NOIZ Micronetics, Inc. (MM)

Micronetics, Inc. (NASDAQ:NOIZ) today reported results for its fourth quarter and fiscal year ended March 31, 2005 ("FY2005"). For FY2005, the Company had net sales of $14,059,497 as compared to net sales of $13,831,706 for FY2004, an increase of $227,791 or approximately 1.6%. For the quarter ended March 31, 2005, the Company had net sales of $3,716,039 as compared to $3,954,600 for its quarter ended March 31, 2004, a decrease of 6.0%. For FY2005, the Company had net income of $1,275,276 or $.29 per share-basic and diluted, as compared to net income of $1,510,680 or $.34 per share-basic and diluted, for FY2004, a decrease of $235,404. The decline in net income, as previously reported in the results of Q3 of FY2005 can be largely attributed to a one-time increase of $240,000 or $.05 per share in the Company's tax provisions related to a reduction in anticipated income tax benefits associated with export sales and tax credits. The weighted average shares outstanding were 4,374,762 (basic) and 4,451,766 (diluted) for FY2005, as compared to 4,388,554 (basic) and 4,473,701 (diluted) for FY2004. For the quarter ended March 31, 2005, the Company's net income of $476,957 or $0.11 per share - basic and diluted, as compared to net income for the quarter ended March 31, 2004 of $480,275 or $0.11 per share - basic and diluted. David Robbins, Micronetics' President and CEO stated, "We were able to generate nearly the same earnings in Q4 of FY2005 as in Q4 of FY2004 on less revenue, illustrating our increased efficiency. Our revenue growth was impacted by contract funding delays on the F/A-18 program and delays migrating from development to production on the commercial airborne DBS program. Our backlog has increased by over $1 million, and our operating margins remain strong while making investments in our infrastructure to support more growth. Based on our positive book to bill, our resumed F/A-18 program and increased production capacity, we are confident in earnings and revenue growth for FY2006." Micronetics manufactures microwave and radio frequency (RF) components and integrated subassemblies used in a variety of defense, aerospace and commercial applications. Micronetics also manufactures and designs test equipment and components that test the strength, durability and integrity of communication signals in communications equipment. Micronetics serves a diverse customer base, including Aerosat, BAE Systems, Boeing, EADS, Honeywell, ITT, L-3 Communications, Lockheed Martin, NEC, Northrop Grumman, Raytheon, Southwest Research, Teradyne, Tektronix and Thales. Micronetics also operates through its wholly owned subsidiaries, Enon Microwave, Inc.; Microwave & Video Systems, Inc.; Microwave Concepts, Inc. and Stealth Microwave, Inc. Additional information can be found on our website at www.micronetics.com. Some of the statements contained in this news release are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, including but not limited to the success of the products into which the Company's products are integrated, internal projections as to the demand for certain types of equipment, competitive products and pricing, the success of new product development efforts, the timely release for production and the delivery of products under existing contracts, access to financial resources, future economic conditions generally, as well as other factors. The information in this release should be reviewed in conjunction with Micronetics' Annual Report for its fiscal year ended March 31, 2005. -0- *T INCOME STATEMENT DATA ($000s omitted except per share data) Year Ended March 31 2005 2004 ----------- ---------- Net sales 14,059 13,832 Gross profit 6,421 6,294 Selling, general and administrative expenses 3,428 3,242 Other/(Expense) income 50 (49) Income before income taxes 2,367 2,216 Net income 1,275 1,511 Net income per common share: Basic .29 .34 Diluted .29 .34 Weighted average shares Outstanding: Basic 4,375 4,389 Diluted 4,452 4,474 BALANCE SHEET DATA March 31, 2005 2004 ----------- ---------- Cash, cash equivalents and marketable securities 2,941 2,700 Working capital 8,190 6,752 Total assets 15,074 12,964 Non-current liabilities 904 1,083 Shareholders' equity 11,815 9,830 *T