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
ELECSYS CORPORATION REPORTS FOURTH QUARTER AND
FISCAL YEAR-END FINANCIAL RESULTS
Olathe, Kansas (July 23, 2008) - Elecsys Corporation (AMEX: ASY), today
announced its financial results for the fourth quarter and fiscal year ended
April 30, 2008.
Sales for the quarter were $6,894,000, an increase of $1,716,000, or 33%, from
the comparable period of Fiscal 2007. For the fiscal year ended April 30, 2008,
sales were $23,418,000, an increase of $3,609,000, or 18%, from the fiscal year
ended April 30, 2007. The increase in sales for the quarter and fiscal year
resulted from substantial sales growth at NTG as well as the additional sales
generated by our new Radix subsidiary.
Sales at NTG were $3,692,000, an increase of 306% from the previous fiscal year.
As noted in the previous period, continuing demand for NTG's new WatchdogCP
products as well as 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 fiscal year because sales
reported at DCI no longer include sales made to its new Radix subsidiary. The
prior year included sales of $4,454,000 to the former Radix International
Corporation. Sales at our Radix Corporation subsidiary were $3,249,000 for the
seven-month period from the acquisition in September 2007 through the close of
the fiscal year ended April 30, 2008.
Total consolidated backlog at April 30, 2008 was $5,166,000 as compared to total
backlog of $10,403,000 on April 30, 2007. Backlog no longer includes orders with
our Radix subsidiary as it had in past years when it was a separate company.
Gross margin was approximately 37% of sales, or $2,523,000, for the fourth
quarter ended April 30, 2008 as compared to 28% of sales, or $1,429,000, for the
fourth quarter ended April 30, 2007. For the fiscal year ended 2008, gross
margin was 35%, or $8,236,000, compared to 30%, or $5,851,000, for the 2007
fiscal year. Our improvement in consolidated gross margin resulted from the
increase in sales volumes at NTG and Radix with their mix of higher margin
proprietary equipment, service contract revenues and network messaging fees.
Operating income for the quarter was $690,000, an increase of 69% as compared to
$408,000 for the same quarter in the prior year. For the fiscal year ended April
30, 2008, operating income was $1,710,000, approximately 12% higher than the
$1,528,000 reported in Fiscal 2007.
Income tax expense totaled $304,000 for the quarter ended April 30, 2008, as
compared to an income tax benefit of $2,000 for the quarter ended April 30,
2007. The difference was due to accrued income tax expense for the quarter plus
an additional $97,000 of state income tax expense as a result of adopting a new
accounting standard. For the quarter ended April 30, 2007, the Company had
recorded income tax expenses and adjustments that ultimately generated a $2,000
income tax benefit.
Net income was $263,000, or $0.08 per diluted share, for the quarter ended April
30, 2008. For the quarter ended April 30, 2007, net income was $326,000, or
$0.09 per diluted share. For the fiscal year ended April 30, 2008, which
included acquisition expenses of over $50,000, net income was $688,000, or $0.20
per fully diluted share. During Fiscal 2007, there was a $324,000 gain on the
sale of the former facility and net income was $1,046,000, or $0.31 per fully
diluted share.
"We are very pleased to report the results of the fourth quarter and fiscal
year-end, which included continued growth in both sales and gross margins due to
the continuing demand for the products and technology provided by NTG and
significant sales opportunities resulting from our addition of Radix
Corporation," said Karl Gemperli, chief executive officer.
"We believe NTG's proprietary Pipeline WatchdogCP has been very well-received in
the energy infrastructure industry," Gemperli added. "As a result, NTG more than
tripled its sales over the prior fiscal year. The addition of Radix products
provides the company with an opportunity to diversify into new domestic and
international markets and represents great potential for growth. DCI, the
company's largest subsidiary continues to deliver quality products to niche
markets and we expect that its specialized expertise in electronic design and
manufacturing services should permit it to continue to experience steady
growth."
Gemperli concluded, "Fiscal 2008 was another record year for Elecsys Corporation
with an increase of over 18% in consolidated sales and a record gross margin of
35%, based on the strength of our proprietary products, diversified product mix
and customer base. We look forward to continued growth from all three
subsidiaries and expect increased sales opportunities for our products and
services going forward."
About Elecsys Corporation
Elecsys Corporation operates 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, 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, 2008. 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.
# # #
Investor Relations Contact: Todd A. Daniels
Elecsys Corporation
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
Media Inquiries Contact: Shelley Bartkoski
Hagen and Partners
(913) 642-3715
sbartkoski@hagenandpartners.com
Elecsys Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
April 30, April 30,
2008 2007 2008 2007
---- ---- ---- ----
Sales $6,894 $5,178 $23,418 $19,809
Cost of products sold 4,371 3,749 15,182 13,958
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Gross margin 2,523 1,429 8,236 5,851
Selling, general and administrative
expenses 1,833 1,021 6,526 4,323
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Operating income 690 408 1,710 1,528
Financial income (expense):
Interest expense (124) (86) (491) (310)
Gain on sale of Lenexa facility -- -- -- 324
Interest income 1 2 20 11
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(123) (84) (471) 25
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Income before income taxes 567 324 1,239 1,553
Income tax expense (benefit) 304 (2) 551 507
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Net income $263 $326 $688 $1,046
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Net income per share information:
Basic $0.08 $0.10 $0.21 $0.32
Diluted $0.08 $0.09 $0.20 $0.31
Weighted average common shares outstanding:
Basic 3,285 3,285 3,285 3,259
Diluted 3,444 3,435 3,452 3,402
