Argon ST, Inc. Announces Q4 and Fiscal Year 2004 Results.FAIRFAX Fairfax, city (1990 pop. 19,622), historic seat of Fairfax co., NE Va., a residential suburb of Washington, D.C.; inc. 1892, as a city 1961 (at which time it became independent and no longer included in a county). There is some light manufacturing. , 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 fourth quarter and fiscal year ended September September: see month. 30, 2004. On September 29, 2004, a wholly-owned subsidiary of Sensytech, Inc. ("Sensytech") merged with and into Argon argon (är`gŏn) [Gr.,=inert], gaseous chemical element; symbol Ar; at. no. 18; at. wt. 39.948; m.p. −189.2°C;; b.p. −185.7°C;; density 1.784 grams per liter at STP; valence 0. Engineering Associates, Inc. ("Argon Engineering") in a merger whereby each outstanding share of Argon Engineering common stock was exchanged for two shares of Sensytech common stock. As a result of the merger, the former Argon Engineering stockholders acquired approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 65.6% of the issued and outstanding shares of Sensytech common stock. 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 Statement of Financial Accounting Standards No. 141 "Business Combinations", the merger was accounted for as a reverse acquisition, whereby Argon Engineering was deemed to have acquired Sensytech for financial reporting purposes. Consistent with the reverse acquisition accounting treatment, the historical financial statements presented for periods prior to the acquisition date are the statements of Argon Engineering except for stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. which has been retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin restated for the equivalent number of shares of the legal acquirer. The operations of the former Sensytech businesses have been included in the financial statements from the date of acquisition (1 day). Both companies had their fiscal year ending on September 30. Upon the closing of the merger, Sensytech changed its name to Argon ST, Inc. Historical Results of Operations Driven by increased orders and the beginning of low rate production efforts for signals intelligence (SIGINT Noun 1. SIGINT - intelligence information gathered from communications intelligence or electronics intelligence or telemetry intelligence signals intelligence ) and electronic support measures (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, ) systems, revenues for the fourth quarter ended September 30, 2004 increased $13,059,000 or 48% to $40,158,000 compared to $27,099,000 for the prior year quarter. Revenue for the fiscal year ended September 30, 2004 increased $49,835,000 or 63% to $129,184,000, compared to $79,349,000 for the prior fiscal year. Net income for the fourth quarter ended September 30, 2004 was $3,116,000, or $0.23 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, an increase of 30% compared to $2,381,000 or $0.19 per diluted share for the fourth quarter of the prior year. For the fiscal year ended September 30, 2004 net income increased 79% to $9,949,000 from the prior year earnings of $5,569,000. This represented an increase of 72% for basic earnings to $0.81 per share from prior year basic earnings of $.47 per share. The earnings per diluted share increased 68% to $.74 per share from the prior year earnings of $.44 per diluted share. 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, "Our growth in revenue of 63% this year is the result of the award of several low rate initial production efforts for the U.S. Government and our expansion into allied markets. Net income increased 79% as we begin to realize economies of scale and subsequent margin improvement in connection with migration to more fixed price contract activity. Our 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. at year end was $228,819,000 of which $222,222,000 was funded at the end of the year. We recognized over $26,000,000 in revenue in our FY04 performance of various customer funded research and development projects. These projects have the potential to lay the ground work for future systems production." Terry Collins further stated, "The recently completed merger between Sensytech and Argon Engineering further enhances our opportunities to expand into other markets with more robust product offerings. Prior to the merger, both companies' strategy focused on strong organic growth augmented with acquisitions. Our strategy has not changed and will serve us well into the future. The culmination of all of our collective activities to complete the merger has yielded a much stronger company, greater engineering and product depth, enhanced manufacturing capability, and access to various forms of financing for acquisitive growth." Financial Highlights --Revenue for the fourth quarter increased 48% over the prior year quarter to $40,158,000 from $27,099,000. --Revenue for the fiscal year increased 63% over the prior year to $129,184,000 from $79,349,000. --Net Income for the fourth quarter was $3,116,000, or $0.25 per basic share and $0.23 per diluted share, up $0.05 and $0.04, respectively, per share, from the prior year quarter. --Net Income for the year of $9,949,000, or $0.81 per basic share and $0.74 per diluted share, up $0.34 and $0.30, respectively, per share, from the prior year. About Argon ST, Inc. Argon ST designs, develops, and manufactures systems and sensors
C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance ) markets including SIGINT (signals intelligence), ESM (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. Statements in this press release which are not historical facts are 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. under the 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. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that certain factors can cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
ARGON ST, INC.
CONSOLIDATED BALANCE SHEETS
September 30,
2004 2003
------------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 29,732,000 $ 4,100,000
Accounts receivable, net 59,716,000 15,851,000
Inventory 1,574,000 --
Income taxes receivable -- 704,000
Deferred income tax asset 4,822,000 --
Prepaids and other 1,288,000 512,000
------------- ------------
TOTAL CURRENT ASSETS 97,132,000 21,167,000
Property, equipment and software, net 13,949,000 2,460,000
Goodwill 107,776,000 --
Intangibles, net 2,190,000 --
Other assets 694,000 109,000
------------- ------------
TOTAL ASSETS $221,741,000 $23,736,000
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 12,727,000 $ 3,645,000
Accrued salaries and related expenses 10,606,000 4,856,000
Deferred revenue 28,336,000 3,739,000
Notes payable - current portion 226,000 34,000
Income taxes payable 5,810,000 --
Deferred rent 200,000 35,000
Deferred income tax liability, current -- 243,000
------------- ------------
TOTAL CURRENT LIABILITIES 57,905,000 12,552,000
Deferred income tax liability, long
term 1,901,000 174,000
Notes payable, net of current portion 56,000 --
Deferred rent 954,000 --
Commitments and contingencies -- --
STOCKHOLDERS' EQUITY
Common Stock:
$.01 Par Value, 25,000,000 shares
authorized 19,468,734 and
12,305,962 shares issued and
outstanding, at September 30,
2004 and 2003 195,000 123,000
Additional paid-in capital 149,043,000 91,000
Treasury stock at cost, 126,245 shares (534,000) --
Retained earnings 12,221,000 10,796,000
------------- ------------
TOTAL STOCKHOLDERS' EQUITY 160,925,000 11,010,000
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $221,741,000 $23,736,000
============= ============
ARGON ST, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
For the Quarter Ended For the Year Ended
September 30, September 30,
2004 2003 2004 2003
------------ ------------ ------------- ------------
CONTRACT REVENUES $40,158,000 $27,099,000 $129,184,000 $79,349,000
COST OF REVENUES 33,977,000 22,714,000 107,307,000 65,271,000
------------ ------------ ------------- ------------
GROSS MARGIN 6,181,000 4,385,000 21,877,000 14,078,000
GENERAL AND
ADMINISTRATIVE
EXPENSES 958,000 1,119,000 5,905,000 5,844,000
------------ ------------ ------------- ------------
5,223,000 3,266,000 15,972,000 8,234,000
INCOME FROM
OPERATIONS
OTHER INCOME
(EXPENSE), NET 74,000 10,000 154,000 31,000
INCOME BEFORE
INCOME TAXES 5,297,000 3,276,000 16,126,000 8,265,000
PROVISION FOR
INCOME TAXES 2,181,000 895,000 6,177,000 2,696,000
------------ ------------ ------------- ------------
NET INCOME $3,116,000 $2,381,000 $9,949,000 $5,569,000
============ ============ ============= ============
EARNINGS PER
SHARE
Basic $0.25 $0.20 $0.81 $0.47
Diluted $0.23 $0.19 $0.74 $0.44
WEIGHTED-AVERAGE
SHARES
OUTSTANDING
Basic 12,522,871 12,013,172 12,308,412 11,769,788
Diluted 13,479,803 12,637,206 13,366,916 12,620,308
Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Financial Results of Operations The following 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. combined pro forma results of operations reflect the pro forma combination of Argon Engineering and the acquired Sensytech business as if the combination had occurred at the beginning of the periods presented, compared with the historical results of operations for Argon Engineering for the periods ended September 30. These unaudited pro forma condensed combined results of operations were prepared based on the historical financial statements of Argon Engineering. The unaudited pro forma condensed combined results of operations do not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to represent what Argon ST's results of operations would have been if such transaction had occurred on the dates presented, and are not necessarily indicative of Argon ST's future results.
Twelve Months Ended September 30,
-----------------------------------------------------
2004 2003
-------------------------- --------------------------
Historical Pro forma Historical Pro forma
------------ ------------- ------------ -------------
Revenue $129,184,00 $189,792,000 $79,349,000 $132,532,000
Income from
operations 15,972,000 23,132,000 8,234,000 13,874,000
Net income 9,949,000 14,386,000 5,569,000 8,979,000
Basic earnings
per share $0.81 $0.76 $0.47 $0.50
Diluted earnings
per share $0.74 $0.71 $0.44 $0.48
Basic wt average
shares 12,308,000 18,914,000 11,770,000 17,874,000
Diluted wt
average shares 13,367,000 20,156,000 12,620,000 18,882,000
Revenues attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Sensytech were $60,608,000 and $53,183,000 for fiscal years 2004 and 2003, respectively. Income from operations attributable to Sensytech was $6,033,000 and $6,693,000 for fiscal years 2004 and 2003, respectively. Net income attributable to Sensytech was $3,749,000 and $4,052,000 for fiscal years 2004 and 2003, respectively. Depreciation and amortization on the write up of tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , in accordance with 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 141, was $82,000 and $971,000 respectively for fiscal years 2004 and 2003, and the after tax effect was $50,000 and $592,000 respectively. The one time merger costs and expenses, incurred by Sensytech, of approximately $2,180,000 before tax and $1,330,000 after tax were added back to the pro forma results for 2004. |
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