EXHIBIT 99.1
NEWS RELEASE
| For Release on May 11, 2005 | Contact: Mark H. Cosmez II | |
| 4:00 PM (ET) (925) 328-4656 | Vice President, Finance/Chief Financial Officer |
Giga-tronics Reports Fourth Quarter and FY 2005 Results
San Ramon, CA —Giga-tronics, Incorporated (NASDAQ: GIGA) reported today that net sales for fiscal year 2005 were $21,477,000, up 23% from $17,491,000 a year ago. Net income from continuing operations was $845,000 or $0.18 per fully diluted share versus a net loss from continuing operations of $4,444,000 or $0.94 per fully diluted share last year.
For the fiscal year ended March 26, 2005, net profit was $612,000 or $0.13 per fully diluted share versus a net loss of $6,821,000 or $1.45 per fully diluted share for the same period a year ago.
In the fourth quarter, net sales were $5,268,000, up 60% from $3,295,000 in the same quarter for the prior year. Net profit for the period was $203,000 or $0.04 per fully diluted share compared with a net loss of $1,712,000 or $0.36 per fully diluted share for the same period a year ago. Income from continuing operations for the fourth quarter was $222,000 or $0.05 per fully diluted share compared to a loss from continuing operations of $1,727,000 or $0.36 per fully diluted share for the same period a year ago.
New orders from continuing operations have increased over the last two quarters. Orders from continuing operations increased 133% in the fourth quarter of FY 2005 from the same quarter a year ago. Our book-to-bill ratio in the fourth quarter of fiscal 2005 was 2.31 compared to 1.58 in the fourth quarter of fiscal 2004.
Orders booked in the fourth quarter from continuing operations were $12,162,000 compared to $5,210,000 last year and for the 2005 fiscal year were $20,914,000 compared to $17,109,000 a year ago. Backlog at quarter end was $15.8 million (approximately $8.1 million is shippable within one year) as compared to $16.4 million (approximately $7.5 million shippable within one year) in the fourth quarter of the prior year.
Cash and cash equivalents at March 26, 2005 were $2,540,000 compared to $2,752,000 as of March 27, 2004.
Giga-tronics will host a conference call today at 4:30 PM ET to discuss the fourth quarter and full fiscal year results. To participate in the call, dial 612-332-0923. The call will also be broadcast over the internet at www.gigatronics.com under “Corporate Info/Investor Relations”. The conference call discussion reflects management’s views as of May 11, 2005 only.
Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in both defense electronics and wireless telecommunications.
Giga-tronics is a publicly held company, traded on the NASDAQ under the symbol “GIGA”.
This press release contains forward-looking statements concerning profitability, backlog and shipments. Actual results may differ significantly due to risks and uncertainties, such as future orders, cancellations or deferrals, disputes over performance and the ability to collect receivables. For further discussion, see Giga-tronics’ annual report on Form 10-K for the fiscal year ended March 27, 2004 Part I, under the heading “Certain Factors Which May Adversely Affect Future Operations or an Investment in Giga-tronics” and Part II, under the heading “Management’s Discussion and Analysis of Financial Conditions and Results of Operations”.
GIGA-TRONICS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (In thousands except share data) | March 26, 2005 | March 27, 2004 | ||||||
Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,540 | $ | 2,752 | ||||
| Notes receivable | 7 | 253 | ||||||
| Trade accounts receivable, net of allowance of $77 and $339, respectively | 3,145 | 1,959 | ||||||
| Inventories | 6,257 | 6,920 | ||||||
| Prepaid expenses and other current assets | 227 | 271 | ||||||
Total current assets | 12,176 | 12,155 | ||||||
| Property and equipment, net | 674 | 1,251 | ||||||
| Other assets | 111 | 327 | ||||||
| Total assets | $ | 12,961 | $ | 13,733 | ||||
Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,075 | $ | 1,686 | ||||
| Accrued commissions | 200 | 293 | ||||||
| Accrued payroll and benefits | 720 | 889 | ||||||
| Accrued warranty | 378 | 548 | ||||||
| Customer advances | 2 | 58 | ||||||
| Obligations under capital lease | — | 10 | ||||||
| Other current liabilities | 464 | 674 | ||||||
Total current liabilities | 2,839 | 4,158 | ||||||
| Deferred rent | 310 | 379 | ||||||
Total liabilities | 3,149 | 4,537 | ||||||
| Shareholders’ equity | ||||||||
| Common stock | 12,756 | 12,752 | ||||||
| Retained earnings (accumulated deficit) | (2,944 | ) | (3,556 | ) | ||||
Total shareholders’ equity | 9,812 | 9,196 | ||||||
Total liabilities and shareholders’ equity | $ | 12,961 | $ | 13,733 | ||||
GIGA-TRONICS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| (In thousands except share data) | March 26, 2005 | March 27, 2004 | March 26, 2005 | March 27, 2004 | ||||||||||||||||
Net sales | $ | 5,268 | $ | 3,295 | $ | 21,477 | $ | 17,491 | ||||||||||||
| Cost of sales | 2,945 | 2,927 | 11,879 | 12,755 | ||||||||||||||||
Gross profit | 2,323 | 368 | 9,598 | 4,736 | ||||||||||||||||
| Product development | 905 | 952 | 3,370 | 3,766 | ||||||||||||||||
| Selling, general and administrative | 1,208 | 1,140 | 5,390 | 5,413 | ||||||||||||||||
| Operating expenses | 2,113 | 2,092 | 8,760 | 9,179 | ||||||||||||||||
Operating income (loss) | 210 | (1,724 | ) | 838 | (4,443 | ) | ||||||||||||||
| Other income (expense), net | 15 | — | 11 | (4 | ) | |||||||||||||||
| Interest (expense) income, net | (3 | ) | (3 | ) | — | 7 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 222 | (1,727 | ) | 849 | (4,440 | ) | ||||||||||||||
| Provision for income taxes | — | — | 4 | 4 | ||||||||||||||||
Income (loss) from continuing operations | $ | 222 | $ | (1,727 | ) | $ | 845 | $ | (4,444 | ) | ||||||||||
| Income (loss) on discontinued operations, net of income taxes | (19 | ) | 15 | (233 | ) | (2,377 | ) | |||||||||||||
Net income (loss) | $ | 203 | $ | (1,712 | ) | $ | 612 | $ | (6,821 | ) | ||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||
| From continuing operations | $ | 0.05 | $ | (0.36 | ) | $ | 0.18 | $ | (0.94 | ) | ||||||||||
| On discontinued operations | (0.01 | ) | 0.00 | (0.05 | ) | (0.51 | ) | |||||||||||||
| Basic net income (loss) per share | $ | 0.04 | $ | (0.36 | ) | $ | 0.13 | $ | (1.45 | ) | ||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||
| From continuing operations | $ | 0.05 | $ | (0.36 | ) | $ | 0.18 | $ | (0.94 | ) | ||||||||||
| On discontinued operations | (0.01 | ) | 0.00 | (0.05 | ) | (0.51 | ) | |||||||||||||
| Diluted net income (loss) per share | $ | 0.04 | $ | (0.36 | ) | $ | 0.13 | $ | (1.45 | ) | ||||||||||
| Shares used in per share calculation: | ||||||||||||||||||||
| Basic | 4,727 | 4,717 | 4,725 | 4,704 | ||||||||||||||||
| Dilutive | 4,802 | 4,717 | 4,741 | 4,704 | ||||||||||||||||