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EMRISE Files Audited Financial Statements on Form 10-K for 2010 Full Year

Mar 31, 2011 (04:03 PM EDT)
URL: http://www.techweb.com/show-press-release/X837971/emrise-files-audited-financial-statements-on-form-10-k-for-2010-full-year.html

Includes Classification Adjustment in Financial Statements Issued in News Release; No Change to Announced Sales, Loss Before Income Taxes from Continuing Operations and Net Loss

DURHAM, N.C., March 31, 2011 /PRNewswire/ -- EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, said today that it has filed its audited financial statements on Form 10-K for its year ended December 31, 2010 with the Securities and Exchange Commission ("SEC").  The financial statements included a classification adjustment to income from discontinued operations and income tax provision from continuing operations, which did not change the net sales, pretax income or consolidated net loss for 2010, from the amounts that were previously reported in its news release on March 29, 2011.  

As part of the final review of the Company's annual report on Form 10-K, before it was filed with the SEC, a modification was made to the classification of deferred tax expense between continuing operations and discontinued operations, which effected both the gain on the sale of subsidiary and income tax provision of discontinued operations and continuing operations, respectively.  Loss before income taxes from continuing operations and net loss did not change.

Loss from continuing operations for 2010 was $5.5 million and income from discontinued operations was $2.1 million after the adjustment.  A revised consolidated statement of operations is presented below.

About EMRISE Corporation

EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets.  EMRISE products perform key functions such as power supply and power conversion; radio frequency (RF) and microwave signal processing; and network access and timing and synchronization of communications networks.  The use of its network products in network timing and synchronization in edge networks is a primary growth driver for the Company's Communications Equipment business segment.  The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board in-flight entertainment and communications systems is a primary growth driver for the Company's Electronic Devices business segment. EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France.  EMRISE is a publicly traded company whose common stock trades on the OTCBB under the symbol EMRI.  For more information go to www.emrise.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, certain matters discussed in this press release are all forward looking statements within the meaning of the Private Securities Litigation Reform Act.   The actual future results of EMRISE could differ from those statements.  The Company also refers you to those factors contained in the "Risk Factors" Section of EMRISE's Annual Report to be filed on Form 10-K for the year ended December 31, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.  

CONTACT:

Allen & Caron Inc

Brandi Festa

Rene Caron (investors) Len Hall (media)

Director Finance and Administration

(949) 474-4300

(408) 573-2705

rene@allencaron.com

bfesta@emrise.com

len@allencaron.com



TABLE FOLLOWS


EMRISE CORPORATION

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)













Year Ended






December 31,






2010


2009










Net Sales


$30,561


$34,695


Cost of Sales


21,179


22,788


Gross profit


9,382


11,907










Operating expenses:







Selling, general and administrative


10,090


11,948



Engineering and product development


1,736


1,796



Employee transaction costs


906


-




Total operating expenses


12,732


13,744


Loss from operations


(3,350)


(1,837)










Other income (expense):







Interest income


86


98



Interest expense


(1,940)


(4,054)



Other, net


20


433



Gain on extinguishment of debt


295


-




Total other expense, net


(1,539)


(3,523)










Loss before income taxes


(4,889)


(5,360)


Income tax provision (benefit)


583


(578)


Loss from continuing operations


(5,472)


(4,782)


Discontinued operations:







Income from discontinued operations


3,036


7,528



Income tax provision on discontinued operations


985


1,704




Income from discontinued operations


2,051


5,824










Net (loss) income


$ (3,421)


$  1,042










Weighted average shares outstanding







Basic


10,647


10,209



Diluted


10,647


10,209










(Loss) earnings per share:







Basic








Continuing operations


$   (0.51)


$   (0.47)




Discontinued operations


$    0.19


$    0.57




Net (loss) earnings


$   (0.32)


$    0.10



Diluted








Continuing operations


$   (0.51)


$   (0.47)




Discontinued operations


$    0.19


$    0.57




Net (loss) earnings


$   (0.32)


$    0.10




















SOURCE EMRISE Corporation