Argon ST, Inc. Announces Fiscal Q2 Results; Updates FY 2006 Guidance.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) ), today announced revenues and earnings for its second fiscal quarter and six months ended April 2, 2006. Revenues for the three months ended April 2, 2006 were $55,681,000 compared to $55,952,000 for the prior year quarter. This represents a decrease of $271,000, slightly less than 1%, from the prior year quarter. Revenues for the six months ended April 2, 2006 increased $11,326,000 to $123,788,000 up approximately 10%, compared to $112,462,000 for the prior year period. Net income for the three months ended April 2, 2006 was $4,522,000 or $0.20 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, a decrease of approximately 9% compared to $4,944,000 or $0.24 per diluted share for the prior year quarter. For the six months ended April 2, 2006 net income was $10,125,000 or $0.46 per diluted share, an increase of approximately 3% compared to the prior year period of $9,864,000 or $0.48 per diluted share. The Company began reporting stock-based compensation expense in the first fiscal quarter of 2006 as required by Statement of Financial Accounting Standards No. 123R (FAS 123R). This non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) was $518,000 and $886,000 or $406,000 and $722,000 after tax for the three and six months ended April 2, 2006, respectively. This stock-based compensation expense reduced diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of by $0.02 and $0.03 for the three and six months ended April 2, 2006, respectively. The Company also reported bookings during the quarter of $103,659,000 bringing total backlog at quarter end to $218,597,000 after removing the unfunded portion of the backlog associated with the terminated Aerial Common Sensor The Lockheed Martin Aerial Common Sensor (ACS) platform was a reconnaissance aircraft airframe, for the United States Army and Navy. The aircraft would have been able to detect troop movements, intercept enemy communications and radar transmissions, and communicate with other (ACS (Asynchronous Communications Server) See network access server. ) contract. These bookings represented the highest quarterly bookings in the Company's history (after adjusting for the terminated ACS contract), and does not include the $52.8 million booking associated from 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 To add a number to another number. Incrementing a counter means adding 1 to its current value. F program which was awarded to the Company subsequent to the close of the quarter. During the three months and six months ended April 2, 2006 the Company increased its cash and cash equivalents by $32,012,000 and $58,174,000 respectively to a reported $62,238,000 at April 2, 2006. The second quarter increase was achieved in large part by a reduction in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSOs) to 92 days as of April 2, 2006, from 117 days as of January 1, 2006. CEO's comments Terry Collins, President and 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. , stated that "While we are pleased by our strong bookings performance for the period, the delays in bookings that were expected in the first quarter and occurred late in the second quarter, have negatively impacted our planned revenues in the second and third quarters. We had expected some weak revenue generation for the first half of our year as a result of the terminated ACS contract but anticipated a more rapid recovery of revenues through the first two quarters than we have realized. As a result of the delayed bookings, we now expect a continued weak third quarter in revenue with fourth quarter revenues rebounding to historical performance levels and are therefore issuing new guidance for FY06 revenue and 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. . Our new business opportunities remain strong and we continue to perform well in a competitive environment. Our recent win on the SSEE Increment F program, which we announced in April, confirms the confidence our customers have in our ability to develop and produce their next generation systems. Our full year FY06 forecast for new bookings remains at record levels for our company even as some current opportunities have moved into FY07 due to the customers' changing requirements. While we remain confident in our medium and long term growth targets, we are experiencing the lumpiness we have frequently spoken about in the past." Revised Guidance The Company has revised its Fiscal Year 2006 guidance. Current targets for fiscal year end revenue are in the range of $285 to $300 million with expected operating income in the range of $37 to $41 million, which accounts for an estimated $2 million of FAS 123R expenses. About Argon ST, Inc. Argon ST, Inc. designs, develops, and produces systems and sensors
C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance ) 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 acoustic /acous·tic/ (ah-kldbomacs´tik) relating to sound or hearing. a·cous·tic or a·cous·ti·cal adj. Of or relating to sound, the sense of hearing, or the perception of sound. systems serving domestic and worldwide markets. 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. 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 CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. 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 Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. 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, except as provided by law.
ARGON ST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
April 2, September 30,
2006 2005
---------------------------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 62,238,000 $ 4,064,000
Accounts receivable, net 78,159,000 103,577,000
Inventory 1,523,000 1,166,000
Income taxes receivable 1,179,000 2,464,000
Deferred income tax asset 2,073,000 1,742,000
Prepaids and other 1,156,000 888,000
---------------------------
TOTAL CURRENT ASSETS 146,328,000 113,901,000
Property, equipment and software, net 15,757,000 14,896,000
Advances and cash held in escrow - 10,900,000
Goodwill 115,135,000 107,956,000
Intangibles, net 2,155,000 1,219,000
Other assets 706,000 962,000
---------------------------
TOTAL ASSETS $280,081,000 $249,834,000
===========================
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Line of Credit $ - $ 11,000,000
Accounts payable and accrued expenses 9,082,000 26,857,000
Accrued salaries and related expenses 10,041,000 8,848,000
Deferred revenue 4,453,000 7,139,000
Notes payable - current portion - 56,000
Capital lease obligations - current 19,000 19,000
Deferred rent 320,000 61,000
---------------------------
TOTAL CURRENT LIABILITIES 23,915,000 53,980,000
Deferred income tax liability, long term 619,000 1,979,000
Deferred rent 1,699,000 1,799,000
Capital lease obligations - net of
current 53,000 63,000
Commitments and contingencies - -
STOCKHOLDERS' EQUITY
Common stock:
$.01 Par Value, 100,000,000 shares
authorized, 22,195,872 and 20,153,878
shares issued at April 2, 2006 and
September 30, 2005 222,000 202,000
Additional paid in capital 209,980,000 158,458,000
Treasury stock at cost, 126,245 shares (534,000) (534,000)
Retained earnings 44,127,000 34,002,000
Accumulated other comprehensive loss - (115,000)
--------------------------
TOTAL STOCKHOLDERS' EQUITY $253,795,000 $192,013,000
---------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $280,081,000 $249,834,000
===========================
ARGON ST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
Second Quarter Ended Six Months Ended
-----------------------------------------------------
April 2, April 3, April 2, April 3,
2006 2005 2006 2005
------------ ------------ ------------- -------------
CONTRACT
REVENUES $55,681,000 $55,952,000 $123,788,000 $112,462,000
COST OF REVENUES 43,977,000 43,641,000 96,862,000 88,979,000
GENERAL AND
ADMINISTRATIVE
EXPENSES 4,805,000 4,496,000 10,780,000 7,831,000
------------ ------------ ------------- -------------
INCOME FROM
OPERATIONS 6,899,000 7,815,000 16,146,000 15,652,000
OTHER INCOME
(EXPENSE)
Interest income 389,000 205,000 516,000 345,000
Interest
expense (34,000) (7,000) (161,000) (9,000)
------------ ------------ ------------- -------------
355,000 198,000 355,000 336,000
------------ ------------ ------------- -------------
INCOME BEFORE
INCOME TAXES 7,254,000 8,013,000 16,501,000 15,988,000
PROVISION FOR
INCOME TAXES 2,732,000 3,069,000 6,376,000 6,124,000
------------ ------------ ------------- -------------
NET INCOME $4,522,000 $4,944,000 $10,125,000 $9,864,000
============ ============ ============= =============
EARNINGS PER
SHARE (Basic) $0.21 $0.25 $0.48 $0.50
============ ============ ============= =============
EARNINGS PER
SHARE (Diluted) $0.20 $0.24 $0.46 $0.48
============ ============ ============= =============
WEIGHTED-AVERAGE
SHARES
OUTSTANDING
Basic 22,006,000 19,751,000 21,185,000 19,584,000
============ ============ ============= =============
Diluted 22,618,000 20,676,000 21,855,000 20,537,000
============ ============ ============= =============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion