Essex Corporation Reports $14.2 Million Q1 2004 Revenues COLUMBIA,
Md., May 4 /PRNewswire-FirstCall/ -- Essex Corporation announces
record quarterly revenues of $14,241,000 for the first quarter of
2004 compared to $3,001,000 in the same period of 2003. The net
income for the first quarter was $312,000 compared to a net loss of
$20,000 for Q1 2003. This 375% increase in revenues from 2003 to
2004 is a result of an increase in orders for rapid response system
engineering and integration services from our intelligence and
defense customers. Earnings per Share, at $0.02 per share
(diluted), reflect an increase based on revenue volume and
continued investment in solutions infrastructure and product
development. Our Q1 2004 results reflect an expansion phase for
Essex solutions offerings. This phase involves strong revenue
growth and increasing our capacity to deliver solutions that
necessitates increased infrastructure, continued use of
subcontractors, and significant purchases of hardware on behalf of
our customers. The expansion/investment phase for both the
solutions and product components of Essex business are expected to
continue throughout 2004. "For Essex, growth and investment are
strategic 2004 priorities," commented Leonard Moodispaw, CEO and
President. "There are three elements of our growth plan: 1)
expansion of our solutions capabilities and offerings; 2) product
innovations; and 3) strategic acquisitions, such as the one
recently announced with Computer Science Innovations. We are
focused on actions that will build long term value for Essex. In
2004 we will continue to develop strong and focused growth, with
such continued investments in our future as the Optical Encryptor
product. I believe the impact of this strategy will become visible
in 2005 with continued strong revenue growth and growing net income
from expanded high value solutions revenues, and in 2006 as product
revenues become significant." Essex is increasing guidance for 2004
revenues to the range of $45-50 million, before acquisitions. The
Company will host a discussion of this announcement with investors
and financial analysts today, May 4, 2004, at 5:00 p.m. (Eastern
Daylight Time). Interested parties may connect to our Webcast via
the Investor page on our website,
http://www.essexcorp.com/investor.html, or by calling
1-800-901-5217, participant passcode 35457392. The International
Dial In access number is 617-786-2964. An archive of the Webcast
will also be available on our webpage following the call. In
addition, a dial-up replay of the call will be available at
approximately 7:00 p.m. EDT on May 4th, and will remain available
through May 11th, 2004. To access the dial-up replay, call
1-888-286-8010, passcode 84094563. About Essex: Essex creates
solutions for today's most advanced signal and image processing
challenges, serving commercial, defense and intelligence customers.
For more information contact Essex Corporation, 9150 Guilford Road,
Columbia MD 21046; Phone 301.939.7000; Fax 301.953.7880; E-mail ,
or on the Web at http://www.essexcorp.com/. ESSEX CORPORATION
FINANCIAL HIGHLIGHTS 13 Week Period 13 Week Period March 28, 2004
March 30, 2003 (unaudited) (unaudited) Revenue: Services and
Products $8,268,000 $3,001,000 Purchased Hardware 5,973,000 --
Total 14,241,000 3,001,000 Cost of Goods Sold: Services and
Products 6,135,000 (2,042,000) Purchased Hardware 5,860,000 --
Total (11,995,000) (2,042,000) Gross Margin 2,246,000 959,000
Selling, General and Administrative Expenses (1,834,000) (785,000)
Research and Development (141,000) (132,000) Amortization of Other
Intangible Assets (35,000) (46,000) Interest Income (Expense)
76,000 (16,000) Net Income (Loss) $312,000 $(20,000) Weighted
Average Number of Shares - Basic 15,006,000 8,035,000 - Diluted
16,413,000 8,035,000 Net Income (Loss) per Common Share - Basic
$0.02 $(0.00) - Diluted $0.02 $(0.00) Working Capital $34,560,000
$883,000 Working Capital Ratio 7.47:1 1.34:1 CONDENSED CONSOLIDATED
BALANCE SHEETS March 28, December 28, 2004 2003 (Unaudited) ASSETS
Current Assets Cash and cash equivalents $29,512,904 $31,835,294
Accounts receivable, net 9,858,983 3,969,601 Prepayments and other
529,074 146,517 Total Current Assets 39,900,961 35,951,412 Property
and Equipment, Net 426,354 368,697 Other Assets Goodwill 2,998,000
2,998,000 Patents, net 327,231 333,648 Other intangibles, net
15,000 50,141 Other 34,056 23,764 Total Other Assets 3,374,287
3,405,553 TOTAL ASSETS $43,701,602 $39,725,662 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities Accounts payable
$3,642,948 $694,434 Note payable -- 100,000 Accrued wages and
vacation 807,304 898,498 Accrued retirement plans contribution
payable 162,511 298,551 Billings in excess of costs 425,000 462,000
Other accrued expenses 302,705 526,928 Total Current Liabilities
5,340,468 2,980,411 Shareholders' Equity Common stock and
additional paid-in capital 52,308,053 51,004,021 Accumulated
deficit (13,946,919) (14,258,770) Total Shareholders' Equity
38,361,134 36,745,251 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$43,701,602 $39,725,662 This press release may contain
"forward-looking statements" within the meaning of the United
States Private Securities Reform Act of 1995. These statements are
based on management's current expectations and are subject to
risks, uncertainty and changes in circumstances, which may cause
actual results, performance or achievements to differ materially
from anticipated results, performance or achievements. All
statements contained herein that are not clearly historical in
nature are forward looking. The forward-looking statements in this
release include statements addressing the following subjects:
future financial condition and operating results. Economic,
business, competitive and/or regulatory factors affecting Essex's
businesses are examples of factors, among others, that could cause
actual results to differ materially from those described in the
forward-looking statements. More detailed information about these
and other factors is set forth in Essex's Annual Report on Form
10-K for the fiscal year ended December 28, 2003. Essex is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise. Contact: Leonard E.
Moodispaw CEO & President 301.939.7000 DATASOURCE: Essex
Corporation CONTACT: Leonard E. Moodispaw, CEO & President of
Essex Corporation, +1-301-939-7000 Web site:
http://www.essexcorp.com/ http://www.essexcorp.com/investor.html
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