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Elecsys Corporation Reports Fourth Quarter And Fiscal Year-End Financial Results

   Elecsys Corporation Reports Fourth Quarter And Fiscal Year-End Financial
                                   Results

Sales grow 10% and net income increases 38% to $.43 per share for the year

PR Newswire

OLATHE, Kan., July 10, 2013

OLATHE, Kan., July 10, 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, today announced its financial
results for the fourth quarter and fiscal year ended April 30, 2013.

Sales for the fourth quarter of fiscal 2013 were $7,512,000, an increase of
24%, or $1,431,000, from $6,081,000. Total sales for the 2013 fiscal year
grew 10%, an increase of $2,261,000, to $25,365,000.

Operating income for the quarter was $1,143,000, an increase of $367,000, or
47%, compared to operating income of $776,000 for the same quarter in the
prior year. For fiscal 2013, operating income increased approximately 30% to
$2,761,000, from operating income in the prior year of $2,120,000.

Net income was $715,000, or $0.18 per diluted share, for the quarter ended
April 30, 2013. For the quarter ended April 30, 2012, net income was
$466,000, or $0.12 per diluted share. For the fiscal year ended April 30,
2013, net income totaled $1,683,000, or $0.43 per diluted share, while net
income for the prior fiscal year was $1,219,000, or $0.32 per diluted share.

Sales of proprietary products and services increased 7% to $10,624,000 for the
year ended April 30, 2013, a $682,000 increase from sales of $9,942,000 during
the prior fiscal year. Sales for the Company's Electronic Manufacturing
Services ("EMS") business segment grew approximately 12% to $14,741,000 for
the fiscal year ended April 30, 2013 from $13,162,000 in the prior fiscal
year. 

The Company anticipates that over the next few quarters its continued
investment in both sales and marketing and new product development will
produce revenue growth in its proprietary products business segment. The
increase in sales will most likely be led by remote monitoring products and
industrial data communication solutions. The EMS business segment is expected
to experience moderate growth with specific investments in its sales and
market development activities combined with the impact, positive or negative,
that future economic conditions will have on the Company's customers. The
Company's additional sales and marketing efforts in its EMS business segment
are focused on customers that can benefit from the Company's proprietary
technology and should support moderate growth in the EMS segment. 

Total backlog on April 30, 2013 was approximately $8,493,000, an increase of
7%, or $588,000, from a total backlog of $7,905,000 on April 30, 2012.

Gross margin for the three-month period ended April 30, 2013 was approximately
37%, or $2,772,000, versus 38%, or $2,304,000 for the quarter ended April 30,
2012. For fiscal year 2013, gross margin was approximately 37% of sales, or
$9,374,000, compared to 36% of sales, or $8,395,000, for fiscal 2012. The
increase in both gross margin percentage and dollars for the fiscal year was a
direct result of higher overall sales volumes and a favorable product mix.

Total selling, general and administrative expenses were approximately
$6,613,000 during the fiscal year ended April 30, 2013 compared with
$6,275,000 in the prior fiscal year. The $338,000 increase was primarily the
result of increases in research and development expenses and selling and
marketing costs. The Company's research and development investments increased
by $278,000 over the prior year with both higher engineering personnel
expenses and product development costs that were the result of new product
design efforts. Sales and marketing expenses increased $49,000 during the
fiscal year primarily as a result of higher travel costs along with minor
changes in personnel costs, advertising and promotion expenses, and
commissions.

Karl B. Gemperli, Chief Executive Officer, stated, "We had a very successful
year and are pleased to report results that reflect steady revenue growth,
enhanced gross margins, and significantly improved bottom-line performance
compared to the previous year. Sales increased by 10% over last year while
our efficient operations and lean expenses generated earnings of $0.43 per
diluted share. Sales of our proprietary products continued to expand while
business with our OEM partners strengthened throughout the year. Our
performance this year was a direct result of the strategic decisions we made
to invest in new M2M product development, enhance the profitability of our
custom OEM business, and penetrate new markets and applications for our
industrial solutions."

Gemperli continued, "We remain committed to expanding both the breadth of our
product offerings and our market presence as we continue developing new M2M
solutions, and anticipate the growth of our proprietary products business to
accelerate. In conjunction with new product development efforts, we believe
that sales and marketing initiatives currently underway will expand the market
for Elecsys proprietary products into additional sectors of the energy
exploration, production, transmission, and distribution markets, both
domestically and internationally. In addition to these areas, these business
development initiatives have been targeting new industries and applications
which we believe are a key component of our long-term future growth. Although
the direction of the economy is difficult to predict, we plan to continue our
growth this coming year and remain focused on broadening our product offerings
and expanding our market presence as we build the company and grow earnings
over the long term. As always, we are thankful for the talented and dedicated
team of people at Elecsys who continue to work diligently for our success."

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 production and distribution,
agriculture, transportation, safety and security systems, and water
management. Elecsys proprietary equipment and services encompass 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 products for various markets under several premium brand
names. In addition to its proprietary products, Elecsys designs and
manufactures rugged and reliable custom electronic assemblies, some
incorporating proprietary Elecsys technologies, 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, 2013. 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  Year Ended

                                          April 30,           April 30,
                                          2013       2012     2013     2012
Sales                                     $7,512     $6,081   $25,365  $23,104
Cost of products sold                     4,740      3,777    15,991   14,709
Gross margin                              2,772      2,304    9,374    8,395
Selling, general and administrative
expenses:
 Research and development expense        472        354      1,716    1,438
 Selling and marketing expense           557        541      2,192    2,143
 General and administrative expense      600        633      2,705    2,694
Total selling, general and administrative 1,629      1,528    6,613    6,275
expenses
Operating income                          1,143      776      2,761    2,120
Financial income (expense):
 Interest expense                        (13)       (25)     (65)     (152)
 Other (expense), net                    --         (2)      (3)      (3)
                                          (13)       (27)     (68)     (155)
Net income before income taxes            1,130      749      2,693    1,965
Income tax expense                        415        283      1,010    746
Net income                                $715       $466     $1,683   $1,219
Net income per share information:
 Basic                                   $0.18      $0.12    $0.43    $0.32
Diluted                                 $0.18      $0.12    $0.43    $0.32
Weighted average common shares
outstanding:
 Basic                                  3,895      3,818    3,895    3,796
 Diluted                                3,923      3,859    3,906    3,844



Elecsys Corporation and Subsidiary

Condensed Consolidated Balance Sheets

(In thousands, except share data)
                                            April 30, 2013  April 30, 2012
ASSETS
 Current assets:
 Cash and cash equivalents             $1,464          $136
 Accounts receivable, net              2,538           2,631
 Inventories, net                      6,238           5,940
 Other current assets                  856             826
 Total current assets                     11,096          9,533
 Property and equipment, net              5,399           5,295
 Goodwill                                 1,942           1,942
 Intangible assets, net                   1,685           1,886
 Other assets, net                        47              51
Total assets                                $20,169         $18,707
LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable                      $1,390          $825
 Accrued expenses                      1,408           1,393
 Income taxes payable                  1               5
 Current maturities of long-term debt  185             181
 Total current liabilities                2,984           2,404
Deferred taxes                              637             485
Long-term debt, less current maturities     2,619           3,554
 Stockholders' equity:
 Common stock                          40              39
 Additional paid-in capital            11,429          11,166
 Treasury shares                       (282)           --
 Retained earnings                     2,742           1,059
 Total stockholders' equity               13,929          12,264
Total liabilities and stockholders' equity  $20,169         $18,707

SOURCE Elecsys Corporation

Website: http://www.elecsyscorp.com
 
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