beat the street by 25% .08 vs .06
Signal Technology Reports Second-Quarter 2000 Financial Results
DANVERS, Mass.--(BUSINESS WIRE)--July 25, 2000--Signal Technology
Corporation ("Signal") (Nasdaq: STCO), a leading provider of
state-of-the-art electronic components and subsystems for wireless
communications, defense and space applications, today reported results
for its second quarter ended June 30, 2000.
For the second quarter of 2000, Signal reported net income of
$718,000 compared with net income of $825,000 for the second quarter
of 1999. Earnings per diluted share were $0.08 in the second quarter
of 2000 compared to $0.10 per diluted share reported for the
corresponding period last year. Sales totaled $23.1 million for the
quarter, compared with $20.9 million for the second quarter of 1999.
Order backlog is $94.7 million at June 30, 2000, a 23 percent increase
over the backlog a year earlier. Gross profit as a percentage of sales
was 34 percent during the second quarter of 2000, compared to 29.3
percent a year earlier.
"We are pleased to report another excellent quarter, highlighted
by continued growth in our commercial wireless business," said George
Lombard, chairman and chief executive officer. "Signal is capturing an
increasing share of the fast-growing market for wireless base station
infrastructure, and our commercial wireless order backlog has
increased from $11 million when the year began to $23 million as the
second quarter concluded. In addition, we are seeing a steady increase
in the flow of new orders from leading wireless communications
manufacturers as the third quarter begins."
For the first six months of 2000, Signal reported net income of
$959,000, compared with net income of $1,464,000 for the comparable
1999 period. Earnings per diluted share were $0.11 for the first six
months of 2000, compared to $0.18 for the year-earlier period. Sales
for the first six months of 2000 were $43.4 million, compared to $41.4
million for the first six months of 1999.
"Looking ahead, our strategy for top-line growth is to further
penetrate the commercial wireless market while continuing to expand
our business with leading defense contractors," Lombard said.
Second-Quarter Contract Awards
Among the $20 million in new contract awards won by Signal during
the second quarter was a design and development contract for a high
power transmitter from Harris Corporation with a long-term potential
value of approximately $7 million. In addition, Signal was awarded a
major contract for Patriot Advanced Capability (PAC-3) Missile power
supplies by Lockheed Martin. Also during the second quarter, the
company's Keltec Division received ISO 9001 Certification, reflecting
Signal's success in continuously improving its products, processes,
and customer service while maintaining competitive pricing.
Second-Quarter Conference Call
Signal will host its second-quarter conference call this morning
at 11:00 a.m. ET. The call will be broadcast live on the company's Web
site at sigtech.com.
About Signal Technology
Signal is a leader in developing state-of-the-art electronic
components and subsystems for wireless communications, defense and
space applications. Through its Signal Wireless Group (SWG), the
company is addressing the exploding global demand for Internet and
data bandwidth by developing RF radio subsystems for broadband fixed
wireless telecommunications applications worldwide. SWG also develops
and manufactures switching/combining components and subsystems for
PCS/cellular digital applications for sale to wireless base station
infrastructure providers. In its defense businesses, Signal develops
and manufactures RF, microwave, and power conversion products for
communications networks, electronic countermeasures, missiles, radar,
intelligence and guidance systems for sale to defense prime
contractors worldwide. For further information about Signal, please
visit Signal's Web site at sigtech.com.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements made in this news release that are
not historical facts contain forward-looking information that involve
risks and uncertainties. Important factors that may cause actual
results to differ include, but are not limited to, market acceptance
risks, the effect of economic conditions, the impact of competitive
products and pricing, product development, capacity, supply
constraints, and other risks detailed from time to time in the
Company's Securities and Exchange Commission filings. Signal
Technology assumes no obligation to update the information included in
this news release.
SIGNAL TECHNOLOGY CORPORATION
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
Quarter ended Six Months ended
June 30, June 30,
2000 1999 2000 1999
Net sales $ 23,062 $ 20,934 $ 43,351 $ 41,370
Cost of sales 15,218 14,792 28,602 29,339
Gross profit 7,844 6,142 14,749 12,031
Selling, general and
administrative expense 5,283 4,885 11,003 9,458
Research and development
expense 870 311 1,290 825
Operating income 1,691 946 2,456 1,748
Other expense (1) 117 0 276 0
Interest expense 327 104 517 252
Income before income taxes 1,247 842 1,663 1,496
Income tax expense 529 17 704 32
Net income $ 718 $ 825 $ 959 $ 1,464
Basic earnings per share $ 0.09 $ 0.11 $ 0.12 $ 0.19
Diluted earnings per share $ 0.08 $ 0.10 $ 0.11 $ 0.18
Basic weighted average
shares outstanding 7,830 7,585 7,789 7,544
Diluted weighted average
shares outstanding 8,863 8,032 8,806 7,922
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2000 1999
Assets:
Cash and cash equivalents $ 1,331 $ 3,571
Accounts receivable, net 15,513 13,299
Inventory 16,712 10,446
Deferred taxes 4,134 4,134
Refundable income taxes 638 638
Other current assets 2,269 346
Total current assets 40,597 32,434
Property, plant and equipment, net 15,249 14,954
Intangible assets, net 8,696 9,365
Other assets 876 848
Total assets $ 65,418 $ 57,601
Liabilities and shareholders' Equity:
Current maturities of long-term debt $ 10,158 $ 3,605
Accounts payable 4,762 3,292
Accrued liabilities 8,957 10,318
Customer advances 501 1,603
Total current liabilities 24,378 18,818
Deferred income taxes 1,524 1,524
Long-term debt, net 5,678 5,573
Shareholders' equity 33,838 31,686
Total liabilities and
shareholders' equity $ 65,418 $ 57,601
(1) Operating loss related to Logimetrics; Bohemia, New York |
