Exhibit 99.1
TECHNOLOGY RESEARCH CORPORATION REPORTS THIRD QUARTER FINANCIAL
RESULTS REFLECTING STRONG REVENUE AND EARNINGS GROWTH
CLEARWATER, FLORIDA, January 30, 2006 -- Technology Research Corporation (“TRC”), (NASDAQ-TRCI),
today announced revenues and earnings for its third fiscal quarter ended December 31, 2005.
Revenues were $11.4 million compared with $9.7 million reported in the same quarter last year, an increase of 17%.
Net income for the third fiscal quarter ended December 31, 2005 was $.8 million compared with net income of
$.2 million for the fiscal quarter ended December 31, 2004. Diluted net income is $.14 per share for the current quarter
compared with diluted net income of $.03 per share for the same quarter last year.
Robert S. Wiggins, Chairman, President & CEO said, “I am very pleased with the Company’s financial performance
during our third fiscal quarter of 2006. Our revenue and net income are both third quarter records and significantly
ahead of our third quarter results for the prior year. The Company’s income before tax is an all time quarterly record.
Our balance sheet has also improved significantly. Total debt declined by $1.6 million from the end of the prior quarter
and $2.4 million from the beginning of this 2006 fiscal year.” Wiggins continued, “Although we still have several
remaining challenges with our RAC business, we have resolved many of the operational issues we faced last year and
earlier in this fiscal year. To further help penetrate the room air conditioner market, during the quarter we announced
that we had entered into a strategic alliance with Defond Manufacturing Ltd., of Hong Kong and its North American
affiliate DNA Group, Inc. This relationship strengthens our sales presence with the Chinese manufacturers of RAC
equipment while providing cost effective, quality products to our customers.” Wiggins added, “In our fiscal fourth
quarter we expect to continue the momentum gained during the third quarter with further improvement in both revenue
and earnings per share.”
The third quarter dividend of $.015 per share was paid on January 20, 2006 to shareholders of record on
December 30, 2005.
OTHER QUARTERLY HIGHLIGHTS
In November and December TRC announced significant new orders with Karcher, a major sprayer/washer manufacturer
totaling $3.3 million. We expect to ship approximately $1.3 million of these new orders during the remainder of this fiscal
year (which ends March 31, 2006), and the remaining $2 million will ship during the next fiscal year.
TRC also announced $2.3 million in new orders, primarily for spare parts, for the U.S. military. Delivery of these new
orders is expected during the fiscal fourth quarter.
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TRC is an internationally recognized leader in electrical safety products that prevent electrocution and electrical fires and
protect against serious injury from electrical shock. Based on its core technology in ground fault sensing, products are
designed to meet the needs of the consumer, commercial and industrial markets worldwide. The Company also supplies
power monitors and control equipment to the United States Military and its prime contractors. Safe Harbor Statement
under the Private Securities Litigation Reform Act of 1995: Some of the statements in this report constitute forward-looking
statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act
of 1934.
These statements are related to future events, other future financial performance or business strategies, and may be identified
by terminology such as "may," "will," "should," "expects," "scheduled," "plans," "intends," "anticipates," "believes," "estimates,"
"potential," or "continue," or the negative of such terms, or other comparable terminology. These statements are only
predictions. Actual events as well as results may differ materially. In evaluating these statements, you should specifically
consider the factors described throughout this report. We cannot be assured that future results, levels of activity, performance
or goals will be achieved.
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three-months ended _____Nine-months ended____________
December 31 December 31 December 31 December 31
2005 2004 2005 2004
Operating revenues:
Commercial $ 7,858,376 6,822,319 21,324,243 14,830,849
Military 3,495,926 2,879,845 9,268,494 9,014,404
Royalties - - 2,631 - 60,013
11,354,302 9,704,795 30,592,737 23,905,266
Operating expenses:
Cost of sales 8,501,716 7,652,981 23,668,111 17,088,245
Selling, general, and administrative 1,351,116 1,322,936 4,243,190 3,653,948
Research, development and engineering 418,827 565,433 1,444,250 1,533,327
10,271,659 9,541,350 29,355,551 22,275,520
Operating income 1,082,643 163,445 1,237,186 1,629,746
Interest and sundry income (expense) (49,933) 5,853 (144,361) 19,723
Income before income taxes 1,032,710 169,298 1,092,825 1,649,469
Income tax expense 206,542 6,385 218,565 494,841
Net income $ 826,168 162,913 874,260 1,154,628
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Net income per common share:
Basic $ .14 .03 .15 ..20
Diluted $ ..14 .03 .15 .19
Weighted average number of common
shares outstanding:
Basic 5,783,500 5,756,292 5,778,325 5,752,015
Diluted 5,811,161 5,913,005 5,828,818 5,955,391
Dividends paid $ ..015 ..015 ..045 ..045
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
*
December 31 March 31
ASSETS 2005 2005
Current assets:
Cash and cash equivalents $ 1,216,631 815,411
Short-term investments 498,127 487,072
Accounts receivable, net 9,013,913 13,114,548
Inventories 11,131,614 11,460,302
Prepaid expenses and other current assets 318,235 514,922
Deferred income taxes 461,161 488,413
Total current assets 22,639,681 26,880,668
Property, plant and equipment 14,153,295 13,560,106
Less accumulated depreciation 9,019,506 8,089,950
Net property, plant and equipment 5,133,789 5,470,156
Other assets 64,658 96,004
$ 27,838,128 32,446,828
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 1,000,200 3,000,000
Trade accounts payable 5,488,280 7,970,920
Accrued expenses 906,035 1,327,944
Dividends payable 100,461 100,175
Income taxes payable 115,312 112,239
Total current liabilities 7,610,088 12,511,278
Long-term debt 2,000,000 2,350,000
Deferred income taxes 337,956 378,143
Total liabilities 9,948,044 15,239,421
Stockholders' equity:
Common stock 2,961,889 2,955,641
Additional paid-in capital 8,545,458 8,483,237
Retained earnings 6,422,882 5,808,674
Treasury stock, 21,500 shares at cost (40,145) (40,145)
Total stockholders' equity 17,890,084 17,207,407
$ 27,838,128 32,446,828
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* The condensed consolidated balance sheet is derived from the Companys audited balance sheet as of that date.
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