Signal Technology Reports Fourth-Quarter and Year-End 1999 Financial Results
DANVERS, Mass.--(BUSINESS WIRE)--Feb. 22, 2000--Signal Technology
Corporation (AMEX:STZ) today reported results for its fourth quarter
and full year ended December 31, 1999.
For the quarter, sales totaled $20.3 million, compared with $23.4
million for the fourth quarter of 1998. Net income for the fourth
quarter was $1,584,000, or $0.20 per diluted share, versus net income
of $371,000, or $0.05 per diluted share, for the corresponding period
last year.
For 1999, Signal reported sales of $82.4 million, versus $92.1
million in 1998. Signal's 1999 net income was $4,476,000, or $0.56 per
diluted share, a substantial improvement over a net loss of $7.2
million, or $0.97 per diluted share, in 1998. Signal's 1999 results
include a pre-tax charge of $1,250,000 related to an
agreement-in-principle to settle pending securities class action. The
agreement-in-principle is subject to a number of customary
contingencies, including Court approval of the settlement. Net income
for 1999 also reflects approximately $2.2 million of income tax
benefit. Results for 1998 reflect pre-tax charges of approximately
$8.5 million in the first and second quarters, primarily attributable
to contract adjustments and inventory write-downs.
The past fiscal year was highlighted by a number of key
accomplishments:
--Signal strengthened its management team by adding a number of
experienced executives, as well as two new directors to its Board
of Directors.
--New financial and operational controls installed during the
latter half of 1998 and into 1999 have reduced costs, enhanced
product quality and increased on-time delivery rates.
--The company has rebuilt relationships with top defense and
aerospace contractors, such as Raytheon, GEC Marconi and Lockheed
Martin, and won many new contracts in 1999.
--Signal has produced six consecutive quarters of higher
earnings, generated operating cash flow of $12.0 million during
the year and created a growing order backlog of $83.3 million, a
29% increase over 1998's year-end backlog.
--To accelerate its growth in the commercial sector, Signal
increased its investment in internal research and development
programs, and acquired Advanced Frequency Products (AFP) in
December 1999. AFP is a leading provider of high-frequency
millimeter wave and microwave transceivers for the fast growing
broadband wireless communications infrastructure marketplace.
"Signal has done an excellent job of rebuilding its business in
1999 and setting the stage for top-line growth in 2000," stated George
Lombard, chairman and chief executive officer. "Our defense and space
businesses are in significantly stronger shape as a result of the
initiatives and programs that we implemented during 1999. Customer
satisfaction and the productivity, efficiency and morale of our
workforce have been substantially improved during the course of the
year."
Lombard added, "Signal ended the year on a very positive note by
acquiring AFP, which has become one of the core elements of our
recently formed Signal Wireless Group. Our momentum is continuing into
2000 as the Signal Wireless Group is taking major strides to expand
its business. In February, Signal Wireless Group won new business at
Spectrian Corporation for power distribution devices and systems in
North American CDMA base station applications. We also began working
with a U.S.-based telecommunications company to produce microwave
integrated transceivers for high-capacity Broadband Access Digital
Radio platforms."
"Moving forward, we are confident about our ability to generate
top-line growth in 2000, particularly in the commercial sector,"
Lombard concluded. "In addition, we anticipate increased spending on
key research and development programs, and sales and marketing
initiatives, which are aimed at further strengthening our position in
the commercial wireless broadband infrastructure market. We are
pleased with Signal's strategic direction and believe that we have the
necessary leadership, talent, technology, manufacturing and financial
resources necessary to thrive in 2000." |
