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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (12961)	9/26/2002 11:12:08 AM
From: Bruce A. Brotnov	Read Replies (1) \| Respond to of 16631

Since it is the end of the month and quarter, we might see some window dressing today and tomorrow. MFs are looking at serious losses and may just do some extra buying in their stocks to get prices up. DOW back over 100 but needs to get through 7980 per Raptor. HELE worth watching on their news today. Bruce

To: Dave Gore who wrote (12961)	9/26/2002 11:12:59 AM
From: Frederick Langford	Read Replies (2) \| Respond to of 16631

Check out HRLY Could this be another EASI? Decent PE about 22 Huge backlog A lurker sent me this one. I did some DD and I like what they are doing and am highly attracted to this space. Herley Achieves Record Fourth Quarter and Full Year Results /FROM PR NEWSWIRE PHILADELPHIA 800-523-4424/ TO BUSINESS EDITOR: Herley Achieves Record Fourth Quarter and Full Year Results Fiscal Year Revenues Up 21.4%, Fourth Quarter Revenues Up 11.7% Fiscal Income from Operations Increased 38.5% to $15.2 Million 2002 Per Share Earnings from Continuing Operations Increased 20.3% LANCASTER, Pa., Sept. 25 /PRNewswire-FirstCall/ -- Herley Industries, Inc. (Nasdaq: HRLY) today reported record financial results for the fourth quarter and fiscal year ended July 28, 2002. Results for the fourth quarter of fiscal 2002 are as follows: -- Revenues were $25.3 million, an 11.7 percent increase over the same period last year. -- Earnings before interest, taxes, depreciation and amortization (EBITDA) were $5.3 million, 12.8 percent higher than fourth quarter 2001 EBITDA. -- Earnings before interest and taxes (EBIT) were $4.2 million, 28.7 percent higher than the prior year quarter. -- Income from continuing operations increased 46.9 percent to $3.2 million, $0.21 per share on a fully diluted basis on 15.6 million diluted average shares outstanding. The 38 percent increase in diluted shares outstanding for the fourth quarter of fiscal 2002 was principally due to the equity offering completed by the company in the fourth quarter of fiscal 2002, which placed approximately 3.0 million additional shares in the marketplace. Full year 2002 results are as follows: -- Revenues increased 21.4 percent to $92.9 million. This increase was achieved entirely by organic growth. -- EBITDA were $19.8 million, 20.7 percent higher than fiscal 2001 EBITDA. -- EBIT were $15.9 million, 36.5 percent higher that fiscal 2001. -- Income from continuing operations was $10.7 million, $0.83 per share on a fully diluted basis. This represents a 41.7 percent and 20.3 percent increase, respectively, over fiscal year 2001. "Herley achieved excellent results for the fourth quarter and fiscal year 2002. It was yet another year of strong business performance due in part to our participation on long-term production programs and the company's consistent focus on margins and profitability," said John M. Kelley, Executive Vice President of Herley. Kelley continued, "Free cash flow from business operations totaled more than $7.3 million in the fourth quarter and $7.7 million for the fiscal year and is expected to remain strong throughout fiscal 2003. Backlog increased 4.1 percent to $82.7 million at fiscal year end 2002 even after record shipments for the year." "Herley's strong operating results for the quarter and fiscal year were achieved in spite of much higher than normal litigation expenses for the respective periods. The litigation costs of $1.1 million for the fourth quarter and $2.1 million for the full year were directly related to legal proceedings with Robinson Laboratories, Inc. and Ben Robinson. The impact to fourth quarter and fiscal 2002 earnings on an after tax basis was approximately $0.05 and $0.11 per share respectively," said Kelley. "In 2002, Herley's Defense Electronic business was consistent and grew at all of our operating facilities. We began the year with a record backlog and it has continued to grow. At the end of August 2002, Herley's funded backlog was approximately $90 million. With this large and growing backlog and a broad range of products and domestic and international opportunities, we look to fiscal 2003 with optimism and confidence. Along with strong cash generation, we expect double-digit growth in earnings and revenues for the year." Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA, Herley has six locations and approximately 600 employees worldwide. For information at Herley contact: John M. Kelley Tel: (717) 397-2777 Executive Vice President www.herley.comv