Exhibit 99.1
December 20, 2001
FOR IMMEDIATE RELEASE:
Contact: Michael J. Meyer
Chairman
15301 W. 109th Street
Lenexa, Kansas 66219 USA
(913) 647-0158 o FAX (913) 982-5766
ELECSYS CORPORATION REPORTS SECOND QUARTER RESULTS
Lenexa, Kansas. (December 20, 2001) - Elecsys Corporation (AMEX: ASY) today
reported results for the second quarter and six months ended of the Company's
2002 fiscal year.
The Company reported a loss from continuing operations for the quarter ended
October 31, 2001 of $1.0 million versus a loss of $95,000 for the quarter ended
October 31, 2000, on an 11% increase in sales to $2.0 million compared to $1.8
million in the comparable period of the prior year. For the six months ended
October 31, 2001 the loss from continuing operations was $1.1 million compared
to a loss of $191,000 for the six months of the prior year. Sales increased from
$3.5 million for the six months ended October 31, 2000 to $3.7 million for the
comparable period of this fiscal year. The primary contributors to the loss on
continuing operations for the quarter and six month periods were a $315,000
restructuring charge associated with the restructuring of the Company's
management, a one-time adjustment to the market value of inventory, increased
sales compensation expense, lower gross margins associated with the start up of
new customers, and the Company's changing mix of business to larger OEM's.
The Company completed the sale of its Airport Systems International, Inc.
subsidiary on September 11, 2001. As a result of that sale, losses on
discontinued operations of $292,000 and $497,000 were reported for the three
months and six months ended October 31, 2001, respectively, compared to a loss
from discontinued operations of $113,000 and income from discontinued operations
of $120,000 for the comparable periods of the prior fiscal year. In addition,
the Company reported a loss on the sale of discontinued operations of $291,000
for the three and six month periods ending October 31, 2001.
The consolidated net loss reported for the quarter and six months ended October
31, 2001 was $1.6 million and $1.9 million, respectively, compared to net losses
of $208,000 and $71,000 for the comparable periods of the prior year.
Michael J. Meyer, Chairman, stated "While we were extremely disappointed with
the financial performance of the second quarter, the sale of Airport Systems was
an important accomplishment in our efforts to return Elecsys to profitability
and we have reduced management and overhead expenses subsequent to the sale."
"With respect to continuing operations," Meyer continued, "our electronic
manufacturing services (EMS) unit, DCI, is experiencing meaningful sales gains
and a growing backlog in a difficult economy. We have been pleased with the
increase in the number of new large OEM customers who have selected us for their
EMS needs as a result of our increased sales efforts. We are also
implementing a number of changes in our Liquid Crystal Display (LCD) and
equipment businesses to improve profitability, which we expect will have a
favorable impact in the third quarter."
Elecsys Corporation, through it's DCI subsidiary, provides specialized
electronic design, manufacturing and test services to original equipment
manufacturers (OEM's) and manufactures and imports custom liquid crystal display
(LCD) devices. The electronic assemblies it designs and manufactures, including
circuit board assemblies, electronic modules and full turn-key products, along
with the LCD's it manufactures or imports, are used in medical, aerospace,
industrial and consumer product applications.
http://www.elecsyscorp.com/
The discussions set forth in this press release may contain forward-looking
comments based on current expectations that involve a number of risks and
uncertainties. Actual results could differ materially from those projected or
suggested in the forward-looking comments. The difference could be caused by a
number of factors, including, but not limited to the factors and conditions that
are described in Elecsys Corporation's SEC filings, including the Form 10-KSB
for the year ended April 30, 2001. The reader is cautioned that Elecsys
Corporation does not have a policy of updating or revising forward-looking
statements and thus he or she should not assume that silence by management of
Elecsys Corporation over time means that actual events are bearing out as
estimated in such forward-looking statements.
