Applied Signal Technology Inc. Announces Record Fiscal 1997 Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 15, 1997--Applied Signal Technology Inc. (NASDAQ:APSG - news)
announced record revenues and net income for the year ended Oct. 31, 1997.
Revenues for fiscal year 1997 were a record $96,259,000 representing a 24% increase over fiscal year 1996 revenues of
$77,410,000. Net income increased 422% to $7,666,000 or $0.91 per share for the year ended Oct. 31, 1997 from
$1,815,000 or $0.23 per share for the year ended October 31, 1996.
Revenues for the fourth quarter of fiscal 1997 were $29,588,000, up 18% from $25,138,000 for the fourth quarter of fiscal
1996. Net income for the fourth quarter of fiscal 1997 was $2,937,000 or $0.34 per share, up 651% compared to net income
of $451,000 or $0.06 per share for the same period of fiscal 1996.
Revenues for the quarter and fiscal year 1997 reflect continuing demand for the Company's products and services. The
increase in revenues recognized in both periods are due in part to an increase in both development contract sales as well as
product sales and in part due to an increase in average fees being recorded on production contracts.
Gross margins for the quarter and fiscal year ended Oct. 31, 1997 were 40% and 37%, respectively, compared to 30% and
31%, respectively, for the same periods of the prior fiscal year. The improved gross margins are due in part to lower material
acquisition costs and in part to economies achieved in the manufacturing division derived from higher production quantities
which has resulted in favorable adjustments in estimated costs to complete on certain contracts.
Further, during the first quarter of fiscal 1996, the Company experienced unfavorable adjustments in the estimated costs
required to complete certain production contracts which it did not experience in fiscal year 1997.
New orders received during fiscal 1997 were $96,219,000 as compared to orders received during fiscal 1996 of
$130,733,000. For comparison purposes, the Company recorded the award of the Scalpel program for $51,035,000 -- the
largest single award in the Company's history -- during fiscal 1996. Order levels for the fourth quarter of fiscal 1997 were
$35,558,000, down 9% from the $38,952,000 reported for the same period of fiscal 1996.
Regarding the year-end operating results, Yancey, President and Chief Executive Officer of the Company, commented: ''We
were challenged during fiscal 1997 to achieve this 24% growth in revenues in light of the competition for labor under present
economic conditions. We successfully met the demands of our bookings by careful management of resources between contract
and research and development expenditures.
''I am confident that contract opportunities will provide continued growth in fiscal 1998; however, we must concentrate on
meeting our staffing requirements so that we achieve our revenue goals and do not compromise our investments in future years.
In light of this, we are instituting new staffing initiatives which I believe will assist us in meeting our staff growth requirements.
''Additionally, I am pleased with the significant improvement in net income exhibited in fiscal 1997 as compared to fiscal 1996.
We have seen improved contract performance on almost all fronts and operating margins more in line with the Company's
business model.''
Applied Signal Technology designs, develops, manufactures and markets advanced digital signal processing equipment to
collect and process a wide range of telecommunications signals for signal reconnaissance applications. For additional
Company-related information, visit the Company's website at appsig.com .
Except for historical information contained herein, this news release may contain forward looking statements that involve risks
and uncertainties. These risks and uncertainties include customer concentration, dependence upon personnel, volatility of
operating results, use of estimates in program costs-to-complete, and other risks detailed from time to time in the Company's
SEC reports including its latest Form 10-K filed for the fiscal year ended Oct. 31, 1996.
Applied Signal Technology
Condensed Balance Sheets
(Unaudited)
Assets
October 31, October 31,
1997 1996
--------- ---------
Current assets:
Cash $ 7,403 $ 1,559
Short term investments 1,331 767
Accounts receivable 32,648 30,019
Refundable income taxes 90 106
Inventory 4,821 3,208
Prepaids and other current assets 2,086 2,129
--------- ---------
Total current assets 48,379 37,788
Property and equipment, at cost 36,691 30,069
Accumulated depreciation and amortization (20,980) (17,198)
--------- ---------
Net property and equipment 15,711 12,871
Long-term investments -- 1,326
Other assets 71 118
--------- ---------
Total assets $ 64,161 $ 52,103
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable, accrued payroll
and benefits $ 10,000 $ 7,382
Other accrued liabilities 1,877 1,900
Income taxes payable 1,567 2,029
Bank line of credit -- --
--------- --------
Total current liabilities 13,444 11,311
Deferred income taxes 951 827
Shareholders' equity 49,766 39,965
--------- ---------
Total liabilities and shareholders' equity $ 64,161 $ 52,103
========= =========
Applied Signal Technology Inc.
Condensed Statements of Income
for the Periods Ending
October 31, 1997 and October 31, 1996
(Unaudited)
Three Months Ended Twelve Months Ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
1997 1996 1997 1996
--------- --------- --------- ---------
(In thousands except per share data)
Revenues from contracts $ 29,588 $ 25,138 $ 96,259 $ 77,410
Operating expenses:
Contract costs 17,732 17,714 60,404 53,333
Research and development 3,004 3,032 10,137 9,380
General and administrative 4,227 3,709 13,642 11,954
--------- --------- --------- ---------
Total operating
expenses 24,963 24,455 84,183 74,667
Operating income 4,625 683 12,076 2,743
Interest income/, net 74 11 190 49
--------- --------- --------- ---------
Income before provision
for taxes on income 4,699 694 12,266 2,792
Provision for taxes
on income 1,762 243 4,600 977
--------- --------- --------- ---------
Net income $ 2,937 $ 451 $ 7,666 $ 1,815
========= ========= ========= =========
Earnings per share $0.34 $0.06 $0.91 $0.23
Average common shares and
common share equivalents
outstanding 8,749 8,035 8,435 7,919
Contact: |
