Optibase 3Q Revenue Dips 48 Percent

HERZLIYA, ISRAEL: Video compressor Optibase its third quarter with revenues of$3.2 million compared to $6.6 million a year ago. Net loss was $700,000 compared to $1.8 million a year earlier.

“Revenues, while down year-over-year, remained stable compared to last quarter and we were able to improve our bottom line,” said Optibase chief financial officer Amir Philips. “Over the past year, we have been adjusting our business strategy to adapt to the changing business environment, which has not yet fully recovered from the global economic downturn. The changes that we have implemented have helped stabilize revenue and allowed for better management of costs in this daunting environment.”

“Our recent decision to diversify our business has recently moved forward with the acquisition of a commercial building located in Rumlang, Switzerland,” he said. “This transaction is representative of the real estate opportunities we are seeing in today’s markets. We will continue to look for more investment opportunities around the globe and may invest in those prospects that we believe will bring value to our shareholders in the long run.”

As of Sept. 30, 2009, Optibase (NASDAQ: OBAS) had cash and equivalents of $34 million compared to $38 million on June 30, 2009. Shares gained about 8 percent today to reach $1.27.

More on Optibase:
August 4, 2009: “Optibase Cuts 2Q Loss on Reduced Revenues”
Optibase, a video compression specialist, reported a $1 million loss for the second quarter on revenues down 42 percent compared to a year ago.

May 12, 2009: “Optibase Posts 1Q Profit”
Video compression specialist Optibase ended the first quarter of 2009 with net income of $2.9 million, or around 18 cents a share, on revenues of $3.6 million.

February 26, 2009: “Optibase Revenues Fall”
Optibase 4Q08 revenues dipped by more than one-third compared to the year-earlier quarter-- $3.6 million for the three months ending Dec. 31, 2008, compared to $5.6 million for 4Q07.