NORTHVALE, N.J., Nov. 14, 2013 /PRNewswire/ -- Inrad Optics, Inc. (OTC Bulletin Board: INRD) has reported its consolidated financial results for its third quarter and nine months ended September 30, 2013.

Revenue for the third quarter was $2.8 million, down 5.1% from $2.9 million in the same period last year.  For the nine months ended September 30, 2013, revenue of $8.5 million decreased by 1.1% compared to $8.6 million last year.

Orders were $2.5 million and $7.4 million for the three and nine months ending September 30, 2013, a decrease of 4% and 18% compared to the respective periods last year. Orders from aerospace and defense and government entities continued to decline primarily due to the ongoing uncertainty in U.S. defense spending and the impact of federal budget sequestration.

Gross profit for the third quarter was $550,000 or 20% of sales, down from $616,000 or 21.2% in the comparable quarter last year.  For the nine months ended September 30, 2013, gross profit decreased to $1.6 million or 18.3% of sales compared to $1.9 million or 22.3% last year.  Overall, gross profit margin for 2013 and 2012 reflects the impact of low sales combined with the Company's relatively fixed overhead cost structure. 

The net loss was $239,000 and $1.1 million for the three and nine months ended September 30, 2013. This compares with a net loss of $280,000 and $762,000, in the comparable periods last year.  The Company had a net loss per share of $0.02, basic and diluted, for the three months ended September 30, 2013 and 2012.  For the nine months ended September 30, 2013 and 2012, the basic and diluted net loss per share was $0.09 and $0.06, respectively. 

Net cash provided by operating activities was $90,000 for the nine months ended September 30, 2013.  This compares to net cash used in operations of $111,000 in the nine month period, last year.  After investing and financing activities, net cash decreased $440,000 for the year to date versus a decrease of $153,000 last year.  Net cash was positively impacted, last year,  by the proceeds of a term loan of $750,000, net of a down-payment of $500,000 on the purchase of a large coating chamber.

At September 30, 2013, the Company had cash and cash equivalents of $2.6 million. 

President and CEO Amy Eskilson commented,

"Our third quarter and nine month results reflect a significant decrease in orders from government, aerospace and defense customers due to federal budget sequestration and on-going uncertainty in defense funding. We are addressing these challenges on multiple fronts. We have recently put in place a number of initiatives to drive down costs, and are assessing several key operational improvement opportunities. Additionally, we have implemented a strategic sales plan that is diversifying our customer base.   Progress on this front has yielded new customers in the medical imaging and x-ray inspection markets. We are continuing to build our capabilities and products in order to serve a broader range of potential customers."   

Inrad Optics, Inc. (formerly Photonic Products Group, Inc.) was incorporated in New Jersey in 1973. In January 2012, the Company's Board of Directors and shareholders approved the name change to Inrad Optics, Inc. The Company develops, manufactures and markets products and services for use in photonics industry sectors via three distinct but complimentary product areas -  "Crystals and Devices", "Custom Optics" and "Metal Optics."

The Company is a vertically integrated organization specializing in crystal-based optical components and devices, custom optical components from both glass and metal, and precision optical and opto-mechanical assemblies.  Manufacturing capabilities include solution and high temperature crystal growth, extensive optical fabrication capabilities, including precision diamond turning and the ability to handle large substrates, optical coatings and in-process metrology expertise.  Inrad Optics' customers include leading corporations in the defense, aerospace, laser systems, process control and metrology sectors of the photonics industry, as well as the U.S. Government, National Laboratories and Universities worldwide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "should", "will", "plan", "anticipate", "probably", "targeting" or similar words.  Such forward-looking statements, such as our expectation for revenues, new orders, and improved results involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward looking statements are, but are not limited to, uncertainties in market demand for the company's products or the products of its customers, future actions by competitors, inability to deliver product on time, inability to develop new business, inability to retain key employees or hire new employees, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended December 31, 2012. The forward looking statements made in this news release are made as of the date hereof and Inrad Optics, Inc. does not assume any obligation to update publicly any forward looking statement.

SOURCE Inrad Optics, Inc.