Microdyne Reports 118 Percent Increase in Earnings for Second Fiscal Quarter Of 1998 and 129 Increase for First Half of Fiscal 1998
ALEXANDRIA, Va., April 20 /PRNewswire/ -- Microdyne Corporation (Nasdaq: MCDY - news) today reported net income from continuing operations of $2,073,000 in the second fiscal quarter of 1998, up 118 percent from $951,000 for the second fiscal quarter of 1997. Basic earnings per share from continuing operations for the quarter were $0.16, up 129 percent from the $0.07 of basic earnings per share from continuing operations reported in the year earlier quarter. Net income for the 1998 quarter was also $2,073,000 versus a net loss of $27,177,000 reported a year ago. Basic earnings per share rose to $0.16 from a loss of $2.11 per share for the same period one year ago.
Revenues for the quarter increased to $13,348,000, a 24 percent increase over revenues in the year earlier period of $10,765,000. Growth in revenue in the company's Support Services and Aerospace Telemetry Divisions during the second three months of the fiscal year was 44 and 12 percent respectively, compared with the 1997 period. Income from operations for the company rose 26 percent to $2,259,000 from $1,799,000 in the second fiscal quarter of 1997. The company did not record any income tax expense for the second fiscal quarter of 1998, compared to $583,000 in the 1997 period, due to available tax benefits.
For the first six months of fiscal 1998, net income from continuing operations was $4,101,000, up 129 percent from $2,886,000 reported in the first half of fiscal 1997. Basic earnings per share from continuing operations for the period were $0.32, up 129 percent from the $0.14 of basic earnings per share from continuing operations reported in the year earlier period. Net income for the 1998 period was also $4,101,000 versus a net loss of $26,567,000 reported a year ago. Basic earnings per share rose to $0.32 from a loss of $2.07 per share for the same period one year ago.
First half revenues increased 34 percent to $26,033,000 from revenues of $19,426,000 in the year earlier period. Growth in the company's Support Services and Aerospace Telemetry Divisions during the first half of the fiscal year was 42 and 28 percent, respectively, compared with the 1997 period. Income from operations rose 28 percent to $4,515,000 from $3,524,000 in the first half of fiscal 1997. The company did not record any income tax expense for the first half of fiscal 1998, compared to $1,097,000 in the 1997 period, due to available tax benefits.
Commenting on the results, Michael E. Jalbert, President and CEO of Microdyne, said, ''We are pleased to announce another quarter of results in line with our expectations. We experienced improvement in our overall gross profit margin and maintained our operating margin despite higher costs of operations. We made solid improvements in our balance sheet by reducing accounts receivable and long-term debt, lowering other current liabilities, and increasing shareholders' equity. We continued to invest in infrastructure in our Support Services Division and are now bidding on new business from other manufacturers of electronic components. In our Aerospace Telemetry Division, we were able to improve margins through rigorous cost control and process improvements at our Ocala facility.
''Our focus in the second half of fiscal 1998 continues to be on expanding both businesses through internal growth as well as by acquisition. With continuing strong cash flow and an improved balance sheet, we are in a better position to take advantage of strategic opportunities in either of our core businesses.''
Headquartered in Alexandria, Virginia, Microdyne Corporation, through its Microdyne Outsourcing subsidiary, is a full-line provider of value-added, outsourced technical support and repair services for electronic products companies. Through its Microdyne Communication Technologies subsidiary, the company maintains its position as the premier global developer, manufacturer and service provider for aerospace telemetry receivers used in data gathering and analysis.
The information in this release contains forward-looking statements that involve risks and |
