Exhibit 99.1
Merrimac Reports Profitable First Quarter 2004 Results
WEST CALDWELL, N.J., May 17 /PRNewswire-FirstCall/ -- Merrimac Industries,
Inc. (Amex: MRM), a leader in the design and manufacture of RF Microwave
components, assemblies and micro-multifunction modules (MMFM(R)), today
announced results for the first quarter of 2004.
Sales for the first quarter of 2004 were $7,648,000, which was a first
quarter Company sales record, and a 17.4 percent increase compared to first
quarter of 2003 sales of $6,512,000. First quarter 2004 sales increased due to
an improvement in orders received during the first quarter and higher
beginning backlog going into the first quarter.
Operating income in the first quarter totaled $322,000 compared to an
operating loss of $477,000 recorded for the first quarter of 2003. Operating
results for the first quarter improved as a result of increased sales and
improved product mix, improved facilities utilization and the favorable impact
from cost management initiatives instituted during 2003.
Net income for the first quarter of 2004 was $231,000 compared to a net
loss of $455,000 for the first quarter of 2003. Net income per share was $.07
for the first quarter of 2004, compared to a net loss per share of $.15
reported for the first quarter of 2003.
The backlog at the end of the first quarter of 2004 was $13.4 million, an
increase of $1.0 million or approximately 7.8 percent compared to the backlog
of $12.4 million at year-end 2003 and an increase of $1.7 million or 14.5
percent when compared to the backlog of $11.7 million at the end of the first
quarter of 2003. Orders received during the first quarter of 2004 totaled $8.7
million and were approximately 13.6 percent above first quarter 2004 sales.
Chairman and CEO Mason N. Carter commented, "We are pleased with record
first quarter sales and the resulting performance, in this, our 50th
Anniversary Year. Operating improvements and greater factory utilization
produced increased profitability for the second consecutive quarter. We are
well-positioned to provide solid customer value through total integrated
packaging solutions."
Investors are invited to participate in the financial results conference
call on Monday May 17, 2004 at 4:15 p.m. (Eastern) by dialing 1-800-915-4836
(for International callers: 1-973-317-5319) ten minutes prior to the scheduled
start time, and reference the Merrimac Industries first quarter 2004
conference call. For those unable to participate, a replay will be available
for seven days by dialing 1-800-428-6051, or 1-973-709-2089 for international
callers, passcode number 356344.
This conference call will also be broadcast live over the Internet by
logging on to the web at this address:
http://www.firstcallevents.com/service/ajwz406793022gf12.html
If you are unable to participate during the live webcast, a link to the
archived webcast will be listed on the Merrimac Industries, Inc. website
http://www.merrimacind.com.
About Merrimac
Celebrating its 50th anniversary, Merrimac Industries, Inc. is a leader in
the design and manufacture of Multi-Mix PICO(TM) RF Microwave components,
assemblies and micro-multifunction modules (MMFM), serving the wireless
telecommunications industry worldwide with enabling technologies for space,
defense and commercial applications. Merrimac is focused on providing Total
Integrated Packaging Solutions(R) with Multi-Mix(R) Microtechnology, a leading
edge competency providing value to our customers through miniaturization and
integration. The Multi-Mix(R) process for microwave, multilayer integrated
MMFM circuitry is a patented method developed by Merrimac Industries based on
fluoropolymer composite substrates. The fusion bonding of multilayer
structures provides a homogeneous dielectric medium for superior electrical
performance at microwave frequencies. The bonded layers may incorporate
embedded semiconductor devices, MMICs, etched resistors, passive circuit
elements and plated-through via holes to form a three-dimensional subsystem
enclosure that requires no further packaging. Merrimac Industries facilities
are registered under ISO 9000, an internationally developed set of quality
criteria for manufacturing operations.
Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc.,
are located in West Caldwell, NJ, San Jose, Costa Rica, and Ottawa, Ontario,
Canada, and have approximately 230 co-workers dedicated to the design and
manufacture of signal processing components, gold plating of high-frequency
microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro-
circuitry and subsystems providing Total Integrated Packaging Solutions(R) for
wireless applications. Merrimac (MRM) is listed on the American Stock
Exchange. Multi-Mix(R), Multi-Mix PICO(TM), MMFM(R) and Total Integrated
Packaging Solutions(R) are trademarks of Merrimac Industries, Inc. For more
information about Merrimac Industries, Inc. and Filtran Microcircuits Inc.,
please visit http://www.merrimacind.com and http://www.filtranmicro.com.
This press release contains statements relating to future results of the
Company (including certain projections and business trends) that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those projected as a result
of certain risks and uncertainties. These risks and uncertainties include,
but are not limited to: risks associated with demand for and market acceptance
of existing and newly developed products as to which the Company has made
significant investments, particularly its Multi-Mix(R) products; general
economic and industry conditions; slower than anticipated penetration into the
satellite communications, defense and wireless markets; the risk that the
benefits expected from the acquisition of Filtran Microcircuits Inc. are not
realized; the ability to protect proprietary information and technology;
competitive products and pricing pressures; risks relating to governmental
regulatory actions in communications and defense programs; and inventory
risks due to technological innovation and product obsolescence, as well as
other risks and uncertainties, including but not limited to those detailed
from time to time in the Company's Securities and Exchange Commission filings.
These forward-looking statements are made only as of the date hereof, and the
Company undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
Quarter Ended
(Unaudited)
April 3, March 29,
2004 2003
Net sales $7,648,000 $6,512,000
Gross profit 3,348,000 2,452,000
Selling, general and administrative expenses 2,454,000 2,329,000
Research and development 572,000 600,000
Operating income (loss) 322,000 (477,000)
Interest and other expense, net 81,000 59,000
Income (loss) before income taxes 241,000 (536,000)
Provision (benefit) for income taxes 10,000 (81,000)
Net income (loss) 231,000 (455,000)
Net income (loss) per common share
- basic and diluted $.07 $(.15)
Weighted average number of shares 3,121,000 3,120,000
outstanding - basic
Weighted average number of shares 3,135,000 3,120,000
outstanding - diluted
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
April 3, 2004 January 3, 2004
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,628,000 $ 453,000
Income tax refunds receivable 128,000 136,000
Accounts receivable 5,704,000 6,299,000
Inventories 3,217,000 3,188,000
Other current assets 453,000 482,000
Deferred tax assets 1,055,000 1,055,000
Total current assets 12,185,000 11,613,000
Property, plant and equipment, net 16,722,000 17,222,000
Restricted cash 1,500,000 1,500,000
Other assets 819,000 854,000
Deferred tax assets, non-current 564,000 573,000
Goodwill 3,053,000 3,123,000
Total Assets $ 34,843,000 $ 34,885,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt $ 878,000 $ 954,000
Other current liabilities 4,037,000 3,341,000
Total current liabilities 4,915,000 4,295,000
Long-term debt, net of current portion 3,441,000 4,208,000
Deferred compensation 80,000 89,000
Deferred liabilities 44,000 48,000
Deferred tax liabilities 1,403,000 1,407,000
Total liabilities 9,883,000 10,047,000
Stockholders' equity 24,960,000 24,838,000
Total Liabilities and
Stockholders' Equity $ 34,843,000 $ 34,885,000
Contact: Mason N. Carter, Chairman & CEO
973-575-1300, ext. 1202
mnc@merrimacind.com
SOURCE Merrimac Industries, Inc.
-0- 05/17/2004
/CONTACT: Mason N. Carter, Chairman & CEO, +1-973-575-1300, ext. 1202,
mnc@merrimacind.com /
/Company News On-Call: http://www.prnewswire.com/comp/567525.html/
/Web site: http://www.merrimacind.com
http://www.filtranmicro.com /
(MRM)
CO: Merrimac Industries, Inc.; Filtran Microcircuits Inc.
ST: New Jersey
IN: CPR TLS
SU: ERN CCA