Exhibit 99.1
Tel-Instrument Electronics Corp Announces Results For The Second Quarter
CARLSTADT, N.J.--(BUSINESS WIRE)--Nov. 17, 2004--Tel-Instrument
Electronics Corp ("TEL" or the "Company") today announced its
consolidated financial results for the three and six month periods
ended September 30, 2004. The three and six month periods ended
September 30, 2004 include the results of Innerspace Technology, Inc.
(ITI), acquired by the Company in January 2004, but are not included
in the results for the three and six month periods ended September 30,
2003.
Three Months Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
----- ----- ------ -----
Sales $2,238.950 2,616,716 $5,051,750 5,674,622
Net Income (Loss)
Before Taxes (131,777) 205,409 (44,260) 675,621
Provision (Benefit)
For Taxes (52,644) 81,642 (17,681) 269,911
Net Income (Loss) $ (79,133) 123,767 $ (26,579) 405,710
Net Income (Loss) Per
Share, Diluted ($0.04) $0.06 ($0.01) $0.18
Weighted Average
Shares Outstanding,
Diluted 2,144,301 2,202,281 2,144,237 2,199,435
As previously reported, sales and operating income declined in the
first six months of fiscal year 2005, because of delays in deliveries
under existing contracts, and the award of new contracts, and as a
result of planned increased marketing and development costs for ITI.
In September, the Company received a $1,600,000 contract to supply
T-36M ramp test sets to the Army National Guard. Delivery of all units
under this contract is expected to be completed during the current
fiscal year
Investment in new product development continues for both avionics
and ITI's marine systems in order to meet the expected customer needs
and to remain as leaders in the respective industries. For the
avionics division, TEL continues its work on the next generation of
IFF (Identification, Friend or Foe) test sets in anticipation of U.S.
and NATO requirements for more sophisticated IFF testing. The Company
anticipates that most of the AN/APM-480's, previously sold, will be
returned and modified, in the future, to accommodate more
sophisticated IFF testing. Although there is no assurance that the
Company will receive any such modification contracts, TEL believes
that it is well positioned to obtain such contracts. For marine
systems, engineering expenditures include improvements to its tide
gauge, and upgrading its sounders with a new Windows operating system
which will allow for further improvements to these instruments. The
Company has been active in responding to requests for quotation for
new government programs, which will award new test equipment
contracts, and is currently in the process of submitting proposals for
large government programs. Active pursuit of opportunities in both the
commercial and government avionics and marine systems markets, both
domestically and internationally, continues, along with its efforts
with Semaphore Capital Advisors LLC to pursue growth through
acquisitions and alliances of compatible businesses or technologies.
The Annual Meeting of Shareholders will be held on December 8,
2004. The meeting will be at the Company's facilities at, 728 Garden
Street, Carlstadt, NJ, at 4:00 p.m.
This press release includes statements that are not historical in
nature and may be characterized as "forward-looking statements,"
including those related to future financial and operating results,
benefits, and synergies of the combined companies, statements
concerning the Company's outlook, pricing trends, and forces within
the industry, the completion dates of capital projects, expected sales
growth, cost reduction strategies, and their results, long-term goals
of the Company and other statements of expectations, beliefs, future
plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. All
predictions as to future results contain a measure of uncertainty and,
accordingly, actual results could differ materially. Among the factors
which could cause a difference are: changes in the general economy;
changes in demand for the Company's products or in the cost and
availability of its raw materials; the actions of its competitors; the
success of our customers; technological change; changes in employee
relations; government regulations; litigation, including its inherent
uncertainty; difficulties in plant operations and materials;
transportation, environmental matters; and other unforeseen
circumstances. A number of these factors are discussed in the
Company's previous filings with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release.
Tel-Instrument is a leading designer and manufacturer of avionics
test and measurement solutions for the global commercial air
transport, general aviation, and government/military aerospace and
defense markets. Tel provides instruments to test, measure, calibrate,
and repair a wide range of airborne navigation and communication
equipment. For further information please visit our website at
www.telinstrument.com.
Innerspace Technology, Inc. (www.innerspacetechnology.com), a
division of the Company, designs, manufactures and distributes a
variety of shipboard and underwater instruments to support
hydrographers, oceanographers, researchers, engineers, geophysicists,
and surveyors worldwide.
The Company's stock is traded in the American Stock Exchange under
the symbol TIK.
CONTACT: Tel-Instrument Electronics Corp
Mr. Joseph P. Macaluso, 201-933-1600