posted
Here ya go Tex! ----------------------------------------------- posted January 22, 2006 08:36 -------------------------------------------------------------------------------- RAE Systems Inc.: Company Report3775 North East Street
Industry : Scientific & Technical InstrumentsEmployees : 678Exchange : AMEX
RAE Systems Inc. is a global developer and manufacturer of rapidly deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications. RAE Systems also offers a line of portable single-sensor chemical and radiation detection products. The Company's products are based on proprietary technology, and include portable single and multiple sensor atmospheric monitors, integrated systems, photo-ionization detectors (PID), indoors air quality and security monitors, gas detection tubes and sampling pumps. These products enable the military and first responders, such as firefighters, law enforcement and other emergency management personnel to detect and provide early warning of weapons of mass destruction (WMD) and other hazardous materials. Industrial applications include the detection of toxic industrial chemicals, volatile organic compounds and petrochemicals.
Stock Activity fyi Last Price 3.56 52 Week High 6.94 52 Week Low 2.35 Volume 401,900 Average Daily Volume (13wk) 216,200 50 Day Moving Average 3.64 fyi 200 Day Moving Average 3.37 Volatility (beta) 2.63 Detailed Quote Financial data in U.S. dollars Stock Price History Change Relative Strength fyi Last 3 Months 1.7% 34 Last 6 Months -14.4% 18 fyi Last 12 Months -46.4% 6
Institutional Statistics Analyst Consensus Moderate Buy Institutional Ownership 22.30% Last 12 Months 5 Year Growth Sales 57.0 Mil 67.3% Income -500,000.0 NA Dividend Rate 0.00 NA Dividend Yield 0.00% 0.00%
More Financials - as of 09/2005 Fundamental Data Debt/Equity Ratio 0.02 Gross Margin 61.40% Net Profit Margin -0.90% Total Shares Outstanding 57.8 Mil Market Capitalization 205.85 Mil Earnings/Share -0.01 StockScouter Rating 5
More Financial Ratios Earnings Estimates Qtr(12/05) EPS Estimate 0.01 FY(12/05) EPS Estimate 0.03 Current P/E NA FY(12/06) EPS Estimate 0.08 Forward P/E 129.50 Next Earnings Release: N/A -------------------------------------------------------------------------------- Posts: 6220 | From: oregon | Registered: Feb 2005 | IP: Logged |
Dustoff101 Member
posted January 22, 2006 09:44 -------------------------------------------------------------------------------- I will hold for a 50% profit on this one...
-----------------------------------------------
10-Q: RAE SYSTEMS INC
By Edgar Online - (EDG = 10Q, 10K) Last Update: 11/8/2005 3:30:23 PM Data provided by
(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. In some cases, readers can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue." These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those stated herein. Although management believes that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. For further information, refer to the section entitled "Factors That May Affect Future Results" in this Form 10-Q. The following discussion should be read in conjunction with the condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q.
Overview
We are a leading global developer and manufacturer of rapidly-deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications. In addition, we offer a full line of portable single-sensor chemical and radiation detection products. We were founded in 1991 to develop technologies for the detection and early warning of hazardous materials. The market for our products has evolved from being strictly focused on environmental and industrial monitoring to now encompassing public safety and the threat of terrorism.
Table of Contents
In May 2004, we acquired a 64% interest in KLH, a Beijing-based manufacturer and distributor of security, environmental and personal safety monitors and equipment, for $9 million in cash. As a result, our sales into the Asia market increased as a percentage of total net sales from 26% for the three-month period ended September 30, 2004 to 33% for the three-month period ended September 30, 2005. Excluding the impact of KLH, Company sales in North America and Europe continued to grow, primarily from the sales of our patented photoionization detection ("PID") products as well as our integrated wireless technology.
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, allowance for doubtful accounts, inventory allowances, warranty costs, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions and estimates used in the preparation of the consolidated financial statements.
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectibility is reasonably assured. A provision for estimated product returns is established at the time of sale based upon historical return rates adjusted for current economic conditions. Historically, the Company has experienced an insignificant amount of sales returns. The Company recognizes revenue upon shipment to its distributors in accordance with standard contract terms that pass title to all goods upon delivery to a common carrier (FOB factory) and provides for sales returns under standard product warranty provisions. Service revenues relating to maintenance services performed by the Company, which represent less than 5% of net revenues in each of 2004, 2003 and 2002, are recognized as earned based upon contract terms, which is generally ratably over the term of service. Net revenues include amounts billed to customers in sales transactions for shipping and handling, as prescribed by the Emerging Issues Task Force Issue ("EITF") No. 00-10 Accounting for Shipping and Handling Fees and Costs. Shipping fees are included in revenue and shipping costs are included in the cost of goods sold.
The allowance for doubtful accounts is provided for estimated credit losses at a level deemed appropriate to adequately provide for known and inherent risks related to such amounts. The allowance is based on reviews of loss, adjustments history, current economic conditions and other factors that deserve recognition in estimating potential losses. While management uses the best information available in making its determination, the ultimate recovery of recorded accounts receivable is also dependent upon future economic and other conditions that may be beyond management's control. If there were a deterioration of a major customer's credit worthiness, or if actual defaults were higher than what has been experienced historically, our estimates of the recoverability of amounts due could be overstated and our operating results could be adversely affected.
Inventories are stated at the lower of cost (moving weighted average method) or market. Inventory purchases are typically based on estimated future demand. In the event of a sudden and significant decrease in demand for our products, or if there were a higher occurrence of inventory obsolescence due to changing technology and customer requirements, we could be required to increase our inventory allowances.
We generally provide a one to three year limited warranty on the majority of our products and establish the estimated costs of fulfilling these warranty obligations at the time the related revenue is recorded. If we were to experience an increase in warranty claims compared to our historical experience, or costs of servicing warranty claims were greater than expectations on which the warranty reserve has been based, our operating results could be adversely affected.
Table of Contents
We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled.
We are subject to various loss contingencies arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We regularly evaluate current information available to determine whether such accruals should be adjusted.
We adopted the fair value recognition provisions of SFAS No. 123 for stock-based employee compensation effective January 1, 2003, under the modified prospective method as provided for in SFAS No. 148.
We consolidate all investments in which we have a controlling financial interest to comply with Financial Accounting Standards Board ("FASB") Interpretation No. 46R. We also consolidate investments where we are the primary beneficiary of a variable interest entity.
Results of Operations
Three Months ended September 30, 2005 compared to the Three Months ended September 30, 2004
Net sales for the quarter ended September 30, 2005 increased by approximately $3.9 million over the same quarter in 2004. KLH net sales increased by $2.5 million or 107% for the quarter ended September 30, 2005 as compared to the same quarter in 2004. The sales growth for KLH was partially offset by a $280,000 decrease as RAE products previously sold by other affiliates in Asia were transferred to KLH. Sales in North America and Europe increased by $1.7 million or 18% for the quarter ended September 30, 2005 as compared to the same quarter in 2004.
Table of Contents
Cost of sales for the quarter ended September 30, 2005 increased by $1.8 million over the same quarter in 2004, of which approximately $1.4 million was due to the additional sales volume from KLH and $500,000 from additional volume in the rest of the Company's units. Partially offsetting the volume increase was a $100,000 decrease in cost of goods sold for KLH due to increased sales of higher margin RAE and KLH-manufactured product versus distribution products. Gross margin as a percentage of net sales for the Company was 60% for the quarter ended September 30, 2005 versus 61% for the quarter ended September 30, 2004. While the Company benefited by about $100,000 from improvements in products sold in KLH, overall margins declined by about 1% as KLH sales increased as a portion of the Company's overall sales. KLH has a significant distribution business with inherently lower margins.
Sales and marketing expenses increased by approximately $1.6 million, or 57%, in the third quarter of 2005 over the same period during 2004. The additional sales and marketing expense was primarily due to the increase of expenses from KLH in the amount of $1.2 million in support of increased sales. The balance of sales and marketing increases over second quarter of 2004 were largely related to $125,000 write-down of equipment used for customer demonstrations and $275,000 of additional operating expenses to support the increased sales in North America and Europe.
Research and development expenses increased by approximately $151,000, 14%, in the third quarter 2005 over the same period of 2004. The additional research and development expenses were primarily the result of increased expenses in Shanghai of $150,000 related to wireless and portable products, increased expenses at KLH of $150,000 which was primarily related to fixed systems and $125,000 of lower expenses in the U.S. and Asia.
Table of Contents
General and administrative expenses increased by approximately $1.2 million in the third quarter 2005 over the same period during 2004. General and administrative expenses increased primarily due to increased KLH expenses of $200,000, principally related to facilities and insurance, plus additional expenses in the U.S. of $900,000. The increases in the U.S. were primarily related to audit and Sarbanes Oxley related fees of $275,000, increased legal and professional fees in the amount of $275,000 and non-cash charges related to the issuances of options and warrants in the amount of $125,000 as well as $225,000 of additional expenses related to insurance, depreciation, rent and information technology.
For the quarter ended September 30, 2005, we had Total other income of $226,000 as compared to a Total other loss of $32,000 for the quarter ended September 30, 2004, an increase of $258,000. The increase was due to an increase in interest income of $114,000 primarily from higher interest rates on investments, a $107,000 decrease in equity in loss of unconsolidated affiliate and a $37,000 increase in Other, net, mainly due to an $82,000 refund from a Chinese government education fund, offset primarily by currency exchange rate losses on China-based U. S. dollar account from a appreciation in the value of the RMB relative to the U.S. Dollar for the third quarter of 2005.
The effective tax rate for the quarter ended September 30, 2005 was 65% of pretax income, compared to 29% in the third quarter of 2004. We calculated our income tax provisions based on the estimated annual effective tax rate for the Company. However, as required by FASB Interpretation 18, the impact of the discrete lease abandonment on our former Sunnyvale headquarters, a $2 million loss recorded in the second quarter, was not included in our third quarter tax provision calculation. As a result, high permanent non-tax deductible items resulted in a high effective tax rate in the third quarter. Including this discrete item, our year-to-date effective tax rate was 36% compared to 32% in 2004.
Table of Contents
Minority interest in loss/(income) of consolidated entities
For the quarter ended September 30, 2005, we recognized $28,000 in net loss allocated to minority interests consisting of the 36% minority interest's share in KLH, partially and our 51% majority investor's share in the net income of RAE France. During the same quarter of 2004, we recognized $83,000 in net gain mainly representing the 36% minority interest's share in the net income of KLH.
Net income for the quarter ended September 30, 2005 was $397,000. For the same period in 2004, we had net income of $1,029,000. The main reasons for the $632,000 decrease in net income were the additional legal expenses, relating to litigation, and the incremental accounting fees associated with Sarbanes-Oxley along with generally increased operating expenses associated with growth of our infrastructure.
Nine Months ended September 30, 2005 compared to the Nine Months ended September 30, 2004
Net sales for the nine-month period ended September 30, 2005 increased by $11.5 million over the same period in 2004. KLH net sales increased by $7.7 million for the nine-month period ended September 30, 2005 as compared to the same period in 2004 due to the inclusion of nine months of sales in 2005 versus four months in the same period in 2004 and a growth in overall KLH sales. The growth for KLH was partially offset by a $1.6 million decrease as RAE products previously sold by other affiliates in Asia were transferred to KLH. In addition, sales in North America and Europe increased by approximately $5.4 million, or 22%,for the quarter ended September 30, 2005 as compared to the same quarter in 2004.
Table of Contents
Cost of sales for the nine-month period ended September 30, 2005 increased by approximately $5.3 million, or 47%, over the same period in 2004, of which approximately $4.7 million was due to the addition of sales from our KLH investment as only four months of results were included in last year's nine-month period as well as from increases in KLH's sales of both products of its own and RAE manufacture. Approximately $1.2 million of the increase in product cost was due to sales increases in all other units. Partially offsetting the volume product cost increases were reductions of approximately $300,000 in the cost of RAE products from manufacturing efficiencies and $300,000 from KLH's increasing percentage of higher margin products of their own and RAEs' manufacture. Gross margin as a percentage of net sales for the Company was 60%. Gross margin as a percentage of net sales for KLH was 43% for the nine-month period ended September 30, 2005. While the Company benefited from manufacturing efficiencies from products produced in its Shanghai facilities, the impact of our increased percentage of KLH sales reduced the consolidated gross margin for the nine-month period ended September 30, 2005 by two percentage points. KLH has a significant distribution business with inherently lower margins.
Sales and marketing expenses increased by approximately $5.1 million, or 71%, in the nine-month period ended September 30, 2005 over the same period during 2004. Approximately $3.3 million of the increase was attributable to an increase in KLH sales and marketing expenses for the nine-month period ended September 30, 2005 versus four months included during the same timeframe of 2004 as well as from higher infrastructure costs to support KLH's growth. Sales and marketing expenses also increased due to severance expense of $200,000 and operating expenses of approximately $1.6 million across the sales and marketing organizations to support the increased sales.
Research and development expenses increased by approximately $650,000, or 22%, in the first nine months of 2005 over the same period during 2004. The increase was primarily from research and development expenses in KLH of approximately $350,000 for improvement of their fixed systems
Table of Contents
products as well as inclusion of nine months of expenses during 2005 versus four months during the same period in 2004. In addition there was $400,000 of increased spending on new product development for wireless and portable products in Shanghai partially offset by a reduction of expenses in the U.S and Asia.
General and administrative expenses increased by approximately $3.3 million, or 56%, in the first nine months of 2005 over the same period during 2004. The addition of KLH added approximately $850,000 to our general and administrative expenses covering the cost of additional personnel and other operating costs for the nine-month period ended September 30, 2005 as only four months of their expenses were reported in the same period of 2004. The KLH increase also was the result of additions to personnel to support additional sales The remainder of the increase in general and administrative expenses was primarily due to costs of increased legal and professional fees, including charges related to
Nov 08, 2005 -------------------------------------------------------------------------------- Posts: 6220 | From: oregon | Registered: Feb 2005 | IP: Logged |
stockfever Member
Member Rated: posted January 22, 2006 18:24 -------------------------------------------------------------------------------- What is your average price on this one? If you don't mind me asking.
posted January 22, 2006 18:33 -------------------------------------------------------------------------------- Would avoid it for now -------------------------------------------------------------------------------- IP: Logged |
stockfever Member
Member Rated: posted January 22, 2006 19:09 -------------------------------------------------------------------------------- Well if Dustoff likes it...then it's good. Trust me.
posted January 25, 2006 13:57 -------------------------------------------------------------------------------- Stockfever my average is $3.50 now..
Look thru the following press release, you will see RAE mentioned..
----------------------------------------------- SmallCap Sentinel: A Video Answer to a Terrorism Problem
By PrimeZone Last Update: 1/25/2006 9:13:02 AM Data provided by
IRVINE, Calif., Jan 25, 2006 (PRIMEZONE via COMTEX) -- "With security concerns around the globe omnipresent, technology as always, has risen to meet the need," stated SmallCap Sentinel analyst D.R. Clark. "Seaports, borders, airports, mass transit, military bases, event centers and a plethora of other areas where humans congregate will soon be under increasingly sophisticated video surveillance thanks to new dynamic technology."
"What has happened, what always happens, is that American ingenuity and capitalism rise to the occasion as a profit-driven panacea to battle our enemies," added Clark. "The source of the need for Homeland Defense technology may indeed be anti-American, but the remedy most certainly isn't," said Clark.
"Just this past Monday, Technest Holdings, Inc. (TCNH) announced that its wholly owned subsidiary Genex Technologies, Inc. was awarded a Phase 2 SBIR to provide additional engineering development and prototype manufacturing work on an innovative wireless perimeter video surveillance sensor with military and security applications," said Clark. "The Unmanned Ground Sensor (UGS) is a small, wireless video sensor that can act as a force multiplier by extending the eyes of the soldier for use in urban combat environments or alternatively can be used to monitor vast unprotected expanses such the borders of the United States."
"Earlier this month IPIX Corp. (IPIX) launched a three-megapixel version of its successful 360-degree CommandView(r), which promises to increase precision and help government and commercial enterprises monitor a wider area with a single camera," said Clark.
An informational report titled "Homeland Defense and the Market" is available at www.SmallCapSentinel.com. The report details the rise of Homeland Defense as a growth industry and discusses a variety of homeland defense related companies such as those mentioned above as well as Isonics Corp. (ISON), and RAE Systems Inc. (RAE).
Statements made herein contain forward-looking statements and are subject to significant risks and uncertainties that will affect results. SmallCapSentinel and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect any proposed actions and cannot project capabilities, intent, resources, or experience. All information contained herein is based upon sources believed to be reliable but no representation is made as to accuracy or completeness. This report is neither a solicitation to buy or offer to sell securities but is rather a paid advertisement provided for information purposes only and shouldn't be used as the basis for investment decisions. MP is not an investment advisor and this report is not investment advice. MP was paid $24,000 by Technest Holdings for this profile and other advertising services over a ninety-day period. This constitutes a conflict of interest as to MP's ability to remain objective in its communication regarding the subject companies.
posted January 31, 2006 14:39 -------------------------------------------------------------------------------- Immediate positve response in PPS to this press release.
-----------------------------------------------
RAE Systems to Present at Two Investor Conferences; Kaufman Brothers West Coast Investor Conference in San Francisco; Thomas Weisel Investor Conference in San Francisco
By BusinessWire Last Update: 1/31/2006 2:27:01 PM Data provided by
SAN JOSE, Calif., Jan 31, 2006 (BUSINESS WIRE) -- RAE Systems Inc. (RAE), a leading global developer and manufacturer of rapidly deployable, multi-sensor chemical and radiation detection monitors and networks for homeland security and industrial applications, today announced it will present at two investor conferences in February: the Kaufman Brothers L.P. Second Annual Investor Conference, February 7, 2006, from 1:25 to 1:55 p.m., at the Merchants Exchange Building in San Francisco and the Thomas Weisel Fourth Annual Tech 2006 Conference, February 8, 2006, from 8:35 to 9:05 a.m. at the Fairmont Hotel in San Francisco.
"We are pleased to have been invited to attend these investor conferences, each of which provides an excellent forum to update investors on RAE Systems," said Don Morgan, RAE Systems' chief financial officer. "We look forward to meeting with the investment community and presenting our vision for protection through detection."
Live web casts and replays for each event will be available from links on the RAE Systems website at www.raesystems.com.
About RAE Systems
RAE Systems is a leading global developer and manufacturer of rapidly deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications. In addition, RAE Systems offers a full line of portable single-sensor chemical and radiation detection products. RAE Systems' products enable the military and first responders such as firefighters, law enforcement and other emergency management personnel to detect and provide early warning of weapons of mass destruction and other hazardous materials. Industrial applications include the detection of toxic industrial chemicals, volatile organic compounds and petrochemicals. RAE Systems' products are used by many U.S. government agencies, including the Department of Homeland Security, the Department of Justice, and the Department of State, as well as all branches of the U.S. military, and by numerous city and state agencies. Our end users also include many of the world's leading corporations in the airline, automotive, computer and oil industries. Our products are used in civilian and government atmospheric monitoring programs in over 50 countries. For more information about RAE Systems, please visit www.RAESystems.com
Safe Harbor Statement
This press release contains "forward-looking" statements, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as "expected to increase." These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the general economic and industry factors and receptiveness of the market to RAE and its products. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our annual report on Form 10-K and Form 10-Q filings, available online at http://www.sec.gov. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.
SOURCE: RAE Systems Inc. -------------------------------------------------------------------------------- Posts: 6220 | From: oregon | Registered: Feb 2005 | IP: Logged |
Dustoff101 Member
posted February 02, 2006 11:42 -------------------------------------------------------------------------------- Something good going on here... Stock is starting it's move up.
posted February 07, 2006 21:44 -------------------------------------------------------------------------------- High of day $3.87 Close $3.84 -------------------------------------------------------------------------------- Posts: 6220 | From: oregon | Registered: Feb 2005 | IP: Logged |
Dustoff101 Member
posted February 07, 2006 22:53 -------------------------------------------------------------------------------- Better check the chart here.....WOW! What a nice steady climb.
posted February 07, 2006 23:21 -------------------------------------------------------------------------------- Puh-lleeeeze post DD re the big-boards on the NAZ/big-board forum...
"Hot Stocks" great for day activity...for evening reading? the new forum was created just for these.
-------------------- Adventures in microcapitalism...
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
