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 FIRST QUARTER FINANCIAL RESULTS
Olathe, Kansas (September 10, 2007) - Elecsys Corporation (AMEX: ASY), today
announced the financial results for its first quarter ended July 31, 2007.
Sales for the quarter were $4,787,000, an increase of $925,000, or 24%, from
$3,862,000 in sales for the comparable period of fiscal 2007. Total consolidated
backlog at July 31, 2007 was approximately $10,583,000, a decrease of
$1,728,000, or 14%, from a total backlog of $12,311,000 on July 31, 2006 and an
increase of $180,000 from $10,403,000 on April 30, 2007.
Gross margin was approximately 32% of sales, or $1,515,000, for the quarter as
compared to 34% of sales, or $1,314,000, for the quarter ended July 31, 2006.
Operating income for the quarter was $354,000, as compared to $333,000 for the
same quarter in the prior year.
As a result of the above, net income was $174,000, or $0.05 per diluted share,
for the quarter ended July 31, 2007 as compared to $169,000, or $0.05 per
diluted share, reported for the quarter ended July 31, 2006.
Quarterly sales at DCI increased approximately $742,000 or 20% for the current
period as compared to the previous year due to both new and existing customer
orders. Sales volumes at NTG were approximately $351,000 for the quarter ended
July 31, 2007, an increase of $183,000, or 108%, from the first quarter of
fiscal 2007. The increase in sales at NTG was the result of new unit shipments
during the period in addition to an increase in recurring messaging revenues as
a result of the higher number of installed units. Due to the amount of shipments
scheduled from our backlog and the forecast of new orders, we anticipate
increases in sales volumes over the next few quarters at both DCI and NTG.
Karl B. Gemperli, Chief Executive Officer, remarked, "We continued to invest in
the growth of our business on many fronts during the quarter. At DCI, our
enhanced sales and customer management resources have enabled us to win several
significant new customers that we expect will further increase our revenues.
Simultaneously, customers have embraced the new technology offerings from NTG
that include both the globe-spanning wireless communication capabilities and the
innovative self-adapting mesh technology of NTG's new Pipeline
WatchdogCP product family. In addition to our existing businesses, our pending
acquisition of the assets of Radix International Corporation will further
broaden our business as we expand into the growing worldwide market for
ultra-rugged mobile computing devices. The strong value propositions that we
offer to our customers and the high level of service we provide continue to open
opportunities for growth and we are excited about our prospects during the
coming quarters."
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 assemblies and interface solutions for original equipment
manufacturers in the aerospace, communications, industrial product, medical, 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 data entry devices, with circuit boards and other electronic
components. NTG designs, markets, and provides wireless 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, 2007. 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
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July 31,
2007 2006
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Sales $4,787 $3,862
Cost of products sold 3,272 2,548
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Gross margin 1,515 1,314
Selling, general and administrative expenses 1,161 981
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Operating income 354 333
Financial income (expense):
Interest expense (102) (31)
Other income, net 14 4
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(88) (27)
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Income before income taxes 266 306
Income tax expense 92 137
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Net income $174 $169
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Net income per share information:
Basic $0.05 $0.05
Diluted $0.05 $0.05
Weighted average common shares outstanding:
Basic 3,285 3,240
Diluted 3,479 3,402
