[November 14, 2005] Berliner Reports First Quarter 2006 Financial Results Tweet ELMWOOD PARK, N.J., Nov. 14 /PRNewswire-FirstCall/ -- Berliner Communications, Inc. (BULLETIN BOARD: BERL) today announced financial results for the quarter ended September 30, 2005. On February 18, 2005, Berliner (formally known as Novo Networks, Inc.) entered into an asset purchase agreement with the former Berliner Communications, Inc. ("Old Berliner") and BCI Communications, Inc., a Delaware corporation and our wholly-owned subsidiary, whereby BCI acquired the operations and substantially all of the assets and liabilities of Old Berliner. Since the transaction was settled through the issuance of a controlling interest in Berliner common stock, Old Berliner is deemed to be the acquirer for accounting purposes. Therefore, the transaction was accounted for as a reverse acquisition and recapitalization of Old Berliner. The accompanying consolidated Statement of Operations for the three months ended September 30, 2005, includes our accounts as compared to the accounts of Old Berliner for the comparable period in 2004. On September 16, 2005, Berliner completed a recapitalization that included the conversion of its preferred equity into common equity and a one share for each 300 shares reverse stock split. Berliner reported a net income of $261,500, or $0.08 per share before the effect of the deemed dividend discussed below, in the three months ended September 30, 2005 on revenues of $8.7 million, as compared to net loss of $30,000, or $0.44 per share, on revenues of $3.8 million for the same period in 2004. After recording the deemed dividend of $19.9 million on the conversion of our Series E and Series D Convertible Preferred Stock, the net loss allocable to common shareholders was $19.7 million or $5.90 per share for the three months ended September 30, 2005. The weighted average number of shares outstanding was 3,335,393 and 67,414 for the three months ended September 30, 2005, and 2004, respectively. "We are proud to report increased revenues and earnings for our first fiscal quarter," said Rich Berliner, chairman and CEO. "The industry trend towards data, music and television to cell phones should benefit the type of work we have been doing for the wireless carriers for eleven years. We see the future as extremely bright for us and the wireless industry, in general." Berliner Communications is headquartered in Elmwood Park, New Jersey, providing wireless carriers with comprehensive real estate site acquisition and zoning services, radio frequency and network design and engineering, infrastructure equipment construction and installation, radio transmission base station modification and project management services. The statements in this press release, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding our future prospects, the potential benefits to be obtained from our integration of the operations of Berliner Communications, Inc. or achieve the desired benefits from this acquisition, the ability to achieve our sales and profitability goals, our perception of future industry trends and the potential positive impact our business prospects, and other such statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from ours expectations. Such risks and uncertainties include, without limitation, risks detailed in our filings with the United States Securities and Exchange Commission, the risk that future trends we have identified do not materialize or if they materialize that they do not have the beneficial effect we anticipate, as well as the risk that we will not be able to successfully integrate the operations of Berliner Communications, Inc. and achieve the desired benefits from the acquisition, and risks that we may not be able to achieve our sales and profitability goals. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events or otherwise. (table follows) BERLINER COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended September 30, 2005 2004 (Unaudited) (Unaudited) Revenues $ 8,657,365 $3,838,201 Costs of revenues 6,217,550 2,236,953 Gross margin 2,439,815 1,601,248 Selling, general and administrative expenses 2,043,747 1,523,466 Depreciation and amortization 61,136 82,721 (Gain) loss on sale of fixed assets (250) 3,552 Income (loss) from operations 335,182 (8,491) Other (income) expense Interest expense 9,571 13,011 Interest income (2,846) (546) Loss in equity of investments 65,747 --- Other 400 --- Income (loss) before income taxes 262,310 (20,956) Income tax expense 800 9,000 Net income (loss) $ 261,510 $ (29,956) Deemed Series B and D preferred dividends 19,935,779 --- Net loss allocable to common shareholders $(19,674,269) $ (29,956) Net loss per share - basic and diluted $ (5.90) $ (0.44) Weighted average number of shares outstanding - basic and diluted 3,335,393 67,414 BERLINER COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEET September 30, June 30, 2005 2005 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 454,010 $ 402,432 Accounts receivable, net of allowance for doubtful accounts of $135,821 at September 30, 2005 and $91,572 at June 30, 2005 7,354,138 5,261,311 Inventories 480,517 506,615 Prepaid expenses and other current assets 420,675 516,842 8,709,340 6,687,200 LONG-TERM ASSETS Property and equipment, net 519,310 469,855 Other assets 254,122 359,139 $9,482,772 $7,516,194 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Line of credit $ 546,340 $ 493,824 Current portion of long-term debt 513,436 425,964 Current portion of capital lease obligations 34,962 39,596 Accounts payable 2,937,986 2,209,775 Accrued liabilities 3,248,143 2,285,889 7,280,867 5,455,048 LONG-TERM LIABILITIES Long-term debt, net of current portion 113,319 243,942 Long-term capital lease obligations, net of current portion 19,940 10,068 133,259 254,010 COMMITMENTS --- --- STOCKHOLDERS' EQUITY Preferred stock --- 79 Common stock 341 13 Additional paid-in capital 12,922,080 12,922,329 Accumulated deficit (10,853,775) (11,115,285) 2,068,646 1,807,136 $9,482,772 $7,516,194 Berliner Communications, Inc. CONTACT: Patrick G. Mackey of Berliner Communications, Inc.,+1-214-777-4100, or [email protected] Web site: http://www.bcisites.com/ [ Back To TMCnet.com's Homepage ]