NOIZ Micronetics, Inc. (MM)

Micronetics, Inc. (NASDAQ:NOIZ) today reported results for its fourth quarter and fiscal year ended March 31, 2006 ("FY2006"). The results of Stealth Microwave, Inc. are included from the acquisition date of June 10, 2005. Net sales were $8,617,786 for the quarter ended March 31, 2006, an increase of $4,901,747 or 132% as compared to $3,716,039 for the quarter ended March 31, 2005. For FY2006, the Company reported net sales of $26,908,611 as compared to net sales of $14,059,497 for FY2005, an increase of $12,849,114 or 91%. For the quarter ended March 31, 2006, the Company reported net income of $942,110 or $0.19 per diluted share, as compared to net income of $476,957 or $0.11 per diluted share for the quarter ended March 31, 2005. For FY2006, net income was $2,539,583 or $0.54 per diluted share, as compared to net income of $1,275,276 or $.29 per diluted share for FY2005, an increase of $1,264,307, or 99%. David Robbins, Micronetics' President and CEO stated, "The record increase in revenue for FY2006 of approximately $12.8 million is primarily attributable to three products. Stealth's sales of high performance power amplifiers to the commercial market since Micronetics acquired them accounted for almost $10.0 million of the increase. Also driving the revenue increase were shipments for our microwave subsystems, which are part of a fully integrated antenna system that receives Direct Broadcast Satellite (DBS) television signals and distributes them to an in-flight entertainment system. We also increased shipments of noise generators to the US Army's Communications-Electronics Command for use on the Satellite Teleport program. Our balance sheet continues to strengthen. Cash was $5.3 million at the end of fiscal 2006, compared to $2.4 million at March 31, 2005. Although our debt level increased to $6.7 million to finance the Stealth acquisition, we generated $5.7 million in cash from operations in the current fiscal year, compared to $900,000 in fiscal 2005. We are pleased with our financial performance in fiscal 2006, and we anticipate continued growth in our high performance power amplifiers, and our commercial DBS programs in fiscal 2007." 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, Airspan, BAE Systems, Boeing, EADS, IP Wireless, ITT, L-3 Communications, Lockheed Martin, Northrop Grumman, Qualcomm, Raytheon, 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 http://www.micronetics.com. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, including but not limited to reductions in spending by certain of our customers, our ability to operate and integrate acquired companies, our ability to manage our growth, disruptions in supply or production, increased levels of debt, our ability to protect our proprietary information, future economic conditions in our industry and 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, 2006. -0- *T INCOME STATEMENT DATA ($000s omitted except per share data) Quarter Ended March 31, 2006 2005 ---------- --------- Net sales 8,618 3,716 Gross profit 3,707 1,893 Research and development 183 116 Selling, general and administrative expenses 1,834 1,022 Amortization of intangibles 246 - Other/(expense) income (59) 15 Income before income taxes 1,385 770 Provision for income taxes 443 293 Net income 942 477 Net income per common share: Basic .21 .11 Diluted .19 .11 Weighted average shares Outstanding: Basic 4,538 4,410 Diluted 4,903 4,504 Year Ended March 31, 2006 2005 ----------- ------------ Net sales 26,909 14,059 Gross profit 11,695 6,421 Research and development 575 676 Selling, general and administrative expenses 6,094 3,428 Amortization of intangibles 794 - Other/(expense) income (211) 50 Income before income taxes 4,021 2,367 Provision for income taxes 1,481 1,092 Net income 2,540 1,275 Net income per common share: Basic .57 .29 Diluted .54 .29 Weighted average shares Outstanding: Basic 4,465 4,375 Diluted 4,697 4,452 BALANCE SHEET DATA March 31, 2006 2005 ----------- ------------ Cash, cash equivalents and marketable securities 5,849 2,941 Working capital 10,337 8,190 Total assets 27,748 14,636 Non-current liabilities 6,291 904 Shareholders' equity 15,859 11,815 *T