TECHNOLOGY RESEARCH CORPORATION
ANNOUNCES STRONG FIRST FISCAL QUARTER RESULTS
CLEARWATER, FLORIDA, July 24, 2003 --Robert S. Wiggins, Chairman and Chief
Executive Officer of Technology Research Corporation (TRC), (NASDAQ-TRCI)
announced today that the Company's operating revenues for the first quarter
ended June 30, 2003 were $5,659,915, compared to $3,855,318 reported in the
same quarter last year, an increase of approximately 47%. Revenues for the
first quarter were positively impacted by an order from a major sprayer/washer
manufacturer, which resulted in shipments of $450,000. Net income for the
current quarter was $584,100, compared to $129,455, for the same quarter last
year, an increase of approximately 351%. Basic earnings for the current
period were $.11 per share and diluted earnings were $.10 per share compared
to basic and diluted earnings of $.02 per share for the same quarter last
year.
Mr. Wiggins commented, "The Company had an excellent start to its 2004 fiscal
year by completing its sixth straight quarter of increased earnings, which
were generated primarily by higher revenues. The Company's manufacturing
facilities are also operating efficiently, and the Company continues to remain
debt-free, ending the quarter with $3,169,365 in cash."
The Company's commercial revenues for the quarter ended June 30, 2003,
compared to the prior year's quarter, increased by $848,112, military revenues
increased by $962,763 and royalty income was down $6,278. The increase in
commercial revenues was partially attributed to shipments of product to a
major sprayer/washer manufacturer, as noted above, and the placement of
approximately $145,000 of the Company's GFCI products in Home Depot and Fire
Shield(R) Surge Strips in Wal-Mart. New accounts in the Recreational Vehicle,
Brand Label and Commercial Distribution markets contributed to the remainder
of the growth. The outlook for commercial revenues for the remainder of the
fiscal year is positive. Military revenues increased as the result of
stronger direct military shipments of support parts for existing systems and
control devices related to the Tactical Quiet Generator (TQG) programs. The
Company expects military revenues to remain strong throughout the fiscal year.
The Company expects to make significant progress this year in marketing its
Fire Shield(r) products. Currently, the Company is shipping Fire Shield(R)
Power Surge Strips to approximately 620 Wal-Mart Stores, Inc., and the Company
is pursuing opportunities to place like product in other major retailers.
Also, the Company expects Fire Shield licensed technology to generate
royalties of approximately $50,000 for the year. In addition, the Company is
well-positioned to participate in the estimated $60 million annual market
created by the 2002 National Electrical Code (NEC) and the Underwriters
Laboratories (UL) requirement for cord fire protection on portable room air
conditioners manufactured after August 1, 2004. The Company's Fire Shield(R)
LCDI power cords for this application have successfully completed the UL
testing
requirements for the new 1699 standard and are available for production. The
Company's patented Fire Shield(R) technology has numerous applications and
represents the Company's most significant opportunity for growth.
The first quarter dividend of $.015 per share will be paid on July 25, 2003 to
shareholders of record on June 30, 2003. The Company's annual dividend is
$.06 per share.
TRC is an internationally recognized leader in electrical safety products that
prevent electrocution and electrical fires and protect against serious injury
from electrical shock. Based on its core technology in ground fault sensing,
products are designed to meet the needs of the consumer, commercial and
industrial markets worldwide. The Company also supplies power monitors and
control equipment to the United States Military and its prime contractors.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Some of the statements in this report constitute forward-looking
statements, within the meaning of the Private Securities Litigation Reform Act
of 1995 and the Securities Exchange Act of 1934. These statements are related
to future events, other future financial performance or business strategies,
and may be identified by terminology such as "may," "will," "should,"
"expects," "scheduled," "plans," "intends," "anticipates," "believes,"
"estimates," "potential," or "continue," or the negative of such terms, or
other comparable terminology. These statements are only predictions. Actual
events as well as results may differ materially. In evaluating these
statements, you should specifically consider the factors described throughout
this report. We cannot be assured that future results, levels of activity,
performance or goals will be achieved.
Comparative Operating Results
Unaudited
Three Months Ended
6/30/2003 6/30/2002
Operating revenues $ 5,659,915 $ 3,855,318
Income before taxes $ 780,511 $ 190,306
Net income $ 584,100 $ 129,455
Basic earnings per share $ 0.11 $ 0.02
Weighted average number
of common shares
outstanding 5,445,475 5,437,497
Diluted earnings per share $ 0.10 $ 0.02
Weighted average number
of common and equivalent
shares outstanding 5,625,994 5,466,946
Dividends declared $ .015 $ .010
Net income $ 584,100 $ 129,455
Interest expense - 1,153
Income taxes 196,411 60,851
Depreciation 222,796 237,708
Amortization - -
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EBITDA $ 1,003,307 $ 429,167
Note: EBITDA refers to earnings before interest, income taxes, depreciation
and amortization. The Company wishes to present its EBITDA results as an
indication of its liquidity and should not be interpreted as earnings.
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