Applied Signal Technology, Inc. Announces Third Quarter Operating Results.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:APSG APSG Antisymmetrized Product of Separated Geminals ) announced its operating results for the third quarter of fiscal year 2005 ended July July: see month. 29, 2005. Operating Results Revenues for the third quarter of fiscal year 2005 were $36,283,000 compared with revenues of $38,275,000 for the third quarter of fiscal year 2004. Revenues for the first nine months of fiscal year 2005 were $98,446,000 compared to revenues of $103,380,000 for the first nine months of fiscal year 2004. Revenues declined for the third quarter and the first nine months of fiscal year 2005 compared to the same periods in fiscal year 2004 due to fewer product sales. 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 third quarter of fiscal year 2005 was $2,752,000 compared with operating income of $5,602,000 for the third quarter of fiscal year 2004. Operating income for the first nine months of fiscal year 2005 was $9,751,000 compared with operating income of $13,490,000 for the first nine months of fiscal year 2004. The decrease in operating income is due primarily to a decline in program profitability during the third quarter and first nine months of fiscal 2005 compared to the same period of fiscal 2004. Net income for the third quarter of fiscal year 2005 was $1,784,000 or $0.15 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 net income for the third quarter of fiscal year 2004 of $3,459,000 or $0.29 per diluted share. Net income for the first nine months of fiscal year 2005 was $6,138,000 or $0.52 per diluted share compared to net income of $9,552,000 or $0.83 per diluted share for the first nine months of fiscal year 2004. The decline in net income during the first nine months of fiscal 2005 when compared to the same period of fiscal 2004 is due, in part, to a decline in program profitability, and in part, to a significantly higher tax rate in fiscal year 2005. Our effective tax rate through the first nine months of fiscal year 2005 is 41% compared to 31% for the same period of fiscal year 2004. New orders received during the third quarter of fiscal year 2005 were $22,672,000 compared to new orders received during the third quarter of fiscal year 2004 of $35,417,000. We believe the decline in new orders is due to the typical fluctuations experienced in the U.S. Government procurement Government procurement, also called public tendering, is the procurement of goods and services on behalf of a public authority, such as a government agency. With 10 to 15% of GDP in developed countries, and up to 20% in developing countries, government procurement accounts process. Order levels for the first nine months of fiscal year 2005 were $55,082,000 compared to order levels of $128,602,000 for the same period of fiscal year 2004. The level of new orders for the first nine months of fiscal year 2004 were significantly higher than the same period in fiscal year 2005 primarily as a result of a major modification resulting in an increase to our largest contract of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $48,524,000 received during the first quarter of fiscal year 2004. 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:
v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: our Signal Intelligence solutions such that we are now a more complete provider of solutions in support of global security. The new APSG is now a much more valued resource to the U.S. Government in the war against terrorism." Mr. Yancey concluded his remarks, "I am very encouraged that we received a new contract award of approximately $5 million in our Sensor Signal Processing Group. This contract is with a U.S. Government organization that is new to APSG and is one that will likely invest to take the technology into fielded solutions. We are also increasing our research and development investments in some of the other areas of phenomenological processing that we believe have marketplace opportunities. I believe these investments will result in returns that can be very supportive supportive adjective Pertaining to a Pt management philosophy in which only the Sx of a particular condition are treated; supportive measures are often taken when no specific and/or effective therapy is available or accessible–eg, viral meningitis, or of our growth in the future." Attached to this news release are unaudited 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. The Company will host a conference call on Thursday Thursday: see week. , September September: see month. 1, 2005 to discuss third quarter results. 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 September 1, 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 statements as to our expected benefits of the acquisition, including the expansion of products and services offered by the combined company; the ability to cause solutions to become fielded solutions; benefits that may be obtained from a strategy of diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our core business and generate expected revenues from new defense electronics business areas; continued strong demand from our U.S. Government customers and the future spending by the U.S. Government on intelligence gathering; and the Company's ability to hire qualified personnel and such personnel's ability to obtain security clearances. The risks and uncertainties associated with these statements include the risks that the acquisition will be successful and achieve the expected benefits; the success of our strategic plan, including our plans to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. ; 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 the Company will be profitable and whether any such contracts might be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: prior to completion; the possibility that product sales could be declining; whether the Company 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 October: see month. 31, 2004. The Company assumes no obligation to update the information provided in this news release.
APPLIED SIGNAL TECHNOLOGY, INC.
CONDENSED STATEMENTS OF INCOME
FOR THE PERIODS ENDING JULY 29, 2005 AND JULY 30, 2004
(Unaudited)
(In thousands except per share data)
Three Months Ended Nine Months Ended
------------------ ------------------
July, 29 July, 30 July, 29 July, 30
2005 2004 2005 2004
-------- -------- -------- ---------
Revenues from contracts $36,283 $38,275 $98,446 $103,380
Operating expenses:
Contract costs 24,941 24,629 65,426 67,075
Research and development 3,295 4,413 9,611 9,969
General and administrative 5,295 3,631 13,658 12,846
-------- -------- -------- ---------
Total operating expenses 33,531 32,673 88,695 89,890
-------- ------- ------- --------
Operating income 2,752 5,602 9,751 13,490
Interest income/(expense), net 248 121 628 399
-------- -------- -------- ---------
Income before provision
for income taxes 3,000 5,723 10,379 13,889
Provision for income taxes 1,216 2,264 4,241 4,337
-------- -------- -------- ---------
Net income $ 1,784 $ 3,459 $ 6,138 $ 9,552
======== ======== ======== =========
Net income per share - basic $0.16 $0.31 $0.54 $0.87
Average shares - basic 11,434 11,120 11,364 10,988
Net income per share - diluted $0.15 $0.29 $0.52 $0.83
Average shares - diluted 11,699 11,734 11,734 11,578
APPLIED SIGNAL TECHNOLOGY
CONDENSED BALANCE SHEETS
(in thousands)
ASSETS
July 29, October 31,
2005 2004
------------ ------------
(unaudited)
Current assets:
Cash and cash equivalents $ 11,642 $ 11,227
Short term investments 18,280 32,615
Accounts receivable 33,916 43,768
Inventory 12,236 5,392
Other current assets 6,393 4,340
------------ ------------
Total current assets 82,467 97,342
Property and equipment, at cost 67,044 63,105
Accumulated depreciation and amortization (52,878) (50,682)
------------ ------------
Net property and equipment 14,166 12,423
Goodwill 19,840 -
Intangible assets 2,270 -
Less accumulated amortization (66) -
------------ ------------
Intangible assets, net 2,204 -
Long-Term Deferred Tax Asset, net 6,062 1,391
Other assets 376 296
------------ ------------
Total assets $ 125,115 $ 111,452
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued payroll and
benefits $ 15,780 $ 18,319
Notes payable 1,429 -
Income taxes payable 197 29
Other accrued liabilities 2,487 2,335
------------ -----------
Total current liabilities 19,893 20,683
Long-Term Liabilities:
Long-Term notes payable 8,571 -
Other Long-Term liabilities 1,676 1,403
------------ ------------
Total Long-Term liabilities $ 10,247 $ 1,403
Shareholders' equity 94,975 89,366
------------ ------------
Total liabilities and shareholders' equity $ 125,115 $ 111,452
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