LONDON, UK / ACCESSWIRE / July 31, 2018 / Further to the announcement made on June 19, 2018, Dialog Semiconductor plc (XETRA: DLG) announces today that it has terminated discussions with Synaptics Incorporated (SYNA) regarding a potential acquisition of Synaptics.

Contact:

Jose Cano
Director, Investor Relations
jose.cano@diasemi.com
+44(0)1793756961

Information and Explanation of the Issuer to this News:

Jalal Bagherli, CEO of Dialog, said, ‘Dialog will continue to execute on its strategy as a leading provider of analog mixed-signal semiconductors, targeting growth opportunities in Mobile, Internet of Things and Automotive markets. Dialog remains committed to extending its product portfolio through a combination of organic development and acquisitions, broadening its customer base, and creating value for customers and shareholders.’

Dialog will be publishing Q2 2018 results for the quarter ended June 29, 2018 as planned on August 2, 2018.

Investor Contacts:

Jose Cano

Dialog Semiconductor
Phone: +44 (0)1793 756 961
jose.cano@diasemi.com

Mark Tyndall

Dialog Semiconductor
Phone: +1 (408) 7273204
mark.tyndall@diasemi.com

Matt Dixon
Phone: +44 (0)2037 271 137
matt.dixon@fticonsulting.com

Andrea Calise
Teneo
Phone: +1 (917) 826 3804
andrea.calise@teneostrategy.com

Anja Meusel
FTI Consulting
Phone: +49 (0) 69 9203 7120
anja.meusel@fticonsulting.com

About Dialog Semiconductor

Dialog Semiconductor is a leading provider of integrated circuits (ICs) that power mobile devices and the Internet of Things. Dialog solutions are integral to some of today’s leading mobile devices and the enabling element for increasing performance and productivity on the go. From making smartphones more power efficient and shortening charging times, enabling home appliances to be controlled from anywhere, to connecting the next generation of wearable devices, Dialog’s decades of experience and world-class innovation help manufacturers get to what’s next.

Dialog operates a fabless business model and is a socially responsible employer pursuing many programs to benefit the employees, community, other stakeholders and the environment we operate in. Dialog Semiconductor plc is headquartered in London with a global sales, R&D and marketing organization. In 2017, it had approximately $1.35 billion in revenue. It currently has approximately 2,200 employees worldwide. The company is listed on the Frankfurt (FWB: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006) and is a member of the German TecDax index. For more information, visit www.dialog-semiconductor.com.

Forward Looking Statements

This press release contains ‘forward-looking statements’ that reflect management’s current views with respect to future events. The words ‘anticipate,’ ‘believe,’ ‘estimate’, ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘project’ and ‘should’ and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in the semiconductor and telecommunications markets; changes in currency exchange rates and interest rates, the timing of customer orders and manufacturing lead times, insufficient, excess or obsolete inventory, the impact of competing products and their pricing, political risks in the countries in which we operate or sale and supply constraints. If any of these or other risks and uncertainties occur (some of which are described under the heading ‘Managing risk and uncertainty’ in Dialog Semiconductor’s most recent Annual Report) or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement which speaks only as of the date on which it is made, however, any subsequent statement will supersede any previous statement.

Dialog, the Dialog logo are trademarks of Dialog Semiconductor plc or its subsidiaries. All other product or service names are the property of their respective owners. (c) Copyright 2018 Dialog Semiconductor All rights reserved.

SOURCE: Dialog Semiconductor Plc

ReleaseID: 507694

New Models Include the MS535A, MW535A and MH535A, BenQ’s First 1080p Business Projectors

DALLAS, TX / ACCESSWIRE / July 31, 2018 / BenQ America Corp, a world-leading human technology and solutions provider and number one DLP projector brand, announced today the launch of their latest new high brightness business projector series line of projectors and including the company’s first 1080p business projector. Designed to provide a stunning big-screen presentation for small and medium meeting rooms, these projectors boast the capability to project 100 inches up from up to 10-feet delivering big-screen impact.

Other factors that set this projector series apart from others include:

High brightness for small or medium well-lit meeting rooms or classrooms – 3,600 lumens of high brightness enable comfortable lights-on presentations with a high luminance that boosts image quality with vibrant color, as well as crisp text and fine details.
15,000:1 High Native Contrast for Crisp Readability – Industry-leading contrast and pixel fill factor allow these projectors to produce the truest blacks and unmatched readability with every character, graph and chart crisply defined.
Flexible installation – With flexible throw ratio ranges and a 1.2x zoom, businesses can easily replace outdated projectors by making use of existing ceiling mounts to project large-scale images.
Triple adjustment feet and vertical digital keystone – allowing for flexible installation and easy screen adjustment.
Lower maintenance cost – A longer lamp life of up to 15,000 hours saves on overall maintenance cost and is backed by BenQ’s “3 Years Unlimited Parts/Labor” or “1 year or 2,000 hours on lamp” committed warranty.
Digital connectivity – Includes 2 HDMI and 2 VGA connections enabling meeting participants to collaborate instantly without complicated adapters or time-consuming IT support.
BenQ’s new line of projectors also come equipped with the BenQ Eco-Cycle System eliminating electricity waste, reducing power-up wait time and minimizes maintenance for a lower total cost of ownership. The BenQ Eco-Cycle System includes three phases:
SmartEco Mode which analyzes input content to determine the brightness required for optimal color and contrast performance, conserving up to 70% lamp power while delivering the finest image quality.
Eco Blank Mode which automatically kicks in when the projector detects no source content after three minutes eliminating distractions and saving energy.
Auto Power Off allows BenQ’s business projectors to power down after 20 minutes of inactivity to eliminate energy waste.

The BenQ M5 series projectors are now available at retail prices ranging from $299-$549 and are available for purchase on Amazon, Best Buy, B&H Photo, Newegg, and ProjectorPeople.com.

MS535A (SVGA) – $299
MW535A (WXGA) – $389
MH535A (Full HD 1080p) – $549

For additional information, visit https://www.benq.com/en-us/projector/business.html.

About BenQ America Corp.

The world-leading human technology and solutions provider, BenQ is aiming to elevate and enrich every aspect of consumers’ lives. BenQ sells and markets technology products, consumer electronics, computing and communications devices. Founded on the corporate vision of “Bringing Enjoyment and Quality to Life,” BenQ focuses on the aspects that matter to most people today – lifestyle, business, healthcare and education – with the hope of providing people with the means to live better, increase efficiency and enhance learning by providing people-driven products and embedded technologies spanning digital projectors, monitors, interactive large-format displays, audio products, cloud consumer products, mobile communications and lifestyle lighting. Because it matters. For more information about products and to purchase, visit www.benq.com.

MEDIA CONTACT:

Bolt Public Relations

(469) 323-7509
benq@boltpr.com

SOURCE: BenQ America Corp

ReleaseID: 507692

WESTMINSTER, MA / ACCESSWIRE / July 31, 2018 / TechPrecision Corporation (OTCQB: TPCS) (“TechPrecision” or “the Company”), an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today announced it will release financial results for its 2019 fiscal first quarter on Monday, August 13, 2018.

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on August 13, 2018. To participate in the live conference call, please dial 1-877-407-8133 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-201-689-8040. When prompted, reference TechPrecision.

A replay will be available until September 13, 2018. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 36393.

The call will also be available live by webcast at TechPrecision Corporation’s website, www.techprecision.com, and will also be available over the Internet and accessible at: http://www.investorcalendar.com/event/36393

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Wuxi Critical Mechanical Components Co., Ltd., manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial, and medical. TechPrecision’s goal is to be an end-to-end service provider to its customers by furnishing customized solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company’s website or any other website does not constitute a part of this press release.

Company Contact:

Mr. Thomas Sammons, Chief Financial Officer
TechPrecision Corporation
Phone: 978-883-5109
Email: sammonst@ranor.com
www.techprecision.com

Investor Relations Contact:

Brett Maas, Hayden IR
Phone: 646.536.7331
Email: brett@haydenir.com

SOURCE: TechPrecision Corporation

ReleaseID: 507691

SALINAS, CA / ACCESSWIRE / July 31, 2018 / 1st Capital Bank (OTC PINK: FISB) reported unaudited net income of $1.51 million for the three months ended June 30, 2018, compared to net income of $855 thousand for the three months ended June 30, 2017 and net income of $1.24 million for the three months ended March 31, 2018, the immediately preceding quarter. Earnings per share were $0.31 (diluted), compared to $0.26 (diluted) for the prior quarter.

“We are pleased with our continued earnings momentum and are happy to report that we achieved a couple of important milestones in our brief history this past quarter, achieving an 11% after-tax return on equity and, secondly, growing past $600 million in total assets,” said Thomas E. Meyer, President and Chief Executive Officer.

Unaudited net income for the six-month period ended June 30, 2018 increased 67.4% to $2.75 million, compared to $1.64 million for the six-month period ended June 30, 2017. Pre-tax income increased 42.2%, to $3.78 million for the six-month period ended June 30, 2018 from $2.66 million for the six-month period ended June 30, 2017. Quarterly net income increased $655 thousand, or 76.6%, year-over-year, compared to net income of $855 thousand recognized in the second quarter of 2017, and increased $272 thousand, or 21.9%, sequentially, compared to net income of $1.24 million recognized for the first quarter of 2018.

Net interest margin increased from 3.42% in the second quarter of 2017 and 3.70% in the first quarter of 2018 to 3.84% in the second quarter of 2018, as the Bank’s average net loans-to-deposits ratio increased from 81.1% in the second quarter of 2017 and 83.4% in the first quarter of 2018 to 86.2% in the second quarter of 2018 and average gross loans outstanding increased $48 million, or 11.7%, year-over-year, from $412 million to $460 million, and $19 million, or 4.3%, sequentially. Net interest income before provision for loan losses for the three-month period ended June 30, 2018 was $5.50 million, a sequential increase of $293 thousand, or 5.6%, compared to $5.21 million recognized in the three-month period ended March 31, 2018. The Bank’s cost of funds increased slightly, to 0.13% for the second quarter of 2018, compared to 0.13% for the second quarter of 2017 and 0.12% for the first quarter of 2018. On a year-over-year basis, quarterly net interest income before provision for loan losses increased $842 thousand, or 18.1%, from $4.66 million recognized in the second quarter of 2017.

“We are pleased to see the efforts of our team of outstanding bankers produce the strong results we are able to report today,” said Thomas E. Meyer, President, and Chief Executive Officer. “We remain committed to growing the core franchise of the Bank, that is, our expanding high-quality core loan portfolio and our low-cost core deposits portfolio. In the second quarter, more than 44 percent of our average deposits were demand deposits, and they will continue to create value as we experience higher interest rates than in the past.”

In the second quarter of 2018, loan growth was concentrated in the core portfolio, including commercial real estate loans, which organically grew $12 million, or 5.3%, from $236 million as of March 31, 2018 to $248 million as of June 30, 2018 and yielded 4.63%, 4.77%, and 4.82% in the second quarter of 2017 and the first and second quarters of 2018, respectively. Commercial and industrial loans grew $5 million, or 11.7%, from $40 million as of March 31, 2018 to $45 million as of June 30, 2018, and yielded 4.55%, 5.39% and 5.33% in the second quarter of 2017 and the first and second quarters of 2018, respectively. The single-family residential portfolio, which consists primarily of purchased loans, remained unchanged at $140 million as of March 31, 2018 and June 30, 2018. Loan purchases of $14 million in the second quarter of 2018 offset a similar amount of loan prepayments and principal amortization. The Bank’s single-family residential loan portfolio yielded 3.19%, 3.37%, and 3.33% in the second quarter of 2017 and the first and second quarters of 2018, respectively, as higher yielding loans originated in-house declined $7 million in the second quarter of 2018, offsetting the higher yields obtained on recently purchased loans in comparison to prior purchases. Overall, the loan portfolio increased $22 million, or 4.8%, sequentially from March 31, 2018 to June 30, 2018 and $55 million, or 13.2%, year over year, from $419 million as of June 30, 2017 to $474 million as of June 30, 2018. The yield on the loan portfolio increased from 4.25% in the second quarter of 2017 to 4.38% in the first quarter of 2018 and 4.44% in the second quarter of 2018.

“Our second quarter operating results make it clear that the Bank has benefitted from the current rising interest rate environment. At the same time, management has taken steps to place the Bank on a more neutral footing with respect to possible future interest rate fluctuations,” said Michael J. Winiarski, Chief Financial Officer. “We have been successful in controlling the cost of interest-bearing liabilities, but we are seeing increasing signs that the market is demanding higher interest rates on deposits, as well as becoming increasingly receptive to time deposits.”

Non-interest income for the six-month period ended June 30, 2018 increased 95.9% to $978 thousand, compared to $499 thousand for the six-month period ended June 30, 2017. Quarterly non-interest income increased $355 thousand, or 146.0%, year-over-year to $597 thousand, compared to non-interest income of $243 thousand recognized in the second quarter of 2017, and increased $217 thousand, or 56.9%, sequentially, compared to non-interest income of $381 thousand recognized for the first quarter of 2018.

Non-interest expenses for the six-month period ended June 30, 2018 increased 13.9% to $7.89 million, compared to $6.93 million for the six-month period ended June 30, 2017. Quarterly non-interest expenses increased $488 thousand, or 13.9%, year-over-year to $4.01 million, compared to non-interest expenses of $3.52 million recognized in the second quarter of 2017, and increased $126 thousand, or 3.3%, sequentially, compared to non-interest expenses of $3.88 million recognized for the first quarter of 2018.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $ 5.50 million in the second quarter of 2018, an increase of $842 thousand, or 18.1%, compared to $4.66 million in the second quarter of 2017 and an increase of $293 thousand, or 5.6%, compared to $5.21 million in the first quarter of 2018.

Average earning assets were $575 million during the second quarter of 2018, an increase of 0.7% compared to $571 million in the first quarter of 2018 and an increase of 5.2% compared to $547 million in the second quarter of 2017. The yield on earning assets was 3.96% in the second quarter of 2018, compared to 3.54% in the second quarter of 2017 and 3.81% in the first quarter of 2018, primarily due to an increase in the average balance of gross loans outstanding from $412 million in the second quarter of 2017 and $441 million in the first quarter of 2018 to $460 million in the second quarter of 2018 and, secondly, to an increase in the yield on average loans outstanding, which was 4.25%, 4.38% and 4.44%, in the second quarter of 2017, the first quarter of 2018, and the second quarter of 2018, respectively. The average balance of the investment portfolio decreased from $74 million in both the second quarter of 2017 and the first quarter of 2018 to $70 million in the second quarter of 2018, as contemplated by the Bank’s business plan and reflecting normal amortization and prepayments on the Bank’s investments in mortgage-backed securities and collateralized mortgage obligations, offset by $4 million in investment purchases in the second quarter 2018. The yield on the investment portfolio increased from 1.45% in the second quarter of 2017 to 2.01% in the first quarter of 2018 and 2.18% in the second quarter of 2018. The average balances of other interest-earning assets (exclusive of Federal Home Loan Bank stock) declined from $58 million in the second quarter of 2017 to $53 million in the first quarter of 2018 and $41 million in the second quarter of 2018, while their yield was 0.95%, 1.34%, and 1.38% for the respective quarters.

The cost of interest-bearing liabilities increased from 0.23% in each of the second quarter of 2017 and the first quarter of 2018 to 0.24% in the second quarter of 2018, while the average balance of interest-bearing liabilities decreased from $288 million in the second quarter of 2017 to $284 million in the first quarter of 2018 and increased to $293 million in the second quarter of 2018. During the past twelve months, the Bank managed its leverage ratio, primarily with Promontory Interfinancial Network’s Insured Cash Sweep (“ICS”) program, which had off-balance sheet quarter-end balances of $48 million, $120 million, and $98 million as of June 30, 2017, March 31, 2018, and June 30, 2018. The balances reflect a significant liquidity event experienced by a Bank depositor in February 2018, as well as continued interest on the part of large depositors in the program. These funds may be moved back into the Bank’s deposit portfolio at the Bank’s discretion, and reciprocal deposits on the Bank’s balance sheet as of June 30, 2018 totaled $32 million. There were no reciprocal deposits on the Bank’s balance sheet as of June 30, 2017 or March 31, 2018. The average balance of noninterest-bearing demand deposit accounts (“DDAs”) increased from $220 million, or 43.3% of total deposits, in the second quarter of 2017 to $245 million, or 46.3% of total deposits, in the first quarter of 2018, and decreased to $242 million, or 45.3% of total deposits, in the second quarter of 2018, consistent with the normal seasonal pattern of the Bank’s deposits. The Bank’s overall cost of funds decreased from 0.13% in the second quarter of 2018 to 0.12% in the first quarter of 2018 and increased to 0.13% in the second quarter of 2018.

PROVISION FOR CREDIT LOSSES

The provision for credit losses is a charge against current earnings in an amount determined by management to be necessary to maintain the allowance for loan losses at a level sufficient to absorb management’s estimate of probable incurred credit losses inherent in the loan portfolio as of the balance sheet date in light of losses historically incurred by the Bank and adjusted for qualitative factors associated with the loan portfolio.

For the six-month period ended June 30, 2018, the Bank recorded a provision for loan losses of $20 thousand, compared to a provision of $25 thousand in the six-month period ended June 30, 2017. The Bank recorded provisions for loan losses of $25 thousand in the second quarter of 2017, $20 thousand in the first quarter of 2018, and no provision in the second quarter of 2018.

The changes in the provision reflect declines in the levels of problem assets, offset by the growth of the portfolio, changes in the mix of loan types within the portfolio and their respective loss histories, as well as management’s assessment of the amounts expected to be realized from certain loans identified as impaired. Impaired loans totaled $3.8 million as of June 30, 2018, compared to $5.4 million as of June 30, 2017, and $3.9 million as of March 31, 2018.

As of June 30, 2018, non-performing loans were 0.04% of the total loan portfolio, compared to 0.07% at June 30, 2017 and 0.06% at March 31, 2018. As of June 30, 2018, the allowance for loan losses was 1.35% of outstanding loans, compared to 1.49% as of June 30, 2017 and 1.42% at March 31, 2018, respectively. The Bank recorded net recoveries of $13 thousand in the second quarter of 2018, compared to net recoveries of $8 thousand and $12 thousand in the second quarter of 2017 and the first quarter of 2018, respectively.

NON-INTEREST INCOME

Year-to-date non-interest income increased $479 thousand, or 95.9%, from $499 thousand in the six-month period ended June 30, 2017 to $978 thousand in the six-month period ended June 30, 2018. Non-interest income recognized in the second quarter of 2018 was $597 thousand, including $65 thousand in gain on sale of Small Business Administration (“SBA”) guaranteed loans, compared to $243 thousand in the second quarter of 2017, which included $14 thousand in gain on sale of loans, and $381 thousand in the first quarter of 2018, which included gain on sale of loans of $70 thousand. This represents increases of $354 thousand, or 145.9%, compared to the second quarter of 2017, and an increase of $217 thousand, or 56.9%, compared to the first quarter of 2018.

Management has been actively seeking to increase non-interest income across a range of sources, including account analysis fees, lockbox service fees, and mortgage brokerage fees. On a year-to-date basis, the increase in non-interest income included a 30.0% increase in service charges on deposits, including lockbox and analysis fees, from $110 thousand to $143 thousand; a 57.1% increase in gain on sale of loans, from $86 thousand to $135 thousand; and a 207.4% increase in other income, from $193 thousand to $595 thousand, primarily attributable to greater mortgage brokerage activity and increased participation in the ICS program, for the six-month periods ended June 30, 2017 and 2018, respectively.

NON-INTEREST EXPENSES

Non-interest expenses increased $126 thousand, or 3.3%, to $4.01 million in the second quarter of 2018, compared to $3.88 million for the first quarter of 2018, and increased $488 thousand, or 13.9%, compared to $3.52 million recognized in the second quarter of 2017.

Salaries and benefits increased $382 thousand, or 17.3%, to $2.58 million for the second quarter of 2018, compared to $2.20 million for the second quarter of 2017, and increased $103 thousand, or 4.1%, compared to $2.48 million recognized in the first quarter of 2018. The increase reflects an 8% increase in headcount from 79 employees as of June 30, 2017 to 85 employees as of June 30, 2018, primarily for loan production, loan underwriting, and regulatory compliance personnel. The increase in headcount, together with annual salary increases effective April 1, 2018, drove a $242 thousand, or 14.9%, increase in base salaries from $1.63 million in the second quarter of 2017 to $1.87 million in the second quarter of 2018. Sequentially, base salaries increased $127 thousand, or 7.3%, from $1.74 million in the first quarter of 2018 to $1.87 million in the second quarter. Accruals for stock-based and cash incentive compensation for employees totaled $382 thousand in the second quarter of 2018, an increase of $158 thousand, or 69.9%, compared to $219 thousand in the second quarter of 2017 and an increase of $29 thousand, or 8.3%, compared to $353 thousand in the first quarter of 2018, reflecting the improving performance of the Bank.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 65.7% for the second quarter of 2018, compared to 71.8% for the second quarter of 2017 and 69.4% for the first quarter of 2018. Annualized non-interest expenses as a percent of average total assets were 2.52%, 2.69%, and 2.72% for the second quarter of 2017, the first quarter of 2018, and the second quarter of 2018, respectively.

PROVISION FOR INCOME TAXES

The Bank’s effective book tax rate was 27.8% in the second quarter of 2018, compared to 37.0% for the second quarter of 2017 and 26.6% for the first quarter of 2018. The lower effective rates in the first two quarters of 2018 reflect the Tax Cuts and Jobs Act of 2017’s reduction in the Federal corporate income tax rate from 34% to 21%.

About 1st Capital Bank

The Bank’s primary target markets are commercial enterprises, professionals, real estate investors, family business entities, and residents along the Central Coast Region of California. The Bank provides a wide range of credit products, including loans under various government programs such as those provided through the U.S. Small Business Administration (“SBA”) and the U.S. Department of Agriculture (“USDA”). A full suite of deposit accounts is also furnished, complemented by robust cash management services. The Bank operates full-service branch offices in Monterey, Salinas, King City, and San Luis Obispo. The Bank’s corporate offices are located at 150 Main Street, Suite 150, Salinas, California 93901. The Bank’s website is www.1stCapital.bank. The main telephone number is 831.264.4000. The primary facsimile number is 831.264.4001.

Member FDIC / Equal Opportunity Lender / SBA Preferred Lender

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are “forward-looking statements” within the meaning of and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may contain words or phrases including, but not limited, to: “believe,” “expect,” “anticipate,” “intend,” “estimate,” “target,” “plans,” “may increase,” “may fluctuate,” “may result in,” “are projected,” and variations of those words and similar expressions. All such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank’s market areas; governmental regulation and legislation; credit quality; competition affecting the Bank’s businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents and other factors beyond the Bank’s control; and other factors. The Bank does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

This news release is available at the www.1stCapital.bank internet site for no charge.

For further information, please contact:

Thomas E. Meyer

or

Michael J. Winiarski

President and Chief Executive Officer

Chief Financial Officer

831.264.4057 office

831.264.4014 office

Tom.Meyer@1stCapitalBank.com

Michael.Winiarski@1stCapitalBank.com

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

June 30,

March 31,

December 31,

June 30,

Financial Condition Data1

2018

2018

2017

2017

Assets

Cash and due from banks

$
5,078

$
11,772

$
7,727

$
16,824

Funds held at the Federal Reserve Bank2

45,124

46,920

56,249

32,800

Time deposits at other financial institutions

996

996

1,743

747

Available-for-sale securities, at fair value

71,102

71,300

74,927

74,850

Loans receivable held for sale:

1,000

1,000

–

–

Loans receivable held for investment:

Construction / land (including farmland)

16,866

17,453

16,301

17,005

Residential 1 to 4 units

140,124

140,474

115,340

102,154

Home equity lines of credit

6,655

6,565

8,832

7,776

Multifamily

56,101

54,109

51,983

60,494

Owner occupied commercial real estate

64,048

64,009

67,326

67,169

Investor commercial real estate

128,289

117,896

105,196

102,854

Commercial and industrial

45,051

40,307

51,663

50,527

Other loans

16,956

11,685

11,292

10,848

Total loans

474,090

452,498

427,933

418,827

Allowance for loan losses

(6,423
)

(6,410
)

(6,378
)

(6,241
)

Net loans

467,667

446,088

421,555

412,586

Premises and equipment, net

2,239

2,315

2,308

2,343

Bank owned life insurance

7,759

7,706

7,654

7,543

Investment in FHLB3 stock, at cost

3,163

3,163

3,163

3,163

Accrued interest receivable and other assets

5,512

5,535

4,905

6,276

Total assets

$
609,640

$
596,795

$
580,231

$
557,132

Liabilities and shareholders’ equity

Deposits:

Noninterest bearing demand deposits

$
247,247

$
236,358

$
261,705

$
233,488

Interest bearing checking accounts

31,693

39,606

35,082

30,175

Money market deposits

144,069

125,147

107,101

116,739

Savings deposits

117,155

128,659

110,058

111,150

Time deposits

12,717

12,295

12,130

13,212

Total deposits

552,881

542,065

526,076

504,764

Accrued interest payable and other liabilities

2,093

1,839

2,163

2,087

Shareholders’ equity

54,666

52,891

51,992

50,281

Total liabilities and shareholders’ equity

$
609,640

$
596,795

$
580,231

$
557,132

Shares outstanding

4,706,003

4,697,873

4,686,521

4,428,930

Nominal and tangible book value per share

$
11.62

$
11.26

$
11.09

$
11.35

Ratio of net loans to total deposits

84.59
%

82.29
%

80.13
%

81.74
%

1 = Loans receivable held for investment are presented according to definitions applicable to the regulatory Call Report.
2 = Includes cash letters in the process of collection settled through the Federal Reserve Bank.
3 = Federal Home Loan Bank

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended

June 30,

March 31,

December 31,

June 30,

Operating Results Data

2018

2018

2017

2017

Interest and dividend income

Loans

$
5,093

$
4,769

$
4,769

$
4,365

Investment securities

382

367

313

266

Federal Home Loan Bank stock

54

56

56

53

Other

143

174

130

139

Total interest and dividend income

5,672

5,366

5,268

4,823

Interest expense

Interest bearing checking

3

4

5

4

Money market deposits

81

72

70

82

Savings deposits

74

70

64

68

Time deposits

14

9

9

10

Total interest expense on deposits

172

155

148

164

Interest expense on borrowings

–

3

–

–

Total interest expense

172

158

148

164

Net interest income

5,500

5,208

5,120

4,659

Provision for loan losses

–

20

65

25

Net interest income after provision

for loan losses

5,500

5,188

5,055

4,634

Noninterest income

Service charges on deposits

72

71

68

58

BOLI dividend income

53

52

55

56

Gain on sale of loans

65

70

82

14

Other

407

188

106

115

Total noninterest income

597

381

311

243

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended

June 30,

March 31,

December 31,

June 30,

2018

2018

2017

2017

Noninterest expenses

Salaries and benefits

2,583

2,481

2,194

2,202

Occupancy

288

290

282

263

Data and item processing

197

196

183

158

Professional services

132

138

168

194

Furniture and equipment

123

126

120

126

Provision for unfunded loan

commitments

–

(6
)

17

(4
)

Other

683

656

611

580

Total noninterest expenses

4,006

3,881

3,575

3,519

Income before provision for income taxes

2,091

1,688

1,791

1,358

Provision for income taxes

581

449

1,609

503

Net income

$
1,510

$
1,239

$
182

$
855

Common Share Data1

Earnings per common share

Basic

$
0.32

$
0.26

$
0.04

$
0.19

Diluted

$
0.31

$
0.26

$
0.04

$
0.19

Weighted average common shares outstanding

Basic

4,699,379

4,691,138

4,680,948

4,412,158

Diluted

4,795,170

4,776,021

4,763,936

4,476,055

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 5% stock dividend declared November 22, 2017 and paid December 15, 2017.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Six Months Ended

June 30,

June 30,

Operating Results Data

2018

2017

Interest and dividend income

Loans

$
9,862

$
8,552

Investment securities

749

512

Federal Home Loan Bank stock

110

123

Other

317

241

Total interest and dividend income

11,038

9,428

Interest expense

Interest bearing checking

7

8

Money market deposits

153

160

Savings deposits

144

132

Time deposits

23

18

Total interest expense in deposits

327

318

Interest expense on borrowings

3

–

Total interest expense

330

318

Net interest income

10,708

9,110

Provision for loan losses

20

25

Net interest income after provision for loan losses

10,688

9,085

Noninterest income

Service charges on deposits

143

110

BOLI dividend income

105

110

Gain on sale of loans

135

86

Other

595

193

Total noninterest income

978

499

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

Six Months Ended

June 30,

June 30,

2018

2017

Noninterest expenses

Salaries and benefits

5,064

4,393

Occupancy

578

492

Data and item processing

320

293

Professional services

270

318

Furniture and equipment

249

250

Provision for unfunded loan commitments

(6
)

14

Other

1,413

1,167

Total noninterest expenses

7,888

6,927

Income before provision for income taxes

3,778

2,657

Provision for income taxes

1,029

1,015

Net income

$
2,749

$
1,642

Common Share Data1

Earnings per common share

Basic

$
0.59

$
0.37

Diluted

$
0.58

$
0.37

Weighted average common shares outstanding

Basic

4,695,281

4,384,780

Diluted

4,775,233

4,452,035

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 5% stock dividend declared November 22, 2017 and paid December 15, 2017.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

June 30,

March 31,

December 31,

June 30,

Asset Quality

2018

2018

2017

2017

Loans past due 90 days or more and accruing

interest

$
–

$
–

$
–

$
–

Nonaccrual restructured loans

–

–

–

–

Other nonaccrual loans

198

252

255

301

Other real estate owned

–

–

–

–

$
198

$
252

$
255

$
301

Allowance for loan losses to total loans

1.35
%

1.42
%

1.49
%

1.49
%

Allowance for loan losses to nonperforming loans

3,243.94
%

2,543.65
%

2,501.18
%

2,073.42
%

Nonaccrual loans to total loans

0.04
%

0.06
%

0.06
%

0.07
%

Nonperforming assets to total assets

0.03
%

0.04
%

0.04
%

0.05
%

Regulatory Capital and Ratios

Common equity tier 1 capital

$
55,240

$
53,515

$
52,097

$
50,533

Tier 1 regulatory capital

$
55,240

$
53,515

$
52,097

$
50,533

Total regulatory capital

$
60,673

$
58,722

$
57,161

$
55,466

Tier 1 leverage ratio

9.35
%

9.14
%

9.14
%

9.03
%

Common equity tier 1 risk based capital ratio

12.74
%

12.88
%

12.91
%

12.85
%

Tier 1 risk based capital ratio

12.74
%

12.88
%

12.91
%

12.85
%

Total risk based capital ratio

14.00
%

14.14
%

14.16
%

14.11
%

Three Months Ended

June 30,

March 31,

December 31,

June 30,

Selected Financial Ratios1

2018

2018

2017

2017

Return on average total assets

1.03
%

0.86
%

0.13
%

0.61
%

Return on average shareholders’ equity

11.25
%

9.51
%

1.38
%

6.90
%

Net interest margin

3.84
%

3.70
%

3.68
%

3.42
%

Net interest income to average total assets

3.74
%

3.61
%

3.56
%

3.34
%

Efficiency ratio

65.70
%

69.44
%

65.83
%

71.79
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.

Three Months Ended

June 30,

March 31,

December 31,

June 30,

Selected Average Balances

2018

2018

2017

2017

Gross loans

$
459,931

$
441,069

$
431,144

$
411,708

Investment securities

70,500

73,879

73,586

73,545

Federal Home Loan Bank stock

3,163

3,163

3,163

3,104

Other interest earning assets

41,454

52,773

44,568

58,353

Total interest earning assets

$
575,048

$
570,884

$
552,461

$
546,710

Total assets

$
590,041

$
585,047

$
569,812

$
559,182

Interest bearing checking accounts

$
34,207

$
35,668

$
36,702

$
33,949

Money market deposits

124,057

115,386

112,179

127,569

Savings deposits

120,962

120,323

109,936

113,346

Time deposits

12,763

12,543

12,368

13,190

Total interest bearing deposits

291,989

283,920

271,185

288,054

Noninterest bearing demand deposits

241,852

245,085

243,874

219,608

Total deposits

$
533,841

$
529,005

$
515,059

$
507,662

Borrowings

$
–

$
933

$
1

$
44

Shareholders’ equity

$
53,844

$
52,826

$
52,365

$
49,699

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

Six Months Ended

June 30,

June 30,

Selected Financial Ratios

2018

2017

Return on average total assets

0.94
%

0.60
%

Return on average shareholders’ equity

10.39
%

6.76
%

Net interest margin

3.77
%

3.39
%

Net interest income to average total assets

3.68
%

3.32
%

Efficiency ratio

67.50
%

72.08
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.

Six Months Ended

June 30,

June 30,

Selected Average Balances

2018

2017

Gross loans

$
450,552

$
406,087

Investment securities

72,180

74,794

Federal Home Loan Bank stock

3,163

3,022

Other interest earning assets

47,082

57,868

Total interest earning assets

$
572,977

$
541,771

Total assets

$
587,558

$
553,027

Interest bearing checking accounts

$
34,934

$
34,086

Money market deposits

119,746

124,675

Savings deposits

120,644

111,037

Time deposits

12,654

13,144

Total interest bearing deposits

287,978

282,942

Noninterest bearing demand deposits

243,460

219,707

Total deposits

$
531,437

$
502,649

Borrowings

$
464

$
22

Shareholders’ equity

$
53,337

$
48,983

SOURCE: 1st Capital Bank

ReleaseID: 507674

XI’AN, CHINA / ACCESSWIRE / July 31, 2018 / Kingtone Wirelessinfo Solution Holding Ltd (NASDAQ: KONE) (“Kingtone”, “we” or the “Company”), a China-based developer and provider of mobile enterprise solutions, today announced the financial results for the six months ended March 31, 2018. The financial statements and other financial information included in this press release are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Financial Highlights for the Six Months Ended March 31, 2018:

Revenues decreased 56.7% to $0.09 million from $0.22 million for the six months ended March 31, 2017;

Gross profit increased to $0.08 million from gross loss of $0.07 million for the six months ended March 31, 2017;

Gross margin increased to 81.7% from negative 30.7% for the six months ended March 31, 2017;

Net loss of $0.68 million as compared to net loss of $0.24 million for the six months ended March 31, 2017.

Basic and diluted loss per share was $0.48 for the six months ended March 31, 2018 compared to basic and diluted loss per share of $0.17 for the six months ended March 31, 2017. Weighted average shares outstanding for the six months ended March 31, 2018 remained unchanged at 1,405,000.

“For the first half of the fiscal year, due to deteriorated business conditions and strong competition, our revenue decreased. However, we are pleased with our improved cost-controls, which led to increased profit during the first half of the fiscal year, compared to the same period last year,” said Mr. Peng Zhang, Chief Executive Officer, “We will continue to improve our operational efficiency by laying a solid foundation for future growth. In furtherance of this goal, the Company entered into an Asset Exchange Agreement with C Media Limited (“C Media”) on January 25, 2018 and is waiting for NASDAQ approval on the proposals passed by the shareholders related to the asset exchange with C Media. As we progress through the remaining fiscal year 2018, we will continue our efforts to streamline our cost structure to better adapt to the unfavorable market conditions, which may persist in the near term. Management endeavors to continue the operation of the Company regardless of the result of the assets exchange with C Media.”

Results of Operations – For the Six Months Ended March 31, 2018 Compared to the Six Months Ended March 31, 2017

Net Revenues

We are a China-based developer and provider of mobile enterprise solutions. We generate revenue in two ways, from customized software middleware and applications for various public and private service agencies, which we identify as software solution sales, and from packaged solutions that include both software and hardware in automation telematics for clients mainly in the manufacturing sector, which we identify as wireless system solution sales. For the first six months ended March 31, 2018, we experienced a significant decline in both our software solution business and our wireless system solution business. Business conditions deteriorated rapidly because we face strong competition in our wireless system solution business. There is also a growing number of small service providers competing very aggressively on price, which negatively affected our ability to successfully acquire new contracts. Consequently, we have no revenue from software solutions for the six months ended March 31, 2018. All our revenues were contributed by wireless system solutions, which decreased by 56.7% to approximately $0.09 million for the six months ended March 31, 2018 from approximately $0.22 million for the six months ended March 31, 2017.

Cost of Sales

Cost of sales decreased by 94% to approximately $0.02 million for the six months ended March 31, 2018 from approximately $0.28 million for the six months ended March 31, 2017. As a percentage of our total revenues, cost of sales decreased to 18.3% of our total revenues for the six months ended March 31, 2018 from 130.7% of our total revenues for the six months ended March 31, 2017.

Gross Profit and Gross Margin

For the six months ended March 31, 2018, gross profit increased 215.2% to $76,000 from gross loss of $66,000 for the six months ended March 31, 2017. Gross margin for the six months ended March 31, 2018 was 81.7%, compared to negative 30.7% in the six months ended March 31, 2017.

Operating Expenses

Total operating expenses for the six months ended March 31, 2018were $1.5 million, compared to $0.8 million for the six months ended March 31, 2017, representing an increase of 88.6%.

Selling expenses increased by 25.9% to $0.07 million for the six months ended March 31, 2018, compared to $0.05 million for the six months ended March 31, 2017, and represented 73.1% and 25.1% of revenues for the six months ended March 31, 2018 and 2017, respectively. Our sales personnel increased their efforts to communicate with our current clients and potential clients, however, their efforts did not result in increased revenue.

General and administrative expenses were approximately $1.4 million for the six months ended March 31, 2018, an increase of 93.2% from $0.7 million for the six months ended March 31, 2017. General and administrative expenses consist primarily of compensation and benefit expenses relating to personnel other than our engineers and our sales and marketing team, depreciation and amortization expenses and overhead expenses. General and administrative expenses also include legal and other professional fees, share-based compensation and other miscellaneous administrative costs. The increase in general and administrative expenses was mainly due to the increased bad debt expense caused by certain aged receivables for the six months ended March 31, 2018.

Loss from Operations

The Company had loss from operations of $1.4 million for the six months ended March 31, 2018, compared to loss from operations of $0.9 million for the six months ended March 31, 2017, an increase of $0.5 million in loss, which was primarily due to the higher general and administrative expenses for the six months ended March 31, 2018, compared to the same period last year.

Net Loss and LPS

Net loss was $0.68 million for the six months ended March 31, 2018, compared to net loss of $0.24 million for the six months ended March 31, 2017. Basic and diluted loss per share was $0.48 in the six months ended March 31, 2018, compared to basic and diluted loss per share of $0.17 for the six months ended March 31, 2017. The number of weighted average common shares outstanding for the six months ended March 31, 2018 remained unchanged at 1,405,000.

Liquidity and Capital Resources

Cash and Cash Equivalents

As of March 31, 2018, the Company had cash and cash equivalents of $7.7 million, compared to $0.9 million as of September 30, 2017, the Company’s last fiscal year end. The increase was due to the related party companies’ repayment of their loans to the Company as of March 31, 2018. Net cash used in operating activities for the six months ended March 31, 2018 was approximately $0.5 million, compared to approximately $0.04 million provided in operating activities for the six months ended March 31, 2017, primarily comprised of net loss of $0.7 million and bad debt of $0.5 million, partially offset by a decreased in account receivable of $0.27 million. Net cash provided by investing activities for the six months ended March 31, 2018 was approximately $0.06 million. The cash provided by investing activities for the six months ended March 31, 2018 was mainly a result of the sale of certain property and equipment. Net cash provided by financing activities for the six months ended March 31, 2018 was approximately $7 million, compared to approximately $4.4 million for the six months ended March 31, 2017, which was due to the related party companies’ repayment of their loans to the Company.

Disposal plans for Company’s major assets and liabilities in the future: management has confidence to collect the account receivables from the Company’s clients in the future as we are committed for collecting the receivables all the time; the Company will pay its liabilities once the receivables are collected; the Company has made the account adjustments in this medium-term and will make the corresponding account adjustments according audit process in the future; the Company currently has no disposal plan of its fixed assets.

About Kingtone Wirelessinfo Solution Holding Ltd.

Kingtone Wirelessinfo Solution Holding Ltd (NASDAQ: KONE) is a China-based software and solutions developer focused on wirelessly enabling businesses and government agencies to more efficiently manage their operations. The Company’s products, known as mobile enterprise solutions, extend a company’s or enterprise’s information technology systems to include mobile participants. The Company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, and improves efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions is proprietary middleware that enables wireless interactivity across many protocols, devices and platforms.

For more information, please visit the Company’s website at www.kingtoneinfo.com. The Company routinely posts important information on its website.

Safe Harbor Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “could,” “would,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “expects,” “intends”, “future” and “guidance” or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon management’s current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company’s control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company’s actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading “Risk Factors” in the Company’s Annual Report for the fiscal year ended September 30, 2017 filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.

Revenue policy

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), and subsequently issued modifications or clarifications in ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The revenue recognition principle in ASU 2014-09 and the related guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 prescribes a five-step process for evaluating contracts and determining revenue recognition. In addition, new and enhanced disclosures are required. Companies may adopt the new standard either using the full retrospective approach, a modified retrospective approach with practical expedients, or a cumulative effect upon adoption approach. The adoption of ASU 2014-09, ASU 2016-10 and ASU 2016-12 will not have a material impact on our financial position and results of operations as a result of the cumulative adjustment prescribed by the modified retrospective method of adoption; The company has performed an assessment of our revenue contracts and concluded that there will be no change to (1) the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606, which includes Hardware selling income and consulting income, or (2) the presentation of revenue as gross versus net upon adoption of Topic 606. Because there will be no change to the timing and pattern of revenue recognition, we believe there will be no material changes to the Company’s processes and internal controls.

For investor and media inquiries, please contact:

Mr. Frank Wang
Tel: +86-29-8826-6383
Email: wangfang@kingtoneinfo.com

SOURCE: Kingtone Wirelessinfo Solution Holding Ltd.

ReleaseID: 507173