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 Q1 Results
NEWINGTON, VA, February 12, 2004 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced revenues and earnings for its first quarter ended December 31, 2003.
Revenues for the first quarter ended December 31, 2003 increased $942,000 to $12,665,000 up 8%, compared to $11,723,000 for the prior year quarter.
Net income for the first quarter ended December 31, 2003 was $873,000, or $0.13 per diluted share, an increase of 8.6% compared to $804,000 or $0.16 per diluted share for the prior year quarter.
In the first quarter of FY04 Sensytech reorganized its operations into two business segments, combining the Imaging Group and Communications Group (Comms). The newly formed Surveillance Technology Group expands current product offerings into the traditional Comms customer markets and provides a common surveillance technology/ product focus for the Homeland Security market and select international customers. Potential gains from this strategic restructuring are already being realized in this fiscal year.
S. Kent Rockwell, Chairman and CEO of Sensytech stated, “Revenues for the 1st quarter were up 8% compared to the prior year quarter and net income was up 8.6% for the same period. However, this solid performance was less than our expectations due to procedural delays in receiving negotiated new contract awards and unanticipated expenses relating to the Q4 contract which unexpectedly had to be transitioned as in-process work to Pennsylvania from New Jersey. Accordingly, our bookings for the 1st quarter were only $4.6M but we do anticipate record bookings for the 2nd quarter of FY04 in excess of $25M.”
“The physical move of our manufacturing facility from New Jersey to Western Pennsylvania has recently been completed. Additional transition expenses will continue to impact our earnings through the 2nd quarter of FY04 as anticipated. We continue to gain confidence that our decision to make this move was a wise one and that our ability to grow revenues and profits in future quarters will be substantially enhanced. We anticipate an overall cost improvement of between 20% to 30% to be realized in future quarters as revenues recover to our growth plan”, Mr. Rockwell noted.
Financial Highlights
• | Revenue for the first quarter increased 8% over the prior year quarter to $12,665,000 |
• | Net Income for the first quarter of $873,000 or $0.13 per diluted share up 8.6% from the prior year quarter |
• | Funded Backlog for the first quarter was $21,293,000 a decrease of 39% from the prior year quarter funded backlog of $34,981,000 |
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.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
December 31, 2003 | September 30, 2003 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 14,122,000 | $ | 13,445,000 | ||||
Accounts receivable, net | 7,090,000 | 15,916,000 | ||||||
Unbilled contract costs, net | 14,386,000 | 8,486,000 | ||||||
Inventories | 1,976,000 | 1,690,000 | ||||||
Deferred income taxes | 885,000 | 793,000 | ||||||
Other current assets | 400,000 | 328,000 | ||||||
TOTAL CURRENT ASSETS | 38,859,000 | 40,658,000 | ||||||
PROPERTY AND EQUIPMENT | 4,107,000 | 3,350,000 | ||||||
OTHER ASSETS | ||||||||
Deferred income taxes | 196,000 | 224,000 | ||||||
Intangibles, net | 108,000 | 133,000 | ||||||
Other assets | 187,000 | 73,000 | ||||||
TOTAL ASSETS | $ | 43,457,000 | $ | 44,438,000 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 2,723,000 | $ | 3,780,000 | ||||
Accrued salaries, benefits, and related expenses | 1,481,000 | 2,628,000 | ||||||
Other accrued expenses | 1,093,000 | 862,000 | ||||||
Billings in excess of costs | 520,000 | 1,172,000 | ||||||
Income taxes payable | 462,000 | 63,000 | ||||||
TOTAL CURRENT LIABILITIES | $ | 6,279,000 | $ | 8,505,000 | ||||
STOCKHOLDERS’ EQUITY | ||||||||
Common Stock | 66,000 | 66,000 | ||||||
Additional paid-in capital | 25,544,000 | 25,172,000 | ||||||
Treasury stock, at cost | (534,000 | ) | (534,000 | ) | ||||
Retained earnings | 12,102,000 | 11,229,000 | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 37,178,000 | 35,933,000 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | $ | 43,457,000 | $ | 44,438,000 | ||||
SENSYTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the Three Months Ended | ||||||||
December 31, | ||||||||
2003 | 2002 | |||||||
REVENUES | ||||||||
Contract revenues | $ | 12,665,000 | $ | 11,723,000 | ||||
COSTS AND EXPENSES | ||||||||
Cost of revenues | 9,509,000 | 9,251,000 | ||||||
General and administrative expenses | 1,698,000 | 1,063,000 | ||||||
Total cost and expenses | 11,207,000 | 10,314,000 | ||||||
INCOME FROM OPERATIONS | 1,458,000 | 1,409,000 | ||||||
OTHER INCOME (EXPENSES) | ||||||||
Interest income | 17,000 | 5,000 | ||||||
Interest expense | — | (45,000 | ) | |||||
Other income (expenses), net | 4,000 | (6,000 | ) | |||||
INCOME BEFORE INCOME TAXES | 1,479,000 | 1,363,000 | ||||||
INCOME TAX PROVISION | (606,000 | ) | (559,000 | ) | ||||
NET INCOME | $ | 873,000 | $ | 804,000 | ||||
PER SHARE AMOUNT | ||||||||
Basic earnings per share | $ | 0.13 | $ | 0.16 | ||||
Diluted earnings per share | $ | 0.13 | $ | 0.16 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
Basic average shares outstanding | 6,499,000 | 5,049,000 | ||||||
Diluted average shares outstanding | 6,676,000 | 5,179,000 |
FOR MORE INFORMATION, CONTACT:
Donald F. Fultz, Chief Financial Officer
don.fultz@sensytech.com
URL:www.sensytech.com