Allied Research: Earnings News Release
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 EARNINGS; $1.88 A SHARE FOR CALENDAR YEAR
1997; UP 74%
VIENNA, Virginia, March 12, 1998 - Allied Research Corporation (AMEX:ALR), a
diversified defense and electronic security system firm, reported its earnings
for all of 1997 were up 74% a share, compared to 1996.
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 $1.08 a share, on revenues of $104 million for the same
period in 1996.
For the three months ended December 31, 1997, Allied Research earned $2.4
million, or $0.52 a common share on revenues of $52.3 million, compared to
earnings of $3 million, or $0.67 a share, on revenues of $39.6 million for the
same period in 1996.
The company said each of its three operating units reported a successful and
profitable 1997.
Allied Research ended the year with a consolidated backlog of $92.8 million.
Dr. J. R. Sculley, Chairman and Chief Executive Officer, said the results were
in line with expectations and resulted, in large part, from the firm's
increased international marketing success. The results were achieved even
after a restructuring charge at the MECAR unit.
"Both MECAR and Barnes & Reinecke made great strides in building marketing,
product development and coordinated service agreements that have proven to be
of significant benefit to their operating results," Dr. Sculley said. "Many
of the contracts and orders we have received have been a direct result of
close teaming with prime contractors, and I expect these mutally-rewarding
arrangements will grow," he added.
Dr. Sculley said that a primary strategic driver continued to be the expansion
of firm-wide marketing efforts, and that each operating unit had responded in
excellent fashion, reporting revenues in new markets worldwide.
The Company also credited aggressive new porduct developments as a key element
in 1997's success. He said that new product offerings played an important role
in new orders for both MECAR and VSK, and that new product development would
continue to be a major effort at all units.
In another area, Dr. Sculley said he was very pleased with the progress made
in commercial diversification. "While our key player continues to be MECAR
and its continuing success in the defense industry, our goal is to expand
further into commercial areas where we can more accurately predict revenues
and earnings than we can in the defense area. That's not to say we will not
continue to expand our defense business, but we will look for other
opportunities to even out the peaks and valleys of defense spending.
"In effect, we have successfully repositioned Allied Research from a pure
defense firm of just a few years ago to a diversified firm with continuing
strenghts in defense and new strenghts in electronic security systems and
engineering services for both defense and commercial customers.
"It is a credit to our operating unit managers and the corporate staff that
we again have lowered our operation and staff expenses, making us very
competitive in pricing and allowing us to reallocate resources to produce
results for the future," Dr. Sculley said.
Allied Research Corporation is a defense and electronic security firm. Its
operatings 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 December 31
000's omitted except per share amount
1997 1996
Revenues $52,315 $39,582
Net earnings $ 2,378 $ 2,997
Net earnings per share
Basic $ 0.52 $ 0.67
Diluted $ 0.51 $ 0.67
Year End December 31
000's omitted except per share amount
1997 1996
Revenues $134,484 $103,660
Net earnings $ 8,565 $ 4,805
Net earnings per share
Basic $ 1.88 $ 1.08
Diluted $ 1.85 $ 1.08
Ends. |
