EXHIBIT 99.1
8419 Terminal Road, P.O. Box 1430, Newington, VA 22122-1430
703.550.7000 Fax 703.550.0883
www.sensytech.com
NEWS RELEASE
Sensytech, Inc. Delivers Record Breaking Q2 Results
NEWINGTON, VA, May 14, 2003 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced record breaking revenues and earnings for its second quarter ended March 31, 2003.
Revenues for the three months ended March 31, 2003 increased $5,784,000 or 81.8% to $12,853,000 compared to $7,069,000 for the prior year quarter. Revenue for the six months ended March 31, 2003 increased $13,098,000 or 114.1% to $24,576,000, compared to $11,478,000 for the prior year period.
Net income for the three months ended March 31, 2003 was $1,087,000, or $0.16 per diluted share, an increase of 111.5% compared to $514,000 or $0.12 per diluted share for the prior year quarter. For the six months ended March 31, 2003 net income increased to $1,891,000, or $0.32 per diluted share, an increase of 104.0% compared to the prior year period of $927,000, or $.22 per diluted share.
“We are pleased with our revenue growth for the quarter of 81.8%. This growth is attributable to the marketing efforts in all three business segments. Demand for our products and engineered solutions continues to be high from existing domestic customers and continues to gain exposure with new international customers. Our earnings are in line with our expectations given the mix of contracts currently being delivered,” noted S. Kent Rockwell, CEO of Sensytech.
Mr. Rockwell further stated, “We anticipated a quick and decisive conclusion to the armed conflict in Iraq. Now that the war has essentially come to conclusion, we expect a more orderly flow of newly funded business from government offices where order processing has been interrupted by other priorities. Our book to bill ratio in the trailing twelve months was 1.18 which favors an increasing flow of revenues. We anticipate holding or increasing this rate.”
Financial Highlights
n | Revenue for the second quarter increased 81.8% over the prior year quarter to $12,853,000 | ||
n | Revenue for the six month period increased 114.1% over the prior year period to $24,576,000 | ||
n | Net Income for the second quarter of $1,087,000, or $0.16 per diluted share, up $0.04 per diluted share, from the prior year quarter | ||
n | Net Income for the six months period of $1,891,000, or $0.32 per diluted share, up $0.10 per diluted share, from the prior year period |
About SenSyTech Inc.
Sensytech, Inc. designs, develops and manufactures electronic support measures (ESM), electronic intelligence (ELINT), and threat warning systems, active electronic warfare (EW) systems, airborne imaging systems, communications reconnaissance systems, shipboard support systems, and other special purpose communications equipment serving worldwide markets. Sensytech, through its predecessor companies, has been providing cutting edge technology applications and cost-effective systems solutions for three decades.
Statements in this press release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that certain factors can cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances.
SENSYTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
March 31, 2003 | September 30, 2002 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | $ | 14,368,000 | $ | 700,000 | |||||
Accounts receivable, net of allowance for doubtful accounts of $200,000 | 10,924,000 | 8,880,000 | |||||||
Unbilled contract costs, net | 7,834,000 | 8,820,000 | |||||||
Inventories | 2,732,000 | 3,168,000 | |||||||
Deferred income taxes | 377,000 | 411,000 | |||||||
Other current assets | 263,000 | 272,000 | |||||||
TOTAL CURRENT ASSETS | 36,498,000 | 22,251,000 | |||||||
PROPERTY AND EQUIPMENT | 2,740,000 | 2,608,000 | |||||||
OTHER ASSETS | |||||||||
Deferred income taxes | 260,000 | 260,000 | |||||||
Intangibles, net | 250,000 | 400,000 | |||||||
Other assets | 70,000 | 333,000 | |||||||
TOTAL ASSETS | $ | 39,818,000 | $ | 25,852,000 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Line of credit | — | 2,900,000 | |||||||
Accounts payable | 2,314,000 | 2,916,000 | |||||||
Accrued salaries, benefits, and related expenses | 1,969,000 | 2,093,000 | |||||||
Other accrued expenses | 1,086,000 | 438,000 | |||||||
Billings in excess of costs | 1,159,000 | 2,342,000 | |||||||
Income taxes payable | 62,000 | 497,000 | |||||||
TOTAL CURRENT LIABILITIES | 6,590,000 | 11,186,000 | |||||||
Commitments and contingencies | — | — |
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STOCKHOLDERS’ EQUITY | |||||||||
Common Stock, $.01 par value; 25,000,000 shares authorized; 6,571,623 and 4,239,223 shares issued at March 31, 2003 and September 30, 2002 | 66,000 | 42,000 | |||||||
Additional paid-in capital | 24,628,000 | 7,972,000 | |||||||
Treasury stock at cost, 126,245 shares at March 31, 2003 and 125,245 shares at September 30, 2002 | (534,000 | ) | (525,000 | ) | |||||
Retained earnings | 9,068,000 | 7,177,000 | |||||||
TOTAL STOCKHOLDERS’ EQUITY | 33,228,000 | 14,666,000 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 39,818,000 | $ | 25,852,000 | |||||
SENSYTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||||||||
REVENUES | |||||||||||||||||
Contract revenues | $ | 12,853,000 | $ | 7,069,000 | $ | 24,576,000 | $ | 11,478,000 | |||||||||
COSTS AND EXPENSES | |||||||||||||||||
Cost of revenues | 9,488,000 | 5,176,000 | 18,739,000 | 8,198,000 | |||||||||||||
General and administrative expenses | 1,559,000 | 1,062,000 | 2,622,000 | 1,805,000 | |||||||||||||
Total cost and expenses | 11,047,000 | 6,238,000 | 21,361,000 | 10,003,000 | |||||||||||||
INCOME FROM OPERATIONS | 1,806,000 | 831,000 | 3,215,000 | 1,475,000 | |||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||
Interest income | 38,000 | 11,000 | 43,000 | 31,000 | |||||||||||||
Interest expense | (3,000 | ) | — | (48,000 | ) | (2,000 | ) | ||||||||||
Other income | 3,000 | 30,000 | 7,000 | 67,000 | |||||||||||||
Other expenses | — | — | (10,000 | ) | (11,000 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 1,844,000 | 872,000 | 3,207,000 | 1,560,000 | |||||||||||||
INCOME TAX PROVISION | (757,000 | ) | (358,000 | ) | (1,316,000 | ) | (633,000 | ) | |||||||||
NET INCOME | $ | 1,087,000 | $ | 514,000 | $ | 1,891,000 | $ | 927,000 | |||||||||
PER SHARE AMOUNT | |||||||||||||||||
Basic earnings per share | $ | 0.17 | $ | 0.13 | $ | 0.33 | $ | 0.23 | |||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.12 | $ | 0.32 | $ | 0.22 |
FOR MORE INFORMATION, CONTACT:
Donald F. Fultz, Chief Financial Officer
don.fultz@sensytech.com
URL:www.sensytech.com
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