AYDIN CORP. Announces Second Quarter 1998 Results.HORSHAM, Pa.--(BUSINESS WIRE)--Aug. 3, 1998--AYDIN CORP. (NYSE NYSE See: New York Stock Exchange :AYD AYD Advancing Youth Development AYD American Youth for Democracy ) Monday announced results for the second quarter and six month period ended June 27, 1998. Net income for the second quarter was $215,000, or $0.04 per share, compared to net income of $260,000, or $0.05 per share, for the second quarter of 1997. Revenues for the second quarter were $27.5 million compared to $32.3 million in the second quarter of 1997. In the 1998 second quarter the company generated positive cash flow from operating activities of more than $1.1 million. The net loss for the six month period ended June 30, 1998 was $23.9 million, or $4.59 per share, compared to a net loss of $4.0 million, or $0.78 per share, for the comparable period of 1997. Revenues for the six months were $56.6 million compared to $59.2 million in the second quarter of 1997. The net loss for the 1998 six month period primarily reflects the $17.2 million commercial arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. in favor of Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corp. and other charges taken in the first quarter. Although 1998 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight revenues declined 15% from the year ago quarter, a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mix of business and lower overhead costs overhead costs see fixed costs. enabled the company to record second quarter pre-tax operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $245,000. This compares favorably to a pre-tax operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $397,000 in the 1997 second quarter, excluding a gain of $1,074,000 in that quarter on the sale of real estate. 1998 net sales declined by $4.8 million (15%) from the year ago quarter and by $5.6 million (9%) from last year's first six months primarily as a result of lower sales on the TMRC TMRC - /tmerk'/ The Tech Model Railroad Club at MIT, one of the wellsprings of hacker culture. The 1959 "Dictionary of the TMRC Language" compiled by Peter Samson included several terms that became basics of the hackish vocabulary (see especially foo, mung, and frob). contract with the government of Turkey and lower European sales by the Displays Division. The year ago TMRC sales reflected significant activity on a subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts which was completed last year. Cost of sales as a percentage of revenues for the second quarter improved to 73% from 78% in the year ago quarter primarily due to a higher proportion of more profitable sales and a reduction of overhead. As previously announced, the company is concentrating its focus on its core businesses of Telemetry telemetry Highly automated communications process by which data are collected from instruments located at remote or inaccessible points and transmitted to receiving equipment for measurement, monitoring, display, and recording. and Communications, and is looking to sell its Displays, West Coast Microwave Components and Molded Devices Divisions. The company continues to negotiate with prospective purchasers of the West Coast Microwave Components and Displays Divisions, respectively, and is in the process of finalizing a definitive purchase agreement with a prospective purchaser of the Molded Devices Division. Subsequent to the second quarter end, the company completed the previously announced shut down of its Raytor Division. I. Gary Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. , chairman and chief executive officer, stated, "We continue to focus on growing our core businesses to build long-term shareholder value. In the short term, we are also devoting substantial attention to selling our non-core Divisions. With the completion of these sales, we believe the company will be on the road to building substantial profitability and increasing shareholder value." AYDIN is a world-class provider of products and systems for the acquisition and distribution of information over electronic communications media. The company designs, engineers, manufactures, markets, distributes and installs technologically advanced communications products and systems, from basic components to turnkey systems A complete system of hardware and software delivered to the customer ready-to-run. In other words, just "turn the key" and go.  A Turnkey Video System for military, space, government and commercial organizations around the world. Except for the historical matters contained in this press release, statements made in this press release are forward-looking and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. reflect numerous assumptions and involve risks and uncertainties which may affect AYDIN's business and prospects and cause actual results to differ materially from these forward-looking statements, including loss of current customers, reductions in orders from current customers, or delays in ordering by current customers, failure to obtain anticipated contracts or orders from new customers, or expected volume from such customers, higher material or labor costs, unfavorable results in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against AYDIN, the availability of adequate sources of working capital, consummation of planned Division sales, and economic, competitive, technological, governmental, and other factors discussed in AYDIN's filings with the Securities and Exchange Commission. -0-
AYDIN CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME
($000 omitted except per share amounts)
3 Months Ended 6 Months Ended
-------------- --------------
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
---------------------- ----------------------
(Unaudited) (Unaudited)
NET SALES $ 27,478 $ 32,322 $ 53,603 $ 59,236
COSTS AND EXPENSES
Cost of Sales
Contract arbitration
and related 0 0 20,343 0
Other 19,910 25,232 41,828 45,479
Selling, general and
administrative 6,897 6,961 13,877 13,173
Research and development 513 672 1,016 2,067
Restructuring costs 0 0 1,548 0
Environmental remediation 0 0 0 2,612
Gain on sale of facility 0 (1,074) 0 (1,074)
Interest expense
(income), net (87) (146) (329) (180)
-------- -------- -------- --------
Total 27,233 31,645 78,283 62,077
-------- -------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAXES 245 677 (24,680) (2,841)
INCOME TAX PROVISION
(RECOVERY) 30 417 (750) 1,168
-------- -------- -------- --------
NET INCOME (LOSS) $ 215 $ 260 $(23,930) $ (4,009)
======== ======== ======== ========
INCOME (LOSS) PER SHARE $ 0.04 $ 0.05 $ (4.59) $ (0.78)
======== ======== ======== ========
Number of shares used for
per share amounts 5,213,284 5,153,400 5,209,727 5,147,491
COMPREHENSIVE NET
INCOME (LOSS)
Net income (loss)
as above $ 215 $ 260 $(23,930) $ (4,009)
Foreign currency
translation
income (loss) 0 226 2 129
-------- -------- -------- --------
Comprehensive net
income (loss) $ 215 $ 486 $(23,928) $ (3,880)
======== ======== ======== ========
CONTACT: AYDIN CORP. Laura Pennza, 215/658-4502 E-mail: lpennza@aydin.com Internet: www.aydin.com |
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