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
For Immediate Release
Sensytech, Inc. Announces Q4 and Fiscal Year 2003 Results
NEWINGTON, VA, December 18, 2003 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced revenues and earnings for its fourth quarter and fiscal year ended September 30, 2003.
Driven by increased order activity in all three business segments, revenues for the fourth quarter ended September 30, 2003 increased $3,726,000 or 32% to $15,507,000 compared to $11,781,000 for the prior year quarter. Revenue for the fiscal year ended September 30, 2003 increased $20,893,000 or 65% to $53,183,000, compared to $32,290,000 for the prior fiscal year.
Net income for the fourth quarter ended September 30, 2003 was $1,103,000, or $0.17 per dilutive share, an increase of 86% compared to $592,000 or $0.14 per share for the fourth quarter of the prior year. For the fiscal year ended September 30, 2003 net income increased to $4,052,000, or $0.65 per share, an increase of 85% compared to the prior year of $2,189,000, or $.52 per share on a dilutive basis. When comparing the quarter and fiscal year results, it should be noted that the shares outstanding increased by 2,300,000 shares in November of 2002 as a result of our successful follow-on offering.
“We have accomplished much this year in developing new opportunities in existing markets while re-focusing our attention on the emerging Homeland Security/Defense sectors. Our revenue growth of 65% was consistent with our plan and slightly in excess of analysts’ expectations. This growth was achieved with record volume increases in order activity for both the Communications Group and Imaging Group. We are reporting substantial growth in EPS for the year even after the dilutive effect of our follow-on offering. We expect further internal growth in excess of 20% in our 04 fiscal year in line with analysts’ expectations. Our FY 04 planning must now take into account the timely expensing of nonrecurrent costs, currently estimated at $900,000, of our plant closure in New Jersey and the concurrent plant opening in Pennsylvania. These one time costs are expected to be expensed in the first and second quarter of FY 04, which will impact these quarters slightly but should be recoverable in the latter two quarters as productivity and volume increases at our new facility.” noted S. Kent Rockwell, CEO of Sensytech.
Financial Highlights
| • | Revenue for the fourth quarter increased 32% over the prior year quarter to $15,507,000 |
| • | Revenue for the fiscal year increased 65% over the prior year to $53,183,000 |
| • | Net Income for the fourth quarter of $1,103,000, or $0.17 per dilutive share, up $0.03 per share, from the prior year quarter |
| • | Net Income for the year of $4,052,000, or $0.65 per dilutive share, up $0.13 per share, from the prior year |
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 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.
CONSOLIDATED BALANCE SHEETS
| September 30, | ||||||||
| ASSETS | 2003 | 2002 | ||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 13,445,000 | $ | 700,000 | ||||
| Accounts receivable net | $ | 15,916,000 | $ | 8,880,000 | ||||
| Unbilled contract costs, net | 8,486,000 | 8,820,000 | ||||||
| Inventories | 1,690,000 | 3,168,000 | ||||||
| Deferred income taxes | 793,000 | 411,000 | ||||||
| Other current assets | 328,000 | 272,000 | ||||||
| TOTAL CURRENT ASSETS | 40,658,000 | 22,251,000 | ||||||
| PROPERTY AND EQUIPMENT | 3,350,000 | 2,608,000 | ||||||
| OTHER ASSETS | ||||||||
| Deferred income taxes | 224,000 | 260,000 | ||||||
| Intangibles, net | 133,000 | 400,000 | ||||||
| Other assets | 73,000 | 333,000 | ||||||
| TOTAL ASSETS | $ | 44,438,000 | $ | 25,852,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Line of credit | $ | — | $ | 2,900,000 | ||||
| Accounts payable | 3,780,000 | 2,916,000 | ||||||
| Accrued salaries, benefits, and related expenses | 2,628,000 | 2,093,000 | ||||||
| Other accrued expenses | 862,000 | 438,000 | ||||||
| Billings in excess of costs | 1,172,000 | 2,342,000 | ||||||
| Income taxes payable | 63,000 | 497,000 | ||||||
| TOTAL CURRENT LIABILITIES | 8,505,000 | 11,186,000 | ||||||
| Commitments and contingencies | — | — | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common Stock | 66,000 | 42,000 | ||||||
| Additional paid-in capital | 25,172,000 | 7,972,000 | ||||||
| Treasury stock at cost | (534,000 | ) | (525,000 | ) | ||||
| Retained earnings | 11,229,000 | 7,177,000 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 35,933,000 | 14,666,000 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 44,438,000 | $ | 25,852,000 | ||||
SENSYTECH, INC.
CONSOLIDATED INCOME STATEMENTS
| For the Quarter Ended | For the Year Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
| REVENUES | ||||||||||||||||
| Contract revenues | $ | 15,507,000 | $ | 11,781,000 | $ | 53,183,000 | $ | 32,290,000 | ||||||||
| COSTS AND EXPENSES | ||||||||||||||||
| Cost of revenues | 12,171,000 | 9,521,000 | 40,614,000 | 24,855,000 | ||||||||||||
| General and administrative expenses | 1,609,000 | 1,224,000 | 5,876,000 | 3,782,000 | ||||||||||||
| Total cost and expenses | 13,780,000 | 10,745,000 | 46,490,000 | 28,637,000 | ||||||||||||
| INCOME FROM OPERATIONS | 1,727,000 | 1,036,000 | 6,693,000 | 3,653,000 | ||||||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||||||
| Interest income | 43,000 | 3,000 | 122,000 | 36,000 | ||||||||||||
| Interest expense | (1,000 | ) | (31,000 | ) | (50,000 | ) | (40,000 | ) | ||||||||
| Other income | 20,000 | (4,000 | ) | 32,000 | 73,000 | |||||||||||
| Other expenses | — | (2,000 | ) | (10,000 | ) | (13,000 | ) | |||||||||
| INCOME BEFORE INCOME TAXES | 1,789,000 | 1,002,000 | 6,787,000 | 3,709,000 | ||||||||||||
| INCOME TAX PROVISION | (686,000 | ) | (410,000 | ) | (2,735,000 | ) | (1,520,000 | ) | ||||||||
| NET INCOME | $ | 1,103,000 | $ | 592,000 | $ | 4,052,000 | $ | 2,189,000 | ||||||||
| PER SHARE AMOUNT | ||||||||||||||||
| Basic earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.66 | $ | 0.54 | ||||||||
| Diluted earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.65 | $ | 0.52 | ||||||||
| WEIGHTED AVERAGE | ||||||||||||||||
| SHARES OUTSTANDING | ||||||||||||||||
| Basic average shares outstanding | 6,487,000 | 4,097,000 | 6,104,000 | 4,054,000 | ||||||||||||
| Diluted average shares outstanding | 6,682,000 | 4,202,000 | 6,262,000 | 4,180,000 | ||||||||||||
FOR MORE INFORMATION, CONTACT:
Donald F. Fultz, Chief Financial Officer
don.fultz@sensytech.com
URL: www.sensytech.com