Costar Technologies, Inc. Announces Financial Results For the First Quarter Ended March 31, 2022
($ in thousands except per share amounts)
COPPELL, Texas, May 12, 2022 /PRNewswire/ -- Costar Technologies, Inc. (the "Company") (OTC Markets Group: CSTI) announced today its financial results for the first quarter ended March 31, 2022.
Financial Results for the Quarter Ended March 31, 2022
Scott Switzer, the Company's Interim Chief Executive Officer, stated, "The team did a great job in the first quarter of 2022 despite the first quarter typically being our softest quarter of the year, driving a $2 million increase in sales and improving our record year-end backlog to $8.5 million. Customer engagement has continued to rise, and we are taking actions to tackle the lingering supply chain challenges. We are confident we will be able to clear the backlog by the end of the year."
Sarah Ryder, the Company's Chief Financial Officer, went on to say, "In the first quarter, we made tremendous strides in driving operational progress by unifying our production and development centers and improving many internal processes. While the electronics industry continues to face material challenges, our teams have remained persistent and created solutions to meet customer demands. With a strong start to the year, solid backlog and strengthening in the security industry we are positioned to generate improved financial results in the coming quarters."
The Company's independent auditors completed their analysis of the Company's financial condition. The Independent Auditor's Review Report, including financial statements and applicable footnote disclosures, is available on our website at www.costartechnologies.com.
Non-GAAP Financial Measures
The Company defines adjusted earnings, a non-GAAP measure, as net loss excluding stock-based compensation, amortization of acquisition-related intangible assets and accrual of Employee Retention Credit. The Company defines adjusted EBITDA, a non-GAAP measure, as earnings before interest, taxes, depreciation, amortization, stock-based compensation and accrual of Employee Retention Credit. The following tables reconcile the non-GAAP financial measures disclosed in this release to GAAP loss:
These reconciliations of GAAP to non-GAAP measures should be considered together with the Company's financial statements. These non-GAAP measures are not meant as a substitute for GAAP but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company's financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.
About Costar Technologies, Inc.
Costar Technologies, Inc. develops, designs, manufactures, and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. The Company also develops, designs, and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, the Company's shares currently trade on the OTC Markets Group under the ticker symbol "CSTI". Costar was ranked as the 40th largest company in a&s magazine's Security 50 for 2020. Security 50 is an annual ranking by the magazine of the world's largest security manufacturers in the areas of video surveillance, access control and intruder alarms, based on sales revenue.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the Company's ability to grow revenue and earnings, that are subject to substantial risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including but not limited to risks related to the ability to diversify business across vertical markets, secure new customer wins, and launch new products. You can often identify forward-looking statements by words such as "believe," "may," "estimate," "continue," "anticipate," "intend," "plan," "expect," "predict," "potential," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of the risks and uncertainties.
You should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable laws.
SOURCE Costar Technologies, Inc.
Managing the Hybrid Workforce: The Factors that Really Matter
Spectrum Wars: How do we Arm Ourselves for 6G?