Axsys Technologies Announces 47% Increase in Second Quarter Operating Income.ROCKY HILL Rocky Hill, town (1990 pop. 16,554), Hartford co., central Conn., a suburb of Hartford, on the Connecticut River; settled c.1650, inc. 1843. Chemical coatings and synthetic textiles are made there. Rocky Hill was an important river port from 1700 to 1820. , Conn. -- Axsys Technologies, 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 : AXYS), a global leader in the design, manufacture and distribution of precision optical solutions, today announced financial results for the second quarter ended July July: see month. 2, 2005. Second Quarter Financial Highlights - versus fiscal 2004 second quarter: --Sales rose 30% to $33.4 million. --Gross margin increased to 31.0% from 30.4%. --Operating income was up 47% to $3.3 million; operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: rose to 10.0% from 8.8%. --Net income was $1.6 million or $0.21 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 in the second quarter of 2005 compared to $2.0 million or $0.27 per diluted share in the 2004 period, due primarily to a tax rate increase in the 2005 quarter. --Total 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. of firm orders at the end of the second quarter was a record $100.5 million. The Company's acquisition of Diversified diversified (di·verˑ·s Optical Products, Inc. (DiOP) on May 2, 2005 coupled with strong military spending on surveillance and targeting programs contributed to the year-over-year growth. Organic year-over-year revenue growth during the comparable period was 12%. Net income of $1.6 million in the second quarter of 2005 was impacted by the return to a normalized tax rate of 37.5%, compared to a tax rate of 10% in the comparable period of 2004. In addition, Axsys incurred an additional $603,000 of interest expense as a result of acquisition financing. Finally, the Company recorded a discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. charge, net of tax, of $150,000, or $0.02 per diluted share, during the second quarter of 2005 for the settlement with the United States Environmental Protection Agency "EPA" redirects here. For other uses see EPA (disambiguation) and Environmental Protection Agency. The Environmental Protection Agency (EPA or sometimes USEPA for an environmental site located in Prospect, Connecticut Prospect is a town in New Haven County, Connecticut, United States. The population was 8,707 at the 2000 census. Geography According to the United States Census Bureau, the town has a total area of 37.7 km² (14.5 mi²). 37.1 km² (14.3 mi²) of it is land and 0.6 km² (0. .
Segment Sales (in millions):
Three Months Ended: Six Months Ended:
------------------- -------------------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
------------------- -------------------
Optical Systems Group $27.2 $19.3 $49.4 $36.5
Distributed Products Group 6.2 6.4 12.6 12.6
"The second quarter was a milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. for Axsys Technologies," said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and W. Bershad Bershad (Ukrainian: Бершадь, translit., Bershad’), is a small city in the Vinnytsia Oblast (province) of western Ukraine. It is the administrative center of the Bershadsky Raion (district). , Chairman and Chief Executive Officer of Axsys. "For the first time in our history, we concluded the quarter with a backlog in excess of $100 million. This accomplishment is further evidence that our focused approach to organic growth and strategic acquisitions are establishing Axsys as an important participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. in the surveillance and tracking markets." Conference Call Management will conduct a conference call to discuss the financial results on Wednesday Wednesday: see week. , July 27, 2005, at 10:00 am ET. Interested parties may participate in the call by dialing 706-679-3148 - please call in 10 minutes before the call is scheduled to begin and ask for the Axsys Technologies call. The conference call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via the Investors section of the Company's web site at www.axsys.com. To listen to the live call, please go to the web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company's web site. About Axsys Axsys Technologies, Inc. is a vertically integrated OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and supplier of precision optical solutions for high technology applications, serving the aerospace, defense and high performance commercial markets. For more information, visit www.axsys.com. This press release contains 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. within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . One can identify these forward-looking statements by the use of the words such as "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on 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. and 10-Q on file with the Securities and Exchange Commission, including without limitation: changes in the U.S. federal government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. priorities; the Company's ability to compete in the industries in which it operates, including the introduction of competing products or technologies by other companies and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. pricing pressures from competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. and/or customers; the potential for the Company's backlog to be reduced or cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. ; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully, including the recently announced acquisition of Diversified Optical Products; the Company's ability to manage costs under the Company's fixed-price contracts effectively; and changes in general economic and business conditions. These statements reflect the Company's current beliefs and are based upon information currently available to Axsys. Be advised that developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. with the passage of time, and we specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to update these statements. For more information concerning the foregoing risks and uncertainties, see the Securities and Exchange Commission filings for Axsys.
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
For the For the
Three Months Ended Six Months Ended
------------------------- -------------------------
July 2, 2005 July 3, 2004 July 2, 2005 July 3, 2004
------------ ------------ ------------ ------------
Net sales $ 33,384 $ 25,729 $ 62,032 $ 49,135
Cost of sales 23,050 17,908 43,242 34,533
------------ ------------ ------------ ------------
Gross profit 10,334 7,821 18,790 14,602
Selling, general
and administrative
expenses 5,946 4,868 11,046 9,266
Research,
development and
engineering
expenses 1,044 726 1,788 1,303
Write-off of
restructuring
accrual - (50) - (50)
------------ ------------ ------------ ------------
Operating income 3,344 2,277 5,956 4,083
Interest expense (706) (76) (773) (108)
Interest income 34 9 76 34
Other (expense)
income, net 51 (15) 36 (22)
------------ ------------ ------------ ------------
Income from
continuing
operations before
income taxes and
discontinued
operations 2,723 2,195 5,295 3,987
Provision for
income taxes 1,021 220 1,986 399
------------ ------------ ------------ ------------
Income from
continuing
operations before
discontinued
operations 1,702 1,975 3,309 3,588
Loss from
discontinued
operations, net of
tax (150) - (150) -
------------ ------------ ------------ ------------
Net income $ 1,552 $ 1,975 $ 3,159 $ 3,588
============ ============ ============ ============
BASIC EARNINGS PER
SHARE:
Continuing
operations $ 0.24 $ 0.28 $ 0.47 $ 0.51
Discontinued
operations (0.02) - (0.02) -
------------ ------------ ------------ ------------
Total $ 0.22 $ 0.28 $ 0.45 $ 0.51
============ ============ ============ ============
Weighted average
basic common
shares outstanding 7,094,794 6,999,806 7,079,769 6,994,018
DILUTED EARNINGS
PER SHARE:
Continuing
operations $ 0.23 $ 0.27 $ 0.44 $ 0.50
Discontinued
operations (0.02) - (0.02) -
------------ ------------ ------------ ------------
Total $ 0.21 $ 0.27 $ 0.42 $ 0.50
============ ============ ============ ============
Weighted average
dilutive common
shares outstanding 7,476,407 7,280,829 7,459,102 7,223,409
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Unaudited, in thousands)
July 2, 2005 December 31,
(Unaudited) 2004
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,531 $ 6,000
Accounts receivable - net 17,910 15,715
Inventories - net 37,612 29,698
Deferred income taxes 3,250 3,553
Other current assets 2,215 1,020
------------ ------------
TOTAL CURRENT ASSETS 63,518 55,986
PROPERTY, PLANT AND EQUIPMENT - net 15,108 13,337
INTANGIBLE ASSET - net 11,048 2,127
GOODWILL 57,549 13,013
OTHER ASSETS 1,405 1,352
------------ ------------
TOTAL ASSETS $ 148,628 $ 85,815
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,818 $ 6,459
Accrued expenses and other liabilities 15,815 9,513
Deferred income 8,981 7,195
Current portion of long-term capital lease
obligations - 368
Current portion of long-term debt 5,000 1,000
------------ ------------
TOTAL CURRENT LIABILITIES 37,614 24,535
CAPITAL LEASES, less current portion - 150
LONG-TERM DEBT, less current portion 50,000 3,333
OTHER LONG-TERM LIABILITIES 4,298 4,704
SHAREHOLDERS' EQUITY:
Common stock 72 72
Capital in excess of par 39,954 39,612
Accumulated other comprehensive loss (224) (97)
Retained earnings 17,548 14,389
Treasury stock (634) (883)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 56,716 53,093
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 148,628 $ 85,815
============ ============
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