Elecsys Corporation Reports First Quarter Financial Results

Elecsys Corporation Reports First Quarter Financial Results

Revenues Grow 59% Over Last Year

OLATHE, Kansas, Sept. 9, 2013 (GLOBE NEWSWIRE) -- 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 first quarter ended July 31, 2013.

Sales for the quarter were $6,774,000, an increase of 59%, or $2,517,000, from
$4,257,000 in the first quarter of fiscal 2013.

Operating income for the quarter was $453,000, an improvement of $681,000,
compared to an operating loss of $228,000 for the same quarter in the prior
year.

Net income was $264,000, or $0.07 per diluted share, for the quarter ended
July 31, 2013. For the quarter ended July 31, 2012, the Company's net loss was
$161,000, or $0.04 per diluted share.

Proprietary product and service revenues were $2,466,000 for the quarter ended
July 31, 2013, an increase of 45%, or $763,000.Sales of wireless remote
monitoring solutions increased approximately 60%, or $572,000, from the
comparable period of the prior fiscal year.The increase in remote monitoring
equipment and service revenue was due to an overall increase in customer
orders received and shipped including some initial orders for a remote
monitoring product for a new industrial equipment market.Recurring data
management services revenue increased 17% in the period and continues to grow
as a function of the growing population of monitoring units deployed in the
field.The Company's industrial data communication solutions reported an
increase in revenues of 13%, as compared to the previous fiscal year.This
increase was the direct result of increased sales and marketing efforts to the
existing customer base and an active pursuit of new customers and applications
for the Director series products.The Company's mobile data acquisition
solutions, primarily encompassing Radix handheld computers, reported a revenue
increase of approximately 53% over the prior fiscal year primarily as a result
of Radix shipments to one of our largest international partners and continuing
sales to established domestic customers.

Sales for the Company's Electronic Manufacturing Services ("EMS") business
segment increased approximately 69% to $4,308,000 for the quarter ended July
31, 2013 from $2,554,000 in the prior fiscal year period.The increase of
approximately $1,754,000 in EMS revenues resulted from increased orders from
certain existing customers combined with the addition of several new customers
during the period.

The Company anticipates that as a result of new products in development and
investments in sales and marketing to reach new customers and markets,
revenues from the Company's proprietary products will continue to increase
over the next few quarters.Sales and gross margin dollars for the EMS
business segment should also show moderate growth in the long term as a result
of continued focus on increasing the EMS business by targeting specific
markets that will benefit from the Company's proprietary technologies.

Total backlog at July 31, 2013 was approximately $8,657,000, an increase of
$164,000 from a total backlog of $8,493,000 on April 30, 2013.

Gross margin for the three-month period ended July 31, 2013 was approximately
33%, or $2,208,000, relative to 33%, or $1,389,000 for the quarter ended July
31, 2012.The increase in gross margin dollars was a function of the overall
increase in revenues led by the increase in EMS sales.

Total selling, general and administrative expenses were approximately
$1,755,000 during the three-month period ended July 31, 2013, an increase of
$138,000 from $1,617,000 in the comparable period of the prior fiscal
year.Increases in both research and development costs and general and
administrative expenses were slightly offset by a decrease in sales and
marketing expenses.The $20,000 increase in research and development costs was
primarily driven by higher engineering personnel expenses as a result of
increased investment in new product development and design. General and
administrative expenses increased 19% over the prior year due to growth of
personnel related expenses and increases in professional fees and public
company costs.Sales and marketing expenses decreased by $16,000 during the
quarterly period due to the elimination of a sales management position and
reductions in travel costs, which were slightly offset by an increase in sales
commissions due to an increase in revenues for the period.

Karl B. Gemperli, Chief Executive Officer, stated, " We are pleased to report
the results of the first quarter as we achieved substantial revenue growth and
improved bottom-line performance compared to the previous year.Sales
increased over 59% from the first quarter of last year and our order backlog
continued to grow.Most importantly, during the quarter we increased our
investments in both additional product development and new market penetration,
which are both vital to sustaining our growth rate over the long term."

Gemperli continued, "Our innovative solutions and technical capabilities are a
key component of our growth and we continued to make substantial investments
in research and development to expand the range of M2M solutions we offer to
industry.In conjunction with new product and technology development, our
current business development initiatives are directed at expanding the
applications of our existing products into new industry segments and
increasing our business in international markets with attractive business
potential.During the first quarter, we received our first substantial order
for the Middle East market through our recently appointed sales representative
in the region.Although the overall global economy remains sluggish, we are
focused on numerous exciting opportunities for growth in the rapidly growing
industries we target and expect the 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 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.


Elecsys Corporation and Subsidiary
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                         
                                                  Three Months Ended
                                                  July 31,
                                                  2013    2012
Revenues                                           $6,774  $4,257
Cost of revenues                                   4,566   2,868
Gross margin                                       2,208   1,389
                                                         
Selling, general and administrative expenses:             
Research and development expense                  426     406
Selling and marketing expense                     508     524
General and administrative expense                821     687
Total selling, general and administrative expenses 1,755   1,617
                                                         
Operating income (loss)                            453     (228)
                                                         
Financial income (expense):                               
Interest expense                                  (15)    (21)
                                                  (15)    (21)
                                                         
Net income (loss) before income taxes             438     (249)
                                                         
Income tax expense (benefit)                      174     (88)
                                                         
Net income (loss)                                  $264    $(161)
                                                         
Net (loss) income per share information:                  
Basic                                             $0.07   $(0.04)
Diluted                                           $0.07   $(0.04)
                                                         
Weighted average common shares outstanding:               
Basic                                             3,894   3,885
Diluted                                           3,944   3,885


Elecsys Corporation and Subsidiary
Condensed Consolidated Balance Sheets
(In thousands, except share data)
                                                       
                                          July 31, 2013 April 30, 2013
ASSETS                                                  
Current assets:                                        
Cash and cash equivalents                 $1,478        $1,464
Accounts receivable, net                  2,269         2,538
Inventories, net                          6,837         6,238
Other current assets                      819           856
Total current assets                      11,403        11,096
                                                       
Property and equipment, net               5,418         5,399
                                                       
Goodwill                                  1,942         1,942
Intangible assets, net                    1,634         1,685
Other assets, net                         46            47
Total assets                               $20,443       $20,169
                                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities:                                   
Accounts payable                         $1,375        $1,390
Accrued expenses                         1,457         1,408
Income taxes payable                     68            1
Current maturities of long-term debt      186           185
Total current liabilities                 3,086         2,984
                                                       
Deferred taxes                             625           637
Long-term debt, less current maturities    2,572         2,619
                                                       
Stockholders' equity:                                  
Common stock                              40            40
Additional paid-in capital                11,488        11,429
Treasury stock                            (374)         (282)
Retained earnings                        3,006         2,742
Total stockholders' equity                14,160        13,929
Total liabilities and stockholders' equity $20,443       $20,169

CONTACT: Todd A. Daniels
         (913) 647-0158, Phone
         (913) 982-5766, Fax
         investorrelations@elecsyscorp.com

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