Exhibit 99.1 |
NEWS RELEASE
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846 N. Mart-Way Court, Olathe, Kansas 66061 Phone: 913-647-0158 Fax: 913-647-0132
investorrelations@elecsyscorp.com
FOR IMMEDIATE RELEASE:
Contact: Karl B. Gemperli
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
ELECSYS CORPORATION REPORTS THIRD QUARTER FINANCIAL RESULTS
Olathe, Kansas (March 12, 2007) - Elecsys Corporation (AMEX: ASY), today
announced its financial results for the third quarter ended January 31, 2007.
Sales for the quarter were $5,173,000, an increase of $1,522,000, or 42%, from
the comparable period of fiscal 2006. For the nine months ended January 31,
2007, sales were $14,631,000, an increase of $3,954,000, or 37%, from the nine
months ended January 31, 2006. Total backlog at January 31, 2007 was $9,809,000,
a decrease of $1,002,000, or 9%, from a total backlog of $10,811,000 on January
31, 2006 and a decrease of $900,000 from a total backlog of $10,709,000 on
October 31, 2006.
Gross margin was approximately 28% of sales, or $1,448,000, for the quarter as
compared to 32% of sales, or $1,183,000, for the quarter ended January 31, 2006.
For the nine-month period ended January 31, 2007, gross margin was 30%, or
$4,422,000, compared to 32%, or $3,373,000, for the nine-month period ended
January 31, 2006.
Operating income for the quarter was $297,000, an increase of 7% as compared to
$277,000 for the same quarter in the prior year. For the nine-month period ended
January 31, 2007, operating income was $1,120,000, or 58% higher, as compared to
$711,000 for the same period in the prior fiscal year.
As a result of the above, net income was $310,000, or $0.09 per diluted share,
for the quarter ended January 31, 2007. For the quarter ended January 31, 2006
net income was $100,000, or $0.03 per diluted share. For the nine-month period
ended January 31, 2007, net income was $720,000, or $0.21 per fully diluted
share, including a $324,000 gain, net of selling expenses, on the sale of our
Lenexa facility, as compared to $471,000, or $0.14 per fully diluted share,
which included a loss on debt retirement of $124,000, for the nine-month period
ended January 31, 2006.
The increase in sales for the quarter was due to both new and existing customer
orders in each of our product lines at DCI, including a significant increase in
sales to one of our newer customers to help them meet the requirements of a
certain contract at the beginning of the quarter. Sales at NTG decreased 13%
from the third quarter of the previous fiscal year as a result of fewer unit
shipments during the period slightly offset by an increase in recurring
messaging services revenue, which grew by 99% over the comparable period and was
primarily the result of an overall increase in the number of revenue generating
units deployed in the field. Our improvement in gross margin dollars resulted
from the increase in sales volumes while overall product mix led to a slight
decrease in gross margin percentage. The increase in operating expenses was
primarily driven by moving and relocation expenses, support engineering and
related customer support expenses as well as increases in personnel and
personnel-related expenses resulting from our growth. Sales volumes at DCI
during the fourth quarter of fiscal 2007 are expected to be similar to the sales
volumes achieved in the current period. We also expect that over the next few
quarters DCI sales volumes will continue to be higher than in the comparable
periods of prior respective fiscal years. Sales at NTG are expected to be higher
over the next few quarters as sales are expected to show steady growth as new
satellite-and digital-based products are brought to the market.
Karl B. Gemperli, Chief Executive Officer, remarked, "We are very pleased with
our substantial revenue growth relative to last year. The full implementation of
our new facility provides a solid platform for expansion as we continue to
enhance our capabilities. Going forward, we expect our growth to continue
through increased sales to existing customers in addition to the development of
new business prospects."
Elecsys Corporation is a publicly traded holding company with two wholly owned
subsidiaries, DCI, Inc. and NTG, Inc. DCI designs, manufactures, and integrates
custom electronic interface solutions for original equipment manufacturers in
the medical, aerospace, communications, industrial product, and other
industries. DCI has specialized capabilities to design and efficiently
manufacture custom electronic assemblies which integrate a variety of interface
technologies, such as custom liquid crystal displays, light emitting diode
displays, and keypads, with circuit boards and other electronic components. NTG
designs, markets, and provides remote monitoring solutions for the gas and oil
pipeline industry as well as other industries requiring remote monitoring
solutions. For more information, visit our website at www.elecsyscorp.com.
Safe-Harbor statement: 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, 2006. 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.
Elecsys Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
2007 2006 2007 2006
---- ---- ---- ----
Sales $5,173 $3,651 $14,631 $10,677
Cost of products sold 3,725 2,468 10,209 7,304
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Gross margin 1,448 1,183 4,422 3,373
Selling, general and administrative
expenses 1,151 906 3,302 2,662
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Operating income 297 277 1,120 711
Financial income (expense):
Interest expense (104) (43) (224) (108)
Loss on debt retirement -- (124) -- (124)
Gain on sale of Lenexa facility 324 -- 324 --
Interest income 3 1 9 4
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223 (165) 109 (228)
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Income before income taxes 520 112 1,229 483
Income tax expense 210 12 509 12
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Net income $310 $100 $720 $471
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Net income per share information:
Basic $0.10 $0.03 $0.22 $0.15
Diluted $0.09 $0.03 $0.21 $0.14
Weighted average common shares outstanding:
Basic 3,262 3,240 3,246 3,240
Diluted 3,410 3,399 3,387 3,393
