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:
ELECSYS CORPORATION REPORTS FIRST QUARTER FINANCIAL RESULTS
Olathe, Kansas (September 9, 2008) - Elecsys Corporation (AMEX: ASY), a leading
provider of electronic design and manufacturing services and innovative product
solutions, today announced its financial results for the first fiscal quarter
ended July 31, 2008.
Sales for the quarter were $5,564,000, an increase of 16%, or $777,000, from the
first quarter of Fiscal 2008. The increase was primarily due to sales generated
by its Radix subsidiary's ultra-rugged handheld computer business, which Elecsys
acquired in September 2007, and strong revenue growth from its NTG subsidiary's
remote monitoring business.
Sales of Radix rugged handheld computer hardware and peripherals, as well as
maintenance contract and service revenues, totaled $1,464,000 for the quarter.
NTG sales were $781,000, an increase of 123% from the first quarter of Fiscal
2008, as the subsidiary continued to experience strong demand for its WatchdogCP
products and initiated international marketing efforts for its remote monitoring
solutions. Sales of DCI electronic design and manufacturing services were
$4,589,000 for the first quarter of fiscal 2009, virtually unchanged compared
with the prior year.
Looking forward over the next few quarters, the Company expects both Radix
revenues and NTG revenues to increase over the current period. With additional
sales and marketing initiatives now in place, the Company also anticipates
revenue growth at DCI during the second half of this fiscal year.
Total consolidated backlog at July 31, 2008, increased $2,803,000 to $7,969,000,
compared to total backlog of $5,166,000 on April 30, 2008. This was largely due
to a $2.6 million Radix order for handheld computers to be deployed throughout
the South African railroad network. This order is the initial phase of a larger
infrastructure project that the Company believes may generate similar orders
over the next few years.
Gross margin was approximately 35% of sales, or $1,951,000, for the first
quarter ended July 31, 2008, compared to 32% of sales, or $1,515,000, for the
prior year period. The product mix during the first quarter was a large
contributor to our improvement in consolidated gross margin for the period.
Selling, general and administrative expenses grew by approximately $494,000
during the first quarter compared to the prior year's quarter, primarily from
the addition of Radix. Corporate expenses for professional fees related to
compliance with the Sarbanes-Oxley Act also contributed to the increase.
As a result, operating income for the first quarter was $296,000, compared to
$354,000 for the same quarter in the prior year.
Net income was $109,000, or $0.03 per diluted share, for the quarter ended July
31, 2008. For the quarter ended July 31, 2007, net income was $174,000, or $0.05
per diluted share. With customer orders currently scheduled for shipment, the
Company anticipates an increase in net income during the second fiscal quarter.
"We are pleased to start the new fiscal year with strong revenue growth in the
first quarter," said Karl Gemperli, chief executive officer. "Sales at DCI, the
company's largest subsidiary, remained stable even in the current economy, while
results for Radix and NTG were strong."
Gemperli added, "We are very encouraged by the growing interest in NTG's
WatchdogCP products. We are also excited by the potential for NTG's products in
the global market and are pleased by our first international sale made during
this quarter. Also, the investments we continue to make in Radix are beginning
to pay off and we anticipate long-term growth for rugged handheld computing
solutions at that subsidiary."
Gemperli concluded, "With an increase in sales of 16% over the comparable period
in Fiscal 2008 and continued interest in our diverse products, high-quality
design services and manufacturing capabilities, we anticipate growth in sales
and profits in the months ahead."
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
July 31,
2008 2007
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Sales $5,564 $4,787
Cost of products sold 3,613 3,272
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Gross margin 1,951 1,515
Selling, general and administrative expenses 1,655 1,161
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Operating income 296 354
Financial income (expense):
Interest expense (117) (102)
Other income, net -- 14
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(117) (88)
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Income before income taxes 179 266
Income tax expense 70 92
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Net income $109 $174
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Net income per share information:
Basic $0.03 $0.05
Diluted $0.03 $0.05
Weighted average common shares outstanding:
Basic 3,287 3,285
Diluted 3,458 3,479
