OLATHE, Kan., Dec. 9 /PRNewswire-FirstCall/ -- Elecsys Corporation
(NYSE Alternext U.S.: ASY), a leading provider of electronic design
and manufacturing services and developer of reliable, innovative
product solutions for use in critical applications, today announced
its financial results for the second fiscal quarter ended October
31, 2008. Sales for the quarter were $7,202,000, an increase of
29%, or $1,600,000, from the second quarter of Fiscal 2008. Total
sales year-to-date increased 23%, or $2,377,000, to $12,766,000.
The increases were primarily due to sales generated by its Radix
subsidiary's ultra-rugged handheld computer business. "We are
pleased with the increase in sales for the second quarter," said
Karl Gemperli, Elecsys chief executive officer. "The results
reflect the strong growth of our Radix division, as well as the
steady growth of NTG and the continued stability of DCI." Sales of
Radix rugged handheld computer hardware and peripherals surged to
approximately $3,277,000 for the quarter and included $304,000 for
maintenance contract and service revenues. Radix sales included the
$2.6 million order announced in July and delivered during the
quarter to South Africa-based Transnet. NTG sales of new remote
monitoring products were $833,000, an increase of 2% from the
comparable quarter of Fiscal 2008. Sales from the second quarter of
the prior year included approximately $254,000 of upgrade kits to
convert fielded analog units to the new digital standard in advance
of the FCC's phase-out of analog service in February 2008. Revenues
from upgrade kits in the current period totaled approximately
$87,000. Exclusive of these one-time sales of upgrade kits, revenue
increased $179,000, or 31.6%. Sales of DCI electronic design and
manufacturing services were $4,576,000 for the period, which was a
slight decrease compared with the prior year. Gross margin was
approximately 40% of sales, or $2,888,000, for the three-month
period ended October 31, 2008, compared to 33% of sales, or
$1,796,000, for the prior year period. Gross margin for the
six-month period also increased to 38% of sales, or $4,839,000. The
product mix during the quarter was a large contributor to the
Company's increase in consolidated gross margin. Selling, general
and administrative expenses were approximately $2,017,000 during
the period compared with $1,656,000 in the prior year period. The
increase was primarily from the addition of Radix, which was
acquired midway through the quarter in the previous year. Total
SG&A expenses increased $855,000 for the current six-month
period ended October 31, 2008, as compared to the comparable period
of the prior year. As a result, income before income taxes for the
quarter was $765,000, compared to $16,000 for the same quarter in
the prior year. For the first six months of Fiscal 2009, income
before income taxes grew to $944,000 from $282,000 in the first six
months of Fiscal 2008. Net income was $424,000, or $0.12 per
diluted share, for the quarter ended October 31, 2008. For the
quarter ended October 31, 2007, net income was $10,000, or $0.00
per diluted share. For the six month period ended October 31, 2008,
net income totaled $533,000, or $0.15 per diluted share, while net
income for the comparable prior year period was $184,000, or $0.05
per diluted share. With customer orders currently scheduled for
shipment as well as future anticipated orders, the Company expects
a modest decline in revenues and profits for the third quarter of
Fiscal 2009, and a strong fiscal fourth quarter. "The delivery of
the first phase of our customized handheld computing solution to
Transnet marked a significant milestone for Radix. In parallel to
the subsequent phases of this project, we are actively pursuing
numerous additional opportunities that we expect will continue the
rapid growth of our Radix product line," Gemperli stated. "In
addition, we are developing new remote monitoring products in order
to keep expanding the applications for our NTG brand, and we expect
continued, moderate growth for DCI's custom solutions." Gemperli
explained that Elecsys serves markets that are typically less
susceptible to economic cycles. "Given the current global economic
conditions, we expect revenues for the next quarter to be lower
than the current period, but similar to, or higher than, the
revenues for the comparable period last year. With the product
development and international sales and marketing initiatives
currently underway, we expect that for subsequent quarters we will
achieve increasing revenues compared to the comparable periods of
prior years," he said. Gemperli concluded, "Despite the current
economic turmoil, we expect solid results from all three business
units in Fiscal 2009." About Elecsys Corporation Elecsys
Corporation tailors customer specific technology solutions wherever
high quality, reliability, and innovation are essential. Our
companies provide electronic design and manufacturing services,
custom liquid crystal displays ("LCDs"), ultra-rugged mobile
computing devices, and wireless remote monitoring solutions to
numerous industries worldwide. The markets we serve include energy
infrastructure, aerospace, transportation, logistics, law
enforcement, safety, military, and other industrial product
industries. We operate our business through three wholly-owned
subsidiaries, DCI, Inc., Radix Corporation and NTG, Inc. For more
information, visit our website, http://www.elecsyscorp.com/.
Safe-Harbor Statement The discussions set forth in this press
release 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 that are described in Elecsys Corporation's
SEC filings, including the Form 10-KSB for the year ended April 30,
2008. The reader is cautioned that Elecsys Corporation 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
Elecsys Corporation over time means that actual events are bearing
out as estimated in such forward-looking statements. Investor
Relations Contact: Todd A. Daniels Elecsys Corporation (913)
647-0158, Phone (913) 647-0132, Fax Media Inquiries Contact:
Shelley Bartkoski Hagen and Partners (913) 642-3715 Elecsys
Corporation and Subsidiaries Consolidated Statements of Operations
(In thousands, except per share data) (Unaudited) Three Months
Ended Six Months Ended October 31, October 31, 2008 2007 2008 2007
---- ---- ---- ---- Sales $7,202 $5,602 $12,766 $10,389 Cost of
products sold 4,314 3,806 7,927 7,078 Gross margin 2,888 1,796
4,839 3,311 Selling, general and administrative expenses 2,017
1,656 3,672 2,817 Operating income 871 140 1,167 494 Financial
income (expense): Interest expense (107) (127) (224) (229) Interest
income 1 3 1 17 (106) (124) (223) (212) Income before income taxes
765 16 944 282 Income tax expense 341 6 411 98 Net income $424 $10
$533 $184 Net income per share information: Basic $0.13 $0.00 $0.16
$0.06 Diluted $0.12 $0.00 $0.15 $0.05 Weighted average common
shares outstanding: Basic 3,293 3,285 3,290 3,284 Diluted 3,452
3,458 3,450 3,467 DATASOURCE: Elecsys Corporation CONTACT: CONTACT:
Investor Relations Contact, Todd A. Daniels of Elecsys Corporation,
+1-913-647-0158, Fax, +1-913-647-0132, ; or Media Inquiries
Contact, Shelley Bartkoski of Hagen and Partners, +1-913-642-3715,
, for Elecsys Corporation Web Site: http://www.elecsyscorp.com/
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