Phazar (ANTP) 8-K PHAZAR CORP Announces Third Quarter Fiscal 2012 Financial Results

Exhibit 99.1

PHAZAR CORP Announces Third Quarter Fiscal 2012 Financial Results

MINERAL WELLS, Texas--(BUSINESS WIRE)--April 24, 2012--PHAZAR CORP, (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the unaudited results of operations for the three and nine month periods ended March 31, 2012.

Third Quarter Fiscal Year 2012

Revenues for the quarter were $1,485,107 down $506,571, or 25% from $1,991,678 for the third quarter of fiscal year 2011. The sales declines are largely attributable to significantly lower FAA related sales. The gross profit margin for the quarter, at 56% is up 20 percentage points from the 36% gross profit margin reported in the comparable period last year. The prior year gross profit margin was depressed due to start-up expenses related to new tower designs.

Sales and administrative expenses of $1,113,677 at March 31, 2012 were up $405,680, or 57% from $707,997 for the three month period in the prior year, reflecting an increase in the level of marketing wages and a one-time stock option grant. Research and development costs of $171,075 were up $76,501 from $94,574 last year, attributed to engineering costs on new antenna designs.

The Company recognized a net loss of $286,471, or $0.12 per share for the third quarter, compared to a net loss of $550,841, or $0.24 per share, in last year’s fiscal third quarter.

Nine Month Period Ending March 31, 2012

The Company reported revenues for the nine-month period of $4,992,692, a decrease of $1,856,818, or 27% compared to $6,849,510 for the comparable period last year. Net loss for the nine-month period was $402,255, or $0.17 per share compared to a net loss of $274,456, or $0.12 per share for the comparable period last year.

Backlog of Orders

The Company’s backlog of orders on March 31, 2012, totaled $1,449,250, down 27% compared to backlog of $1,985,379 at March 31, 2011 and down 36% from June 30, 2011. Incoming orders for the nine-month period ended March 31, 2012 totaled $4,190,148 versus $6,320,453 for the nine-month period ended March 31, 2011, a decrease of 34% year over year.

More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the third quarter ended March 31, 2012, estimated to be filed with the Securities and Exchange Commission in the middle of May, 2012.

The Form 10-Q will also be available at the SEC’s website at www.sec.gov and PHAZAR CORP’s website at www.phazarcorp.com.

Product information is available at www.antennaproducts.com and www.phazar.com.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.

PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended						Nine Months Ended
		March 31,						March 31,
			2012			2011				2012			2011
	(Unaudited)								(Unaudited)
Sales and contract revenues	$ 1,485,107				$	1,991,678			$	4,992,692		$	6,849,510
Cost of sales and contracts	651,211					1,276,435				2,703,592			4,001,801
Gross profit			833,896			715,243				2,289,100			2,847,709
Gross profit margin %	56			%		36	%			46	%		42	%
Selling, general and administration expenses	1,113,677					707,997				2,578,635			2,048,735
Research and development costs			171,075			94,574				397,935			547,106
Total operating expenses			1,284,752			802,571				2,976,570			2,595,841
Operating income (loss)			(450,856	)		(87,328	)			(687,470	)		251,868
Other income
Interest income	23,759					13,307				91,636			40,853
Other income	8,622					51				19,973			21,821
Total other income	32,381					13,358				111,609			62,674
Income (loss) from operations before income taxes	(418,475			)		(73,970	)			(575,861	)		314,542
Income tax expense (benefit)	(142,282			)		(1,490	)			(195,793	)		110,637
Net income (loss) before discontinued operations	(276,193			)		(72,480	)			(380,068	)		203,905
Loss from discontinued operations	(15,572			)		(724,789	)			(33,616	)		(724,789	)
Income tax benefit from discontinued operations	5,294					246,428				11,429			246,428
Net loss from discontinued operations			(10,278	)		(478,361	)			(22,187	)		(478,361	)
Net loss		$	(286,471	)	$	(550,841	)		$	(402,255	)	$	(274,456	)
Basic income (loss) per common share
Continuing operations		$	(0.12	)	$	(0.03	)		$	(0.16	)	$	0.09
Discontinued operations			-			(0.21	)			(0.01	)		(0.21	)
Net loss		$	(0.12	)	$	(0.24	)		$	(0.17	)	$	(0.12	)
Diluted income (loss) per common share
Continuing operations		$	(0.12	)	$	(0.03	)		$	(0.16	)	$	0.09
Discontinued operations			-			(0.21	)			(0.01	)		(0.21	)
Net loss		$	(0.12	)	$	(0.24	)		$	(0.17	)	$	(0.12	)
Basic weighted average of common shares outstanding			2,315,080			2,307,588				2,313,264			2,305,987
Diluted weighted average of common shares outstanding			2,315,080			2,310,510				2,313,264			2,308,853

PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	March 31, 2012 (Unaudited)			June 30, 2011
CURRENT ASSETS
Cash and cash equivalents	$	857,430		$	1,169,318
Accounts receivable:
Trade, net of allowance for doubtful accounts of $0
as of March 31, 2012 and June 30, 2011		688,736			785,664
Inventories		2,675,766			2,732,232
Prepaid expenses and other assets		52,445			125,989
Income taxes receivable		29,321			236,366
Deferred income taxes		224,875			224,875
Total current assets		4,528,573			5,274,444
Property and equipment, net		1,030,955			1,043,435
Note receivable		1,363,053			963,684
Deferred income tax – non-current		430,877			252,617
TOTAL ASSETS	$	7,353,458		$	7,534,180
CURRENT LIABILITIES
Accounts payable	$	194,407		$	216,575
Accrued liabilities		383,086			284,969
Deferred revenues		4,620			2,355
Liabilities held for discontinued operations		114,571			178,060
Total current liabilities		696,684			681,959
TOTAL LIABILITIES	$	696,684		$	681,959
COMMITMENTS AND CONTINGENCIES	$	-		$	-
SHAREHOLDERS’ EQUITY
Preferred Stock, $1 par, 2,000,000 shares authorized, none issued
or outstanding, attributes to be determined when issued		-			-
Common stock, $0.01 par, 6,000,000 shares authorized
2,390,628 and 2,385,128 issued on March 31, 2012 and June 30, 2011, respectively		23,907			23,852
Additional paid in capital		4,723,987			4,517,234
Treasury stock, at cost, 74,691 shares on March 31, 2012 and June 30, 2011		(215,918	)		(215,918	)
Retained earnings		2,124,798			2,527,053
Total shareholders’ equity		6,656,774			6,852,221
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	7,353,458		$	7,534,180

PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months Ended
	March 31, 2012 (Unaudited)				March 31, 2011 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(402,255	)		$	(274,456	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		97,040				98,784
Loss from discontinued operations		22,187				-
Stock based compensation		206,808				84,829
Deferred federal income tax		(178,260	)			(104,040	)
Changes in operating assets and liabilities:
Accounts receivable		96,928				4,887
Inventories		56,466				463,899
Income taxes receivable		207,045				25,538
Prepaid expenses and other assets		73,544				29,781
Accounts payable		(22,168	)			(496,463	)
Accrued liabilities		98,117				118,202
Deferred revenues		2,265				(3,716	)
Net cash used in discontinued operations		(85,676	)			-
Net cash provided by (used in) operating activities		172,041				(52,755	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Funding of note receivable		(399,369	)			(323,000	)
Purchase of property and equipment		(84,560	)	��		(16,003	)
Net cash used in investing activities		(483,929	)			(339,003	)
Net decrease in cash and cash equivalents		(311,888	)			(391,758	)
CASH AND CASH EQUIVALENTS, beginning of period		1,169,318				1,403,839
CASH AND CASH EQUIVALENTS, end of period	$	857,430			$	1,012,081

CONTACT:
PHAZAR CORP
Kathy Kindle, 940-325-3301
Fax: 940-325-0716
kindle@phazarcorp.com