Isomet Announces FY 2006 Results

SPRINGFIELD, Va., April 12  /PRNewswire-FirstCall/ -- Isomet Corporation (Pink Sheets: IOMT) announced today fiscal year 2006 consolidated net revenue from normal operations of $3,798,000, compared with $3,645,000 in 2005.  The company also received $1,500,000 in revenue from proceeds of key man life insurance coverage in 2006.  The fiscal year 2005 revenue total includes $90,000 from a reduction in a previously established loss provision. Including the $1,500,000 non-recurring proceeds referred to above, consolidated net income for fiscal year 2006 was $800,000, or $.39 per share (basic), $.32 per share (diluted) compared to a consolidated net loss in 2005 of $(1,013,000), or $(.50) per share (basic and diluted).  Without the $1,500,000 non-recurring income amount, a net loss of $(700,000) or $(.33) per share (basic and diluted) was incurred in FY 2006.

Fourth quarter 2006 consolidated net revenue was $1,056,000, compared with $843,000 in 2005.  A consolidated net loss of $(362,000) or $(.17) per share (basic and diluted) was incurred in the quarter, compared to a consolidated net loss of $(590,000) or $(.29) per share (basic and diluted) in the fourth quarter of 2005.  The 2005 fourth quarter results include an adjustment to the carrying value of inventory totaling approx. $320,000, to more accurately reflect the estimated future realizable value of the inventory. Without this adjustment the fourth quarter of 2005 would have shown a loss of $(270,000), or $(.13) per share.

The 2006 profit (loss) totals shown above for the fiscal year and fourth quarter include a $63,000 charge to bad debt reserve related to amounts due from a previous systems customer.

The 2005 net loss totals shown above are net of reductions in a previously established loss provision in the amount of $30,000 $(.01 per share) for the fourth quarter and $90,000 $(.04 per share) for the fiscal year.

Receipt of new orders for the fiscal years ended Dec. 31, 2006 and 2005 was $3,827,000 and $4,054,000, respectively.  Unfilled orders totaled $733,000 and $949,000, respectively, as of Dec. 31, 2006 and 2005.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, those risks detailed from time to time in the Company's past filings with the Securities and Exchange Commission.  Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward looking statements. Furthermore, the Company does not intend (and is not obligated) to update publicly any forward-looking statements.

  Isomet Corporation (IOMT)


  Quarter December 31                         2006             2005

  Revenue                                  $1,056,000        $843,000

  Net Loss                                 $(362,000)(4)     $(590,000)(1)

  Net Loss Per Share (Basic)               $(.17)            $(.29)(1)

  Net Loss Per Share (Diluted)             $(.17)            $(.29)(1)


  Fiscal Year

  Revenue                                  $5,298,000(3)     $3,645,000

  Net Income (Loss)                        $800,000(3)(4)    $(1,013,000)(2)

  Net Income (Loss) Per Share (Basic)      $.39              $(.50)(2)

  Net Income (Loss) Per Share (Diluted)    $.32              $(.50)(2)


  (1)  Net of a $30,000 reduction in 2005, $.01 per share, in a previously
       established loss provision against amounts due from a previous
       systems customer

  (2)  Net of a $90,000 reduction in 2005, $.04 per share, in a previously
       established loss provision against amounts due from a previous
       systems customer.

  (3)  Includes life insurance proceeds of $1,500,000, $.55 per share
       (Diluted).

  (4)  Includes $63,000 charge to bad debt reserve related to amounts due
       from a previous systems customer.


DATASOURCE: Isomet Corporation



CONTACT:  Jerry W. Rayburn of Isomet Corporation, [phone]



Web site:  http://www.isomet.com/ 

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