SISI nasadq .85/1.00...9mo net inc $.20:
(COMTEX) B: SI Technologies Reports Nine-Month EPS of $0.20 vs. Prior-Ye
B: SI Technologies Reports Nine-Month EPS of $0.20 vs. Prior-Year Loss
TUSTIN, Calif., Jun 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- SI
Technologies, Inc. (Nasdaq: SISI), which designs, manufactures and markets
high-performance industrial sensors, weighing and factory automation equipment
and systems, today announced significantly improved profitability for the third
quarter and first nine months of FY2002.
For the three months ended April 30, 2002, the Company reported net income of
$197,000, or $0.05 per diluted share, on net sales of approximately $7.8
million. These results compared with a net loss of ($5,490,000), or ($1.55) per
share, on net sales of approximately $8.4 million, in the third quarter of
FY2001.
For the nine-month period ended April 30, 2002, the Company reported net income
of $716,000, or $0.20 per diluted share, on net sales of approximately $24.3
million. These results compared with a net loss of ($5,530,000), or ($1.56) per
share, on net sales of approximately $27.9 million, in the corresponding period
of the previous fiscal year.
Operating results for the quarter and nine months ended April 30, 2001 included
a restructuring charge of approximately $3.5 million involving the consolidation
of two of SI Technologies' subsidiaries, Allegany Technology and Revere
Transducers, as well as a goodwill impairment loss of $2.0 million.
"While this year's sales have trailed prior-year levels due to weakness in
capital equipment markets, we are pleased to report that the return to
profitability that was accomplished earlier in the year continued in the third
fiscal quarter," noted Rick Beets, President and Chief Executive Officer of SI
Technologies, Inc. "Most of our customers in such principal markets as forestry,
waste, steel, aerospace, freight and general manufacturing have been impacted by
economic recession and have reduced their spending on capital equipment
accordingly. However, we believe that our Company has maintained market share in
such principal markets and that sales should improve when global economies
recover."
"Improvements in profitability can be primarily attributed to the successful
implementation of our restructuring program, and we are beginning to realize
cost-saving benefits from our strategy of outsourcing the production of certain
high-volume products to offshore contract manufacturers. As of the end of the
third quarter, we have completed the transfer of all operations from our
Cumberland, Maryland facility to the Tustin, California facility as scheduled,
and our offshore manufacturing partners have begun shipping production
quantities of strategic components and parts on a regular basis. We are
searching for a suitable sub-tenant for our existing production facility in
Tustin, California, and if we are successful in this effort, SI Technologies
will be able to move into a more cost-effective location in the Southern
California area."
"Our primary challenge continues to involve revenue levels, which have trailed
prior-year levels during each of the first three quarters of fiscal 2002,"
continued Beets. "Any substantial and sustainable improvement in earnings will
require an improvement in sales resulting from a turnaround in capital spending
markets in the United States and abroad. In order to address liquidity
requirements during this period of lower revenues, we have reached an agreement
with our primary lender to amend our principal credit facility and extend the
maturity on such facility until November 30, 2002. The amended credit facility
is scheduled for signing in July 2002."
SI Technologies, Inc. is a leading designer, manufacturer and marketer of
high-performance industrial sensors/controls, weighing and factory automation
systems and related products. Its proprietary products enjoy leading positions
in their respective markets, while sharing common technologies, manufacturing
processes, and customers. The Company is positioned as an integrator of
technologies, products and companies that are involved in the handling,
measurement and inspection of goods and materials. SI Technologies' products are
used throughout the world in a variety of industries, including aerospace,
aviation, food processing and packaging, forestry, manufacturing, mining,
transportation, warehousing/distribution, and waste management. The Company is
headquartered in Tustin, California, and its common stock is traded on Nasdaq
under the symbol "SISI".
This press release includes statements which may constitute "forward-looking"
statements, usually containing the words "believe", "estimate", "project",
"expect" or similar expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking statements.
Factors that would cause or contribute to such differences include, but are not
limited to, continued acceptance of the Company's products in the marketplace,
competitive factors, dependence upon third-party vendors, and other risks
detailed in the Company's periodic report filings with the Securities and
Exchange Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this release.
For further information, please contact:
Rick Beets, President and CEO of SI Technologies at 714-505-6483
Or
R. Jerry Falkner, CFA, Investor Relations at 800-377-9893
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In Thousands Except Share Data)
(Unaudited)
Three Months Ended April 30
2002 2001
Net Sales $7,759 $8,377
Cost of Sales 5,068 5,728
Gross Profit 2,691 2,649
Selling, General & Admin. Expenses 1,919 2,278
Research, Develop. & Engineering Expenses 289 426
Amortization of Intangibles 90 112
Restructuring Charge -- 3,480
Goodwill Impairment Loss -- 2,000
2,298 8,296
Earnings (Loss) from Operations 393 (5,647)
Interest Expense (201) (377)
Other Income 57 28
Earnings (Loss) Before Income Tax Expense 249 (5,996)
Income Tax (Expense) Benefit (52) 506
Net Income (Loss) $197 $(5,490)
Net Earnings Per Common Share:
Basic $0.05 $(1.55)
Diluted $0.05 $(1.55)
Weighted Average Shares Outstanding:
Basic 3,579,935 3,547,123
Diluted 3,595,707 3,547,123
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In Thousands Except Share Data)
(Unaudited)
Nine Months Ended April 30
2002 2001
Net Sales $24,310 $27,892
Cost of Sales 15,858 18,605
Gross Profit 8,452 9,287
Selling, General & Admin. Expenses 5,762 6,907
Research, Develop. & Engineering Expenses 1,011 1,225
Amortization of Intangibles 275 338
Restructuring Charge -- 3,480
Goodwill Impairment Loss -- 2,000
7,048 13,950
Earnings (Loss) from Operations 1,404 (4,663)
Interest Expense (690) (1,249)
Other Income 54 27
Earnings (Loss) Before Income Tax Expense 768 (5,885)
Income Tax (Expense) Benefit (52) 355
Net Income (Loss) $716 $(5,530)
Net Earnings (Loss) Per Common Share:
Basic $0.20 $(1.56)
Diluted $0.20 $(1.56)
Weighted Average Shares Outstanding:
Basic 3,579,935 3,547,123
Diluted 3,589,333 3,547,123
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share Data)
April 30, July 31,
2002 2001
(Unaudited)
Current Assets:
Cash $489 $380
Trade Accounts Receivable, net 5,526 5,980
Inventories, net 9,967 8,584
Other Current Assets 591 899
Total Current Assets 16,573 15,843
Property and Equipment, net 2,223 2,655
Intangible Assets, net 6,943 7,175
Other Assets 198 237
TOTAL ASSETS $25,937 $25,910
Current Liabilities:
Current Maturities of Long-term Debt 10,143 14,514
Accounts Payable 3,647 3,249
Customer Advances 29 70
Accrued Liabilities 2,399 3,187
Total Current Liabilities 16,218 21,020
Long-term Debt, less current maturities 4,216 --
Other Liabilities 425 569
Stockholders' Equity:
Common Stock ($.01 par value, authorized
10,000,000 shares, 3,579,935 shares issued
and outstanding) 36 36
Additional Paid-in Capital 10,377 10,377
Retained Earnings (Accumulated Deficit) (4,952) (5,668)
Accumulated other comprehensive loss (383) (424)
Total Stockholders' Equity 5,078 4,321
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $25,937 $25,910
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SOURCE SI Technologies, Inc.
CONTACT: Rick Beets, President and CEO of SI Technologies,
+1-714-505-6483; or R. Jerry Falkner, CFA, Investor Relations
+1-800-377-9893, for SI Technologies, Inc.
(SISI)
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Copyright (C) 2002 PR Newswire. All rights reserved.
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KEYWORD: California
INDUSTRY KEYWORD: CPR
OTC
SUBJECT CODE: ERN
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