Attached files
| file | filename |
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| 8-K - ELECSYS CORP | form8k_031010.htm |
EXHIBIT
99.1
 |
NEWS RELEASE | |
| 846 N. Mart-Way Court, Olathe, Kansas 66061 | Phone: 913-647-0158 | Fax: 913-647-0132 |
| investorrelations@elecsyscorp.com |
FOR
IMMEDIATE RELEASE:
ELECSYS CORPORATION REPORTS
THIRD QUARTER FINANCIAL RESULTS
Olathe,
Kansas (March 11, 2010) - Elecsys Corporation (NASDAQ: ESYS), a developer of
machine to machine (M2M) data acquisition, telemetry, and analysis systems for
critical industries and a provider of custom electronic assemblies
and displays for industries where high quality, reliability, and innovation are
paramount, today announced its financial results for the third fiscal quarter
ended January 31, 2010.
Sales for
the quarter were $4,741,000, a decrease of 6%, or $291,000, from the third
quarter of fiscal 2009 and an increase of $740,000, or 18%, from the previous
quarter. Total sales year-to-date decreased 31%, or $5,437,000, to
$12,361,000. The Company continued to experience the effects of a
weakened economy, which resulted in cautious order patterns from existing
customers and some delays in bookings from developing customers during the
preceding quarters in late fiscal 2009 and early in fiscal 2010.
Sales for
the EDMS segment of the Company were approximately $2,763,000, an increase of
$37,000, or 1%, from $2,726,000 in the comparable quarter in the prior
year. Sales of proprietary products and services were $1,978,000 for
the three-month period ended January 31, 2010, a $328,000, or 14%, decrease from
sales of $2,306,000 in the comparable quarter in the prior
year. Proprietary product sales were impacted from fewer handheld
computer hardware units sold as compared to the previous
year. However, the Company completed the development of its new
handheld model FW950 during the previous fiscal quarter and made initial
shipments of the new model during the current fiscal quarter. Sales
of the Company’s Pipeline Watchdog products and related services increased
$299,000, or 29% from the same period in the prior fiscal year as a result of
continued increases in customer orders. Sales for eXtremeTAG products
totaled approximately $8,000 for the current period and $46,000 since the
acquisition of the product line in June 2009.
Total
consolidated backlog at January 31, 2010, consisting of both EDMS and
proprietary product orders, was approximately $3,933,000, an increase of
$866,000, or 28.2%, from a total backlog of $3,067,000 on April 30, 2009 and a
decrease of approximately $1,019,000 from a total backlog of $4,952,000 on
October 31, 2009. The increase in the backlog from the end of the
prior fiscal year is the result of increases in orders from current and new
customers of our electronic design and manufacturing services as well as orders
for our proprietary products.
The
Company anticipates slightly higher sales in its EDMS segment in the coming
fiscal quarters compared to the previous quarterly periods as a result of both
the addition of several new customers and the continued transition of several
projects from the Company’s engineering design group into
production. The Company also expects its proprietary products and
services to contribute to an overall increase in sales during the remainder of
the current fiscal year and into the next fiscal year due to existing orders in
our backlog and anticipated orders from new and existing
customers. This increase is expected to include the Company’s
WatchdogCP remote monitoring products, additional shipments of the new
ultra-rugged Radix FW950 handheld computers from new customer orders, increased
customer interest and sales of the Company’s eXtremeTAG RFID solutions, and the
addition of SensorCast remote monitoring products and customers.
Gross
margin was approximately 32% of sales, or $1,513,000, for the three-month period
ended January 31, 2010, compared to 38% of sales, or $1,921,000, for the prior
year period. Gross margin for the nine-month period also
decreased to 31% of sales, or $3,882,000. The decrease in gross
margin resulted from lower sales volumes, a decrease in production efficiency as
a result of sales volume, and the impact of some sales at lower
margins.
Selling,
general and administrative expenses were approximately $1,427,000 during the
period compared with $1,695,000 in the prior year period. The lower
expenses were primarily due to the decrease in personnel and personnel-related
expenses, facility and office expenses and a decrease in overall travel
expenses. The Company did incur approximately $77,000 of acquisition
and integration expenses during the period as a result of its acquisitions
during the past fiscal year. Total SG&A expenses decreased
$624,000, or 12%, for the current nine-month period ended January 31, 2010, as
compared to the comparable period of the prior year.
Income
before taxes for the quarter was $2,000, compared to income before taxes of
$135,000 for the same quarter in the prior year. For the first nine
months of fiscal 2010, the loss before taxes was $1,157,000, a change from
income before taxes of $1,079,000 reported in the first nine months of fiscal
2009.
Net
income was $64,000, or $0.02 per diluted share, for the quarter ended January
31, 2010. For the quarter ended January 31, 2009, net income was
$213,000, or $0.06 per diluted share. For the nine month period ended
January 31, 2010, net loss totaled $654,000, or $0.19 per diluted share, while
net income for the comparable prior year period was $747,000, or $0.22 per
diluted share.
Karl B.
Gemperli, President and Chief Executive Officer, stated, “We continue to
experience challenges given the current global economic conditions, but are
pleased to report improving revenues and bottom line results. Through
leveraging our established market position, further penetrating our target
markets, and building new customer relationships, sales increased over 18% from
the previous quarter. Over the last year, we also took measures to
control costs and keep our operations lean which preserved our
margins,
achieved a reduction in SG&A expenses of over 15% compared to the prior
year, and returned the Company to profitability this quarter. These
reductions in operating expenses were achieved while continuing to make
substantial investments in new product and market development that are vital to
our continued growth."
Gemperli
continued, "We believe that our committed investments in new product development
have resulted in a market leading suite of integrated M2M solutions that present
exciting opportunities for growth in the rapidly growing industries we are
targeting. Our recent acquisition of SensorCast and its innovative
communication technologies further broadens our offering of M2M solutions and
opens up new sectors of the energy exploration, production, transmission, and
distribution markets. In addition, we believe the international sales
and marketing initiatives for all our brands currently underway will increase
our business over the coming quarters. Although global economic
conditions are uncertain and still present challenges, based on orders in
backlog, expected proprietary product sales, and new business opportunities, we
foresee positive trends in both revenues and earnings during the coming
quarters.”
About
Elecsys Corporation
Elecsys
Corporation provides innovative machine to machine (M2M) communication
technology solutions for critical industrial applications
worldwide. Elecsys proprietary equipment and services encompass
rugged wireless remote monitoring, mobile computing, and radio frequency
identification (RFID) technologies that are deployed wherever high quality and
reliability are essential. Elecsys also provides integrated displays
and custom electronic assemblies to numerous industries worldwide. Our
primary markets include energy production and distribution, agriculture, natural
resource management, aerospace, safety and security systems, and
transportation. Elecsys markets and supports its proprietary
technology and products under its Pipeline Watchdog, Radix, eXtremeTAG, and DCI
brand names. For more information, visit www.elecsyscorp.com.
Safe-Harbor
Statement
The
discussions set forth in this press release may contain forward-looking comments
based on current expectations that involve a number of risks and uncertainties.
Actual results could differ materially from those projected or suggested in the
forward-looking comments. The difference could be caused by a number of factors,
including, but not limited to the factors and conditions that are described in
Elecsys Corporation's SEC filings, including the Form 10-K for the year ended
April 30, 2009. The reader is cautioned that Elecsys Corporation does not have a
policy of updating or revising forward-looking statements and thus he or she
should not assume that silence by management of Elecsys Corporation over time
means that actual events are bearing out as estimated in such forward-looking
statements.
# # #
| Investor Relations Contact: |
Todd
A. Daniels
Elecsys
Corporation
(913) 647-0158,
Phone
(913)
982-5766, Fax
investorrelations@elecsyscorp.com
|
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| Media Inquiries Contact: |
Mary Ann Roe
(913)
647-0158, Phone
(913)
982-5766, Fax
maryann.roe@elecsyscorp.com |
Elecsys
Corporation and Subsidiaries
Consolidated
Statements of Operations
(In
thousands, except per share data)
(Unaudited)
|
Three
Months Ended
January
31,
|
Nine
Months Ended
January
31,
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|
2010
|
2009
|
2010
|
2009
|
||||
|
Sales
|
$4,741
|
$5,032
|
$12,361
|
$17,798
|
|||
|
Cost
of products sold
|
3,228
|
3,111
|
8,479
|
11,038
|
|||
|
Gross
margin
|
1,513
|
1,921
|
3,882
|
6,760
|
|||
|
Selling,
general and administrative
expenses
|
1,427
|
1,695
|
4,743
|
5,367
|
|||
|
Operating
income (loss)
|
86
|
226
|
(861)
|
1,393
|
|||
|
Financial
income (expense):
|
|||||||
|
Interest
expense
|
(82)
|
(92)
|
(295)
|
(316)
|
|||
|
Interest
income
|
(2)
|
1
|
(1)
|
2
|
|||
|
(84)
|
(91)
|
(297)
|
(314)
|
||||
|
Net
income (loss) before income taxes
|
2
|
135
|
(1,157)
|
1,079
|
|||
|
Income
tax (benefit) expense
|
(62)
|
(78)
|
(503)
|
332
|
|||
|
Net
income (loss)
|
$64
|
$213
|
$(654)
|
$747
|
|||
|
Net
(loss) income per share information:
|
|||||||
|
Basic
|
$0.02
|
$0.06
|
$(0.19)
|
$0.23
|
|||
|
Diluted
|
$0.02
|
$0.06
|
$(0.19)
|
$0.22
|
|||
|
Weighted
average common shares
outstanding:
|
|||||||
|
Basic
|
3,552
|
3,296
|
3,460
|
3,292
|
|||
|
Diluted
|
3,680
|
3,435
|
3,460
|
3,443
|
|||