Exhibit 99.1
| For: TECHNOLOGY RESEARCH CORPORATION | Contact: Thomas G. Archbold |
| 5250 140th Avenue North | Chief Financial Officer |
| Clearwater, Florida 33760 | Tel: (727) 812-0659 |
| Owen Farren, President and CEO | Fax: (727) 535-9691 |
| Web Page: www.trci.net |
TECHNOLOGY RESEARCH CORPORATION REPORTS SECOND QUARTER FINANCIAL RESULTS
CLEARWATER, FLORIDA, November 5, 2009 - Technology Research Corporation (“TRC”), (NASDAQ-TRCI), today announced revenue and earnings for its second fiscal quarter ended September 30, 2009.
Revenue was $9.6 million for the fiscal quarter ended September 30, 2009, an increase of $0.3 million from revenue of $9.3 million for the fiscal quarter ended September 30, 2008. Net income for the second fiscal quarter ended September 30, 2009 was $1.2 million or $.20 per diluted common share compared with net income of $0.9 million or $0.16 per diluted common share for the fiscal quarter ended September 30, 2008.
Orders for the second fiscal quarter were $5.1 million, a decrease of $3.4 million from the same fiscal quarter last year. Military orders were $1.2 million, a decrease of $2.4 million from the second fiscal quarter of the previous year and commercial orders were $3.9 million, a decrease of $1.0 million from the second quarter of the prior year.
Net cash and cash equivalents and short-term investments were approximately $11.1 million at September 30, 2009, an increase of approximately $5.1 million from March 31, 2009. Inventories decreased approximately $1.7 million from $8.0 million at March 31, 2009 to $6.3 million at September 30, 2009.
Owen Farren, President & CEO said, “Our second fiscal quarter was strong primarily due to the timing of delivery requirements of our military business being heavily weighted to the first half of our fiscal year. This resulted in increased gross margin due to sales mix as well as improved overhead absorption related to the increased production volume.
We anticipate that our military revenue will return to prior year levels in the second half of FY10. While we expect our operating results for the second half of FY10 will be profitable, we continue to be impacted on the commercial side by weakness in our traditional markets.”
The first quarter dividend of $.02 per share was paid on October 15, 2009 to shareholders of record as of September 30, 2009.
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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 INCOME |
(In thousands, except share and per share data) (Unaudited) |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue: | ||||||||||||||||
Commercial | $ | 3,679 | 5,526 | 7,044 | 11,088 | |||||||||||
Military | 5,901 | 3,697 | 12,109 | 6,685 | ||||||||||||
Royalty | 47 | 74 | 173 | 155 | ||||||||||||
| Total revenue | 9,627 | 9,297 | 19,326 | 17,928 | ||||||||||||
Cost of sales | 5,721 | 5,773 | 11,370 | 11,870 | ||||||||||||
| Gross profit | 3,906 | 3,524 | 7,956 | 6,058 | ||||||||||||
| Operating expenses: | ||||||||||||||||
Selling and marketing | 608 | 824 | 1,280 | 1,511 | ||||||||||||
| General and administrative | 994 | 1,323 | 1,998 | 2,570 | ||||||||||||
Research and development | 658 | 593 | 1,331 | 1,130 | ||||||||||||
| Total operating expenses | 2,260 | 2,740 | 4,609 | 5,211 | ||||||||||||
Income from operations | 1,646 | 784 | 3,347 | 847 | ||||||||||||
Other income (expense): | ||||||||||||||||
| Other income, net | 2 | 362 | 5 | 380 | ||||||||||||
Interest expense | - | (4) | - | (4 | ) | |||||||||||
| Other income, net | 2 | 358 | 5 | 376 | ||||||||||||
Income before income taxes | 1,648 | 1,142 | 3,352 | 1,223 | ||||||||||||
| Income tax expense | 431 | 204 | 920 | 227 | ||||||||||||
Net income | $ | 1,217 | 938 | 2,432 | 996 | |||||||||||
Earnings per share - basic | $ | 0.20 | 0.16 | 0.41 | 0.17 | |||||||||||
Earnings per share - diluted | $ | 0.20 | 0.16 | 0.40 | 0.17 | |||||||||||
Shares outstanding - basic | 5,891,828 | 5,890,828 | 5,891,828 | 5,890,828 | ||||||||||||
Shares outstanding - diluted | 5,985,691 | 5,899,593 | 5,944,280 | 5,901,197 | ||||||||||||
| TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) (Unaudited) |
September 30, | March 31, | ||||||||
ASSETS | 2009 | 2009 | |||||||
Current assets: | |||||||||
| Cash and cash equivalents | $ | 7,068 | 2,954 | ||||||
Short-term investments | 4,000 | 3,996 | |||||||
| Trade and other accounts receivable, net of allowance for doubtful | |||||||||
accounts of $135 at September 30, 2009 and $203 at March 31, 2009 | 5,421 | 5,372 | |||||||
Income taxes receivable | 261 | 631 | |||||||
| Inventories, net | 6,306 | 8,013 | |||||||
Deferred income taxes | 753 | 622 | |||||||
| Prepaid expenses and other current assets | 180 | 265 | |||||||
Total current assets | 23,989 | 21,853 | |||||||
Property, plant and equipment, net of accumulated depreciation of | |||||||||
| $10,105 and $9,852, respectively | 2,736 | 3,189 | |||||||
Intangible asset, net of accumulated amortization of $208 and $178, respectively | 375 | 404 | |||||||
| Deferred income taxes | 100 | - | |||||||
Other assets | 33 | 33 | |||||||
Total assets | $ | 27,233 | 25,479 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Trade accounts payable | $ | 1,351 | 1,309 | ||||||
| Unsettled treasury obligation | - | 998 | |||||||
| Accrued expenses | 1,507 | 1,422 | |||||||
Accrued dividends | 121 | 121 | |||||||
Total current liabilities | 2,979 | 3,850 | |||||||
| Income taxes payable | 330 | 111 | |||||||
Deferred income taxes | - | 37 | |||||||
Total liabilities | 3,309 | 3,998 | |||||||
| Stockholders' equity: | |||||||||
Common stock $0.51 par value; 10,000,000 shares authorized, 5,913,328 shares and | |||||||||
5,912,328 issued and 5,891,828 shares and 5,890,828 outstanding, respectively | 3,016 | 3,015 | |||||||
| Additional paid-in capital | 10,233 | 9,982 | |||||||
Retained earnings | 10,715 | 8,524 | |||||||
| Common stock held in treasury, 21,500 shares at cost | (40 | ) | (40 | ) | |||||
Total stockholders' equity | 23,924 | 21,481 | |||||||
| Total liabilities and stockholders' equity | $ | 27,233 | 25,479 | ||||||