EXHIBIT I
FOR IMMEDIATE RELEASE
Contact:
John E. Hanley
Chief Financial Officer
Axsys Technologies, Inc.
(860) 257-0200
WWW.AXSYS.COM
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AXSYS TECHNOLOGIES ANNOUNCES FIRST QUARTER RESULTS:
SALES UP 23%, IMPROVED BOTTOM LINE RESULTS
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ROCKY HILL, CT - MAY 1, 2001 - Axsys Technologies, Inc. (Nasdaq: AXYS), a global
leader in the design, manufacture and distribution of precision components and
systems for high-technology markets, today announced first quarter fiscal 2001
results. Sales amounted to $24.2 million in the quarter ended March 31, 2001,
compared to $19.7 million in the comparable quarter in fiscal 2000, an increase
of $4.5 million, or 23 percent.
Sales of the Company's Precision Components Group totaled $14.5 million in
the quarter, compared to $10.6 million in the comparable prior year quarter. The
37 percent increase was attributable to higher sales of motion control
components and precision machined products to aerospace and defense customers
and higher sales of systems and motion control components to electronics capital
equipment producers. Sales of digital imaging scanners to high-end graphic arts
equipment manufacturers were also higher year over year.
Automation Group sales totaled $2.9 million in the first quarter of 2001,
compared to $1.7 million in 2000, an increase of $1.2 million or 69 percent. The
increase in sales was attributable to higher shipments of fiber optic automation
systems as well as strong shipments of test equipment and laser-based
positioning products to other electronics capital equipment markets, including
semiconductor and data storage.
Sales of the Distributed Products Group were $6.8 million in the quarter
ended March 31, 2001, compared to $7.4 million in the comparable prior year
period, a decrease of $600 thousand, or 8 percent, largely as a result of softer
orders in the quarter from semiconductor capital equipment manufacturers and
other commercial customers.
The Company reported a net loss from continuing operations for the quarter
ended March 31, 2001 of ($337 thousand), or ($0.07) per share compared to a loss
of ($4.1 million), or ($0.89) per share in 2000. First quarter 2001 results
included incremental expenses of approximately $500 thousand pretax related to
engineering, research & development, and general and administrative costs to
support our strategy to develop, market and sell semi-automated and fully
automated production and test equipment for manufacturers of fiber optic and
photonics components within the Company's Automation Group. Results in the first
quarter of 2000 included pretax expenses of $4.6 million associated with exit
costs from certain activities, resultant personnel reductions, reduction of
inventory carrying values for potential obsolescence,
and repositioning management within the Company.
Commenting on the quarter, Stephen W. Bershad, Chairman and Chief
Executive Officer stated, "We continue to make progress in improving the results
of our core businesses. More importantly, we are making the investments in
personnel and products that are expected to position us for significant growth
in the future." Mark J. Bonney, President and Chief Operating Officer commented,
"Given these difficult economic times, we were especially pleased to report our
fourth consecutive quarter of sequential sales growth. This can be attributed to
the significant improvements that we have made in our product and market balance
and in our customer-specific focus. We continue to drive our strategy of
vertical integration and increased systems business through increased
investments in our Automation Group including the hiring of additional
engineering, production and sales personnel. We also moved our Fiber Automation
Division into a 12,500 square foot facility in Pittsburgh, PA and committed to
23,000 square feet of space at Axsys Automation Engineering in Wilmington, MA."
Axsys reported no activity from discontinued operations in the quarter
ended March 31, 2001, compared to net income of $14.3 million, or $3.08 per
share in the first quarter of 2000. Results in 2000 included net income plus a
large gain generated from the sale of the Beau Interconnect division.
The Company recorded new orders of $21.5 million in the first quarter of
2001, compared to orders of $24.3 million in the first quarter of 2000. We also
recorded an order cancellation and other adjustments to orders recorded in prior
periods of $1.5 million. Axsys ended the first quarter with a backlog of $60.7
million, compared to a backlog of $47.5 million at March 31, 2000, an increase
of $13.2 million or 28 percent. Our backlog was $64.9 million at December 31,
2000.
Mr. Bonney added, "First quarter orders, given the softness of the
semiconductor capital equipment market and generally poor economic conditions,
were encouraging in nearly all segments. At the Optical Fiber Communication
Conference and Exhibit in March, we introduced a family of new products, the
FAST series (Fiber Attach Systems Technology) for fiber alignment and assembly.
These products were well received, as were our Fiber Bragg Grating automation
products, all of which were on display at the show. We expect to book orders for
these systems beginning this quarter."
Looking to the future, we believe we are well positioned to achieve
sequential improvements in orders, sales and earnings in the second quarter and
full year, which are in line with the expectations of the analysts that follow
our company.
Axsys' management invites you to listen to a conference call regarding
first quarter 2001 results to be held on Wednesday, May 2, 2001 at 10:00 a.m.
(Eastern Daylight Time). The domestic dial-in number is 888-273-1350 and the
international dial-in number is 212-993-0209, and the access number is 18535293.
A replay of the conference call will begin on Wednesday, May 2, 2001 at 12:00
p.m. (Eastern Daylight Time) and will be available until May 9, 2001 at 12:00
p.m. The replay can be accessed by dialing 800-633-8284 (858-812-6440 if outside
the United States).
Axsys Technologies, Inc. is a vertically integrated supplier of precision
systems for high technology markets, including fiber optics, data storage and
semiconductor, as well as providing
precision components for high-end graphic arts, industrial automation, aerospace
guidance and electronic capital equipment. We have created our precision systems
capabilities by leveraging our precision component capabilities. For more
information, contact Axsys Technologies, Inc. at WWW.AXSYS.COM.
This news release contains certain forward-looking statements. The
Company's business is subject to various risks and uncertainties. As a result,
actual future results and developments may be materially different from those
expressed or implied in any forward-looking statement. Disclosure regarding
factors affecting the Company's future results and developments is contained in
the Company's public filings with the Securities and Exchange Commission,
including the Company's Annual Report and Form 10-K for the fiscal year ended
December 31, 2000.
AXSYS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(Unaudited)
MARCH 31, DECEMBER 31,
2001 2000
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $10,774 $14,850
Accounts receivable - net 14,471 13,937
Inventories - net 27,406 25,435
Other current assets 3,365 3,293
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TOTAL CURRENT ASSETS 56,016 57,515
PROPERTY, PLANT AND EQUIPMENT - net 13,458 12,816
EXCESS OF COST OVER NET ASSETS ACQUIRED - net 3,063 3,062
OTHER ASSETS 166 199
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TOTAL ASSETS $72,703 $73,592
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 8,212 $ 7,009
Accrued expenses and other liabilities 6,717 8,172
Current portion of and capital lease obligations 728 814
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TOTAL CURRENT LIABILITIES 15,657 15,995
CAPITAL LEASES, less current portion 1,312 1,485
OTHER LONG-TERM LIABILITIES 2,545 2,691
SHAREHOLDERS' EQUITY:
Common Stock, authorized 30,000,000 shares,
issued 4,792,674 shares at March 31,
2001 and December 31, 2000 47 47
Capital in Excess of Par 39,672 39,675
Retained Earnings 14,629 14,965
Treasury Stock, at cost, 107,833 shares at
March 31, 2001 and 108,553 at December 31, 2000 (1,159) (1,266)
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TOTAL SHAREHOLDERS' EQUITY 53,189 53,421
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 72,703 $ 73,592
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See accompanying notes to condensed consolidated financial statements.
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AXSYS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, dollars in thousands, except per share data)
THREE MONTHS ENDED MARCH 31,
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2001 2000
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Net Sales $ 24,202 $ 19,686
Cost of sales 18,121 18,794
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Gross margin 6,081 892
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Selling, general and administrative expenses 5,482 5,452
Research and development expenses 1,261 770
Restructuring charge -- 1,359
Amortization of intangible assets (1) 35
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OPERATING LOSS (661) (6,724)
Interest (income) expense, net (87) 105
Other expense 20 44
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LOSS FROM CONTINUING OPERATIONS (554) (6,785)
BEFORE TAXES
Benefit from income taxes 217 2,653
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INCOME FROM CONTINUING OPERATIONS (337) (4,132)
DISCONTINUED OPERATIONS:
Income from operations, net of taxes -- 513
Gain on disposal, net of taxes -- 13,776
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NET (LOSS)/INCOME $ (337) $ 10,157
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BASIC EARNINGS PER SHARE:
Loss from continuing operations $ (0.07) $
(0.89)
Income from discontinued operations --
3.08
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TOTAL $ (0.07) $ 2.19
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Weighted average basic common shares
outstanding (1) 4,684,841 4,642,586
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DILUTED EARNINGS PER SHARE:
Loss from continuing operations $ (0.07) $ (0.89)
Income from discontinued operations -- 3.08
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TOTAL $ (0.07) $ 2.19
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Weighted average diluted common shares
outstanding (1) 4,684,841 4,642,586
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(1) As per generally accepted accounting principles, the computation of the
net loss per share is based on the weighted average basic shares
outstanding when there is an operating loss from continuing operations.
See accompanying notes to condensed consolidated financial statements.
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