Giga-tronics Reports Results for the Fourth Quarter and FY 2014 (Periods Ending March 29, 2014)

Giga-tronics Reports Results for the Fourth Quarter and FY 2014 (Periods
Ending March 29, 2014)

SAN RAMON, Calif., June 23, 2014 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated
(Nasdaq:GIGA) reported today net sales of $2.9 million for the fourth quarter
of fiscal 2014, compared to $2.8 million for the fourth quarter of fiscal
2013. Net sales for fiscal 2014 were $13.3 million, compared to $14.2 million
for fiscal 2013. The decreases in net sales were primarily due to fiscal 2013
order fulfillment for the legacy SCPM switch product which was subsequently
sold to Teradyne in the first month of fiscal 2014.

Net loss for the fourth quarters of fiscal 2014 and 2013 were $1.3 million and
$1.6 million, or $0.25 and $0.31 per fully diluted share, respectively. Net
loss for fiscal years 2014 and 2013 were $3.7 million and $4.2 million, or
$0.74 and $0.84 per fully diluted share, respectively. The decrease in net
loss in fiscal 2014 was primarily due to the net gain recorded from selling
the legacy SCPM switch product to Teradyne. Over the past several years the
Company has made a significant investment in the development of a new product
platform, and delays in its completion contributed to the losses in fiscal
2014 and the fourth quarter of fiscal 2014.

On June 2, 2014, the Company announced a sole-source multi-year agreement with
a major aerospace company to develop a variant of its high performance fast
tuning YIG filters for a third aircraft platform.In connection with the
agreement, the Company has received orders valued at approximately $6.9
million for the non-recurring engineering and for the delivery of a limited
number of flight-qualified prototype hardware.The majority of the
non-recurring engineering services are expected to be performed over the next
twelve months. The Company expects to finalize in the next few months a
multi-year follow-on order for approximately $10.0 million associated with the
production units, which are anticipated to start shipping in April of 2016.

The Company also announced on June 17, 2017 the receipt of an order from the
U.S. Naval Air Warfare Center in Maryland valued at approximately $2.4 million
associated with its Model 8003 Precision Scalar Analyzer product.The Company
anticipates shipping the equipment to the Navy over the next six months.

Mr. John Regazzi, the Company's CEO stated, "While there will continue to be
financial challenges for us in the quarters ahead, we are greatly encouraged
by the recent YIG filter contract award along with the Naval Air Warfare
Center order. We anticipate these orders will significantly contribute to
improving the Company's financial performance during fiscal 2015."

Mr. Regazzi also commented on the Company's new product platform, "Today there
is a great deal of excitement here at Giga-tronics as the initial units of our
new product platform are being assembled.Although we have experienced delays
in its completion, we see this new platform as key to the Company's long term
growth and improved operating performance in fiscal 2015 and beyond."

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 (888) 424-8151 or
(847) 585-4422, and enter PIN Code 9178731#.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 23, 2014.

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 operating
performance, future orders, development of products, long term growth, and
shipments.Actual results may differ significantly due to risks and
uncertainties, such as: delays in completing the new product platform and
delays in customer orders for the new product platform, receipt or timing of
future orders, cancellations or deferrals, our ability to continue as a going
concern, our need for additional financing, the possibility that we may be
delisted from trading on the Nasdaq Capital Market; the volatility in the
market price of our common stock; and general market conditions.For further
discussion, see Giga-tronics' most recent annual report on Form 10-K for the
fiscal year ended March 30, 2013, Part I, under the heading "Risk Factors" and
Part II, under the heading "Management's Discussion and Analysis of Financial
Condition and Results of Operations".

GIGA-TRONICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
                                                             
                                                             
(In thousands except share data)               March 29, 2014 March 30, 2013
Assets                                                        
Current assets:                                               
Cash and cash-equivalents                      $1,059        $1,882
Trade accounts receivable, net of allowance of 1,846          1,666
$44 and $35, respectively
Inventories, net                               3,321          4,560
Prepaid expenses and other current assets      349            442
Total current assets                           6,575          8,550
Property and equipment, net                    949            751
Other long term-assets                         69             59
Total assets                                   $7,593        $9,360
Liabilities and shareholders' equity                          
Current liabilities:                                          
Line of credit                                 $1,165        $577
Current portion of long term debt              200            --
Accounts payable                               1,430          788
Accrued payroll and benefits                   755            1,047
Deferred revenue                               1,329          2,278
Deferred rent                                  104            81
Capital lease obligations                      147            66
Other current liabilities                      472            505
Total current liabilities                      5,602          5,342
Long term obligation - line of credit          --            280
Long term loan and warrant debt, net of        672            --
discounts
Derivative liability, at estimated fair value  128            --
Long term obligations - deferred rent          237            341
Long term obligations - capital lease          77             89
Total liabilities                              6,716          6,052
Commitments and contingencies                  --            --
Shareholders' equity:                                         
Convertible preferred stock of no par value;                  
Authorized - 1,000,000 shares                                 
Series A - designated 250,000 shares; no
shares at March 29, 2014 and March 30, 2013    --            --
issued and outstanding
Series B - designated 10,000 shares; 9,997
shares at March 29, 2014 and March 30, 2013    1,997          1,997
issued and outstanding; (liquidation
preference of $2,309)
Series C - designated 3,500 shares; 3,424.65
shares at March 29, 2014 and March 30, 2013    457            457
issued and outstanding; (liquidation
preference of $500)
Series D - designated 6,000 shares; 5,111.86
shares at March 29, 2014 and no shares at      457            --
March 30, 2013 issued and outstanding;
(liquidation preference of $731)
Common stock of no par value;                                 
Authorized - 40,000,000 shares; 5,181,247
shares at March 29, 2014 and 5,079,747 at      16,224         15,132
March 30, 2013 issued and outstanding
Accumulated deficit                            (18,258)       (14,278)
Total shareholders' equity                     877            3,308
Total liabilities and shareholders' equity     $7,593        $9,360



GIGA-TRONICS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                
                           Three Month Periods Ended Years Ended
(In thousands except per    March 29,  March 30,    March 29,    March 30,
share data)                 2014       2013         2014          2013
Net sales                   $2,905    $2,778      $13,309     $14,187
Cost of sales               2,139      1,818        8,811        8,710
Gross margin                766        960          4,498        5,477
                                                                
Operating expenses:                                              
Engineering                 857        1,123        3,897        4,282
Selling, general and        1,135      1,273        4,809        4,976
administrative
Restructuring               (29)       135          331          418
Total operating expenses    1,963      2,531        9,037        9,676
                                                                
Operating loss              (1,197)    (1,571)      (4,539)      (4,199)
                                                                
Gain on sale of product     --        --          913          --
line
Other income (loss)         (16)       11           (8)          11
Interest expense, net       (53)       (10)         (106)        (16)
Loss before income taxes    (1,266)    (1,570)      (3,740)      (4,204)
Provision for income taxes  --        --          2            2
Net loss                    $(1,266)  $(1,570)    $(3,742)    $(4,206)
                                                                
Loss per common share –     $(0.25)   $(0.31)     $(0.74)     $(0.84)
basic
Loss per common share –     $(0.25)   $(0.31)     $(0.74)     $(0.84)
diluted
                                                                
Weighted average common                                          
shares used in per share:
Basic                       5,060      5,030        5,058        5,030
Diluted                     5,060      5,030        5,058        5,030
                                                                
                                                                
GIGA-TRONICS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                
                           Three Month Periods Ended
(In thousands except per    March 29,   December 28,  September 28, June 29,
share data)                 2014        2013          2013          2013
Net sales                   $2,905    $3,417      $3,950      $3,037
Cost of sales               2,139      2,130        2,629        1,913
Gross margin                766        1,287        1,321        1,124
                                                                
Operating expenses:                                              
Engineering                 857        979          955          1,106
Selling, general and        1,135      1,066        1,295        1,313
administrative
Restructuring               (29)       36           129          195
Total operating expenses    1,963      2,081        2,379        2,614
                                                                
Operating loss              (1,197)    (794)        (1,058)      (1,490)
                                                                
Gain on sale of product     --        97           --          816
line
Other income (loss)         (16)       --          --          8
Interest expense, net       (53)       (21)         (19)         (13)
Loss before income taxes    (1,266)    (718)        (1,077)      (679)
Provision for income taxes  --        --          --          2
Net loss                    $(1,266)  $(718)      $(1,077)    $(681)
                                                                
Loss per common share –     $(0.25)   $(0.14)     $(0.21)     $(0.13)
basic
Loss per common share –     $(0.25)   $(0.14)     $(0.21)     $(0.13)
diluted
                                                                
Weighted average common
shares used in per share                                         
calculation:
Basic                       5,060      5,060        5,060        5,052
Diluted                     5,060      5,060        5,060        5,052

CONTACT: Steven D. Lance
         Vice President of Finance/Chief Financial Officer
         slance@gigatronics.com
         (925) 302-1056

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