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11300 W. 89th Street Overland Park Kansas 66213 USA 913/495-2600
FAX 913/492-0870 Direct 913/495-2614
cargin@elecsyscorp.com
Contact: Thomas C. Cargin
Vice President - Finance and Administration
(913) 495-2614
ELECSYS CORPORATION REPORTS THIRD QUARTER RESULTS
OVERLAND PARK, Kan. (February 22, 2001) - Elecsys Corporation (AMEX: ASY) today
reported results for the third quarter and nine months ended January 31, 2001.
For the three months ended January 31, 2001, Elecsys Corporation reported
consolidated net sales of $4.6 million compared with $4.4 million a year ago.
The Company reported a net loss for the third quarter of $209,000, or $0.08 per
share, versus net income of $88,000, or $0.04 per share diluted, in the
year-earlier period. Net sales for the first nine months of fiscal 2001 totaled
$16.2 million compared with $11.7 million for the first nine months of fiscal
2000. The Company reported a net loss for the first nine months of $279,000, or
$0.11 per share, compared with a net loss of $430,000, or $0.19 per share, in
the year-earlier period.
For the three months ended January 31, 2001, the Company's DCI subsidiary
reported net sales of $1.7 million, and net income of $23,000. For the nine
months ended January 31, 2001, DCI reported net sales of $5.6 million, and net
income of $116,000. DCI was acquired by the Company on February 7, 2000.
For the three months ended January 31, 2001, the Company's Airport Systems
subsidiary reported net sales of $3.0 million, and a net loss of $231,000,
compared to net sales of $4.4 million a year ago and net income of $88,000. For
the nine months ended January 31, 2001, Airport Systems reported net sales of
$11 million, and a net loss of $391,000 compared to sales of $11.7 million and a
loss of $430,000 for the same period last year.
Keith Cowan, president and chief executive officer said, "While we are
disappointed by the lack of profitability over the past two quarters, we
continue to be encouraged by the Company's continuing growth in sales and
operating profit, which for the nine months ended January 31 was $590,000 as
opposed to operating losses of $281,000 for the same period last year.
Mr. Cowan continued, "Our Airport Systems subsidiary received orders during the
quarter of over $3.2 million, including instrument landing systems (ILS) for
South America, distance measuring equipment (DME) for the Federal Aviation
Administration, as well as spares orders and change orders to existing
contracts. Delays, however, in the closing of several significant orders
negatively impacted revenues and operating results. The Company is looking at a
wide range of strategic alternatives to improve the profitability of the Airport
Systems subsidiary." DCI announced that the General Electric Transportation
Systems Division, headquartered in Erie, Pennsylvania, has selected DCI to begin
manufacturing specialized electronic assemblies used
in the production of General Electric locomotive equipment. After a successful
audit in January, DCI was approved as an electronic manufacturing services (EMS)
provider to General Electric Transportation Systems (GETS). This approval is
universal throughout General Electric and approves DCI to perform electronic
manufacturing services for all GE divisions. "GETS selected DCI for our proven
ability to manufacture high quality electronic assemblies and meet the demanding
scheduling requirements of multiple OEMs. DCI is now listed as the approved
supplier for a wide range of complex, high-mix electronic assemblies used in
GETS products and could result in more than $1,000,000 in annual business",
stated Karl Gemperli, President of DCI. "Our diverse design and support
capabilities as well as our recent ISO 9001 registration were significant
factors that enabled DCI to win this business."
Elecsys Corporation is a designer and manufacturer of electronic components,
subassemblies and systems. Its Airport Systems International, Inc. subsidiary
designs, manufactures and implements ground-based radio navigation and landing
systems (navaids) and airfield lighting to aid the in-flight navigation and
ground movement of aircraft. The DCI, Inc. subsidiary provides contract
electronic manufacturing services, standard and custom liquid crystal display
devices and panel meters to a wide variety of medical electronics, consumer
products and aerospace OEMs.
Forward Looking Statement
The discussions set forth in this Form 8-K may contain forward-looking
comments based on current expectations that involve a number of risks and
uncertainties. Actual results could differ materially from those projected or
suggested in the forward-looking comments. The difference could be caused by a
number of factors, including, but not limited to the factors and conditions
which are described in the Company's other SEC filings, including the Form
10-KSB for the year ended April 30, 2000 and the Forms 10-QSB filed since that
date. The reader is cautioned that the Company does not have a policy of
updating or revising forward-looking statements and thus he or she should not
assume that silence by management of the Company over time means that actual
events are bearing out as estimated in such forward-looking statements.
ELECSYS CORPORATION
Unaudited Financial Highlights
Three Months Ended
January 31,
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2001 2000
------------------------ -----------------------
Sales $4,579,000 $4,366,000
Net income (loss) $(209,000) $88,000
Net income (loss) per share - basic $(0.08) $0.04
Net income (loss) per share - diluted $(0.08) $0.04
Weighted average shares outstanding - basic 2,579,000 2,231,000
Weighted average shares outstanding - diluted 2,579,000 2,388,000
Nine Months Ended
January 31,
---------------------------------------------------
2001 2000
------------------------ -----------------------
Sales $16,172,000 $11,702,000
Net loss $(279,000) $(430,000)
Net loss per share - basic $(0.11) $(0.19)
Net loss per share - diluted $(0.11) $(0.19)
Weighted average shares outstanding - basic 2,579,000 2,231,000
Weighted average shares outstanding - diluted 2,579,000 2,231,000
-END-
ELECSYS CORPORATION AND SUBSIBDIARY
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
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2001 2000 2001 2000
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Sales $4,579 $4,366 $16,172 $11,702
Cost of products sold 3,024 3,050 11,052 8,367
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Gross margin 1,555 1,316 5,120 3,335
Selling, general and
administrative expenses 1,384 979 4,479 2,840
Research & development - 187 50 776
expenses
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Operating income (loss) 171 150 591 (281)
Interest expense (260) (62) (750) (149)
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Income (loss) before income (89) 88 (159) (430)
taxes
Provision for income taxes 120 - 120 -
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Net income (loss) $(209) $88 $(279) $(430)
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Income (loss) per share:
Basic $(0.08) $.04 $(0.11) $(0.19)
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Diluted $(0.08) $.04 $(0.11) $(0.19)
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Weighted average common shares
Basic 2,579 2,231 2,579 2,231
============ ============= ============== =================
Diluted 2,579 2,383 2,579 2,231
============ ============= ============== =================