Allied Research: EARNINGS TOP THOSE OF 1997
ALLIED RESEARCH CORPORATION
8000 TOWERS CRESCENT DR, SUITE 750
VIENNA, VIRGINIA 22182
CONTACT: SUSAN URBANIAK (800)847-5322
HOME PAGE: WWW.CFONEWS.COM/ALR
TICKER: ALR-AMERICAN STOCK EXCHANGE
"FOR IMMEDIATE RELEASE"
ALLIED RESEARCH CORPORATION REPORTS $0.52 A SHARE FOR THREE MONTHS; $1.90 A
SHARE FOR 12 MONTHS 1998; AND TOPS 1997 PERFORMANCE
VIENNA, Virginia, February 9, 1999 - Allied Research Corporation (AMEX:ALR), a
diversified defense and electronic security firm, reported strong earnings for
both the three months and 12 months ending December 31, 1998.
For the three months ending December 31, 1998, Allied Research earned $2.5
million, or $0.52 a common share, fully diluted, compared to earnings of $2.4
million, or $0.51 a common share, fully diluted, for the same period in 1997.
For the 12 months ending December 31, 1998, Allied Research earned $9.1
million, or $1.90 a common share, fully diluted, on revenues of $145.4 million,
compared to earnings of $8.6 million, or $1.85 a common share, fully diluted,
on revenues fo $134.5 million for the same period of 1997.
Dr. J. R. Sculley, Allied Research's Chairman and Chief Executive Officer,
said that the year ended as a very good year ahead of predictions and stronger
than 1997. The fourth quarter results were aided by a reversal of provisions
for income taxes of approximately $795,000 from its United Kingdom subsidiary
which have been favorably resolved.
"I am pleased to report that all of our operating units turned in good profits
in very competitive market situations. Our commercial operations continue
their expansion, successfully pushing into new markets internationally, Dr.
Sculley added.
"The continuing growth of our commercial activities at the VSK Group, our
electronic security arm, has resulted in steadily increasing revenues and
profits, allowing us to plan ahead with greater confidence and accuracy.
"MECAR delivered a very good performance across all product lines despite a
slow-down in receipt of orders from its principal customer base. MECAR
continues to build strategic relationships with major defense firms
worldwide," he reported.
Dr. Sculley said that Barnes & Reinecke, while continuing to serve its U.S.
defense business base, generated significant revenue from its work in Asian
markets.
According to Dr. Sculley, the 1998 results reflect the benefits of adhering to
a strategic plan that identifies and supports MECAR as the base for corporate
strenghts, allowing commercial and international diversification to grow
successfully.
Dr. Sculley added that the impact of low oil prices on the spending patterns
of MECAR's customer base makes it difficult to predict the outlook for 1999.
Dr. Sculley said that, based on recent market intelligence, he was "very
positive" about the outlook for new orders for MECAR; however, the timing of
such orders remains uncertain. He also said he expected the VSK Group to
continue its very strong growth and profit path, and that BRI enters 1999 with
a healthy backlog.
Allied Research Corporation is a defense and electronic security firm. Its
operating units develop and produce ammunition, supply equipment performance
upgrades for defense departments worldwide, and design, produce and market
sophisticated electronic security and access control systems.
Certain statements contained herein are "forward looking" statements as such
term is defined in the Private Securities Litigation Reform Act of 1995.
Because such statements include risks and uncertainties, actual results may
differ materially from those expressed or implied. Factors that could cause
actual results to differ materially from those expressed or implied include,
but are not limited to, those discussed in filings by the Company with the
Securities and Exchange Commission.
_______________________________________________________________________________
ALLIED RESEARCH CORPORATION
Three months ended December 31
000's omitted except per share amount
1998 1997
Revenues $46,467 $52,315
Net earnings 2,483 2,378
Net earnings per share $0.52 $0.51
Twelve months ended December 31
000's omitted except per share amount
1998 1997
Revenues $145,375 $134,484
Net earnings 9,066 8,565
Net earnings per share $1.90 $1.85
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