Exhibit 99.1
News Release
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CONTACT:
Tom B. Dake
Miltope Group Inc.
(334) 284-8665
FOR RELEASE 1:00 PM EDT, AUGUST 14, 2003
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MILTOPE GROUP INC. REPORTS SECOND QUARTER OPERATING RESULTS
MONTGOMERY, AL - AUGUST 14, 2003 - Miltope Group Inc., (NASDAQ: MILT)
today reported sales and earnings for the thirteen and twenty-six weeks
ended June 29, 2003.
For the thirteen weeks ended June 29, 2003, Miltope reported net
earnings of $1,016,000, or $0.17 per share, compared to net earnings of
$477,000, or $0.08 per share on, in the similar period a year ago. Net
sales for the thirteen weeks ended June 29, 2003 were $17,790,000
compared to $11,053,000 in the similar period a year ago. For the
twenty-six weeks ended June 29, 2003, Miltope reported net earnings of
$1,521,000, or $0.26 per share, compared to net earnings of $1,649,000,
or $0.28 per share in the similar period a year ago. Net sales for the
twenty-six weeks ended June 29, 2003 were $33,601,000 compared to
$20,407,000 in the similar period a year ago. Miltope recognized income
tax expense at the estimated effective statutory rate for the thirteen
and twenty-six week periods ended June 29, 2003. For the thirteen and
twenty-six week periods ended June 30,2002 the company did not record
income tax expense due to anticipation of the reversal of its valuation
allowance for deferred taxes. This valuation allowance, which had fully
reserved the deferred tax assets, was subsequently reversed during the
fourth quarter of 2002.
Miltope's President and CEO, Thomas R. Dickinson said, "Miltope
continues to follow the growth path begun in 1999. Our growth on the
military side has been fueled by increases in deliveries of TSC-750M's,
which utilize Intel CentrinoT chip technology, and rugged tactical
computers for the CONFIRE and SMART-T programs. These computers have
been battle tested and continue to perform exceptionally well in the
sands and heat of the Iraqi desert. Additionally, we are beginning to
see increased demand for our aviation line of products such as our
Wireless Access Service Point, ("WASP") and TV-on-Demand Servers. Our
demonstrated successes in controlling costs are also evident in the
significant improvement in operating income for the quarter. These
factors, as well as others, will help us continue the positive results
announced today."
For additional information about Miltope and its products and
capabilities, please visit our website at www.miltope.com.
Miltope Group Inc., through its business segments, is engaged in the
design, development, manufacture and testing of computers and computer
peripheral equipment for military, industrial and commercial
applications where reliable operation of the equipment under demanding
environmental conditions is of paramount importance. The Company
through its ISO 9001 certified facilities delivers a broad range of
computers, computer workstations, servers, disk cartridges, printers,
mass storage systems and other related products to defense, government
and commercial customers.
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The matters discussed in this news release that are not historical
facts are "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Company
intends that such forward looking statements be subject to the safe
harbors created thereby. The Company warns that caution should be taken
in relying upon any forward looking statements contained herein, as
they involve a number of risks and uncertainties that may cause the
actual results of the Company to be materially different from any
future results expressed or implied by such forward looking statements.
Examples of such risks and uncertainties include, but are not limited
to, future demand for the Company's products and services, general
economic conditions, actions of competitors, termination of contracts
at the convenience of the United States government, customer funding
variations in connection with multi-year contracts and follow-on
options, and other risks and uncertainties. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated or expected.
The Company does not undertake any obligation to update or revise any
forward looking statement made by it or on its behalf, whether as a
result of new information, future events or otherwise.
-- Statistical Table Follows --
Miltope Group Inc.
Financial Highlights
For the Thirteen Weeks Ended
June 29, 2003 June 30, 2002
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Net Sales $17,790,000 $ 11,053,000
Operating Income 1,710,000 616,000
Net Income 1,016,000 477,000
Net Income Per Share
Basic $.17 $0.08
Fully Diluted $.17 $0.08
Weighted Average Number of Shares
Outstanding
Basic 5,894,667 5,875,077
Fully Diluted 6,130,066 6,027,084
For the Twenty-six Weeks Ended
June 29, 2003 June 30, 2002
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Net Sales $ 33,601,000 $ 20,407,000
Operating Income 2,631,000 1,892,000
Net Income 1,521,000 1,649,000
Net Income Per Share
Basic $0.26 $0.28
Fully Diluted $0.25 $0.28
Weighted Average Number of Shares
Outstanding
Basic 5,887,009 5,874,149
Fully Diluted 6,119,445 5,989,674