Xenonics Reports Fiscal 2011 Results

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CARLSBAD, Calif.--(BUSINESS WIRE)-- Xenonics Holdings, Inc. (OTCBB & OTCQB: XNNH) today announced financial results for fiscal 2011.

For the year ended September 30, 2011, revenue increased to $7,179,000 compared to $4,397,000 for fiscal 2010. Operating income rose to $47,000 for fiscal 2011, compared to an operating loss for fiscal 2010 of $1,643,000. The net loss for fiscal 2011 narrowed to $92,000, or $0.00 per share. This compares to a net loss for fiscal 2010 of $1,781,000, or $0.08 per share.

Selling, general and administrative expenses decreased by $580,000 to $2,441,000 for fiscal 2011 compared to $3,021,000 for fiscal 2010, and R&D expense decreased to $709,000 compared to $772,000.

At September 30, 2011, Xenonics reported working capital of $3,088,000, including cash of $738,000, and a current ratio of 6.1 to 1. This compares to working capital of $3,065,000, including cash of $705,000, and a current ratio of 5.2 at September 30, 2010.

"We are pleased to report higher revenue and operating income and greatly improved bottom-line performance for fiscal 2011. The business generated cash for the year, which speaks to our commitment to tight cost control and close management of our financial resources. As we have stated previously, despite delays in securing purchase orders from the Department of Defense and certain foreign governments for our NightHunter and SuperVision products, we continue to believe that substantial orders are forthcoming," said Chairman Alan Magerman.

Conference Call

Xenonics has scheduled a conference call at 11:00 a.m. EST this morning to discuss its results for fiscal 2011. The dial-in number is (866) 831-6270 and the passcode is #69895866. A simultaneous webcast of the conference call can be accessed from the Webcast Center of the Investor Relations link at www.xenonics.com. A replay will be available after 1:00 p.m. EST at this same Internet address. For a telephone replay, dial (888) 286-8010, passcode #78608544, after 1:00 p.m. EST.

About Xenonics

Xenonics Holdings, Inc. develops and produces advanced, lightweight and compact ultra-high-intensity illumination and low-light vision products for military, law enforcement, public safety, and commercial and private sector applications. Xenonics' NightHunter line of illumination products is used by every branch of the U.S. Armed Forces as well as law enforcement and security agencies. Its SuperVision high-definition night vision is designed for commercial and military applications. Employing patented technologies, Xenonics provides innovative solutions for customers who must see farther so they can do their jobs better and safer. Xenonics' products represent the next generation in small, high intensity, high efficiency illumination and low-light vision systems. Visit Xenonics on the web at www.xenonics.com.

Forward-Looking Statements

Except for the historical statements, statements in this release may constitute forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934. When used, the words "anticipates," "believes," "expects," "intends," "future," and other similar expressions identify forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties, and actual results may differ materially from the outcomes contained in any forward-looking statement. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing or sales of new products, and other risks and uncertainties discussed in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. Xenonics Holdings undertakes no obligation to update or revise any forward-looking statements.

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Rounded in thousands, except per share amounts	Years Ended
	September 30,
		2011				2010
Revenue	$	7,179,000			$	4,397,000
Cost of goods sold		3,982,000				2,247,000
Gross profit		3,197,000				2,150,000
Selling, general and administrative		2,441,000				3,021,000
Research and development		709,000				772,000
Income (loss) from operations		47,000				(1,643,000	)
Other income (expense):
Gain on derivative revaluation		--				38,000
Other (expense) income		9,000				(26,000	)
Interest income		6,000				4,000
Interest (expense)		(152,000	)			(152,000	)
Loss before provision for income taxes		(90,000	)			(1,779,000	)
Income tax provision		2,000				2,000
Net loss	$	(92,000	)		$	(1,781,000	)
Net loss per share:
Basic and diluted	$	0.00			$	(0.08	)
Weighted average shares outstanding:
Basic and diluted		25,074,000				22,994,000

XENONICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Rounded in thousands, except par value	September 30,
		2011				2010
Assets
Current assets:
Cash	$	738,000			$	705,000
Accounts receivable, net		273,000				956,000
Inventories, net		2,542,000				1,966,000
Other current assets		144,000				166,000
Total Current Assets		3,697,000				3,793,000
Equipment, furniture and leasehold improvements, net		35,000				69,000
Goodwill		375,000				375,000
Other assets		116,000				216,000
Total Assets	$	4,223,000			$	4,453,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	414,000			$	492,000
Accrued expenses		99,000				126,000
Accrued payroll and related taxes		96,000				110,000
Total Current Liabilities		609,000				728,000
Notes payable, long term portion, net of debt discount		459,000				376,000
Total Liabilities		1,068,000				1,104,000
Commitments and contingencies
Shareholders' equity:
Preferred shares, $0.001 par value, 5,000,000
shares authorized, 0 shares issued and outstanding		--				--
Common shares, $0.001 par value, 50,000,000 shares
authorized; 24,976,000 shares issued and outstanding
at September 30, 2011; 25,622,000 shares issued
and 25,509,000 outstanding at September 30, 2010		25,000				25,000
Additional paid-in capital		26,652,000				26,954,000
Accumulated deficit		(23,522,000	)			(23,324,000	)
		3,155,000				3,655,000
Less treasury stock, at cost, 0 shares at September 30,
2011 and 113,000 shares at September 30, 2010		--				(306,000	)
Total Shareholders' Equity		3,155,000				3,349,000
Total Liabilities and Shareholders' Equity	$	4,223,000			$	4,453,000

Investor Contact:Berkman Associates(310) 477 - 3118[email protected]orCompany Contact:Alan Magerman, Chairman(760) 477 - 8900[email protected]

Source: Xenonics Holdings, Inc.

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