News Release
Horne International Reports
Financial Results for 2007 Fiscal Year
Fairfax, VA — April 15, 2008 — Horne International, Inc. (OTCBB: HNIN) (“the Company”), a leading provider of environmental and technical engineering services to clients in both the public and private sectors, today announced its financial results for the fiscal year ended December 30, 2007.
For the 2007 fiscal year, the Company reported gross revenues of $17.7 million, compared with revenues of $28.3 million in 2006. Gross profits in 2007 were $1.0 million, compared with $3.8 million in the previous year.
“The 2007 fiscal year was significant for Horne International, as we increased our strategic focus around our core technology and technical engineering solutions for the three primary target markets of security, energy and the environment,” said Darryl K. Horne, P.E., Chairman and Chief Executive Officer of Horne International. “We have subsequently closed our unprofitable manufacturing and repair businesses, Spectrum Sciences & Software, Inc., and Coast Engine & Equipment Company. These difficult but necessary steps will allow us to pursue and grow our core business, which we hope to see flourish in the coming years, as the specialist functions we provide are increasingly outsourced.”
The Company reported a net operating loss of $20.0 million in 2007, compared with a net operating loss of $6.4 million in 2006. The total net loss for the year was $19.1 million, or $0.46 per diluted share, compared with a net loss of $8.6 million, or $0.20 per diluted share, in the prior year. The total net loss for 2007 includes a $12.0 million write-off of intangible assets in the fourth quarter.
The Company experienced a cash outflow in 2007, mainly as a result of operating losses. At December 31, 2007, the Company had cash and cash equivalents of $0.7 million.
The Company filed its Annual Report on Form 10-K for the 2007 fiscal year with the Securities and Exchange Commission on April 14, 2008. As detailed in the filing, the Company has received commitments for financing consisting of a $0.5 million loan from the Company’s President and CEO and a line of credit of $1.0 million from affiliates of certain current shareholders, including Evan-Auld Susott, a director of the Company. With this additional financing, the Company believes that it will have sufficient capital to fund its operations and anticipated cash expenditures through the end of 2008.
Following the closure of its manufacturing and repair businesses and the subsequent restructuring of its overall operations, the Company is now focused on growing its core business of delivering engineering solutions for a sustainable infrastructure, with an emphasis on security, energy and the environment. As previously reported, the Company has entered into a stock purchase agreement to acquire Amata, Inc., a provider of state-of-the-art security systems for critical facilities and infrastructure, and has entered into agreements with existing stockholders to provide approximately $3.0 million in additional financing, contingent on the closing of the Amata acquisition. The Company’s Board of Directors expects the Amata acquisition to close and the funding to be in place in the second quarter of 2008; however, there can be no assurances that the closing will occur in that time frame, or at all.
The 10-K report is available on the Company’s Web site, www.horne.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks related to the fulfillment of the closing conditions to the Amata acquisition and the related financing transaction, and other risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission, including its most recent report on form 10-K filed on April 14, 2008. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
