Applied Signal Technology, Inc. Announces Fiscal 2005 Operating Results, Record Revenue, and Continuation of Dividends.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif. -- Applied Signal Technology, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :APSG APSG Antisymmetrized Product of Separated Geminals ) announced its operating results for the fourth quarter of fiscal year 2005 and the fiscal year ended October October: see month. 31, 2005. The Company announced that it generated a record $156.1 million in revenues during fiscal 2005. In addition, the Company announced that the Board of Directors has approved the continuation of the annual dividend payments to shareholders of $0.50 per share. New Orders New orders received during the fourth quarter of fiscal year 2005 were $72,581,000 compared to new orders of $73,478,000 received during the fourth quarter of fiscal year 2004. Orders for fiscal year 2005 were $127,663,000 compared to $202,080,000 reported for fiscal year 2004. It should be noted that new orders and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. were reduced by approximately $12 million because the company completed negotiations of a stop-work order related to a portion of its largest contract. Results of Operations Revenues for the fourth quarter of fiscal year 2005 were $57,615,000 representing a 46% increase compared with revenues of $39,456,000 recorded during the fourth quarter of fiscal year 2004. Revenues for fiscal year 2005 were $156,061,000, up 9% from revenues of $142,836,000 recorded during fiscal year 2004. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter of fiscal year 2005 was $5,080,000 representing a 31% increase compared to operating income of $3,880,000 recorded during the fourth quarter of fiscal year 2004. The operating income for fiscal year 2005 was $14,831,000 compared to operating income of $17,370,000 recorded during fiscal year 2004. Operating income was lower for fiscal year 2005 when compared to fiscal year 2004 due to higher program fees earned in fiscal 2004; a shift in favor of upon the side of; favorable to; for the advantage of. See also: favor engineering development contracts that do not return as high a profit margin as our production contracts; the estimated impact of absorbing approximately $986,000 of the company's unfavorable fiscal year 2005 indirect rate variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality that was created, in part, as a result of approximately $2.2 million of costs associated with the internal control requirements of the Sarbanes-Oxley Act See SOX. ; increased unallowable expenses related to our merger and acquisition activity; and the amortization expense of approximately $265,000 related to the intangibles recorded as a result of the acquisition of Dynamics Technology, Inc. In addition, Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) 123(R), Share-Based Payment, took effect November November: see month. 1, 2005 for Applied Signal Technology, Inc. which requires the expensing of stock options. The Company estimates that operating income could decrease by approximately 25% to 35% in future periods as a result of recording this additional expense. Net income for the fourth quarter of fiscal year 2005 was $3,106,000 or $0.26 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to the fourth quarter of fiscal year 2004 net income of $2,422,000 or $0.21 per diluted share. Net income for fiscal year 2005 was $9,244,000 or $0.79 per diluted share compared to net income of $11,974,000 or $1.03 per diluted share for fiscal year 2004. Our tax rates for fiscal years 2005 and 2004 were approximately 40% and 33%, respectively. Dividend The Company announced the continuation of its current dividend. The Company will pay an annual dividend of $0.50 per share, payable quarterly at a rate of $0.125 per share, to shareholders over the next twelve months. The quarterly dividends will be payable on February February: see month. 10, 2006, May 12, 2006, August 11, 2006 and November 10, 2006 to shareholders of record at January January: see month. 27, 2006, April 28, 2006, July July: see month. 28, 2006 and October 31, 2006, respectively. Management Commentary Mr. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Yancey Yancey may refer to:
Noun 1. program in March 2005 and we were essentially back on track with our hiring requirements by the end of fiscal 2005. The Company executed its first acquisition in July 2005 and we feel that the integration of our 110 new employees is going quite well." "With these new challenges, we still achieved a 9% growth in revenue compared to fiscal 2004. Although our new orders were lower than fiscal 2004, it did include a $12 million de-booking for the portion of our contract that was affected by the stop work order. Also, some bookings associated with our airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. COMINT program slipped into fiscal 2006." Mr. Yancey concluded, "We are still experiencing demand for our technical expertise and our products. We are expanding our customer base in the military branches as well as the Intelligence Community. These facts lead me to believe that the Company has opportunity for growth into the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future." Attached to this news release are condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. statements of operations and balance sheets for the fourth quarter and fiscal year ended October 31, 2005. Conference Call The Company will host a conference call on Thursday Thursday: see week. , December 22, 2005 to discuss operating results for fiscal 2005. If you wish to participate in the conference call, please dial 1-877-407-8035 for domestic callers or 1-201-689-8035 for international callers on December 22, 2005 at 5:00 p.m. Eastern (2:00 p.m. Pacific). There is no pass code required. This call is being web cast by Vcall and can be accessed at Applied Signal Technology, Inc.'s website at www.appsig.com. Investors can also access the web cast at www.vcall.com. A rebroadcast of the call will be available upon its completion and will remain available for a limited time. Applied Signal Technology, Inc. provides advanced digital signal processing See DSP. Digital Signal Processing - (DSP) Computer manipulation of analog signals (commonly sound or image) which have been converted to digital form (sampled). products, systems and services in support of intelligence, surveillance, and reconnaissance An activity that synchronizes and integrates the planning and operation of sensors, assets, and processing, exploitation, and dissemination systems in direct support of current and future operations. This is an integrated intelligence and operations function. Also called ISR. for global security. For further information about Applied Signal Technology's products and services visit our website at www.appsig.com. Except for historical information contained herein, matters discussed in this news release may contain 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. that involve risks and uncertainties that could cause actual results to differ materially. Forward-looking statements discussed in this release include the estimated reduction in operating income in future periods as a result of expensing share-based payments in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS 123(R), the demand for our technical expertise and products, expansion of our customer base and integration of our acquisition. The risks and uncertainties associated with these statements include whether orders will be issued by procurers, including the U. S. Government; the timing of any orders placed by procurers; whether the Company will be successful in obtaining contracts for these orders if they are forthcoming; whether any contracts obtained by us will be profitable and whether any such contracts might be terminated prior to completion; whether we will be able to hire additional qualified staff as needed as needed prn. See prn order. ; the ability to successfully enter new marketplaces; and other risks detailed from time to time in the Company's SEC reports including its latest Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed for the fiscal year ended October 31, 2004. The Company assumes no obligation to update the information provided in this news release.
APPLIED SIGNAL TECHNOLOGY
CONDENSED BALANCE SHEETS
(in thousands)
ASSETS
October 31, October 31,
2005 2004
------------ ------------
Current assets:
Cash and cash equivalents $ 18,920 $ 11,227
Short term investments 10,615 32,615
------------ ------------
Total cash, cash equivalents, and
short term investments 29,535 43,842
Accounts receivable 48,466 43,768
Inventory 6,315 5,392
Other current assets 5,261 4,340
------------ ------------
Total current assets 89,577 97,342
Property and equipment, at cost 68,619 63,105
Accumulated depreciation and amortization (52,328) (50,682)
------------ ------------
Net property and equipment 16,291 12,423
Goodwill 19,785 -
Intangible assets 2,270 -
Less accumulated amortization (265) -
------------ ------------
Intangible assets, net 2,005 -
Long-Term Deferred Tax Asset, net 5,821 1,391
Other assets 844 296
------------ ------------
Total assets $ 134,323 $ 111,452
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued payroll and
benefits $ 22,719 $ 18,319
Notes payable 1,429 -
Income taxes payable 633 29
Other accrued liabilities 1,608 2,335
------------ ------------
Total current liabilities 26,389 20,683
Long-Term Liabilities:
Long-Term notes payable 8,215 -
Other Long-Term liabilities 1,787 1,403
------------ ------------
Total Long-Term liabilities $ 10,002 $ 1,403
Shareholders' equity 97,932 89,366
------------ ------------
Total liabilities and shareholders' equity $ 134,323 $ 111,452
============ ============
APPLIED SIGNAL TECHNOLOGY, INC.
CONDENSED STATEMENTS OF INCOME
FOR THE PERIODS ENDING OCTOBER 31, 2005 AND OCTOBER 31, 2004
(In thousands except per share data)
Three Months Ended Twelve Months Ended
------------------------ -----------------------
October 31, October 31, October 31, October 31,
2005 2004 2005 2004
------------ ----------- ----------- -----------
Revenues from
contracts $ 57,615 $ 39,456 $ 156,061 $ 142,836
Operating expenses:
Contract costs 37,512 27,630 102,938 94,705
Research and
development 6,514 4,191 16,125 14,160
General and
administrative 8,509 3,755 22,167 16,601
------------ ----------- ----------- -----------
Total operating
expenses 52,535 35,576 141,230 125,466
------------ ----------- ----------- -----------
Operating income 5,080 3,880 14,831 17,370
Interest
income/(expense),
net 20 177 648 576
------------ ----------- ----------- -----------
Income before
provision
for income taxes 5,100 4,057 15,479 17,946
Provision for income
taxes 1,994 1,635 6,235 5,972
------------ ----------- ----------- -----------
Net income $ 3,106 $ 2,422 $ 9,244 $ 11,974
============ =========== =========== ===========
Net income per share
- basic $0.27 $0.22 $0.81 $1.08
Average shares -
basic 11,505 11,201 11,400 11,042
Net income per share
- diluted $0.26 $0.21 $0.79 $1.03
Average shares -
diluted 11,786 11,800 11,759 11,638
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