(Feb. 26, 2009) HERZLIYA,ISRAEL: Optibase 4Q08 revenues dipped by more than one-third compared to the year-earlier quarter. The Israeli video compressor posted revenues of $3.6 million for the three months ending Dec. 31, 2008, compared to $5.6 million for 4Q07. Net loss for the quarter came in at $2.5 million compared to a net loss of $1.7 million 4Q07.
Full year, Optibase (NASDAQ:OBAS) revenues totaled $19.9 million, compared with $23 million for 2007. Net loss for 2008 was $9.3 million compared to a net loss of $7.2 million for ’07.
As of Dec. 31, 2008, the company had cash, equivalents and investments of $11.4 million and shareholder equity of $35.3 million.
“We have already begun responding with measures to streamline our business in anticipation that this is a protracted crisis,” said Optibase Chief Financial Officer Amir Philips. “To respond to what we are seeing in the market, we have taken several steps in order to streamline our business and costs, including decreasing our headcount by 22 percent accompanied by a decrease of approximately 18 percent in direct personnel costs and overhead. All cost reduction measures have been implemented while minimizing any potential damage to our future business.”
Philips said Optibase would pursue the U.S. government market, which hasn’t been hit as severely as the public sector.
Optibase offers various flavors of video compression, including H.264, MPEG-2 and MPEG-1. The company has about 140 employees worldwide, and held a piece of Scopus, which was recently purchased by Harmonic.
“Our goals for the near-term will be to conduct our business in a fiscally responsible manner, place more effort into the markets that we believe will yield the highest results and continue to enhance and improve upon our technology,” Philips said.
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