Argon ST, Inc. Announces Financial Results for Fourth Quarter and Fiscal 2006; Provides Fiscal 2007 Outlook.FAIRFAX, Va. -- Argon ST Wikipedia is not the place for advertisement or self-advertising. Argon ST (NASDAQ: STST) is a rapidly growing systems engineering and development company headquarted in Fairfax, VA providing full-service C4ISR (command, control, communications, computers, , 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 : STST STST Stainless Steel STST Sounding the Seventh Trumpet (Avenged Sevenfold music album) ), a leading systems engineering, development and services company providing full-service C4ISR C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance (command, control, communications, computers, intelligence, surveillance and reconnaissance Intelligence, Surveillance and Reconnaissance may refer to:
The company reported fourth quarter net income of $4.1 million ($0.18 per diluted share), compared to $6.1 million ($0.29 per diluted share) in the fourth quarter of fiscal year 2005. Revenues for the fourth quarter were $66.1 million, compared with revenues of $83.7 million for the same quarter in the prior year. Net cash provided by operations for the fourth quarter were $12.0 million, compared to net cash used by operations of $22.0 million in the same period of the prior year. Net income for the fiscal year ended September 30, 2006 was $19.4 million ($0.87 per diluted share), compared to net income of $21.8 million ($1.06 per diluted share) for the prior year. Revenues for the fiscal year ended September 30, 2006 were $258.8 million compared with revenues of $271.8 million for the prior year. Net Cash provided by operations for the year were $38.0 million representing a significant improvement over net cash used by operations of $26.6 million in the same period of the prior year. Terry Collins, Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, stated: "Revenue and profit for the fourth quarter and fiscal year were negatively impacted by delayed awards on certain contracts as well as unanticipated contract losses. Margin performance maintained historic performance levels, and cash flow for the year improved." Mr. Collins continued, "While we are disappointed in our operating performance in both the fourth quarter and year, we remain confident that we are well positioned for future growth. The competitive award of the SSEE SSEE SQL Server Embedded Edition (Microsoft) SSEE Secondary Schools Entrance Examination (Guyana) SSEE Ships Signal Exploitation Equipment SSEE Subcontractor Safety and Environmental Evaluation Increment F program and the extension for the third phase of a multi-year full rate production contract were both significant accomplishments during the year. Similarly, the company was pleased to announce the receipt of the Surface Ship Torpedo torpedo, in naval warfare torpedo, in naval warfare, a self-propelled submarine projectile loaded with explosives, used for the destruction of enemy ships. Although there were attempts at subsurface warfare in the 16th and 17th cent. Defense AN/SLQ-25A contract in November of this year. These large multi-year programs are major contributors to continuing to solidify a base on which the company can build to achieve its long-term objectives. We are confident of our FY07 plan and are pursuing several substantive opportunities that could have a positive effect on our plan, if we are successful." Stock Based Compensation Expense On October 1, 2005, the company adopted Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No. 123R, Share Based Payment, which requires the company to recognize share-based payment transactions as a compensation expense in its financial statements. For the fourth quarter ended September 30, 2006, the company recorded stock based compensation expense of $0.4 million before tax and $0.3 million net of taxes. For the fiscal year ended September 30, 2006, the company recorded stock-based compensation expense of $1.9 million before tax and $1.5 million net of taxes. Management believes that excluding the effect of FAS 123R provides a useful comparison with results of periods prior to the company's implementation of the standard. Excluding the impact of FAS 123R: * 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 was $7.0 million compared with $9.2 million in the same period of the prior year. Operating income for the fiscal year ended September 30, 2006 was $32.5 million compared with $34.4 million in the prior year. * Net Income for the fourth quarter was $4.4 million ($0.19 per diluted share) compared with $6.1 million ($0.29 per diluted share) in the same period of the prior year. Net income for the year ended September 30, 2006 was $20.9 million ($0.94 per diluted share) compared with $21.8 million ($1.06 per diluted share) in the prior year. A reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results with results excluding the effect of FAS 123R is provided at the end of this press release. Guidance The company is issuing initial guidance for the fiscal year 2007. The table below represents management's current expectations about the company's future financial performance, based on information available at this time. The forward guidance in the table below does not include any effect for acquisitions Argon ST might make in the future. Revenues $305 million to $325 million Income from Operations $36 million to $39 million About Argon ST, Inc. Argon ST, Inc. designs, develops, and produces systems and sensors for the Command and Control Communications In telecommunication, control communications is the branch of technology devoted to the design, development, and application of communications facilities used specifically for control purposes, such as for controlling (a) industrial processes, (b) movement of resources, (c) , Computers, 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. (C4ISR) markets including SIGINT Noun 1. SIGINT - intelligence information gathered from communications intelligence or electronics intelligence or telemetry intelligence signals intelligence (Signals Intelligence), ESM (1) (Enterprise Storage Management) Managing the online, nearline and offline storage within a large organization. It includes analysis of storage requirements as well as making routine copies of files and databases for backup, archiving, disaster recovery, (Electronic Support Measures), EW (Electronic Warfare Noun 1. electronic warfare - military action involving the use of electromagnetic energy to determine or exploit or reduce or prevent hostile use of the electromagnetic spectrum EW military action, action - a military engagement; "he saw action in Korea" ), imaging, and acoustic systems serving domestic and worldwide markets. Forward-Looking Statements Statements in this press release which are not historical facts are forward-looking statements under the provision 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 1955. Forward-looking statements are not guarantees of future performance and are based upon numerous assumptions about future conditions that could prove not to be accurate. Forward looking statements are subject to numerous risks and uncertainties, and our actual results could differ materially as a result of such risks and other factors. In addition to those risks specifically mentioned in the reports filed by the Company with the Securities and Exchange Commission (including the Company's 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. for the fiscal year ended September 30, 2005), such risks and uncertainties include, but are not limited to: the availability of U.S. and international government funding for the Company's products and services; changes in the U.S. federal 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 laws, regulations, policies and budgets (including changes to respond to budgetary constraints and cost-cutting initiatives); the number and type of contracts and task orders awarded to the Company; the exercise by the U.S. government of options to extend the Company's contracts; the Company's ability to retain contracts during any rebidding process; the timing of Congressional funding on the Company's contracts; any government delay or termination of the Company's contracts and programs; difficulties in developing and producing operationally advanced technology systems; the timing and customer acceptance of contract deliverables; the Company's ability to attract and retain qualified personnel, including technical personnel and personnel with required security clearances; charges from any future impairment reviews; the future impact of any acquisitions or divestitures the Company may make; the competitive environment for defense and intelligence information technology products and services; general economic, business and political conditions domestically and internationally; and other factors affecting the Company's business that are beyond its control. All of the forward-looking statements should be considered in light of these factors. Investors should not put undue reliance on any forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] The company has presented net income, as adjusted, to show the effect that the adoption of FAS 123R had on the company's earnings per share. The company believes that these non-GAAP financial measures provide useful information to investors because they allow investors to compare the company's current performance to prior performance and to the performance of companies that have not yet adopted FAS 123R. These non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion