Giga-tronics Reports Fourth Quarter and FY 2013 Results

Giga-tronics Reports Fourth Quarter and FY 2013 Results

SAN RAMON, Calif., June 27, 2013 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated
(Nasdaq:GIGA) reported today net sales of $2,778,000 in the fourth quarter of
fiscal 2013, an increase of 2% over net sales of $2,734,000 in the fourth
quarter of fiscal 2012. Gross margin increased by $335,000 over the same
quarter last year due to an increase in the mix of sales from the Company's
higher margin Microsource unit. Operating expenses increased $6,000 in the
fourth quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012
due mainly to a $290,000, or 35%, increase in engineering expenses primarily
associated with the continued investment in a new product platform, and an
increase of $104,000 in restructuring expenses, which were partially offset by
a $388,000 reduction in selling, general, and administrative expenses mainly
associated with decreased personnel expenses. A net loss of $1,570,000, or
$0.31 per fully diluted share, was incurred for the fourth quarter ended March
30, 2013 compared with a net loss of $1,900,000, or $0.38 per fully diluted
share, for the same period a year ago. Orders were $2,947,000 in the fourth
quarter of fiscal 2013 compared to $2,793,000 for the fourth quarter of fiscal
2012.

Net sales increased 8% to $14,187,000 in the year ended March 30, 2013
compared to $13,116,000 for the prior year. Orders increased 33% for the year
ended March 30, 2013 to $17,692,000 compared to $13,306,000 for the prior
year. The increases in net sales and orders were primarily associated with the
Company's Microsource unit. Gross margin increased $2,347,000 for the year
ended March 30, 2013 when compared to the prior year primarily due to a
$1,549,000 excess and obsolete inventory reserve charge in fiscal 2012, and an
increase in the mix of sales from the Company's higher margin Microsource unit
in fiscal 2013. Operating expenses increased $698,000 in fiscal 2013 compared
to the prior year mainly due to a $1,389,000, or 48%, increase in engineering
expenses primarily associated with constructing prototype and beta test units
of our new product platform, and an increase of $387,000 in restructuring
expenses, which were partially offset by a $1,078,000 reduction in selling,
general, and administrative expenses mainly associated with decreased
personnel expenses.A net loss of $4,206,000, or $0.84 per fully diluted
share, was incurred for the year ended March 30, 2013.This compares with a
net loss of $5,852,000, or $1.17 per fully diluted share, for the prior year.

Backlog at March 30, 2013 was $7.3 million, (approximately $6.7 million
shippable within one year) as compared to $3.8 million (approximately $3.8
million shippable within one year) at March 31, 2012.

Cash and cash equivalents at March 30, 2013 were $1,882,000 compared to
$2,365,000 as ofMarch 31, 2012.

Mr. John Regazzi, the Company's CEO stated, "The operating losses for the
fourth quarter and fiscal 2013 were in large part due to our continued
investment in engineering associated with our new product platform, which we
believe is required to achieve future revenue growth and ultimately
profitability."

Mr. Regazzi continued, "In May 2013 we completed the move of the Microsource
division to our San Ramon headquarters to reduce our manufacturing cost
structure and to eliminate redundant positions in operations. With Microsource
in San Ramon, we will start to see cost savings in upcoming quarters due to
the efficiencies gained with the combined operations."

Mr. Regazzi concluded, "After two challenging fiscal years, I believe the
changes we have made to our cost structure will allow Giga-tronics to
significantly reduce losses and move towards break-even, until our new product
platform begins to contribute measurably to our top line growth."

Giga-tronics will host a conference call today at 4:30 p.m. ET to discuss the
fourth quarter results. To participate in the call, dial (855) 410-0553
domestically or (646) 583-7389 for international, and enter PIN Code
592521#.The call will also be broadcast over the internet at
www.gigatronics.com under "Investor Relations."The conference call discussion
reflects management's views as of June 27, 2013.

Giga-tronics is a publicly held company, traded on the NASDAQ Capital Market
under the symbol "GIGA".Giga-tronics produces instruments, subsystems and
sophisticated microwave components that have broad applications in defense
electronics, aeronautics and wireless telecommunications.

This press release contains forward-looking statements concerning
profitability, future expense reductions, development of products, future
growth, shareholder value, backlog and shipments.Actual results may differ
significantly due to risks and uncertainties, such as future orders,
cancellations or deferrals, disputes over performance, the ability to collect
receivables and general market conditions.For further discussion, see
Giga-tronics' most recent annual report on Form 10-K for the fiscal year ended
March 31, 2012, Part I, under the heading "Certain Factors Which May Adversely
Affect Future Operations or an Investment in Giga-tronics" and Part II, under
the heading "Management's Discussion and Analysis of Financial Condition and
Results of Operations".

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                                            
(In thousands except share data)           March 30, 2013 March 31, 2012
Assets                                                       
Current Assets                                               
Cash and cash equivalents                    $1,882           $2,365
Trade accounts receivable, net of allowance  1,666            1,270
of $35 and $96, respectively
Inventories, net                             4,560            4,700
Prepaid expenses and other current assets    501              328
Total current assets                         8,609            8,663
                                                            
Property and equipment, net                  751              611
Other assets                                 --             16
Total assets                                 $9,360           $9,290
                                                            
Liabilities and shareholders' equity                         
Current liabilities                                          
Line of credit                               $577             $--
Accounts payable                             788              613
Accrued commission                           93               129
Accrued payroll and benefits                 1,047            739
Accrued warranty                             114              210
Deferred revenue                             2,278            7
Deferred rent                                81               59
Capital lease obligations                    66               20
Other current liabilities                    298              318
Total current liabilities                    5,342            2,095
                                                            
Long term obligation - Line of credit        280              --
Long term obligation - Deferred rent         341              433
Long term obligation - Capital lease         89               15
Total liabilities                            6,052            2,543
                                                            
Commitments and contingencies                --             --
                                                            
Shareholders' equity:                                        
Convertible Preferred stock of no par value;                 
Authorized - 1,000,000 shares                                
Series A - designated 250,000 shares; 0
shares at March 30, 2013 and March 31, 2012  --             --
issued and outstanding
Series B - designated 10,000 shares; 9,997
shares at March 30, 2013 and March 31, 2012  1,997            1,997
issued and outstanding; (liquidation
preference of $2,309)
Series C - designated 3,500 shares; 3,425.65
shares at March 30, 2013 and 0 shares at     457              --
March 31, 2012 issued and outstanding;
(liquidation preference of $500)
Common stock of no par value;                                
Authorized - 40,000,000 shares; 5,029,747
shares at March 30, 2013 and March 31, 2012  15,132           14,822
issued and outstanding
Accumulated deficit                          (14,278)         (10,072)
Total shareholders' equity                   3,308            6,747
Total liabilities and shareholders' equity   $9,360           $9,290


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                  Three Months Ended    Year Ended
(In thousands except per-share    March 30, March 31, March 30, March 31,
data)                             2013      2012      2013      2012
Net sales                          $2,778     $2,734     $14,187    $13,116
Cost of sales                      1,818      2,109      8,710      9,986
Gross margin                       960        625        5,477      3,130
                                                                
Engineering                        1,123      833        4,282      2,893
Selling, general and               1,273      1,661      4,976      6,054
administrative
Restructuring                      135        31         418        31
Total operating expenses           2,531      2,525      9,676      8,978
                                                                
Operating loss                     (1,571)    (1,900)    (4,199)    (5,848)
                                                                
Other income                       11         --       11         --
Interest expense, net              (10)       --       (16)       (2)
Loss before income taxes           (1,570)    (1,900)    (4,204)    (5,850)
Provision for income taxes         --       --       2          2
Net loss                           $(1,570) $(1,900) $(4,206) $(5,852)
                                                                
Loss per share - basic             $(0.31)  $(0.38)  $(0.84)  $(1.17)
Loss per share - diluted           $(0.31)  $(0.38)  $(0.84)  $(1.17)
                                                                
Shares used in per share                                         
calculation:
Basic                              5,030      5,024      5,030      5,012
Diluted                            5,030      5,024      5,030      5,012

CONTACT: Steve Lance
         Vice President of Finance / Chief Financial Officer
         (925) 302-1056

company logo
 
Press spacebar to pause and continue. Press esc to stop.