Revenue for the quarter advanced to USD 10.5 million, an increase of 19 percent compared to the same quarter last year. Gross profit increased to USD 6.5 million, up 31 percent for the three months ended March 31, 2008. Operating expenses were USD 5.9 million for the quarter ended March 31, 2008 compared to USD 5.0 million in the first quarter of 2007.

Income from Operations for the current quarter increased to UD 512 thousand compared to a loss from Operations of USD 51 thousand reported for the first quarter in 2007. After including interest expense and income taxes the Company reported net income of USD 148 thousand, or USD 0.04 per diluted share, for the first quarter of 2008. This compares to a net loss of USD 258 thousand, or (USD 0.07) per diluted share, for the first quarter of 2007.

"We reported solid first quarter 2008 sales marking our third straight quarter of double digit growth," said Edmund Ludwig, Optelecom-NKF's president and CEO. "Our markets are currently witnessing a key technological transition toward network-enabled surveillance solutions. The jump in sales for what is our seasonally slowest quarter demonstrates the increased momentum of our business."

"Revenue for the first quarter increased 19 percent with growth in both our domestic and international markets," added Steven Tamburo, Optelecom-NKF's chief financial officer. "We continue to experience strong acceptance of our global IP Surveillance products and solutions. Our recent addition of a Siqura camera line demonstrates our product development capability in these rapidly growing markets."

Financial statements are available at Optelecom-NKF's homepage.