PHAZAR CORP Reports First Quarter Fiscal Year 2013 Financial Results

  PHAZAR CORP Reports First Quarter Fiscal Year 2013 Financial Results

Business Wire

MINERAL WELLS, Texas -- November 13, 2012

PHAZAR CORP (NASDAQ: ANTP) designs, manufactures and markets antennas, towers,
support structures, masts and communication accessories worldwide. Today,
PHAZAR CORP announces the results of operations for the three month period
ended September 30, 2012 and 2011, respectively.

First Quarter Fiscal Year 2013

Revenues of $1,159,836 for the first quarter decreased 18% compared to
$1,415,218 for the same three month period last year. Sales from our shipboard
and safety climb product lines are down $123,755 and $108,045, respectively
quarter over quarter.

Cost of sales and contracts from operations were $1,319,406 for the quarter
ended September 30, 2012 compared to $779,319 for the quarter ended September
30, 2011, up $540,087, or 69%. The $540,087 increase consists of approximately
$600,000 reserve for slow moving inventory offset by a $59,913 (or 8%) decline
in cost of goods sold on back of 18% decrease in sales quarter over quarter.
The Company reviewed its policy in estimating slow moving inventory to more
accurately value inventory that may have become impaired or obsolete due to
advancing technology or changes in demand of product by some customers. As
such, the Company incurred a charge of approximately $600,000 which represents
a reserve of $197,794 and $402,206 against the raw material and finished goods
inventories, respectively. Gross profit margins for the quarter, at 38% before
the slow moving inventory charge, were down seven basis points from the 45%
gross profit margin reported in the comparable period last year, related to a
higher level of overhead rates and a change in the product mix.

Sales and administration expense of $537,996 is down $207,374 or 27.8% for the
three month period ended September 30, 2012 compared to the prior year expense
of $745,370 related to an increase in plant utilization overhead. Research and
development costs of $174,096 were up $74,634, for the three months ended
September 30, 2012 compared to $99,462 in the prior year. The increase
represents continued product development for the commercial wireless product
line.

The Company recorded a net loss of $785,372, or $0.34 per share for the three
month period ended September 30, 2012 compared to net loss of $120,255, or
$0.05 per share for the comparable period in the prior year.

Backlog of Orders

The Company's backlog of orders on September 30, 2012, totaled approximately
$1,951,400 compared to $1,487,491 at June 30, 2012, an increase of 31.1%.
Incoming orders for the three month period ended September 30, 2012 totaled
$1,627,363 versus $1,724,724 for the three month period ended September 30,
2011, a decrease of 5.6%.

More information and analysis of PHAZAR CORP’s financial results will be
provided in the management discussion and analysis of financial condition and
results of operations in the Form 10-Q for the three month period ended
September 30, 2012, filed with the Securities and Exchange Commission on
November 9, 2012.

The Form 10-Q will be available at the SEC’s website at www.sec.gov and PHAZAR
CORP’S website at www.phazarcorp.com.

Product information is available at www.antennaproducts.com and
www.phazar.com.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under
the trading symbol “ANTP”. This press release contains forward-looking
information within the meaning of Section 29A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include statements concerning plans, objectives, goals, strategies,
future events or performances and underlying assumption and other statements,
which are other than statements of historical facts. Certain statements
contained herein are forward-looking statements and, accordingly, involve
risks and uncertainties, which could cause actual results, or outcomes to
differ materially from those expressed in the forward-looking statements. The
Company’s expectations, beliefs and projections are expressed in good faith
and are believed by the Company to have a reasonable basis, including without
limitations, management’s examination of historical operating trends, data
contained in the Company’s records and other data available from third
parties, but there can be no assurance that management’s expectations, beliefs
or projections will result, or be achieved, or accomplished.

                                                             
                                                                 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2012 AND JUNE 30, 2012
                                                                 
                                          September 30, 2012
                                                             June 30, 2012
                                          (Unaudited)
CURRENT ASSETS                                                   
Cash and cash equivalents                 $   797,814            $ 528,876
Accounts receivable:
Trade, net of allowance for doubtful
accounts of $0
as of September 30, 2012 and June 30,         414,766              880,342
2012
Inventories                                   1,904,988            2,376,427
Note receivable                               1,523,465            1,477,161
Prepaid expenses and other assets             92,128               95,231
Income taxes receivable                       29,321               29,321
Deferred income taxes                       206,536          211,674   
Total current assets                          4,969,018            5,599,032
                                                                 
Property and equipment, net                   964,622              997,426
                                                                 
Long - term deferred income tax             306,893          301,547   
TOTAL ASSETS                             $   6,240,533       $ 6,898,005 
                                                                 
                                                                 
CURRENT LIABILITIES
Accounts payable                          $   170,653            $ 274,628
Accrued liabilities                           366,728              300,637
Deferred revenues                             164,500              19,619
Liabilities held for discontinued           114,571          114,571   
operations
Total current liabilities                 $   816,452            $ 709,455
                                                                 
                                                                 
TOTAL LIABILITIES                        $   816,452         $ 709,455   
                                                                 
COMMITMENTS AND CONTINGENCIES
                                                                 
SHAREHOLDERS’ EQUITY
Preferred Stock, $1 par, 2,000,000
shares authorized, none issued
or outstanding, attributes to be              -                    -
determined when issued
                                                                 
Common stock, $0.01 par, 6,000,000
shares authorized
and 2,394,228, and 2,391,628 issued on
September 30, 2012 and June 30, 2012,         23,943               23,917
respectively
                                                                 
Additional paid in capital                    4,756,677            4,735,800
Treasury stock, at cost, 74,691 shares        (215,918    )        (215,918  )
on September 30, 2012 and June 30, 2012
Retained earnings                           859,379          1,644,751 
Total shareholders’ equity                  5,424,081        6,188,550 
                                                                 
TOTAL LIABILITIES AND SHAREHOLDERS'      $   6,240,533       $ 6,898,005 
EQUITY



PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
                                   
                                     Three Months Ended
                                     September 30, 2012     September 30, 2011
                                                       
                                     (Unaudited)            (Unaudited)
Sales and contract revenues          $   1,159,836        $   1,415,218
Cost of sales and contracts            1,319,406          779,319     
Gross profit (loss)                      (159,570    )          635,899
                                                            
Selling, general and                     537,996                745,370
administration expenses
Research and development costs         174,096            99,462      
Total operating expenses                 712,092                844,832
                                                            
Operating loss                           (871,662    )          (208,933    )
                                                            
Other income
Interest income (net)                    17,319                 38,292
Other income                           68,971             6,480       
Total other income                       86,290                 44,772
                                                            
Loss from operations before income       (785,372    )          (164,161    )
taxes
                                                            
Income tax expense (benefit)           -                  (55,815     )
                                                            
Net loss before discontinued             (785,372    )          (108,346    )
operations
                                                            
Loss from discontinued operations        -                      (18,044     )
Income tax benefit from                -                  6,135       
discontinued operations
Net loss from discontinued           $   -                  $   (11,909     )
operations
                                                            
Net loss                            $   (785,372    )    $   (120,255    )
                                                            
Basic loss per common share
Continuing operations                $   (0.34       )      $   (0.05       )
Discontinued operations                (0.00       )       (0.00       )
Net loss                             $   (0.34       )      $   (0.05       )
                                                            
Diluted loss per common share
Continuing operations                $   (0.34       )      $   (0.05       )
Discontinued operations                (0.00       )       (0.00       )
Net loss                             $   (0.34       )      $   (0.05       )
                                                            
Basic weighted average of common         2,311,559              2,311,124
shares outstanding
Diluted weighted average of common       2,311,559              2,311,124
shares outstanding



PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
                                   
                                     Three Months Ended
                                     September 30, 2012   September 30, 2011
                                   (Unaudited)          (Unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss                             $   (785,372   )       $   (120,255    )
Adjustments to reconcile net loss
to net cash
provided by operating activities:
Depreciation                             32,804                 32,347
Provision for slow moving                600,000                -
inventory
Loss from discontinued operations        -                      11,909
Stock based compensation                 20,903                 18,066
Deferred federal income tax              (208       )           (4,191      )
Changes in operating assets and
liabilities:
Accounts receivable                      465,576                335,698
Inventories                              (128,561   )           (130,683    )
Income taxes receivable                  -                      (56,579     )
Prepaid expenses and other assets        3,103                  44,142
Accounts payable                         (103,975   )           90,646
Accrued liabilities                      66,091                 150,468
Deferred revenues                        144,881                (2,355      )
Net cash used in discontinued          -                  (75,398     )
operations
Net cash provided by operating           315,242                293,815
activities
                                                            
CASH FLOWS FROM INVESTING
ACTIVITIES:
Funding of note receivable               (46,304    )           (148,034    )
Purchase of property and equipment     -                  (37,250     )
Net cash used in investing               (46,304    )           (185,284    )
activities
                                                            
                                                            
Net increase in cash and cash            268,938                108,531
equivalents
CASH AND CASH EQUIVALENTS,             528,876            1,169,318   
beginning of period
CASH AND CASH EQUIVALENTS, end of   $   797,814         $   1,277,849   
period

Contact:

Antenna Products Corporation
Kathy Kindle, 940-325-3301
Fax: 940-325-0716
kindle@phazarcorp.com
 
Press spacebar to pause and continue. Press esc to stop.