revenues and earnings for its first
quarter ended December 31, 2003.
Revenues for the first quarter ended December 31, 2003 increased
$942,000 to $12,665,000 up 8%, compared to $11,723,000 for the prior
year quarter.
Net income for the first quarter ended December 31, 2003 was
$873,000, or $0.13 per diluted share, an increase of 8.6% compared to
$804,000 or $0.16 per diluted share for the prior year quarter.
In the first quarter of FY04 Sensytech reorganized its operations
into two business segments, combining the Imaging Group and
Communications Group (Comms). The newly formed Surveillance Technology
Group expands current product offerings into the traditional Comms
customer markets and provides a common surveillance technology/
product focus for the Homeland Security market and select
international customers. Potential gains from this strategic
restructuring are already being realized in this fiscal year.
S. Kent Rockwell, Chairman and CEO of Sensytech stated, "Revenues
for the 1st quarter were up 8% compared to the prior year quarter and
net income was up 8.6% for the same period. However, this solid
performance was less than our expectations due to procedural delays in
receiving negotiated new contract awards and unanticipated expenses
relating to the Q4 contract which unexpectedly had to be transitioned
as in-process work to Pennsylvania from New Jersey. Accordingly, our
bookings for the 1st quarter were only $4.6M but we do anticipate
record bookings for the 2nd quarter of FY04 in excess of $25M."
"The physical move of our manufacturing facility from New Jersey
to Western Pennsylvania has recently been completed. Additional
transition expenses will continue to impact our earnings through the
2nd quarter of FY04 as anticipated. We continue to gain confidence
that our decision to make this move was a wise one and that our
ability to grow revenues and profits in future quarters will be
substantially enhanced. We anticipate an overall cost improvement of
between 20% to 30% to be realized in future quarters as revenues
recover to our growth plan," Mr. Rockwell noted.
Financial Highlights
-- Revenue for the first quarter increased 8% over the prior year
quarter to $12,665,000
-- Net Income for the first quarter of $873,000 or $0.13 per
diluted share up 8.6% from the prior year quarter
-- Funded Backlog for the first quarter was $21,293,000 a
decrease of 39% from the prior year quarter funded backlog of
$34,981,000 |
