Exhibit 20
News Release
FOR RELEASE MARCH 20, 2001 AT 7:35 AM EST
- -----------------------------------------
Contact: Allen & Caron Inc Merrimac Industries, Inc.
Michael Mason (investors) Mason N. Carter, Chairman & CEO
212-691-8087 973-575-1300, ext. 202
michaelm@allencaron.com mnc@merrimacind.com
Allen & Caron Inc Merrimac Industries, Inc.
Kari Rinkeviczie (media) Erika A. Barsness,
616-647-0780 Director, Investor Relations
kari@allencaron.com 973-575-1300, ext. 200
eab@merrimacind.com
MERRIMAC REPORTS FOURTH QUARTER
AND FISCAL YEAR 2000 RESULTS
West Caldwell, N.J., March 20, 2001: Merrimac Industries, Inc. (AMEX: MRM), a
leader in the design and manufacture of RF Microwave components, assemblies and
Micro-Multifunction (MMFM(R)) Modules, today announced results for the fourth
quarter and fiscal year ended December 30, 2000. Chairman and CEO Mason N.
Carter commented, "We are pleased with the strong performance of our operating
units in 2000. More importantly, we have invested in new product technology,
positioning Merrimac for greater levels of profitable growth going forward."
Fourth quarter 2000 sales of $6,738,000 increased $1,533,000 or 29.5 percent
compared to fourth quarter sales of the prior year of $5,205,000. Net income for
the fourth quarter of 2000 was $221,000 compared to a net loss of $162,000 in
1999. Diluted net income per share was $.08 compared to the diluted per share
loss of $.09 reported for the fourth quarter of the prior year.
For fiscal year 2000, sales of $23,036,000 increased $2,639,000 or 12.9 percent
compared to prior year's sales of $20,397,000. Net income for fiscal year 2000
of $315,000 was recorded, after the net effects of a first quarter personnel
restructuring charge of $189,000. Net income of $242,000 was reported for fiscal
year 1999. Diluted net income per share was $.14, reflecting the first quarter
of 2000 restructuring charge of $.08 per diluted share. For the prior year,
diluted net income per share of $.14 was also reported.
MERRIMAC REPORTS FOURTH QUARTER AND FISCAL YEAR 2000 RESULTS
PAGE 2-2-2
The weighted average number of basic and diluted shares outstanding increased
significantly for the fourth quarter and fiscal year 2000 compared to prior year
periods, resulting from the issuance in private placements of 375,000 shares in
the second quarter 2000 and 360,000 shares in the fourth quarter 2000. Higher
average common stock prices further increased dilution from the effects of
in-the-money stock options.
The backlog at the end of the fourth quarter of 2000 was $10.6 million, an
increase of $4.5 million or 74 percent over year-end 1999. Orders received
during the fourth quarter of 2000 were $5.6 million. Orders for fiscal year 2000
totaling $27.6 million exceeded the fiscal year 2000 sales level by
approximately 20 percent.
Mr. Carter continued, "We anticipate receiving our first wireless 3G system
order in the second quarter. Final facilities qualification is currently
underway. As previously reported, a major Multi-Mix(R) R&D program that offers
what we believe is a breakthrough level of technology for wireless applications
solutions is showing great promise.
"During this quarter we announced that we are expanding both our U.S. and
Central America Multi-Mix(R) production facilities to meet the growing
anticipated demand for wireless telecommunications products. It is anticipated
that the new Multi-Mix(R) facility in Costa Rica will be fully operational by
July 2001 while the West Caldwell expansion should be completed by the end of
2001. "
Mr. Carter also stated, "It is with great pride that we report that the American
Stock Exchange has named Merrimac as a recipient of their 2000 Market Leader
Award. Our Company's stock performance was in the Top 10 of all American Stock
Exchange listed companies and the number one New Jersey-based AMEX listed
company for the year 2000."
About Merrimac
Merrimac Industries, Inc. is a leader in the design and manufacture of RF
Microwave components, assemblies and Micro-Multifunction (MMFM(R)) Modules
serving the wireless telecommunications industry worldwide with enabling
technologies for commercial applications. Merrimac is focused on providing Total
Integrated Packaging Solutions(TM) 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(R) circuits is a patented method developed at 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-
MERRIMAC REPORTS FOURTH QUARTER AND FISCAL YEAR 2000 RESULTS
PAGE 3-3-3
through via holes to form a three-dimensional subsystem enclosure that requires
no further packaging. Merrimac Industries, Inc. is ISO 9001 certified.
Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc., with
locations in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario,
Canada, have approximately 260 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(TM) wireless applications. Merrimac (MRM) is listed on the American
Stock Exchange. For more information about Merrimac Industries, visit its home
page at www.merrimacind.com
For additional investor relations information, visit the Allen & Caron Inc
website at www.allencaron.com
This press release contains statements relating to future results of Merrimac
(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: 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, as well as other risks and
uncertainties, including but not limited to those detailed from time to time in
Merrimac's Securities and Exchange Commission filings. These forward-looking
statements are made only as of the date hereof, and Merrimac undertakes no
obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
Note: Merrimac Industries, Inc. news releases are available in fax form by
calling Company News On-Call. Dial (800) 758-5804, ext. 567525. These news
releases are also available on the Internet at: http://www.prnewswire.com .
The earnings conference call is scheduled for Tuesday, March 20, 2001 at 4:15
p.m. (Eastern). Investors are invited to participate by dialing (800) 388-8975
ten minutes prior to the scheduled start time, and referencing the Merrimac
Industries fourth quarter conference call. For those unable to participate, a
replay will be available for seven days by dialing (800) 428-6051, passcode
number 172649.
MERRIMAC REPORTS FOURTH QUARTER AND FISCAL YEAR 2000 RESULTS
PAGE 4-4-4
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
Quarter Ended
December 30 January 1
2000 2000
-----------------------------------
Net sales $6,738,000 $5,205,000
Gross profit 3,231,000 2,436,000
Selling, general and administrative expenses 2,488,000 2,134,000
Research and development 538,000 572,000
Interest and other expense (income), net (56,000) 75,000
Income (loss) before income taxes 261,000 (345,000)
Provision (benefit) for income taxes 40,000 (183,000)
Net income (loss) 221,000 (162,000)
Net income (loss) per common share - basic $.09 ($.09)
Net income (loss) per common share - diluted $.08 ($.09)
Weighted average number of shares outstanding - basic 2,475,000 1,739,000
Weighted average number of shares outstanding - diluted 2,739,000 1,749,000
Year Ended
December 30 January 1
2000 2000
-----------------------------------
Net sales $23,036,000 $20,397,000
Gross profit 11,186,000 9,781,000
Selling, general and administrative expenses 8,556,000 7,188,000
Research and development 1,871,000 2,096,000
Interest and other expense, net 59,000 220,000
Income before income taxes (a) 385,000 277,000
Provision for income taxes (a) 70,000 35,000
Net income (a) 315,000 242,000
Net income per common share - basic (a) $.15 $.14
Net income per common share - diluted (a) $.14 $.14
Weighted average number of shares outstanding - basic 2,135,000 1,747,000
Weighted average number of shares outstanding - diluted 2,310,000 1,766,000
(a) Reflects the effects of the first quarter 2000 restructuring
charge of $315,000 which reduced net income by $189,000 or $.08 per
diluted share for fiscal year 2000.