Allied Research: INCREASED EARNINGS 1ST. QTR.
ALLIED RESEARCH CORPORATION
8000 TOWERS CRESCENT DRIVE, SUITE 750
VIENNA, VIRGINIA 22182
CONTACT: SUSAN URBANIAK (800) 847-5322
HOME PAGE: WWW.CFONEWS.COM/ALR
TICKER SYMBOL: ALR-AMERICAN STOCK EXCH.
"NEWS RELEASE"
ALLIED RESEARCH CORPORATION REPORTS INCREASED EARNINGS FOR FIRST THREE MONTHS
OF 1998, FOLLOWING RECORD YEAR
VIENNA, Virginia, April 28, 1998 - Allied Research Corporation, (ALR:AMEX), a
diversified defense and electronic security systems firm, today reported
earnings of $2.26 million, or $0.48 a share fully diluted, on revenues of
$35.8 million for the first three months ended March 31, 1998, compared to
earnings of $2.0 million, or $0.44 a share fully diluted on revenues of $29.8
million, for the same period in 1997.
"We are very pleased with these results for several reasons," said Dr. J. R.
Sculley, Chairman and Cheif Executive Officer of Allied Research. "First, it
indicates a mix of higher margin contracts for our Belgian munitions unit,
MECAR. Management at MECAR has done an outstanding job in gaining new, very
selective business, thereby improving margins.
"Second, it marks the success of our continuing effort to reduce costs across
all operating units while maintaining a high level of customer-oriented
operating and delivery efficiency.
"Third, the success of our VSK Group continues to validate our decision to
acquire VSK and similar firms. We have been able to meld those various
operations and small firms into the number two commercial electronic security
firm in Belgium and a growing presence throughout the Benelux area and beyond.
VSK has delivered steady, predictable revenues and profits that have allowed
us to smooth out the peaks and valleys of defense business," Dr. Sculley
concluded.
Allied Research said that its backlog was about $121 million, and that the
outlook for additional orders is very good. This was the 11th consecutive
quarter of earnings profitability for ARC.
Additionally, the Company said that its VSK Group added several new
distributors in Europe, and that VSK was expected to continue its expansion
during the balance of 1998.
For the 12 months, ended December 31, 1997, Allied Research earned $8.6
million, or $1.88 a share, on revenues of $134.5 million, compared to earnings
of $4.8 million, or a $1.08 a share, on revenues of $104 million for the same
period in 1996. 1997 was ARC's third highest year in EPS in its history.
Allied Research Corporation is a defense and electronic security firm. Its
operating units develop and produce ammunition and weapon systems; supply
equipment performance upgrades for defense departments worldwide; and design,
produce and market sophisticated electronic security and access control
systems.
ALLIED RESEARCH CORPORATION
Three months ended March 31
000's omitted except per share amount
1998 1997
Revenues $35.8 $29.8
Net earnings $2.26 $1.98
Net earnings per share
Basic $0.49 $0.44
Diluted $0.48 $0.44
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