Q2 2007 XENONICS HOLDINGS, INC. Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good day, ladies and gentlemen, and welcome to the Xenonics Holdings, Inc. earnings conference call. My name is Rob and I will be your coordinator for today. At this time all participants are in a listen-only mode. (OPERATOR INSTRUCTIONS).

Before we begin, the Company has asked me to read the following statement. Today's presentation by management contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties, which could cause actual results to differ materially from those indicated today. These risk factors include changes in general economic conditions, recent geopolitical events, increased competition, work stoppages and slowdowns, exchange rate fluctuations, variations in the mix of products sold, fluctuations, and effective tax rates resulting from shifts in sources of income and the ability to successfully integrate and operate acquired businesses. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.

I would now like to turn the call over to your host, Mr. Alan Magerman, Chairman of the Board.

ALAN MAGERMAN, CHAIRMAN OF THE BOARD, XENONICS HOLDINGS, INC.: Good morning. I'd like to welcome everyone to Xenonics Holdings second-quarter conference call.

I would first like to introduce my colleagues that are here with me, Dick Naughton, who is our CEO; Donna Lee, who is our CFO; and Chuck Hunter, who is our Executive Vice President.

This call is a very special call to me because it marks a fundamental transformation in the Company, a transformation that we have been working for, for several years.

SuperVision, our patented state-of-the-art night vision system is now a commercial reality. We are ramping up production and we have begun shipping the product in volume. That is significant. But as excited as we are about the growth of SuperVision, I also want to emphasize that we continue to expect to sell many millions of dollars of our NightHunter high-intensity illumination system. But we also expect that process to remain as lumpy and difficult to predict in the future as it has been in the past. But with SuperVision now a rapidly growing part of our product portfolio, we expect that the second quarter, the quarter that we are in, to make us independent of the unpredictability of the military requisition process.

I'm going to introduce Dick Naughton, I'm going to introduce Chuck Hunter to say a few words. I would like to say one thing. One, I would like to direct people to our Web site for a video demonstration of SuperVision, as we call it, the world class technical performance. We are very proud of it and would like to direct you there and see comparisons of SuperVision with the PVS 14 Gen III. I would also like to say one thing in conclusion before I introduce Dick, that what I said in the first paragraph, it's very exciting for the Company and for me to see this transformation take place so that we feel we are now in a position to succeed. With that, I would like to introduce Dick Naughton, our CEO, …