Exhibit 99.1
Tel-Instrument Electronics Corp Announces Results for the Third Quarter
CARLSTADT, N.J.--(BUSINESS WIRE)--Feb. 15, 2007--Tel-Instrument
Electronics Corp ("TEL" or the "Company") today announced its
unaudited consolidated financial results for the three and nine month
periods ended December 31, 2006.
Three Months Ended Nine Months Ended
December 31, December 31,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Sales $2,269,148 3,008,995 $6,161,548 9,254,415
Net Income (Loss)
Before Taxes (65,258) 157,419 (654,989) 280,294
Provision (Benefit)
For Taxes (25,805) 70,875 (261,404) 128,486
Net Income (Loss) $ (39,453) 86,544 $ (393,585) 151,808
Net Income (Loss) Per
Share, Diluted ($0.02) $ 0.04 ($0.17) $ 0.07
Weighted Average
Shares Outstanding,
Diluted 2,307,969 2,296,385 2,296,466 2,271,617
As previously reported, the Company is in a transition phase
between the conclusion of deliveries under its previous AN/APM-480
multi-year contract with the U.S. Navy and commencement of deliveries
under its new multi-year contract, also with the U.S. Navy, to deliver
the AN/USM-708 units. This interval in deliveries and sales, as well
as the timing of government orders, increased competition, and the
continued financial difficulties within the commercial airline
industry contributed to the decline in business. As such, the revenues
were down significantly for the three and nine-month periods ended
December 31, 2006 as compared to the previous fiscal year. Currently,
the backlog approximates $9.5 million, including U.S. Navy contract
for ITATS (Intermediate Level TACAN Test Set) ($4.4 million).
Commercial and military orders continue to be below expectations.
Research and development expenditures will continue to remain high
in order to support the two new large contract awards. The Company has
been able to partially offset the research and development
expenditures by implementing a Profit Improvement Plan, which resulted
in substantial reductions.
As a consequence of this temporary significant decline in revenues
and high level of research and development expenditures, operating
profits, working capital, stockholders' equity, and cash have declined
for the first nine months of the current fiscal year. However, the
Company has working capital of approximately $3.9 million, cash in
excess of $1 million, and an unused credit line of $1.75 million, and
believes that it has adequate liquidity, resources and backlog to fund
operating plans during this interval, and until deliveries of its new
units commence in calendar 2008.
Although sales have declined in current periods for reasons
discussed above, the Company has received significant government
contract awards, and it is expected, if the production orders are
received against these contracts, as anticipated, shipments on the
AN/USM-708 CRAFT (Communications/Navigation (COMM/NAV) Radio Frequency
(RF) Avionics Flightline Tester) will begin in calendar year 2008.
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