Exhibit 99.1
TECHNOLOGY RESEARCH CORPORATION REPORTS STRONG SECOND QUARTER FINANCIAL RESULTS
ON FLAT QUARTERLY REVENUES
CLEARWATER, FLORIDA, November 14, 2008 -- Technology Research Corporation (“TRC”), (NASDAQ-TRCI), today announced revenues and earnings for its second fiscal quarter ended September 30, 2008.
Revenues were $9.3 million for both the quarters ended September 30, 2008 and 2007. Net income for the second fiscal quarter ended September 30, 2008 was $0.9 million or $.16 per diluted common share compared with net income of $0.4 million or $.07 per diluted common share for the fiscal quarter ended September 30, 2007.
Orders for the second quarter were $8.5 million, a decrease of $0.8 million from the same quarter last year. Military orders were $3.6 million, a decrease of $0.2 million from the second quarter of the previous year and Commercial orders were $4.9 million, a decrease of $0.6 million from the second quarter of the prior year.
Results of operations for the quarter ended September 30, 2008 include $0.6 million of gross profit from the disposition of inventory and settlement of purchase obligations, and $0.4 million of other income from a legal settlement.
Cash and cash equivalents and short-term investments were approximately $5.5 million at September 30, 2008, an increase of approximately $1.9 million from last year-end.
Owen Farren, President & CEO said, “Although year to year the company’s results reflect the current economic conditions, Military bookings and revenue have increased in the second quarter over the first quarter as a result of the Supplemental Appropriations Act, 2008, authorizing additional military spending being signed into law on June 30. These higher military revenues have improved our profitability, even as the company has continued to increase its engineering and development spending. The increased engineering investments will continue to accelerate our product development and value engineering initiatives. These developments are crucial to future revenue growth and strengthening our positions in designated key markets.”
The first quarter dividend of $.02 per share was paid on October 17, 2008 to shareholders of record on September 30, 2008.
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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 | ||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Sept 30 | Sept 30 | Sept 30 | Sept 30 | |||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Commercial | 5,600 | 5,306 | 11,243 | 11,212 | ||||||||||||
| Military | 3,697 | 3,953 | 6,685 | 7,705 | ||||||||||||
| 9,297 | 9,259 | 17,928 | 18,917 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of sales | 5,773 | 6,405 | 11,870 | 13,223 | ||||||||||||
| Selling, general and administrative | 2,147 | 1,864 | 4,081 | 3,586 | ||||||||||||
| Research, development and engineering | 593 | 471 | 1,130 | 903 | ||||||||||||
| 8,513 | 8,740 | 17,081 | 17,712 | |||||||||||||
| Operating income | 784 | 519 | 847 | 1,205 | ||||||||||||
| Interest and sundry income | 358 | 38 | 376 | 37 | ||||||||||||
| Income before income taxes | 1,142 | 557 | 1,223 | 1,242 | ||||||||||||
| Income tax expense | 204 | 156 | 227 | 358 | ||||||||||||
| Net income | 938 | 401 | 996 | 884 | ||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | 0.16 | 0.07 | 0.17 | 0.15 | ||||||||||||
| Diluted | 0.16 | 0.07 | 0.17 | 0.15 | ||||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 5,890,828 | 5,888,828 | 5,890,828 | 5,888,828 | ||||||||||||
| Diluted | 5,899,593 | 5,921,154 | 5,901,197 | 5,929,621 | ||||||||||||
| Dividends Paid | 0.02 | 0.02 | 0.04 | 0.04 | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| * | ||||||||
| ASSETS | September 30, | March 31, | ||||||
| 2008 | 2007 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 1,507 | 2,132 | ||||||
| Short-term investments | 3,992 | 1,495 | ||||||
| Accounts receivable, net | 5,207 | 6,573 | ||||||
| Other receivables-current | 892 | 869 | ||||||
| Income taxes receivable | 721 | 197 | ||||||
| Inventories | 7,915 | 7,788 | ||||||
| Prepaid expenses and other current assets | 220 | 258 | ||||||
| Deferred income taxes | 659 | 1,446 | ||||||
| Total current assets | 21,113 | 20,758 | ||||||
| Property, plant and equipment | 15,428 | 15,288 | ||||||
| Less accumulated depreciation | 12,028 | 11,604 | ||||||
| Net property, plant and equipment | 3,400 | 3,684 | ||||||
| Intangible assets (net) | 434 | 463 | ||||||
| Other assets | 37 | 45 | ||||||
| 24,984 | 24,950 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | 2,615 | 3,111 | ||||||
| Accrued expenses | 1,377 | 1,781 | ||||||
| Dividends payable | 132 | 132 | ||||||
| Total current liabilities | 4,124 | 5,024 | ||||||
| Deferred income taxes | 1 | 37 | ||||||
| Total liabilities | 4,125 | 5,061 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 3,015 | 3,015 | ||||||
| Additional paid-in capital | 9,778 | 9,568 | ||||||
| Retained earnings | 8,106 | 7,346 | ||||||
| Treasury stock, 21,500 shares at cost | (40 | ) | (40 | ) | ||||
| Total stockholders' equity | 20,859 | 19,889 | ||||||
| 24,984 | 24,950 | |||||||
| *The condensed consolidated balance sheet is derived from the Company's audited balance sheet as of that date. | ||||||||