OLATHE, Kan., Sept. 6, 2011 /PRNewswire/ -- Elecsys Corporation
(NASDAQ: ESYS), a provider of innovative data acquisition systems,
machine to machine (M2M) communication technology solutions, and
custom electronic equipment for critical industrial applications
worldwide, today announced the financial results for its first
quarter ended July 31, 2011.
Sales for the quarter were $5,673,000, an increase of 10%, or $491,000, from $5,182,000, in the first quarter of fiscal 2011.
Operating income for the quarter was $389,000, compared to operating income of
$246,000 for the same quarter in the
prior year.
Net income was $213,000, or
$0.05 per diluted share, for the
quarter ended July 31, 2011.
For the quarter ended July 31,
2010, net income was $107,000,
or $0.03 per diluted share.
Sales of proprietary products and services were $2,363,000 for the quarter ended July 31, 2011, an increase of 11%, or
$225,000. Sales of wireless
remote monitoring and secure industrial communication solutions
increased almost 30%, or $395,000,
from the previous year to $1,733,000
for the current quarter. The overall increase in sales of
remote monitoring equipment and services was driven by the increase
in customer orders combined with an increase in recurring data
management services. The Company's Radix handheld mobile
computing and eXtremeTAG RFID solutions reported a decrease in
sales compared to the comparable period of the prior fiscal
year.
Sales for the Company's Electronic Design and Manufacturing
Services ("EDMS") business segment grew by 9% to approximately
$3,310,000 for the quarter ended
July 31, 2011, an increase of
$267,000 from $3,043,000 in the prior fiscal year.
The Company expects that sales for its proprietary products will
continue to increase as compared to sales reported in each of the
comparable quarters of fiscal 2011. Increases in proprietary
product sales will be driven by wireless remote monitoring and
secure industrial communication solutions through anticipated
strong demand for WatchdogCP, SensorCast, Director and zONeGUARD
products. The Company believes that EDMS sales will grow
modestly in the near term based upon the current scheduled orders
in backlog, the continued transition of several projects from our
design engineering group into production, and the anticipated
addition of new EDMS customers.
Total backlog at July 31, 2011 was
approximately $5,779,000, a slight
increase of $21,000 from a total
backlog of $5,758,000 on April 30, 2011. The increase in backlog was
largely due to an increase in EDMS bookings in the quarter offset
by a decrease in proprietary product backlog from increased
proprietary product shipments. EDMS orders typically specify
several deliveries scheduled over a defined period of time while
our proprietary products are usually shipped to the customer soon
after orders are received.
Gross margin for the quarter ended July
31, 2011 was approximately 35%, or $2,004,000, versus 34%, or $1,745,000 for the quarter ended July 31, 2010. The increase in both gross
margin percentage and dollars was a function of the overall
increase in sales volume, the product mix between proprietary
products and EDMS, and improved operating efficiencies due to
higher production volumes.
Total selling, general and administrative expenses were
approximately $1,615,000 during the
quarter ended July 31, 2011 compared
with $1,499,000 in the comparable
quarter of the prior fiscal year. The increase of
$116,000, or 8%, resulted from
increases in research and development costs and sales and marketing
expenses. The increase in research and development costs
included investment in engineering development for new products and
costs for additional engineering design personnel. Selling
and marketing expenses increased with the addition of a
Middle East sales representative,
increased commissions due to growing proprietary product sales, and
an increase in product support and installation expenses linked to
the increased number of proprietary units active in the field.
Karl B. Gemperli, Chief Executive
Officer, stated, "We are pleased to report another solid quarter as
we progress into fiscal 2012. Sales grew 10% above the first
quarter of last year while increasing margins and lean operations
doubled our net income. Sales of our proprietary wireless
remote monitoring, secure industrial communication, and other
industrial M2M solutions continued their upward trend as more and
more markets embraced this technology. In addition, the
demand for custom electronic assemblies and displays from original
equipment manufacturers was strong, relative to last year."
Gemperli continued, "The recent turmoil in world markets and the
tentative nature and tempo of any economic recovery continue to
present challenges. We remain committed to expanding both the
breadth of our proprietary product offerings and our presence in
the markets we target. We will continue to invest in product
development and new innovative M2M communication solutions that are
vital to our technological growth and competitive position.
Our business development and sales initiatives will push to
expand applications of our products into new industry segments and
grow business opportunities for Elecsys in developing international
markets. Although the economic environment is difficult to
predict, we are steadfast in our resolve to continuously build our
company and anticipate positive trends in both revenues and
earnings during the coming quarters."
About Elecsys Corporation
Elecsys Corporation provides innovative data acquisition
systems, machine to machine (M2M) communication technology
solutions, and custom electronic equipment for critical industrial
applications worldwide. The Company's primary markets include
energy production and distribution, agriculture, safety and
security systems, water management, aerospace, military, and
transportation. Elecsys proprietary equipment and services
encompass rugged remote monitoring, industrial wireless
communication, cyber security, mobile computing, and radio
frequency identification (RFID) technologies that are deployed
wherever high quality and reliability are essential. Elecsys
develops, manufactures, and supports proprietary technology and
products for various markets under its Pipeline Watchdog, Radix,
eXtremeTAG, SensorCast, Director, zONeGUARD, and DCI brand names.
In addition to its proprietary products, Elecsys designs and
manufactures rugged and reliable custom electronic assemblies and
integrated liquid crystal displays to multiple original equipment
manufacturers in a variety of industries worldwide. 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,
2011. 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:
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Todd A. Daniels
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(913) 647-0158,
Phone
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(913) 982-5766,
Fax
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investorrelations@elecsyscorp.com
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Media Inquiries
Contact:
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Mary Ann Roe
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(913) 647-0158,
Phone
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(913) 982-5766,
Fax
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maryann.roe@elecsyscorp.com
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Elecsys
Corporation and Subsidiary
Consolidated
Statements of Operations
(In
thousands, except per share data)
(Unaudited)
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Three Months
Ended
July
31,
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2011
|
|
2010
|
|
Sales
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$5,673
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$5,182
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|
Cost of products sold
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3,669
|
|
3,437
|
|
Gross margin
|
2,004
|
|
1,745
|
|
|
|
|
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
Research and
development expense
|
342
|
|
316
|
|
Selling and
marketing expense
|
538
|
|
419
|
|
General and
administrative expense
|
735
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764
|
|
Total selling, general and
administrative expenses
|
1,615
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1,499
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|
|
|
|
|
|
Operating income
|
389
|
|
246
|
|
|
|
|
|
|
Financial income
(expense):
|
|
|
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Interest
expense
|
(57)
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(77)
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Other income
(expense), net
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--
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(7)
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|
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(57)
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(84)
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|
|
|
|
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Net income before income
taxes
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332
|
|
162
|
|
|
|
|
|
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Income tax expense
|
119
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|
55
|
|
|
|
|
|
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Net income
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$213
|
|
$107
|
|
|
|
|
|
|
Net income per share
information:
|
|
|
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Basic
|
$0.06
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$0.03
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|
Diluted
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$0.05
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$0.03
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
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Basic
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3,789
|
|
3,788
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Diluted
|
3,930
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|
3,894
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|
|
|
|
|
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Elecsys
Corporation and Subsidiary
Condensed
Consolidated Balance Sheets
(In
thousands, except share data)
|
|
|
|
July 31,
2011
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April 30, 2011
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ASSETS
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(unaudited)
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Current
assets:
|
|
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Cash and
cash equivalents
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$373
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$460
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Accounts
receivable, net
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2,372
|
|
2,801
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Inventories,
net
|
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5,929
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5,880
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Other
current assets
|
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767
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731
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Total current
assets
|
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9,441
|
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9,872
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|
|
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Property and equipment,
net
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5,495
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5,393
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|
|
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Goodwill
|
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1,942
|
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1,942
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Intangible assets,
net
|
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2,045
|
|
2,100
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Other assets,
net
|
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59
|
|
60
|
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Total assets
|
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$18,982
|
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$19,367
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|
|
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LIABILITIES AND STOCKHOLDERS'
EQUITY
|
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Current
liabilities:
|
|
|
|
|
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Accounts
payable
|
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$1,604
|
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$1,248
|
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Accrued
expenses
|
|
1,276
|
|
1,701
|
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Income taxes
payable
|
|
24
|
|
51
|
|
Current
maturities of long-term debt
|
|
136
|
|
134
|
|
Total current
liabilities
|
|
3,040
|
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3,134
|
|
|
|
|
|
|
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Deferred taxes
|
|
402
|
|
396
|
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Long-term debt, less current
maturities
|
|
4,425
|
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4,960
|
|
|
|
|
|
|
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Stockholders'
equity:
|
|
|
|
|
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Common
stock
|
|
38
|
|
38
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Additional
paid-in capital
|
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11,024
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10,999
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Retained
earnings (accumulated deficit)
|
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53
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(160)
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Total stockholders'
equity
|
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11,115
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10,877
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Total liabilities and
stockholders' equity
|
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$18,982
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$19,367
|
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SOURCE Elecsys Corporation