ICx Technologies Reports Third-Quarter 2009 Results

http://www.businesswire.com/news/home/20091112006177/en

Records Fifth Consecutive Profitable Quarter
ARLINGTON, Va.--(Business Wire)--
ICx Technologies, Inc. (Nasdaq GS:ICXT), a developer of advanced sensor
technologies for homeland security, force protection and commercial
applications, announced today its operating and financial results for the third
quarter ended September 30, 2009.

Third-Quarter and Nine Month Financials

For the quarter ended September 30, 2009, ICx reported revenues of $42.8
million, compared to $44.3 million for the quarter ended September 30, 2008,
representing a 3.4 percent decrease year-over-year. The Company achieved its
fifth consecutive positive quarter, showing adjusted EBITDA profits of $2.3
million, an improvement of $1.3 million over the third-quarter adjusted EBITDA
profits in 2008. Funded backlog held strong at $78 million at the end of the
third-quarter, up from $73 million reported in the second quarter. For the nine
months ended September 30, 2009, the Company`s revenue grew by 15 percent to
$135 million, compared to $117 million for the nine months ended September 30,
2008. Adjusted EBITDA for the first nine months of 2009 was $6 million compared
to an adjusted EBITDA loss of ($9.2) million for the same period last year.

With continued positive adjusted EBITDA over five quarters, the Company has good
growth year-to-date and solid potential for the fourth-quarter despite lower
than expected revenue for the third-quarter.

"Although contracting delays and revenue recognition delays resulted in
third-quarter revenues that were lower than expected, we are pleased with our
year to date growth," said Colin Cumming, CEO of ICx Technologies. "With our
fifth consecutive positive adjusted EBITDA quarter, we are confident in our long
term growth strategy in a difficult economic climate."

Key Third-Quarter Highlights

* Awarded a key Detect-to-Protect Contract for Mass Transit Security

* A pilot program to rapidly detect and identify the potential release of
bio-threat agents

* The Joint Force Protection Advanced Security System (JFPASS) program achieved
a significant milestone with positive tests during the recent test and
evaluation at a major US military installation
* Awarded a $3.6 million Mass Spectrometer Contract for the Pentagon Force
Protection Agency (PFPA)

* A key deployment for our ThreatSense facility protection technologies

* ICx Helped Secure Water Quality During the G-20 Summit in Pittsburgh, PA

* A DHS designated National Special Security Event

Revenue and Earnings Outlook for 2009

The Company is reconfirming its earlier annual Adjusted EBITDA guidance of $5
million to $8 million. Based on the delay in the DoD budget process, as well as
possible delays in certain international sales and discontinued operations, the
Company is revising its annual revenue guidance for the year ending December 31,
2009, to a range of $180 million to $190 million.

Conference Call

In connection with the earnings release, ICx will host a conference call and
Webcast for investors and analysts to discuss its results for the quarter on
November 12, 2009, at 4:30 Eastern time.

Participants should call, toll-free, 1.888.205.6458 (United States/Canada), or
1.913.312.1408, and request the ICx Technologies call. A telephonic replay will
be available for anyone unable to participate in the live call. To access the
replay, call 1.719.457.0820 (United States/Canada), or call toll-free at
1.888.203.1112 and enter confirmation code 9199542. The recording will be
available from 7:30 p.m. (EST) on Thursday, Nov. 12, 2009, through midnight,
Nov. 26, 2009 (EST). A live broadcast of the earnings conference call will also
be available via the Internet at http://www.ICXT.com in the 'Events &
Presentations' section under 'Investor Relations'. The webcast will be archived
on the site for 60 days.

About ICx Technologies, Inc.

ICx Technologies is a leader in the development and integration of advanced
sensor technologies for homeland security, force protection and commercial
applications. Our proprietary sensors detect and identify chemical, biological,
radiological, nuclear and explosive threats, and deliver superior awareness and
actionable intelligence for wide-area surveillance, intrusion detection and
facility security. We then leverage our unparalleled technical expertise and
government funding to address other emerging challenges of our time, ranging
from a cleaner environment and alternative energy to life science.

Safe-Harbor Statement

All forward-looking statements contained in this release are made within the
meaning of and pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are all statements
other than statements of historical facts, including but not limited to
statements concerning the outlook for the Company's revenues and Adjusted EBITDA
for fiscal 2009; and all other statements concerning the plans, intentions,
expectations, projections, hopes, beliefs, objectives, goals and strategies of
management. Forward-looking statements are not guarantees of future performance
or events and are subject to a number of known and unknown risks, uncertainties
and other factors that could cause actual results to differ materially from
those expressed, projected or implied by such forward-looking statements.
Important risks, uncertainties and other factors include, but are not limited
to, demand for the Company's products and services; the ability of the Company
to successfully develop and expand its products, services, technologies and
markets; the ability of the Company to effectively assimilate acquired
businesses and achieve the anticipated benefits of its acquisitions; changes in
U.S. government funding levels to purchase the Company`s products and services;
the ability of the Company to sell its products to original equipment
manufacturers, prime contractors and system integrators; seasonality;
competition; the ability of the Company to develop innovative products; the
ability of the Company to attract, retain and motivate key personnel; the
ability of the Company to secure and maintain key contracts and relationships,
including contracts with the U.S. government; general economic, market and
business conditions, uncertainties and other factors identified from time to
time in the Company's filings with the Securities and Exchange Commission.
Accordingly, there can be no assurance that the results expressed, projected or
implied by any forward-looking statements will be achieved, and readers are
cautioned not to place undue reliance on any forward-looking statements. The
forward-looking statements in this press release speak only as of the date
hereof and are based on the current plans, goals, objectives, strategies,
intentions, expectations and assumptions of, and the information currently
available to, management. The Company assumes no duty or obligation to update or
revise any forward-looking statements for any reason, whether as the result of
changes in expectations, new information, future events, conditions or
circumstances or otherwise.

Use of Non-GAAP Financial Measures

In evaluating its business, ICx considers and uses Adjusted EBITDA as a
supplemental measure of its operating performance. The Company defines Adjusted
EBITDA as earnings from continuing operations before interest, taxes,
depreciation and amortization, plus non-cash equity compensation. The Company
also presents Adjusted EBITDA because it believes it is frequently used by
securities analysts, investors and other interested parties as a measure of
financial performance. The term Adjusted EBITDA is not defined under U.S.
generally accepted accounting principles, or U.S. GAAP, and is not a measure of
operating income, operating performance or liquidity presented in accordance
with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when
assessing the Company`s operating performance, investors should not consider
Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other
consolidated income statement data prepared in accordance with U.S. GAAP. Among
other things, Adjusted EBITDA does not reflect the Company`s actual cash
expenditures. Other companies may calculate similar measures differently than
ICx, limiting their usefulness as comparative tools. ICx compensates for these
limitations by relying primarily on its GAAP results and using Adjusted EBITDA
only supplementally.

ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Net Loss
(Unaudited)
(dollars in thousands, except per share amounts)

Unaudited Unaudited
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
Revenues:
Product revenues $ 19,966 $ 24,982 $ 58,410 $ 68,546
Contract research and development revenues 15,066 8,854 39,041 30,652
Service and other revenue 7,788 10,502 37,750 18,305
Total revenues 42,820 44,338 135,201 117,503

Cost of revenues:
Cost of product revenues 9,047 11,756 27,984 32,842
Cost of contract research and development revenues 10,445 5,909 28,325 20,398
Cost of service and other revenues 5,758 6,919 27,289 11,771
Total cost of revenue 25,250 24,584 83,598 65,011
Gross profit 17,570 19,754 51,603 52,492

Operating expenses:
General and administrative 6,450 7,585 20,357 24,938
Sales and marketing 5,354 7,135 17,549 23,083
Research and development 4,203 5,494 10,823 17,865
Depreciation and amortization 2,664 3,461 8,683 9,822
Total operating expenses 18,671 23,675 57,412 75,708
Operating loss (1,101) (3,921) (5,809) (23,216)

Other income (expense):
Interest income 36 191 127 867
Interest expense (24) (20) (78) (49)
Other, net (276) 114 125 (265)
Total other income (expense) (264) 285 174 553
Loss before income taxes (1,365) (3,636) (5,635) (22,663)
Income tax expense (benefit) (36) (125) 200 75
Loss from continuing operations $ (1,329) $ (3,511) $ (5,835) $ (22,738)
Loss on discontinued operations, net of tax (2,528) (306) (2,768) (1,271)
Loss on sale of discontinued operations, net of tax - - - (903)
Net loss $ (3,857) $ (3,817) $ (8,603) $ (24,912)

Other comprehensive income
Foreign currency translation adjustment, net of tax 797 (1,082) (117) (361)
Comprehensive loss $ (3,060) $ (4,899) $ (8,720) $ (25,273)

Net loss per common share
Basic and diluted $ (0.11) $ (0.11) $ (0.25) $ (0.73)

Reconciliation of Non-GAAP Measure:
Net loss $ (3,857) $ (3,817) $ (8,603) $ (24,912)
Add (subtract)
Loss from discontinued operations 2,528 306 2,768 2,174
Income tax expense (benefit) (36) (125) 200 75
Interest income (36) (191) (127) (867)
Interest expense 24 20 78 49
Depreciation and amortization 2,664 3,461 8,683 9,822
Stock-based compensation expense 979 1,351 2,964 4,451
Adjusted EBITDA $ 2,266 $ 1,005 $ 5,963 $ (9,208)

ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Balance Sheets
(Unaudited)
(dollars in thousands)

September December
30, 31,
Assets 2009 2008
Current assets:
Cash and cash equivalents $ 22,669 $ 30,354
Restricted cash 8,456 8,428
Trade accounts receivable, net 31,675 36,547
Unbilled revenue 10,314 10,997
Inventories 24,007 26,174
Other current assets 5,916 2,651
Current assets of discontinued operations 241 619
Total current assets 103,278 115,770
Property, plant and equipment, net 10,517 10,850
Goodwill and intangibles, net 81,681 87,575
Other noncurrent assets 3,175 2,344
Noncurrent assets of discontinued operations 378 2,759
Total assets $ 199,029 $ 219,298

Liabilities and Stockholders' Equity

Current liabilities $ 25,740 $ 38,828
Current liabilities of discontinued operations 118 198
Noncurrent liabilities 1,486 2,465
Total liabilities 27,344 41,491

Total stockholders' equity 171,685 177,807
Total liabilities and stockholders' equity $ 199,029 $ 219,298

ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Selected Segment Information
(Unaudited)
(dollars in thousands)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Detection
Product revenue $ 10,800 $ 16,716 $ 30,981 $ 43,277
Contract research and development revenue 14,594 8,070 38,252 24,143
Service and other revenue 795 633 2,477 1,429
Total revenue $ 26,189 $ 25,419 $ 71,710 $ 68,849
Gross profit % 41.5 % 51.5 % 40.7 % 49.8 %

Surveillance
Product revenue $ 7,111 $ 6,523 $ 21,638 $ 19,221
Contract research and development revenue 472 612 789 6,303
Service and other revenue 1,662 5,536 16,287 6,392
Total revenue(1) $ 9,245 $ 12,671 $ 38,714 $ 31,916
Gross profit % 43.4 % 34.5 % 36.4 % 37.4 %

Solutions
Product revenue $ 2,144 $ 1,743 $ 5,912 $ 6,047
Contract research and development revenue 63 172 219 206
Service and other revenue 5,537 4,333 19,453 10,484
Total revenue(2) $ 7,744 $ 6,248 $ 25,584 $ 16,737
Gross profit % 34.7 % 36.6 % 32.6 % 37.7 %

(1) Includes $64 and $72 of intersegment revenue that has been eliminated in the
Consolidated Statement of Operations and Net Loss for the three and nine months
ended September 30, 2009, respectively

(2) Includes $294 and $735 of intersegment revenue that has been eliminated in
the Consolidated Statement of Operations and Net Loss for the three and nine
months ended September 30, 2009, respectively

ICx Technologies, Inc.
Media
Melissa Woods, + 1-405-269-9453
melissa.woods@icxt.com
or
Investor Relations
Jessica Bartlow, + 1-703-678-2114
jessica.bartlow@icxt.com

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