Signal Technology Reports First-Quarter 2000 Financial Results; Bookings Grow 28 Percent Sequentially
DANVERS, Mass.--(BUSINESS WIRE)--May 4, 2000--Signal Technology
Corporation ("Signal") (Nasdaq: STCO), a leading provider of
electronics products for the defense, space and commercial wireless
communications markets, today reported results for its first quarter
ended March 31, 2000.
For the first quarter, Signal reported net income of $241,000,
compared with net income of $639,000, for the first quarter of 1999.
Earnings per diluted share were $0.03 in the first quarter compared to
$0.08 per diluted share reported for the corresponding period last
year. Sales totaled $20.3 million for the quarter, compared with $20.4
million for the first quarter of 1999. Order backlog grew to $97.3
million at March 31, 2000, a 17 percent sequential increase over
backlog at December 31, 1999, and up 36 percent from March 31, 1999.
New orders during the first quarter grew to $34.6 million, compared
with $27.0 million in new orders accepted during the fourth quarter of
1999. Gross profit as a percentage of sales increased to 34.0 percent
during the first quarter from 28.8 percent a year earlier.
Comments on the First-Quarter
"We are pleased to report growth in our backlog as 2000 begins,"
said George Lombard, chairman and chief executive officer. "Our
growing order backlog results in large part from strong bookings in
our new commercial wireless business, which positions Signal for
strong top line growth. Commercial wireless products bookings were
$12.3 million during the first-quarter of 2000, and today's wireless
backlog stands at $20 million."
The bookings and backlog increases stem in part from Signal's
entry into the fast-growing market for wireless broadband
infrastructure products, according to Lombard. "Leading wireless
communications manufacturers are turning to our Signal Wireless Group
(SWG) for state-of-the-art wireless broadband infrastructure products.
Our established presence in wireless infrastructure engineering and
manufacturing solidly positions Signal in this rapidly expanding
market," Lombard said.
"As expected, earnings were below the fourth quarter 1999 level
due mainly to expenses incurred at Advanced Frequency Products and
initial wireless product launches. Despite these investments, gross
margin percentage for the first quarter of 2000 exceeds the 1999 full
year level," Lombard said.
"Looking ahead, Signal's initial success in targeting the
commercial wireless infrastructure market positions the company for
sales growth in 2000 and beyond," Lombard said. "To support this
anticipated growth, the company has stepped up its employee recruiting
efforts, particularly for the Signal Wireless Group."
First-Quarter Contract Awards
Signal's defense businesses won major contract awards, which
totalled $22.3 million during the first quarter of 2000. Defense order
backlog grew to $77.1 million during the first quarter of 2000,
compared with total backlog of $71.4 million in the first quarter of
1999. The company's Keltec division set the pace, winning contracts
worth more than $10.5 million for new development and follow-on work
related to military aircraft, surface ship and ordnance platforms.
"These orders underscore Signal's commitment to the military
electronics markets," Lombard said, "and they are particularly
important because the majority of our new contracts have follow-on
potential for 2001 and beyond."
First-Quarter Conference Call
Signal will host its first quarter conference call this morning at
11:00 a.m. ET. The call will be broadcast live on the company's Web
site at www.sigtech.com. |
