Optelecom-NKF, Inc., Reports Third Quarter 2010 Results: EPS of ($0.25)

Optelecom-NKF, Inc. OPTC, a leading global provider of Siqura® advanced IP-video network solutions, today announced third quarter 2010 results. Revenues for the third quarter totaled $7.6 million compared to $8.3 million for the same quarter one year earlier. Revenues declined sequentially from $7.7 million reported in the second quarter this year. Backlog at the end of the third quarter climbed to $3.4 million, a multi-year high. During the quarter the Company consolidated manufacturing operations into its existing Dutch manufacturing facility and outsourced U.S. production to a Maryland-based contract manufacturer. This transition impacted the shipment of some orders. The delayed recognition of revenue from work in progress (WIP) totaled approximately $700 thousand. This delay was a component of the significant climb in backlog. The Company reported a net loss of $929 thousand or $(0.25) per share, for the quarter ending September 2010, compared to net loss of $1.3 million, or $(0.35) per share, one year earlier. The Company's operating loss declined to $53 thousand compared to a loss of $958 thousand one year earlier.