The White Rose Food building is located in Carteret

The White Rose Food building is located in Carteret, New Jersey and serves as White Rose Food's corporate offices and as a major hub in its distribution network. White Rose Food serves supermarket chains, independent retailers and members of voluntary cooperatives, providing more than 18,000 food- and non-food products to more than 1,800 stores from Maryland to Connecticut. The company is the largest independent wholesale food distributor in the New York City and New Jerseymetropolitan areas, which make up the biggest consumer market in the United States.

PALM DESERT, Calif.--(Dec 29)-- Spare Backup today announced that it sees a progressive ramp in revenue from its recently announced distribution agreements with several major mobile warrantee and protection plan providers beginning in the first quarter of 2011.

Through these distribution agreements Spare Backup's various security, data transfer, backup, and cloud computing software services will be marketed to end clients through a number of stand-alone and bundled warrantee or extended service plans. The various offerings will enable Spare Backup's services to reach tens of millions of potential clients through bundled offerings and in a class by itself point of purchase extended coverage programs. Management expects revenue to begin a progressive ramp beginning in the first quarter of 2011 and throughout the year as these partners market the services to their channel partners, which include some of the largest retailers and financial industry services providers in the world. Management furthermore believes that the bundled programs will provide for a more predictable revenue stream for the company.

The potential

"We are excited to begin this new phase of growth for our company as we begin to realize the potential and power of what we have built here at Spare Backup," stated Cery Perle, CEO of Spare Backup. "These partnerships have markedly changed our delivery model and place us but directly at the point of purchase for a new mobile device and largely bundled as part of a total care package for the customer. Through this delivery method we are perfectly positioned along with our partners to create a win-win scenario by reducing claims for lost or stolen phones, now more importantly, increasing the satisfaction of our clients by giving them the ability to remotely message or lock a lost phone and even remotely wipe data all the during knowing that data is safely tucked away in the cloud," Mr. Perle went on to add.

"Data on mobile devices is nevertheless the life blood of business and as well integrated into the core level of the consumer making the security of that device, and its content, as important as the device itself. Our products not only provide that security, they go beyond it by bringing it to the cloud and making it agnostic across a wide variety of devices so it can easily grow as research grows."

The year ending October 3

Revenues for the year ending October 3, 2010 were $22.9 million as compared to earnings for the year ending September 27, 2009 of $27.6 million, representing a decrease of $4.7 million or 17%. The reduction in earnings was primarily attributable to decreased spending by the U.S government.While the year ended October 3, 2010, the net loss was million compared to a net loss of million for the year ended September 27, 2009.The loss is higher in 2010 as compared to 2009, primarily due to: non-cash charges related to the impairment of goodwill and intangible assets of $7.1 million and $0.9 million respectively; lower earnings; changes in product mix; increased losses from our Howitzer product line of $1.1 million; and physical inventory valuation adjustments $0.9 million.These charges were partially offset by decreased non-cash charges associated with intangible asset amortization in 2010 as compared to 2009. The goodwill and intangible assets of Optex Systems Holdings, Inc. were reviewed as of October 3, 2010. Based upon lower expectations of new and expected orders culminating in a lower backlog and reduced revenue forecasts.The review indicated that goodwill was impaired based on a projected cash flow analysis of Optex System Holdings' future operations.

Our EBITDA decreased by million to million for the year ending October 3, 2010 as compared to $2.1 million in the year ending September 27, 2009.The decline in EBITDA was primarily attributable to decreased revenue and lower gross margins associated with changes in product mix and higher production costs as a percentage of sales.We were unable to reduce our fixed manufacturing costs at the same rate as the decline in earnings.In the last quarter of 2010, we realized a reduction in quarterly earnings of in broad outline 21% over the average earnings in the prior three quarters, primarily in our higher product margin business.Our overall revenues declined by 17%, or $4.7 million, to $22.9 million in the year ended October 3, 2010 as compared to $27.6 million in the prior year ended September 27, 2009.We experienced a significant shift in revenue toward the unprofitable Howitzer programs that exacerbated our losses on these programs as the share of the overhead pools increased, and as overall volume declined our labor efficiencies were impacted across all product lines.Furthermore, in September 2010, Optex received an unanticipated Howitzer program order that resulted in an immediate, realized loss of $0.2 million. As a business with a high concentration of government contracts, we rely heavily on program cost estimates in determining our anticipated product margins. These estimates are sensitive to any significant changes in revenue, production volume and product mix, and the corresponding manufacturing overhead rates.

Danny Schoening, COO of the Company, commented, "While the year ending October 3, 2010, we experienced reductions in forecasted sales volume due to an overall reduction in the number of solicitations issued by the government and delays in awarding some existing solicitations.We continue to wait for Congress to pass the 2011 budget, and the general consensus is that ratification is imminent. Until the Congressional budget is approved, Optex and our major clients are unable to accurately update volume expectations for the coming year.We continue to focus on mitigating the decrease in governmental spending with international orders and other new business, building on our efforts over the last few months."

Earlier this year, Pacific Sands was named by the Milwaukee Business Journal as the fastest growing openly held company in Wisconsin based on net sales. In 2009, the Business Journal ranked Pacific Sands #2 in sales growth.

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