OLATHE, Kan., March 12, 2012 /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 third fiscal quarter ended January 31, 2012.
Sales for the quarter were $5,218,000, a decrease of 15%, or $891,000, from $6,109,000, in the third quarter of fiscal 2012.
Total sales year-to-date increased 2%, or $254,000, to $17,024,000. The decrease in total sales
for the quarter was the result of lower EDMS sales slightly offset
by increases from overall sales growth in our proprietary products
and services.
Operating income for the quarter was $473,000, compared to operating income of
$429,000 for the same quarter in the
prior year. For the first nine months of fiscal 2012,
operating income grew to $1,344,000
from $929,000 reported in the first
nine months of fiscal 2011.
Net income was $262,000, or
$0.07 per diluted share, for the
quarter ended January 31, 2012, the
same as the third quarter of the previous year. For the
nine-month period ended January 31,
2012, net income grew to $754,000, or $0.19
per diluted share, while for the comparable prior year period net
income was $470,000, or $0.12 per diluted share.
Sales of proprietary products and services were $2,553,000 for the quarter ended January 31, 2012, an increase of 7%, or
$164,000. Year-to-date
proprietary product sales also increased by 7%, to $7,276,000 for the nine-month period ended
January 31, 2012 compared to
$6,782,000 in the comparable period
of the prior fiscal year. Sales of wireless remote monitoring
and industrial communication solutions increased 6%, or
$114,000, from the previous year to
$1,884,000 for the current quarter.
The overall increase in sales of remote monitoring equipment
and services was driven by an 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 an increase in sales of 9%, or $47,000, compared to the comparable period of the
prior fiscal year. The increase was due to increases in sales
of both our Radix FW950 handheld computers and eXtremeTAG RFID
solutions.
Sales for the Company's Electronic Design and Manufacturing
Services ("EDMS") business segment decreased by 28%, or
$1,055,000, to approximately
$2,665,000 for the quarter ended
January 31, 2012, from $3,720,000 in the prior fiscal year. The
decrease was the result of reduced sales to some existing customers
due to uncertain economic conditions and the elimination of certain
lower margin customers stemming from efforts to improve overall
EDMS gross margins. Fiscal year-to-date EDMS sales were
$9,748,000, a slight decrease of 2%,
or $240,000, from $9,988,000 in the nine-month period ended
January 31, 2011.
The Company expects that total sales for its proprietary
products and services will continue to increase over the next few
quarters. Increases in proprietary product sales will
primarily be driven by wireless remote monitoring and secure
industrial communication solutions but also by potential sales
growth in our Radix rugged handheld computers and eXtremeTAG RFID
solutions. The Company believes that its renewed investment
in EDMS sales and marketing, along with its focus on adding
customers that will benefit from its proprietary technologies, will
lead to moderate EDMS sales and margin growth over the next few
quarters.
Total backlog at January 31, 2012
was approximately $9,953,000, an
increase of $4,195,000, or 73%, 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 during
previous quarters offset by a decreased proprietary product
backlog. 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 January 31, 2012 was approximately 38%, or
$1,990,000, versus 34%, or
$2,048,000 for the quarter ended
January 31, 2011. Gross margin
for the nine-month period also increased to 36% of sales, or
$6,091,000 from a gross margin of 33%
of sales or $5,522,000 from the
nine-month period ended January 31,
2011. The increase in gross margin percentage was a
function of the overall increase in proprietary product sales
volume combined with the reduction of less profitable EDMS
accounts.
Total selling, general and administrative expenses were
approximately $1,517,000 during the
quarter ended January 31, 2012
compared with $1,619,000 in the
comparable quarter of the prior fiscal year. The decrease of
$102,000, or 6%, was the result of
decreases in research and development costs and general and
administrative expenses along with an increase in sales and
marketing expenses. Research and development expenses were lower
due to a reduction in contract labor costs and lower support
engineering expenses. General and administrative expenses
also posted a reduction in costs during the period primarily due to
the expirations of a royalty agreement and an office lease from
prior product line acquisitions. The increase in sales and
marketing expenses was attributable to the addition of an EDMS
sales representative and increased travel costs. Selling,
general and administrative expenses totaled $4,747,000 and $4,593,000, for the nine-month periods ended
January 31, 2012 and 2011,
respectively.
Karl B. Gemperli, Chief Executive
Officer, stated, "Elecsys continued to demonstrate solid
performance during the third quarter as we enhanced our gross
margins, expanded our order backlog and delivered our seventh
consecutive profitable quarter. Although overall sales
decreased from the third quarter of last year, sales of our
proprietary products continued to grow and gross margin exceeded
38% of sales during the quarter. As we strategically build
the profitability of our custom electronic design and manufacturing
service business, we are actively developing long-term
relationships with OEM's that value our innovative wireless M2M and
display technologies while we ceased doing business with certain
lower-margin customers."
Gemperli continued, "As we continue the transformation of
Elecsys into a global M2M technology provider, we remain committed
to expanding both our market presence and the breadth of our
product offering. We will continue developing new and
enhanced industrial M2M products and solutions, a key component of
future expansion for both our proprietary product and custom OEM
markets. In conjunction with new product and technology
investment, our continuing business development initiatives are
focused on both expanding applications for our products into new
industry segments and increasing our business in developing
international markets with attractive new business potential.
Although the direction of the economy is difficult to
predict, we remain focused on growing our company and expect
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, agriculture, safety and security systems, water management,
and transportation. Elecsys proprietary equipment and
services encompass rugged remote monitoring, industrial wireless
communication, 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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Elecsys
Corporation and Subsidiary
Consolidated
Statements of Operations
(In
thousands, except per share data)
(Unaudited)
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|
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Three Months
Ended
January
31,
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Nine Months
Ended
October
31,
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2012
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2011
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2012
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2011
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Sales
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$5,218
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$6,109
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$17,024
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$16,770
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Cost of products sold
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3,228
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4,061
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10,933
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11,248
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Gross margin
|
1,990
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2,048
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6,091
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5,522
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|
|
|
|
|
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Selling, general and
administrative expenses:
|
|
|
|
|
|
|
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Research and development
expense
|
374
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|
442
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1,084
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1,066
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Selling and marketing
expense
|
517
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380
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1,602
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1,181
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General and administrative
expense
|
626
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|
797
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2,061
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2,346
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Total selling, general and
administrative expenses
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1,517
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1,619
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4,747
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4,593
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Operating income
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473
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429
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1,344
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929
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|
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|
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Financial income
(expense):
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|
|
|
|
|
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Interest
expense
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(31)
|
|
(73)
|
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(127)
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(225)
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Other income (expense),
net
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--
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--
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(1)
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(7)
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(31)
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(73)
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(128)
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(232)
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Net income before income
taxes
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442
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356
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1,216
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697
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Income tax expense
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180
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|
94
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|
462
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|
227
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|
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|
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Net income
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$262
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|
$262
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$754
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$470
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Net income per share
information:
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Basic
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$0.07
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$0.07
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$0.20
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$0.12
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Diluted
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$0.07
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$0.07
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$0.19
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$0.12
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Weighted average common shares
outstanding:
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Basic
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3,789
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3,789
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3,789
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3,788
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Diluted
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3,906
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3,897
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3,919
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3,896
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Elecsys
Corporation and Subsidiary
Condensed
Consolidated Balance Sheets
(In
thousands, except share data)
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January 31,
2012
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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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$55
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$460
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Accounts
receivable, net
|
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2,646
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2,801
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Inventories,
net
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6,267
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5,880
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Other
current assets
|
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861
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731
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Total current
assets
|
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9,829
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9,872
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|
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Property and equipment,
net
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5,375
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5,393
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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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1,937
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2,100
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Other assets,
net
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52
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60
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Total assets
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$19,135
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$19,367
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Current
liabilities:
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Accounts
payable
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$1,257
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$1,248
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Accrued
expenses
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1,525
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1,701
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Income taxes
payable
|
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30
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51
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Current
maturities of long-term debt
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181
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134
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Total current
liabilities
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2,993
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3,134
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Deferred taxes
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392
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396
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Long-term debt, less current
maturities
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4,050
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4,960
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Stockholders'
equity:
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Common
stock
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38
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38
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Additional
paid-in capital
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11,068
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10,999
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Retained
earnings (accumulated deficit)
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594
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(160)
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Total stockholders'
equity
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11,700
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10,877
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Total liabilities and
stockholders' equity
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$19,135
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$19,367
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SOURCE Elecsys Corporation