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 Q2 Results
NEWINGTON, VA, May 13, 2004 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced revenues and earnings for its second quarter ended March 31, 2004.
Revenues for the three months ended March 31, 2004 increased $1,166,000 or 9.1% to $14,019,000 compared to $12,853,000 for the prior year quarter. Revenue for the six months ended March 31, 2004 increased $2,108,000 or 8.6% to $26,684,000, compared to $24,576,000 for the prior year period.
Net income for the three months ended March 31, 2004 was $1,031,000, or $0.15 per diluted share, a decrease of 5.2% compared to $1,087,000 or $0.16 per diluted share for the prior year quarter. For the six months ended March 31, 2004 net income increased to $1,904,000, or $0.28 per diluted share, an increase of 0.7% compared to the prior year period of $1,891,000, or $.32 per diluted share.
S. Kent Rockwell, Chairman and CEO of Sensytech stated, “This quarter’s performance is very much in line with our expectations and concludes the anomalies of cost variance that we defined six months ago to occur as a result of the decision to move our production facilities from New Jersey to Pennsylvania. The resultant effects should be an increase in revenues and earnings as the new production facility and engineering facility now realizes improving efficiencies and utilization from an increasing level of new orders. The continuing quarters should reflect the beneficial impact of this strategic decision. Without this effort, we would not have been able to realize the growth goals for the company beyond 2005.
We are pleased to complete the addition of ISS in Winter Park, Florida, into our company. These imaging sensors will play an important part in the overall multi-sensor integration that is of growing interest to our customers.”
Financial Highlights
| • | | Revenue for the second quarter increased 9.1% over the prior year quarter to $14,019,000 |
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| • | | Revenue for the six month period increased 8.6% over the prior year period to $26,684,000 |
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| • | | Net Income for the second quarter of $1,031,000, or $0.15 per diluted share, down $.01 per diluted share, from the prior year quarter |
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| • | | Net Income for the six months period of $1,904,000, or $0.28 per diluted share, down $.04 per diluted share, from the prior year period |
| • | | Funded Backlog for the second quarter was 24,638,000, a decrease of 16.7% from the prior year quarter funded backlog of $29,574,000 |
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
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| | | March 31, 2004 | | September 30, 2003 |
| ASSETS | | (unaudited) | | | | |
| CURRENT ASSETS | | | | | | | | |
| Cash and cash equivalents | | $ | 10,066,000 | | | $ | 13,445,000 | |
| Accounts receivable, net | | | 13,695,000 | | | | 15,916,000 | |
| Unbilled contract costs, net | | | 12,091,000 | | | | 8,486,000 | |
| Inventories | | | 1,081,000 | | | | 1,690,000 | |
| Prepaid income taxes | | | 813,000 | | | | — | |
| Deferred income taxes | | | 657,000 | | | | 793,000 | |
| Other current assets | | | 284,000 | | | | 328,000 | |
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| TOTAL CURRENT ASSETS | | | 38,687,000 | | | | 40,658,000 | |
| PROPERTY AND EQUIPMENT | | | 5,135,000 | | | | 3,350,000 | |
| OTHER ASSETS | | | | | | | | |
| Deferred income taxes | | | 196,000 | | | | 224,000 | |
| Intangibles, net | | | 83,000 | | | | 133,000 | |
| Other assets | | | 198,000 | | | | 73,000 | |
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| TOTAL ASSETS | | $ | 44,299,000 | | | $ | 44,438,000 | |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| CURRENT LIABILITIES | | | | | | | | |
| Accounts payable | | $ | 2,111,000 | | | $ | 3,780,000 | |
| Accrued salaries, benefits, and related expenses | | | 2,235,000 | | | | 2,628,000 | |
| Other accrued expenses | | | 917,000 | | | | 862,000 | |
| Billings in excess of costs | | | 540,000 | | | | 1,172,000 | |
| Income taxes payable | | | — | | | | 63,000 | |
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| TOTAL CURRENT LIABILITIES | | $ | 5,803,000 | | | $ | 8,505,000 | |
| STOCKHOLDERS’ EQUITY | | | | | | | | |
| Common Stock | | | 67,000 | | | | 66,000 | |
| Additional paid-in capital | | | 25,830,000 | | | | 25,172,000 | |
| Treasury stock, at cost | | | (534,000 | ) | | | (534,000 | ) |
| Retained earnings | | | 13,133,000 | | | | 11,229,000 | |
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| TOTAL STOCKHOLDERS’ EQUITY | | | 38,496,000 | | | | 35,933,000 | |
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| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 44,299,000 | | | $ | 44,438,000 | |
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SENSYTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
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| | | For the Three Months Ended | | For the Six Months Ended |
| | | March 31, | | March 31, |
| | | 2004 | | 2003 | | 2004 | | 2003 |
| REVENUES | | | | | | | | | | | | | | | | |
| Contract revenues | | $ | 14,019,000 | | | $ | 12,853,000 | | | $ | 26,684,000 | | | $ | 24,576,000 | |
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| COSTS AND EXPENSES | | | | | | | | | | | | | | | | |
| Cost of revenues | | | 9,846,000 | | | | 9,488,000 | | | | 19,355,000 | | | | 18,739,000 | |
| General and administrative expenses | | | 2,526,000 | | | | 1,559,000 | | | | 4,224,000 | | | | 2,622,000 | |
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| Total cost and expenses | | | 12,372,000 | | | | 11,047,000 | | | | 23,579,000 | | | | 21,361,000 | |
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| INCOME FROM OPERATIONS | | | 1,647,000 | | | | 1,806,000 | | | | 3,105,000 | | | | 3,215,000 | |
| OTHER INCOME (EXPENSES) | | | | | | | | | | | | | | | | |
| Interest income | | | 25,000 | | | | 38,000 | | | | 42,000 | | | | 43,000 | |
| Interest expense | | | — | | | | (3,000 | ) | | | — | | | | (48,000 | ) |
| Other income (expenses), net | | | 3,000 | | | | 3,000 | | | | 7,000 | | | | (3,000 | ) |
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| INCOME BEFORE INCOME TAXES | | | 1,675,000 | | | | 1,844,000 | | | | 3,154,000 | | | | 3,207,000 | |
| INCOME TAX PROVISION | | | (644,000 | ) | | | (757,000 | ) | | | (1,250,000 | ) | | | (1,316,000 | ) |
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| NET INCOME | | $ | 1,031,000 | | | $ | 1,087,000 | | | $ | 1,904,000 | | | $ | 1,891,000 | |
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| PER SHARE AMOUNT | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.16 | | | $ | 0.17 | | | $ | 0.29 | | | $ | 0.33 | |
| Diluted earnings per share | | $ | 0.15 | | | $ | 0.16 | | | $ | 0.28 | | | $ | 0.32 | |
| WEIGHTED AVERAGE SHARES OUTSTANDING Basic average shares outstanding | | | 6,535,498 | | | | 6,434,177 | | | | 6,516,999 | | | | 5,734,112 | |
| Diluted average shares outstanding | | | 6,696,681 | | | | 6,598,020 | | | | 6,684,195 | | | | 5,876,308 | |
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| FOR MORE INFORMATION, CONTACT: | | | | | | | | | | | | | | | | |
| Donald F. Fultz, Chief Financial Officer | | | | | | | | | | | | | | | | |
| don.fultz@sensytech.com | | | | | | | | | | | | | | | | |
| URL: www.sensytech.com | | | | | | | | | | | | | | | | |
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