Exhibit 99
Tel-Instrument Electronics Corp. Announces Third Quarter Results and Two New
Contracts
CARLSTADT, N.J.--(BUSINESS WIRE)--Feb. 15, 2005--Tel-Instrument
Electronics Corp. today announced its financial results for the three
and nine months ended December 31, 2004:
Three Months Ended Nine Months Ended
December 31, December 31,
2004 2003 2004 2003
---- ---- ---- ----
Sales $2,782,090 2,914,271 $7,833,840 8,588,893
Net income before taxes 69,771 228,453 25,511 904,074
Provision for taxes 27,725 91,266 10,044 361,177
Net income $42,046 137,187 $15,467 542,897
Net income per share,
diluted $0.02 $0.06 $0.01 $0.24
Weighted average shares
outstanding, diluted 2,272,473 2,232,820 2,264,901 2,230,565
Sales and income decreased for the three and nine months ended
December 31, 2004. As previously reported, sales and operating income
declined because of delays in deliveries under existing contracts and
in the awarding of new contracts, and as a result of the losses
attributed to the marine systems division, resulting from the planned
additional marketing and development costs. In addition, the Company,
in agreement with the U.S. Navy, has temporarily stopped shipment of
the AN/APM-480 in anticipation of these units being returned for
up-grades and enhancements. However, the total number of units under
contract has not changed and approximately 90 units remain to be
shipped under this contract.
The Company has been encouraged by the award of two new contracts,
in addition to the previously announced contract from the Army
National Guard for about $1,600,000. In December 2004, the Company
received an order, through its distributor, to supply T-47NC's to the
Royal Australian Air Force in the amount of $694,350. In February
2005, the Company received a contract in the amount of $1,815,000 to
supply the T-36M and the T-47NH to the U.S. Army. The Company's
current backlog is approximately $4.7 million.
Investment in new product development continues for both avionics
and marine systems in anticipation of expected customer needs and to
remain as leaders in the respective industries. For the avionics
division, the Company 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 by the
Company, will be returned and modified to accommodate this more
sophisticated IFF test capabilities. Although there is no assurance
that the Company will receive any such modification contracts, the
Company believes that it is well positioned to obtain them.
For marine systems, the Company has made improvements to its tide
gauge, and is upgrading its depth sounders with a new Windows
operating system.
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-Instrument 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.
Joseph P. Macaluso, 201-933-1600