Applied Signal Technology, Inc. (NASDAQ:APSG) today announced
operating results for the fiscal fourth quarter and fiscal year
which ended October 31, 2008. During the fourth quarter, the
Company reported $48.4 million in revenue and $0.20 of earnings per
diluted share, increases of 4.6% and 5.3%, respectively, versus the
fourth quarter of fiscal 2007. For the full fiscal year, the
Company reported that revenues increased to a record level of
$186.3 million versus the fiscal 2007 level of $170.4 million.
Diluted earnings per share for the fiscal year increased 14.5% to
$0.63 versus the fiscal 2007 level of $0.55 per diluted share.
Management Commentary Mr. William Van Vleet, President and Chief
Executive Officer of Applied Signal Technology, Inc., commented �We
are pleased with our good financial performance in fiscal 2008. Our
revenue performance was driven primarily by continued demand for
our core SIGINT products. Our improved operating income resulted
primarily from a revenue mix shift towards development programs and
technology-driven licensing revenues offset by a decrease in
profits from our standard products. This improvement came despite a
$1.3 million write-down for obsolete inventory during fiscal 2008.
As we look ahead, we believe that spending levels in our
high-demand niche markets will increase, even if total defense
spending moderates. We are excited to compete on a variety of
programs, including the planned cyber security initiative and the
recapitalization of existing signal intelligence equipment.� Mr.
Van Vleet concluded, �Given these opportunities, our mandate is
clear. We will continue to improve our cost structure to become
incrementally competitive. We will seek to capture organic growth
opportunities across several categories of existing and
in-development products. We will also utilize the strategic
advantages provided to us by our strong capital position to find
new, complementary growth opportunities. Our organization is
motivated and focused on achieving each of these goals, which we
believe will drive value to our customers, our partners, and our
shareholders.� Results of Operations Revenues for the fourth
quarter and fiscal year 2008 were $48,374,000 and $186,331,000,
respectively, compared with revenues of $46,235,000 and
$170,375,000 recorded during the same periods of fiscal year 2007.
Fourth quarter and fiscal year 2008 revenues increased primarily
due to increased sales related to engineering development programs.
Operating income for the fourth quarter and fiscal year 2008 was
$4,354,000 and $12,787,000, respectively, compared with operating
income of $4,065,000 and $11,304,000 for the fourth quarter and
fiscal year 2007, respectively. Operating income increased for the
fourth quarter and fiscal year 2008 primarily due to greater
royalties associated with the licensing of intellectual property
into commercial satellite communications markets and to increased
profitability generated from engineering development contracts. Net
income for the fourth quarter and fiscal year 2008 was $2,549,000,
or $0.20 per diluted share, and $8,017,000, or $0.63 per diluted
share, respectively, compared with net income for the fourth
quarter and fiscal year 2007 of $2,392,000, or $0.19 per diluted
share, and $6,812,000, or $0.55 per diluted share, respectively.
The effective tax rate for fiscal year 2008 is estimated to be
40.8% compared to the Company�s fiscal year 2007 effective tax rate
of 43.2%. The fiscal 2008 effective tax rate decreased primarily
because of a combination of discrete events associated with
research and development credits and a change in the Company�s
method of calculating the depreciation of fixed assets for tax
purposes. New Orders New orders received during the fourth quarter
of fiscal year 2008 were $39,825,000, essentially unchanged when
compared to new orders of $40,332,000 received during the fourth
quarter of fiscal year 2007. New orders received during fiscal year
2008 were $185,139,000 compared to new orders of $191,193,000
reported during fiscal year 2007. Attached to this news release are
condensed, consolidated statements of income, balance sheets and
statements of cash flows for the fourth quarter and fiscal year
ended October 31, 2008. Conference Call The Company will host a
conference call on December 16, 2008 to discuss fourth quarter and
fiscal 2008 results. If you wish to participate in the conference
call, please dial 1-877-407-8035 for domestic callers or
1-201-689-8035 for international callers on December 16, 2008 at
5:00 p.m. eastern time/2:00 p.m. pacific time. There is no pass
code required. This call may be listened to simultaneously at the
Web site www.InvestorCalendar.com. A rebroadcast of the call will
be available upon its completion and will remain available for a
limited time. Applied Signal Technology, Inc. provides advanced
intelligence, surveillance and reconnaissance (ISR) products,
systems and services to enhance global security. For further
information about Applied Signal Technology visit our website at
www.appsig.com. Except for historical information contained herein,
matters discussed in this news release may contain forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially. Statements as to the Company�s
future orders and continued growth, the demand for our equipment,
the continued demand and increased spending levels for
intelligence, surveillance and reconnaissance solutions, and our
ability to improve our cost structure to become incrementally
competitive and capture organic growth opportunities across several
categories of existing and in-development products are
forward-looking statements. The risks and uncertainties associated
with these statements include whether orders will be issued by
procurers, including the U. S. Government; the timing of any orders
placed by procurers; whether we will be successful in obtaining
contracts for these orders if they are forthcoming; whether any
contracts obtained by us will be performed well and be profitable
and whether any such contracts might be terminated prior to
completion; whether we will be able to hire qualified staff as
needed; and other risks detailed from time to time in our SEC
reports including our latest Form 10-K filed for the fiscal year
ended October 31, 2007. The Company assumes no obligation to update
the information provided in this news release. APPLIED SIGNAL
TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR
THE PERIODS ENDED OCTOBER 31, 2008 AND OCTOBER 31, 2007 � � � � (In
thousands except per share data) � Three Months Ended Twelve Months
Ended October 31, October 31, October 31, October 31, � 2008 � 2007
� 2008 � 2007 � Revenues from contracts $ 48,374 $ 46,235 $ 186,331
$ 170,375 Operating expenses: Contract costs 34,400 31,628 129,835
116,133 Research and development 2,630 3,453 13,116 14,204 General
and administrative � 6,990 � 7,089 � 30,593 � 28,734 � Total
operating expenses � 44,020 � 42,170 � 173,544 � 159,071 �
Operating income 4,354 4,065 12,787 11,304 Interest
income/(expense), net � 223 � 229 � 761 � 683 � Income before
provision for income taxes 4,577 4,294 13,548 11,987 Provision for
income taxes � 2,028 � 1,902 � 5,531 � 5,175 � Net income $ 2,549 $
2,392 $ 8,017 $ 6,812 � Net income per share - basic $ 0.20 $ 0.20
$ 0.64 $ 0.56 Average shares - basic 12,622 12,218 12,475 12,100 �
Net income per share - diluted $ 0.20 $ 0.19 $ 0.63 $ 0.55 Average
shares - diluted 12,844 12,397 12,681 12,314 APPLIED SIGNAL
TECHNOLOGY, INC. � � CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands) � ASSETS � October 31, October 31, � 2008 � � 2007 � �
Current assets: Cash and cash equivalents $ 4,668 $ 5,250 Short
term investments � 45,045 � � 29,683 � Cash, cash equivalents, and
short term investments 49,713 34,933 Accounts receivable 40,115
44,476 Inventory 8,141 5,944 Refundable income tax - 647 Other
current assets � 10,155 � � 9,760 � Total current assets 108,124
95,760 � Property and equipment, at cost 65,773 62,565 Accumulated
depreciation and amortization � (50,660 ) � (46,096 ) Net property
and equipment 15,113 16,469 � Goodwill 19,964 19,964 � Intangible
assets, net 162 616 � Long-term deferred tax asset, net 4,410 5,021
Long term investment 9,381 4,114 Other assets � 865 � � 789 � �
Total assets $ 158,019 � $ 142,733 � � LIABILITIES AND
SHAREHOLDERS' EQUITY � Current liabilities: Accounts payable,
accrued payroll and benefits $ 20,070 $ 16,983 Notes payable 1,429
1,429 Income taxes payable 498 14 Other accrued liabilities � 3,513
� � 1,997 � Total current liabilities 25,510 20,423 � Long-term
liabilities: � Long-term notes payable 3,929 5,357 Other long-term
liabilities � 3,847 � � 2,117 � Total long-term liabilities $ 7,776
$ 7,474 � Shareholders' equity � 124,733 � � 114,836 � � Total
liabilities and shareholders' equity $ 158,019 � $ 142,733 �
APPLIED SIGNAL TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS Increase (decrease) in cash (In thousands) � � Year Ended
October 31, � 2008 � � 2007 � Operating activities: � Net income $
8,017 6,812 � Adjustments to reconcile net income to net cash
provided by (used in) operating activities: Depreciation and
amortization 6,508 5,649 Stock-based compensation 4,779 4,150
Excess tax benefits from stock-based payment arrangements (37 ) (54
) � Adjustments to reconcile net income to net cash provided
Accounts receivable 4,361 (3,897 ) Refundable income taxes 752 -
Inventory, prepaids, and other current assets (2,697 ) 2,680 Other
assets 519 380 Accrued lease incentives 877 - Accounts payable,
taxes payable and accrued liabilities 5,454 (1,565 ) � � Net cash
provided by operating activities 28,533 14,155 � Investing
activities: � Purchase of available-for-sale securities (109,964 )
(76,411 ) Maturity of available-for-sale securities 88,935 70,877
Additions to property and equipment (4,170 ) (4,451 ) � � Net cash
(used in) investing activities (25,199 ) (9,985 ) � Financing
Activities: � Issuance of Common Stock 4,044 4,394 Shares
repurchased for tax withholding of vested restricted stock awards
(279 ) (59 ) Excess tax benefits from stock-based payment
arrangements 37 54 Term loan (1,428 ) (1,429 ) Dividends Paid
(6,290 ) (6,074 ) � � Net cash (used in) financing activities
(3,916 ) (3,114 ) � Net increase (decrease) in cash (582 ) 1,056
Cash, beginning of period � 5,250 � 4,194 � Cash, end of period $
4,668 � 5,250 � � Supplemental disclosure of cash flow information:
Interest paid 382 556 Income taxes paid 7,005 3,873
Applied Signal Technology, Inc. (MM) (NASDAQ:APSG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Applied Signal Technology, Inc. (MM) (NASDAQ:APSG)
Historical Stock Chart
From Jul 2023 to Jul 2024