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NEWS RELEASE
846 N. Mart-Way Court, Olathe, Kansas 66061 Phone: 913-647-0158
Fax: 913-647-0132
investorrelations@elecsyscorp.com
FOR IMMEDIATE RELEASE:
Contact: Todd A. Daniels
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
ELECSYS CORPORATION REPORTS THIRD QUARTER FINANCIAL RESULTS
Olathe, Kansas (March 10, 2008) - Elecsys Corporation (AMEX: ASY), today
announced the financial results for its third fiscal quarter ended January 31,
2008, which included a full quarter of results from its new Radix Corporation
subsidiary.
Sales for the quarter were $6,135,000, an increase of $962,000 from the
comparable period of fiscal 2007. The increase in sales for the quarter resulted
from substantial sales growth at NTG as well as the additional sales generated
by our new Radix subsidiary. Sales at NTG were $1,300,000, an increase of 387%
from the third quarter of the previous fiscal year. Continuing demand for new
WatchdogCP products and for communication technology upgrades for existing
products were the primary drivers of the increase in NTG sales. Total sales
reported at DCI decreased approximately $1,346,000 from the prior year period.
The prior period included sales of $1,162,000 to the former Radix International
Corporation. Sales reported at DCI no longer include sales made to our new Radix
subsidiary. Sales at the Company's newest subsidiary, Radix Corporation, were
$1,275,000 for the three-month period ended January 31, 2008. For the nine
months ended January 31, 2008, total consolidated sales were $16,524,000, an
increase of $1,893,000, or 13%, from the nine months ended January 31, 2007.
Gross margin was approximately 39% of sales, or $2,402,000, for the quarter as
compared to 28% of sales, or $1,448,000, for the quarter ended January 31, 2007.
Our improvement in consolidated gross margin resulted from the increase in sales
volumes of higher margin products at NTG as well as the additional gross margin
generated at Radix with its mix of proprietary equipment sales and service
contract revenues. For the nine-month period ended January 31, 2008, gross
margin was 35%, or $5,713,000, compared to 30%, or $4,422,000, for the
nine-month period ended January 31, 2007.
Operating income for the quarter was $526,000, an increase of $229,000 from the
$297,000 in operating income earned in the previous year's period. For the
nine-month period ended January 31, 2008, operating income was $1,020,000 as
compared to $1,120,000 for the same period in the prior fiscal year.
As a result of the above, net income was $241,000, or $0.07 per diluted share,
for the quarter ended January 31, 2008 as compared to net income of $310,000, or
$0.09 per diluted share for the quarter ended January 31, 2007, which included a
gain on the sale of our former facility in Lenexa of approximately $324,000. For
the nine-month period ended January 31, 2008, net income was $425,000, or $0.12
per fully diluted share as compared to $720,000, or $0.21 per fully diluted
share for the nine-month period ended January 31, 2007.
Karl B. Gemperli, Chief Executive Officer, stated, "We are pleased to report the
results of this quarter which recorded both continued sales growth and enhanced
gross margins. NTG once again demonstrated its business potential with a record
quarter for both sales and profit that increased over 50% from its previous
record, set just the previous quarter. We are confident that the team at NTG has
developed an attractive market solution with solid prospects for continued
growth in the expanding energy infrastructure industry." Gemperli continued,
"DCI, our largest subsidiary, continues to deliver consistent results and we
remain confident in our ability to deliver long term top and bottom line growth
in that business segment. Our Radix subsidiary is actively pursuing numerous new
opportunities and applications for its ultra-rugged handheld computers and
integrated peripherals. We are excited about the growth potential of the
expanding global market for mobile computing solutions. As our proprietary
product business segments continue to develop, we anticipate further enhancement
of our consolidated gross margins.
Elecsys Corporation is a publicly traded holding company with three wholly owned
subsidiaries, DCI, Inc., NTG, Inc., and Radix Corporation. DCI provides
electronic design and manufacturing services for original equipment
manufacturers in the aerospace, transportation, communications, safety, security
and other industrial product industries. DCI has specialized expertise and
capabilities to integrate custom electronic assemblies with a variety of
innovative display and interface technologies. NTG designs, markets, and
provides remote monitoring solutions for the gas and oil pipeline industry as
well as other industries that require remote monitoring. Radix develops, designs
and markets ultra-rugged handheld computers, peripherals and portable printers.
The markets served by its products include utilities, transportation logistics,
traffic and parking enforcement, route accounting/deliveries, and inspection and
maintenance. 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 Nine Months Ended
January 31, January 31,
2008 2007 2008 2007
---- ---- ---- ----
Sales $6,135 $5,173 $16,524 $14,631
Cost of products sold 3,733 3,725 10,811 10,209
------------- ------------- ------------- --------------
Gross margin 2,402 1,448 5,713 4,422
Selling, general and administrative
expenses 1,876 1,151 4,693 3,302
------------- ------------- ------------- --------------
Operating income 526 297 1,020 1,120
Financial income (expense):
Interest expense (138) (104) (367) (224)
Gain on sale of Lenexa facility -- 324 -- 324
Interest income 2 3 19 9
------------- ------------- ------------- --------------
(136) 223 (348) 109
------------- ------------- ------------- --------------
Income before income taxes 390 520 672 1,229
Income tax expense 149 210 247 509
------------- ------------- ------------- --------------
Net income $241 $310 $425 $720
============= ============= ============= ==============
Net income per share information:
Basic $0.07 $0.10 $0.13 $0.22
Diluted $0.07 $0.09 $0.12 $0.21
Weighted average common shares outstanding:
Basic 3,285 3,262 3,285 3,246
Diluted 3,438 3,410 3,453 3,387
