ASY - Volume of 103,500 shares today vs. avg. of 2,227/day. This was out a couple of days ago :
Elecsys Corporation Reports First-Quarter Results
Friday September 6, 10:59 am ET
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 6, 2002--Elecsys Corporation (AMEX:ASY - News) today reported results for the first quarter of its fiscal year.
Results for the quarter ended July 31, 2002, compared to the same period last year were:
Sales increased 72%, or $1.186 million to $2.844 million from $1.658 million. The significant increase in sales for the first quarter came from an increase in sales to existing customers, primarily in electronic assembly and hybrid electronics, and from a strong order flow from several new customers.
Gross margin for the three-month period ended July 31, 2002, was 31%, or $871,000, compared to $536,000, or 32% for the period ended July 31, 2001. The gross margin for the current period reflected a favorable product mix and strategic pricing opportunities. The slight decrease in margin percentage from the same period last year was partially due to a continuing shift, as a result of our focused sales activities, to higher volume orders.
Selling, general and administrative expenses were 26% of sales or $743,000 as compared to 41% of sales or $678,000 for the prior-year period, reflecting our continuing efforts to control and manage administrative costs.
As a result of these efforts, income from continuing operations was $91,000 compared to a $255,000 loss from continuing operations last year.
Cash flow used in continuing operations, excluding the cumulative effect of an accounting change, was $28,000 for the current period as compared to cash used in continuing operations of $543,000 in the prior-year period.
Due to our adoption of Statement of Financial Accounting Standards ("SFAS") No. 142, Goodwill and Other Intangible Assets, in the current period, the company recorded a full impairment of its goodwill, which was recorded as a cumulative effect of an accounting change in the current period. The goodwill was incurred as a result of the acquisition of DCI, Inc. in February 2000. The net loss for the period, as shown in the attached financial information, was $1.527 million of which $1.618 million was the result of the full impairment of goodwill. SFAS No. 142, requires, among other things, the discontinuance of amortization of goodwill and the completion of a two-part goodwill impairment test. If amortization of goodwill had not been recorded during the first quarter of the prior fiscal year, the net loss would have been $246,000.
Michael J. Meyer, Chairman, stated: "The significant investment we have made to improve and increase our sales efforts at DCI is paying off with both existing and new customers, as reflected in our 72% increase in quarter-over-quarter sales. The manufacturing process improvements we are implementing resulted in very favorable margin for the quarter, and our SG&A expenses continue to be controlled. Although we reflected an impairment of goodwill that negatively impacted our earnings on a non-cash basis, we are extremely pleased with the operating results of the first quarter. The achievement of these operating results, in a difficult economic environment nationally and specifically in our industry, is a tribute to the hard work and customer-focused efforts of all of our valued employees at DCI. It also confirms our view that we are doing an excellent job serving the needs of our long-time and new OEM customers. Based upon our continued aggressive sales efforts and control of operating expenses, we expect the improving trends, reflected in this quarter, to continue into the next quarter."
Elecsys Corporation, through our DCI subsidiary, provides specialized electronic design, manufacturing and test services to original equipment manufacturers (OEMs) and manufactures and imports custom liquid crystal display (LCD) devices. The electronic assemblies we design and manufacture, including circuit board assemblies, electronic modules and full turn-key products, along with the LCDs we manufacture and import, are used in medical, aerospace, industrial and consumer product applications.
elecsyscorp.com |
