SBE, Inc. Reports First Quarter 2007 Results
March 16 2007 - 3:45PM
Business Wire
SBE, Inc. (Nasdaq:SBEI), a provider of high-performance IP storage
solutions serving remote back-up and disaster recovery
applications, today reported results for the three months ended
January 31, 2007. �A shareholders� meeting has been scheduled for
the end of March and expect to close the sale of our hardware
business to One Stop shortly thereafter. We will continue to sell
and license our storage software solutions. We are committed to
supporting existing and new customers and will continue our
software development efforts,� said Greg Yamamoto, President and
Chief Executive Officer of SBE. Net sales for the first quarter
ended January 31, 2007 were $1.2 million, compared to net sales of
$1.4 million in the same quarter of fiscal 2006. Net loss for the
first quarter of fiscal 2007 was $1.1 million, or $0.10 per share
basic and diluted, compared to a net loss for the same period of
fiscal 2006 of $2.7 million, or $0.28 per share basic and diluted.
The Company�s cash balance was $443,000 and $1.1 million at January
31, 2007 and October 31, 2006, respectively, and no long-term debt
existed at either date. On January 11, 2007, the Company signed an
asset purchase agreement with One Stop Systems, Inc., pursuant to
which the Company agreed to sell all of the assets associated with
its embedded hardware business (excluding cash, accounts receivable
and other excluded assets specified in the asset purchase
agreement) to One Stop Systems for $2.2 million in cash and One
Stop Systems� assumption of the Company�s real estate and certain
equipment leases. A special meeting of the SBE stockholders has
been scheduled for March 29, 2007 to approve this transaction and
to approve a proposed 1 for 5 reverse stock split to enable the
Company to comply with the Nasdaq Capital Market�s continued
listing criteria. A proxy statement detailing the transaction and
reverse stock split has been mailed to all SBE shareholders of
record as of March 6, 2007. On January 19, 2007, the Company
entered into a definitive merger agreement with Neonode Inc., a
Delaware corporation. Founded in 2001, Neonode is a Swedish
developer and pioneer of touchscreen mobile phones. Neonode�s
patented zForce� touchscreen technology and Neno� user interface
combine to maximize display area and provide a unique one-hand,
onscreen navigation experience. In February 2007, Neonode showcased
its new mobile phone, the N2, at the 3GSM World Congress in
Barcelona, Spain to critical acclaim. It is anticipated that the
Company will change its name to �Neonode Inc.� upon consummation of
the merger. This transaction requires the approval of the SBE
stockholders, and the Company is in the process of preparing a
proxy statement for such purpose. About SBE SBE designs and
provides IP-based storage networking solutions for an extensive
range of business critical applications, including back-up and
disaster recovery. SBE delivers a portfolio of scalable,
standards-based hardware and software products designed to enable
optimal performance and rapid deployment across a wide range of
next-generation storage systems. Based in San Ramon, California,
SBE is a publicly traded company (NASDAQ: SBEI) with products sold
worldwide through direct sales, OEMs and system integration
partners. More information is available at www.sbei.com.
Forward-Looking Statements This news release contains certain
forward-looking statements that involve risks and uncertainties,
including statements about consummation of the proposed merger
transaction and the proposed asset sale transaction. Such
statements are only predictions and the company's actual results
may differ materially from those anticipated in these
forward-looking statements. Factors that may cause such differences
include, but are not limited to, the ability of SBE, One Stop and
Neonode to comply with the closing conditions necessary in order to
consummate the transactions. These factors and others are more
fully discussed in the documents the company files from time to
time with the Securities and Exchange Commission, particularly, the
company's most recent Form 10-K and Form 10-Q. SBE and the SBE logo
are registered trademarks of SBE, Inc. All other brand or product
names are trademarks or registered trademarks of their respective
holders. - Tables Follow - SBE, INC. � CONDENSED STATEMENTS OF
OPERATIONS for the three months ended January 31, 2007 and 2006 (In
thousands, except per share amounts) (Unaudited) � Three months
ended January 31, 2007� 2006� � Net sales $ 1,207� $ 1,400� �
Operating Expenses Amortization and impairment of acquired software
and intellectual property 188� 1,022� Cost of hardware and other
revenue 734� 803� Product research and development 585� 946� Sales
and marketing 364� 598� General and administrative � 462� � 771� �
Total operating expenses � 2,333� � 4,140� � Operating loss (1,126)
(2,740) � Interest and other income 1� � 18� Loss before income
taxes (1,125) (2,722) � Provision for income taxes 4� � 5� � Net
loss $ (1,129) $ (2,727) � Basic and diluted loss per share $
(0.10) $ (0.28) � � Basic and diluted- shares used in per share
computations � 11,051� � 9,895� SBE, INC. CONDENSED BALANCE SHEETS
(In thousands) � January 31, October 31, 2007� 2006� Current
assets: Cash and cash equivalents $ 443� $ 1,147� Trade accounts
receivable, net 963� 930� Inventories 714� 739� Other � 221� � 177�
Total current assets 2,341� 2,993� � Property, plant and equipment,
net 458� 508� Capitalized software costs, net 1,126� 1,314� Other �
52� � 53� Total assets $ 3,977� $ 4,868� � � LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $
622� $ 557� Accrued payroll and employee benefits 54� 105� Deferred
revenue 299� 432� Other accrued expenses � 288� � 198� Total
current liabilities � 1,263� � 1,292� � Other long-term liabilities
� 232� � 255� Total liabilities � 1,495� � 1,547� � Stockholders'
equity: Common stock 33,476� 35,186� Accumulated deficit � (32,994)
� (31,865) Total stockholders' equity � 2,482� � 3,321� Total
liabilities and stockholders' equity $ 3,977� $ 4,868�
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