MRY Amex 1.50:
(COMTEX) B: Memry Corporation Announces Record FY 2002 Results; Revenues
B: Memry Corporation Announces Record FY 2002 Results; Revenues $32.9M; Net
Income $3.8 Million; Diluted EPS $0.15; Q4 Revenue $9.2 Million; Net Income
$1.0 Million
BETHEL, Conn., Sep 3, 2002 /PRNewswire-FirstCall via COMTEX/ -- Memry
Corporation (Amex: MRY) announced today record results for its Fiscal Year 2002
ended June 30, 2002. Total revenue rose 10% to $32,895,000 from $29,913,000 in
FY 2001. Net income was $3,783,000 or $0.15 per diluted share compared with a
net loss of ($4,689,000) or ($0.21) per diluted share in FY 2001.
For the fourth fiscal quarter of 2002 revenue was a record $9,179,000 a gain of
12.6% over revenue of $8,148,000 in the same quarter last year. The company
reported quarterly net income of $1,042,000 or diluted earnings per share of
$0.04, versus quarterly net income of $1,164,000 or diluted earnings per share
of $0.05 for the comparable year ago quarter.
James Binch, chairman and CEO of Memry said, "We made important financial
progress in fiscal year 2002 posting record revenues in our third consecutive
year of revenue growth. In addition, the fourth quarter was our sixth
consecutive quarter of profitability. We also finished the year with the
strongest balance sheet in our history, including a record level of working
capital. Equally important, we now have the most promising pipeline of new shape
memory products we have ever known and a fast-growing portfolio of intellectual
property.
"Our revenue growth during the year was primarily driven by a significant
increase in the sales of superelastic tube used exclusively for medical
applications. This reflected increased demand in several medical device
procedural areas, particularly in the areas of embolic protection, neurology and
orthopaedics. The kink-resistant and self-expanding properties of Nitinol(TM)
have also made peripheral stenting an attractive market for us," Binch said.
"Manufacturing costs dropped during the year as our gross margin from sales rose
to 44.2% from 38.4% in fiscal year 2001. This was primarily attributable in part
to sales of higher margin semi-finished tube for medical applications and in
part to higher costs in fiscal 2001 when a major customer temporarily suspended
orders and we retained our skilled labor in anticipation of a resumption of
orders. Our GSA expenses for fiscal 2002 were down 8.9% reflecting the benefit
from the sale of our European subsidiary in fiscal 2001. The provision for
income taxes consists solely of state taxes. We will continue to benefit from
significant operating loss carry forwards for federal income tax purposes,"
Binch said.
"Despite 12.6% growth in revenues in our fiscal fourth quarter, net income was
down slightly. This was the result of higher manufacturing costs reflecting a
product mix shift from high margin superelastic tube used in stents for
abdominal aortic aneurysms (AAA) to a new generation of wire-based stent
components. The yields on the new wire-based products are still below our
internal targets as we work to overcome a variety of start-up issues. We expect
most of these issues will be resolved by our second fiscal quarter and that
product yields will return to more acceptable levels," Binch said.
"Looking forward, we are anticipating record revenue and income in fiscal year
2003. Our internal targets are aggressive and we are optimistic that our efforts
will result in growth levels beyond those for fiscal year 2002. The first
quarter is likely to be somewhat softer than the rest of the year as we work
through resolving the yield issues on the production of wire based stent
components," Binch said.
A copy of the financial statements follows.
Memry Corporation provides design, engineering, development and manufacturing
services to the medical device and other industries using the company's
proprietary shape memory alloy technologies. Medical device products include
stent components, catheter components, guidewires, laparoscopic surgical
sub-assemblies and orthopaedic instruments. The company's commercial and
industrial businesses produce semi-finished materials and components.
An investment profile on Memry may be found at
www.hawkassociates.com/memry/profile.pdf
Memry has scheduled a conference call for Wednesday, Sept. 4th at 11:00 am EDT
to discuss the earnings release. Those wishing to participate in the call with
senior members of the management team may do so by calling (888) 391-0065 any
time after 10:55 a.m. International callers please dial (212) 676-4919.
For more information contact Senior Vice President for Finance and
Administration Robert P. Belcher at (203) 739-1100. E-mail:
Robert_Belcher@memry.com or Frank Hawkins or Julie Marshall, Hawk Associates,
Inc. at (305) 852-2383. Email: info@hawkassociates.com .
Detailed information about Memry Corporation can be found on the website
www.memry.com. Copies of Memry Corporation press releases, SEC filings, current
price quotes, stock charts and other valuable information for investors may be
found on the website: www.hawkassociates.com
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance, or other expectations
implied by these forward-looking statements. These factors include, but are not
limited to, those detailed in the Company's periodic filings with the Securities
and Exchange Commission.
Memry Corporation & Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Year Three Month Period
Ended June 30, Ended June 30,
2002 2001 2002 2001
Revenues
Product sales $32,055,000 $28,937,000 $9,111,000 $7,819,000
Research and
development 840,000 976,000 68,000 329,000
32,895,000 29,913,000 9,179,000 8,148,000
Cost of revenues
Manufacturing 17,706,000 17,734,000 5,270,000 3,906,000
Research and
development 636,000 676,000 140,000 243,000
18,342,000 18,410,000 5,410,000 4,149,000
Gross
profit 14,553,000 11,503,000 3,769,000 3,999,000
Operating Expenses:
General, selling
and
administrative 10,151,000 11,138,000 2,738,000 2,751,000
Depreciation
and
amortization 337,000 512,000 95,000 123,000
Loss on
disposal of
subsidiary -- 4,232,000 -- --
10,488,000 15,882,000 2,833,000 2,874,000
Operating Income
(loss) 4,065,000 (4,379,000) 936,000 1,125,000
Other Income
(Expense)
Interest expense (160,000) (393,000) (36,000) (48,000)
Interest income 30,000 35,000 10,000 9,000
(130,000) (358,000) (26,000) (39,000)
Income (loss)
before income
taxes 3,935,000 (4,737,000) 910,000 1,086,000
Provision
(benefit) for
income taxes 152,000 (48,000) (132,000) (78,000)
Net income
(loss) $3,783,000 $(4,689,000) $1,042,000 $1,164,000
Basic earnings
(loss) per share $0.16 $(0.21) $0.04 $0.05
Diluted earnings
(loss) per share $0.15 $(0.21) $0.04 $0.05
Memry Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
June 30, June 30,
2002 2001
ASSETS
Current Assets
Cash and cash equivalents $2,951,000 $1,075,000
Accounts receivable, less
allowance for doubtful
accounts of $207,000 in
2002 and $173,000 in 2001 5,883,000 4,159,000
Inventories 4,296,000 3,680,000
Prepaid expenses and other
current assets 25,000 96,000
Notes receivable -- 140,000
Total current assets 13,155,000 9,150,000
Property, Plant and Equipment, net 6,338,000 7,260,000
Other Assets
Patents and patent rights,
less accumulated amortization
of $864,000 in 2002 and
$731,000 in 2001 1,200,000 1,333,000
Goodwill, less accumulated
amortization of $279,000 in
2002 and $279,000 in 2001 1,038,000 1,038,000
Deferred financing costs 19,000 --
Notes receivable 110,000 --
Deposits 328,000 272,000
2,695,000 2,643,000
$22,188,000 19,053,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
expenses $3,546,000 $4,124,000
Notes payable 716,000 1,909,000
Advances payable -- 600,000
Current maturities of capital
lease obligations 5,000 4,000
Income taxes payable 9,000 71,000
Total current liabilities 4,276,000 6,708,000
Capital Lease Obligations,
less current maturities -- 5,000
Notes Payable, less current
maturities 1,292,000 1,210,000
1,292,000 1,215,000
Stockholders' Equity
Common stock 253,000 236,000
Additional paid-in capital 48,708,000 47,018,000
Accumulated deficit (32,341,000) (36,124,000)
$22,188,000 19,053,000
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SOURCE Memry Corporation
CONTACT: Robert P. Belcher, Senior Vice President for Finance and
Administration of Memry Corporation, +1-203-739-1100; or Fran
Hawkins, or
Julie Marshall, both of Hawk Associates, Inc., +1-305-852-238
, or
info@hawkassociates.com, for Memry Corporation
URL: memry.com
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Copyright (C) 2002 PR Newswire. All rights reserved.
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KEYWORD: Connecticut
INDUSTRY KEYWORD: MTC
MAC
SUBJECT CODE: ERN
CCA
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