quadlogic's ability to attract new customers and preserve or expand its relationship with existing clients, its ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

QUADLOGIC CONTROLS CORPORATION

CONDENSED BALANCE SHEETS

(In thousands, except per share data)

February 29,

2012

February 28,

2011

ASSETS

Current assets

Cash

$

243

$

398

Accounts receivable

2,173

1,925

Inventories

2,778

1,730

Prepaid expenses and other current assets

521

493

Total current assets

5,715

4,546

Property and equipment, net

1,355

1,564

Other assets

462

415

Total Assets

$

7,532

$

6,525

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Current maturities of installment debt

$

360

$

523

Current maturities of capital lease obligations

61

123

Secured line of credit

662

1,041

Debt obligations - preferred shareholders

777

1,069

Accounts payable

1,518

1,800

Customer deposits

298

-

Accrued expenses and other liabilities

788

511

Current portion of accrued compensation

733

798

Total current liabilities

5,197

5,865

Capital lease obligations, net of current maturities

30

61

Installment debt, net of current maturities

64

294

Accrued compensation

658

620

Other non-current liabilities

1,443

1,379

Total liabilities

7,392

8,219

Shareholders' equity (deficit):

Common stock, $0.001 par value; 20,000,000 shares authorized,

11,013,351 shares issued and outstanding in both 2012 and 2011

11

11

Additional paid-in capital

9,370

9,370

Accumulated deficit

(9,241)

(11,075)

Total shareholders' equity (deficit)

140

(1,694)

Total Liabilities and shareholders' equity

$

7,532

$

6,525

QUADLOGIC CONTROLS CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

February 29, 2012

February 28, 2011

Total revenues

$

17,301

$

15,219

Cost of revenues

9,435

8,591

Gross Margin

7,866

6,628

Operating expenses:

Selling

2,459

2,070

Research and development

1,352

1,186

General and administrative

1,832

1,578

Total operating expenses

5,643

4,834

Operating income

2,223

1,794

Other expense, net

Interest expense

(347)

(392)

Other expense, net

(41)

(32)

Total other expense

(388)

(424)

Net income

1,835

1,370

Basic earnings per share (unaudited)

$

0.17

$

0.12

Shares used in computing basic earnings per share

11,013,351

11,013,351

Diluted net earnings per share (unaudited)

$

0.16

$

0.12

Shares used in computing diluted earnings per share

11,619,611

11,561,611

QUADLOGIC CONTROLS CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

February 29, 2012

February 28, 2011

Cash flows from operating activities:

Net income

$

1,835

$

1,370

Adjustments to reconcile net income to net cash provided by

operating activities:

Provision for doubtful accounts

52

23

Depreciation and amortization

305

277

Stock based compensation

36

-

Write-off of patents pending

12

65

Loss from disposal of fixed asset

2

-

Changes in assets and liabilities:

Accounts receivable

(300)

(460)

Inventories

(1,049)

16

Prepaid expenses and other current assets

13

19

Accounts payable

(282)

(943)

Customer deposits

298

-

Accrued expenses and other liabilities

241

(243)

Accrued compensation

(26)

219

Other non-current liabilities

64

63

Net cash provided by operating activities

1,201

406

Cash flow from investing activities:

Purchases of property and equipment

(51)

(15)

Patent acquisition costs

(67)

(50)

Net cash used in investing activities

(118)

(65)

Cash flows from financing activities:

Principal payments on debt

(726)

(261)

Net (payments) borrowings from line of credit

(379)

163

Principal payments on capital lease obligations

(133)

(143)

Net cash used in financing activities

(1,238)

(241)

Net (decrease) increase in cash

(155)

100

Cash beginning

398

298

Cash ending

243

398

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Investor questions:

Michael J. Wirth, Controller, 212-930-9300

InvestorRelations@Quadlogic.com

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS:

The article Quadlogic Controls Corporation Reports Financial Results for the years ended February 29, 2012 and February 28, 2011 originally appeared on Fool.com.

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