Optibase Reports Fourth Quarter and Year End Results

Israel-based Optibase (http://www.optibase.com) announced fourth quarterand year end results for the period ending December 31, 1999.

Fourth quarter revenues increased 29 percent to $7.2 million from$5.6 million in the same period a year earlier, and up 7 percent from$6.7 million in the third quarter of 1999. Net income for the fourth quarterincreased 90 percent to $1.14 million, or $0.12 per diluted share based on9.25 million weighted average shares outstanding, compared to $598,000, or$0.09 per diluted share based on 6.51 million weighted average sharesoutstanding for the same quarter in 1998. Sequentially, net income increased9 percent from $1.048 million, or $0.12 per diluted share.

For the fiscal year ended December 31, 1999, Optibase reported revenues of$26.1 million, an increase of 28 percent from $20.4 million reported for theprior year. Net income for the year, excluding other income or expenses,increased 112 percent to $3.9 million, or $0.47 per diluted share, compared to$1.8 million, or $0.29 per diluted share for 1998. Including other income orexpenses, net income increased 169 percent to $4.4 million, or $0.53 perdiluted share compared to $1.6 million, or $0.26 per diluted share in 1998.

"Our performance to date provides clear evidence of solid execution andfocus here at Optibase," said Ran Eisenberg, chief executive officer ofOptibase Ltd. "The fourth quarter marked a defining period for us as wesolidified several strategic relationships with partners such as Cisco,SeaChange and Concurrent Computer Corporation, and continued in our efforts toprovide our customers and partners with innovative technology solutions forbroadband digital video networking products. We also made significant stridesin executing our strategy to make the convergence of the Internet andstreaming media part of our core business strategy. We look forward toexpanding into the broadband Internet infrastructure market with thedevelopment of the Media Gateway product."