Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Elecsys Corporation Reports Third Quarter Financial Results



         Elecsys Corporation Reports Third Quarter Financial Results

Sales increase by 43% and net income grows to $.18 per share

PR Newswire

OLATHE, Kan., March 11, 2013

OLATHE, Kan., March 11, 2013 /PRNewswire/ -- Elecsys Corporation (NASDAQ:
ESYS), a provider of innovative machine to machine (M2M) communication
technology solutions, data acquisition systems, and custom electronic
equipment for critical industrial applications worldwide, today announced the
financial results for its third fiscal quarter ended January 31, 2013.

Sales for the quarter were $7,458,000, which was an increase of 43%, or
$2,240,000, from sales of $5,218,000 during the third quarter of fiscal 2012. 
Total sales year-to-date increased 5%, or $829,000, to $17,853,000. 

Operating income for the quarter was $1,146,000, compared to operating income
of $473,000 for the same quarter in the prior year.  For the first nine months
of fiscal 2013, operating income grew to $1,617,000, an increase of $273,000
over the same period of the prior year.

Net income was $716,000, or $0.18 per diluted share, for the quarter ended
January 31, 2013.  For the quarter ended January 31, 2012, net income was
$262,000, or $0.07 per diluted share. For the nine-month period ended January
31, 2013, net income totaled $968,000, or $0.25 per diluted share, while for
the comparable prior year period net income was $754,000, or $0.19 per diluted
share.  

Sales of proprietary products and services were $3,034,000 for the quarter
ended January 31, 2013, an increase of 19%, or $481,000 from the previous year
quarter.  Proprietary product sales increased $609,000, or 8%, to $7,885,000
for the nine-month period ended January 31, 2013 compared to $7,276,000 in the
comparable period of the prior fiscal year.  Sales of wireless remote
monitoring and industrial data communication solutions decreased $412,000,
from the previous year to $1,470,000 for the current quarter.  For the
year-to-date period ended January 31, 2013, sales decreased $582,000 as
compared to the year-to-date period of the prior year.  In addition, sales of
Radix mobile data acquisition solutions increased by $914,000, or 160%, to
$1,484,000 for the three-month period ended January 31, 2013. For the
nine-month period ended January 31, 2013, sales of Radix mobile data
acquisition solutions increased 79% to $2,765,000.  The increase was driven by
an increase in shipments of the Radix FW950 and peripherals to a large
domestic customer and continued sales to international partners.

Sales for the Company's custom Electronic Manufacturing Services ("EMS")
business segment grew 66%, or $1,759,000, to approximately $4,424,000 for the
quarter ended January 31, 2013.  Fiscal year-to-date EMS sales were
$9,968,000, an increase of 2%, or $220,000, from $9,748,000 in the nine-month
period ended January 31, 2012.   

The Company expects that total sales for its proprietary products and services
will continue to increase as a result of its continued investments in both
sales and marketing and new product development.  The Company anticipates that
its wireless remote monitoring solutions and industrial data communications
product lines will generate increased sales over the next few quarters.  The
Company also believes that EMS sales will grow modestly over the longer term
based upon the current scheduled orders in backlog, the anticipated addition
of new EMS customers, and renewed investment in sales and marketing that will
focus on customers that can benefit from the Company's proprietary technology
solutions.    

Total backlog at January 31, 2013 was approximately $9,576,000, an increase of
$1,671,000, or 21%, from a total backlog of $7,905,000 on April 30, 2012.  The
increase in backlog was primarily due to an increase in EMS bookings during
the quarter combined with an increase in proprietary product backlog.

Gross margin for the quarters ended January 31, 2013 and 2012 was
approximately 38%, or $2,803,000 and  $1,990,000, respectively.  The $813,000
increase in gross margin dollars for the quarter was a function of increased
overall sales volume led by the growth in EMS sales.  Gross margin for the
nine-month period increased to 37% of sales, or $6,603,000 from a gross margin
of 36% of sales or $6,091,000 from the nine-month period ended January 31,
2012.  The increase of gross margin dollars and gross margin percentage was
the direct result of higher overall sales during the year-to-date period and a
favorable product mix. 

Total selling, general and administrative expenses were approximately
$1,657,000 during the quarter ended January 31, 2013 compared with $1,517,000
in the comparable quarter of the prior fiscal year.  The increase of $140,000,
or 9%, resulted primarily from increases in research and development costs and
general and administrative expenses.  The increase in research and development
costs included continued investment in engineering design personnel engaged in
new product development.  General and administrative expenses increased from
the comparable period of the prior year due to growth in personnel expenses,
professional fees, and general office costs.  Selling, general and
administrative expenses for the nine-month periods ended January 31, 2013 and
2012 totaled $4,986,000 and $4,747,000, respectively.

Karl B. Gemperli, Chief Executive Officer, stated, "We are pleased with our
performance during the third quarter which demonstrated solid revenue growth,
strong gross margins, and a substantial increase in earnings compared to our
prior year.  Sales increased 43% from the third quarter of last year with
strong growth in both proprietary products and custom OEM solutions.  We
continued to invest in the growth of Elecsys on many fronts during the
quarter.  Most significantly, we increased our investments in both new product
development and sales and marketing initiatives in order to penetrate new
markets that are vital to our long term expansion.  In addition, our
dependable and efficient operations continued to build our reputation as a
world-class electronics solutions partner and cement the long-term business
relationships that are important for growth in our electronic design and
manufacturing services segment."

Gemperli continued, "We believe that our innovative M2M technology is a key
component of our future expansion that can open new business opportunities for
proprietary and custom OEM solutions in the strong and growing industries that
we target.  With both next generation system solutions currently in
development and additional products being introduced, we anticipate the growth
of both our proprietary and OEM solutions to accelerate.  In conjunction with
new product and technology investment, our continuing business development
initiatives are focused on both expanding applications for our products into
new industry segments and increasing our business in new markets with
attractive new business potential.  Although the pace and sustainability of
the economic recovery is difficult to predict, we are focused on growing
Elecsys and expect positive trends in both revenues and earnings to continue
during the coming quarters."

About Elecsys Corporation
Elecsys Corporation provides innovative machine to machine (M2M) communication
technology solutions, data acquisition and management systems, and custom
electronic equipment for critical industrial applications worldwide.  The
Company's primary markets include energy, agriculture, safety and security
systems, water management, and transportation.  Elecsys proprietary equipment
and services encompass wireless remote monitoring, industrial data
communication, and mobile data acquisition technologies that are deployed
wherever high quality and reliability are essential.  Elecsys develops,
manufactures, and supports proprietary technology and equipment under several
premium brand names.  In addition to its proprietary products, Elecsys designs
and manufactures rugged and reliable custom electronic assemblies and
integrated display modules for multiple original equipment manufacturers in a
variety of industries worldwide.  For more information, visit
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-K for the year ended April 30, 2012. 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
                                (913) 647-0158, Phone
                                (913) 982-5766, Fax
                                investorrelations@elecsyscorp.com

 

Elecsys Corporation and Subsidiary
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 
                                         Three Months Ended  Nine Months Ended

                                         January 31,         January 31,
                                         2013       2012     2013      2012
Sales                                    $7,458     $5,218   $17,853   $17,024
Cost of products sold                    4,655      3,228    11,250    10,933
Gross margin                             2,803      1,990    6,603     6,091
Selling, general and administrative
expenses:
  Research and development expense       411        374      1,245     1,084
  Selling and marketing expense          529        517      1,636     1,602
  General and administrative expense     717        626      2,105     2,061
Total selling, general and               1,657      1,517    4,986     4,747
administrative expenses
Operating income                         1,146      473      1,617     1,344
Financial income (expense):
  Interest expense                       (15)       (31)     (51)      (127)
  Other income (expense), net            (2)        --       (3)       (1)
                                         (17)       (31)     (54)      (128)
Net income before income taxes           1,129      442      1,563     1,216
Income tax expense                       413        180      595       462
Net income                               $716       $262     $968      $754
Net income per share information:
  Basic                                  $0.18      $0.07    $0.25     $0.20
  Diluted                                $0.18      $0.07    $0.25     $0.19
Weighted average common shares
outstanding:
   Basic                                 3,914      3,789    3,895     3,789
   Diluted                               3,925      3,906    3,904     3,919

Elecsys Corporation and Subsidiary
Condensed Consolidated Balance Sheets
(In thousands, except share data)

 
                                            January 31, 2013  April 30, 2012
ASSETS                                      (unaudited)
   Current assets:
      Cash and cash equivalents             $24               $136
      Accounts receivable, net              3,406             2,631
      Inventories, net                      5,773             5,940
      Other current assets                  801               826
   Total current assets                     10,004            9,533
   Property and equipment, net              5,251             5,295
   Goodwill                                 1,942             1,942
   Intangible assets, net                   1,735             1,886
   Other assets, net                        48                51
Total assets                                $18,980           $18,707
LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
      Accounts payable                      $1,135            $825
      Accrued expenses                      1,168             1,393
      Income taxes payable                  112               5
      Current maturities of long-term debt  184               181
   Total current liabilities                2,599             2,404
Deferred taxes                              476               485
Long-term debt, less current maturities     2,665             3,554
   Stockholders' equity:
      Common stock                          39                39
      Additional paid-in capital            11,314            11,166
      Treasury stock                        (140)             --
      Retained earnings                     2,027             1,059
   Total stockholders' equity               13,240            12,264
Total liabilities and stockholders' equity  $18,980           $18,707

SOURCE Elecsys Corporation

Website: http://www.elecsyscorp.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement