News Release
Horne International Files Form 10-Q
For the Second Quarter of 2008
Fairfax, VA — August 13, 2008 — Horne International, Inc. (OTCBB: HNIN) yesterday filed its Quarterly Report on Form 10-Q for the second quarter of 2008 with the Securities and Exchange Commission. It is available on the company’s Web site, www.horne.com.
The Company reported a net loss of $3.4 million for the quarter ended June 29, 2008, including $0.4 million in losses from discontinued operations. This loss included several one-time items that significantly increased the net loss, including expensing costs of approximately $1.3 million associated with the proposed Amata, Inc. acquisition,, approximately $0.4 million of costs associated with the Company's early termination of the office space lease in Fairfax, Virginia, severance related costs of approximately $0.2 million, and a $0.2 million write-down of the Company's joint venture investment.
The Amata related assets were expensed in the second quarter of 2008 under US GAAP accounting rules that require an entity to assess the probability of realizing the value of a given asset. Based on the Company’s assessment that it is less than probable that the proposed Amata acquisition will occur in its current form, the Company fully expensed all previously capitalized costs associated with the proposed acquisition. Darryl K. Horne, President and Chief Executive Officer, stated “While we continue to pursue the Amata acquisition, accounting rules require specific treatment of these transactions. As we have previously stated, we continue our efforts to bring the Amata transaction and related matters to a conclusion that is in the best interests of our stockholders.”
Regarding the operating results, Mr. Horne stated “the results are the culmination of the restructuring of the entire Company and puts us on track for improved operating results in the third and fourth quarters of 2008.”
The Company is actively addressing its liquidity position. The Company has secured additional receivable based financing from Mr. Horne in the amount of $790,000 at a rate of 8.5% and has approximately $730,000 in available financing as of August 12, 2008. The Company expects this financing will be sufficient to fund operations and any working capital needs for the remainder of 2008.
About Horne International, Inc.
Horne International provides engineering services for a sustainable infrastructure, with an emphasis on security, energy, and the environment. The company is a trusted partner for its customers in the defense, environment and energy, homeland security and transportation sectors. For more information, please visit www.horne.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, substantial uncertainty with respect to Amata's ability to fulfill its closing conditions under the Stock Purchase Agreement between Horne and Amata, substantial uncertainty with respect to the receipt by Amata of amounts owed by Pacific Texas Partners, substantial uncertainty regarding the commencement of work by Amata under contracts with PTP, substantial uncertainty with respect to Amata's ability to continue as a going concern or to repay amounts owed to creditors, including Horne International, and other risks set forth in documents filed by Horne International from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, Horne International, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
