NOIZ Micronetics, Inc. (MM)

Micronetics, Inc. (NASDAQ:NOIZ) today reported results for its fourth quarter and fiscal year ended March 31, 2008 ("FY2008"). The results of MICA Microwave, Inc. are included from the acquisition date of June 5, 2007. Net sales were $7,723,015 for the quarter ended March 31, 2008, an increase of $1,410,698 or 22% as compared to $6,312,317 for the quarter ended March 31, 2007. For FY2008, the Company reported net sales of $32,624,946 as compared to net sales of $23,690,236 for FY2007, an increase of $8,934,710 or 38%. For the quarter ended March 31, 2008, the Company reported net income of $303,097 or $0.06 per diluted share as compared to net income of $340,064 or $0.07 per diluted share, for the quarter ended March 31, 2007. For FY2008, net income was $ 1,662,383 or $0.34 per diluted share, as compared to net income of $1,040,720 or $0.22 per diluted share for FY2007, an increase of $621,663, or 60%. The increase in net sales for the fiscal year is primarily attributable to an increase of $2.7 million in net sales of high performance power amplifiers and the inclusion of approximately $4.4 million in net sales from MICA Microwave since June 2007. David Robbins, Micronetics' President and CEO stated, �We continue to meet critical milestones in our in-flight broadband internet hardware development and expect to start generating revenue associated with these products in FY2009. Based on our bookings in Q4 FY2008, as well as subsequent announcements in June 2008, we believe that the jamming marketplace, in-flight broadband internet, and space products will be growth drivers for Micronetics looking into FY2009. During FY2008 we incrementally improved our operating efficiency, even after absorbing over $150,000 in one-time corporate G&A expenses relating to development of internal control procedures for compliance with Section 404(a) of the Sarbanes-Oxley Act. Backlog increased to $14.1 million at March 31, 2008 from $12.9 million at March 31, 2007. Cash generated from operations was $3.9 million in FY2008. Net income for the quarter included non-cash stock based compensation expense of $276,037 and $183,353 for amortization of intangible assets. Excluding these items, net income for the quarter ended March 31, 2008 was $0.14 per diluted share. Net income for FY2008 included stock based compensation non-cash expense of $740,722 and $733,160 for amortization of intangible assets. Excluding these items, net income for FY2008 was $0.52 per diluted share. 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 Avionics, Airspan, Anaren Microwave, BAE Systems, Boeing, Comtech, EADS, EDO/Benchmark, General Dynamics, ITT Electronic Warfare Systems, L-3 Communications, Lockheed Martin, Nextwave/Jabil Circuit, Northrop Grumman, Pegasus GSS, Qualcomm, Raytheon, Teradyne, Tektronix and Thales. Additional information can be found on our website at http://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 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, 2008. INCOME STATEMENT DATA ($000s omitted except per share data) � Quarter Ended March 31, � 2008 � � � 2007 � � Net sales $ 7,723 $ 6,312 � Gross profit 3,248 2,456 � Research and development 417 190 � Selling, general and administrative expenses 1,973 1,403 � Amortization of intangibles 183 217 � Other (expense) (155 ) (9 ) � Income before income taxes 520 637 � Provision for income taxes 217 297 � Net income $ 303 $ 340 � Net income per common share: Basic $ .06 $ .07 Diluted $ .06 $ .07 � Weighted average shares Outstanding: Basic 4,995 4,655 Diluted 5,013 4,723 INCOME STATEMENT DATA ($000s omitted except per share data) � Year Ended March 31, 2008 � 2007 � Net sales $ 32,625 $ 23,690 � Gross profit 12,919 9,377 � Research and development 1,018 782 � Selling, general and administrative expenses 7,590 5,684 � Amortization of intangibles 733 752 � Other (expense) (565 ) (156 ) � Income before income taxes 3,013 2,003 � Provision for income taxes 1,351 962 � Net income $ 1,662 $ 1,041 � Net income per common share: Basic $ .34 $ .22 Diluted $ .34 $ .22 � Weighted average shares Outstanding: Basic 4,932 4,638 Diluted 4,951 4,789 � � � � BALANCE SHEET DATA ($000s omitted) Quarter Ended March 31, 2008 2007 � Cash, cash equivalents and short term investments $ 3,563 $ 7,059 Working capital 11,197 11,837 Total assets 33,386 29,819 Non-current liabilities 5,551 6,355 Shareholders' equity 22,409 17,977