Axsys Technologies Announces Revision in 2002 Results.Business Editors 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.--(BUSINESS WIRE)--March 28, 2003 Axsys Technologies, Inc. (Nasdaq: AXYS), a global leader in the design, manufacture and distribution of precision opto-mechanical components and assemblies found in high performance aerospace, defense and commercial equipment for high-technology markets, today announced, concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. with the filing of its Annual Report 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. , a revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. in its 2002 results to reflect the establishment of a valuation allowance recorded for its net deferred tax asset. Upon final review of our year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. financial results with Ernst & Young and in light of the significant tax benefits generated during 2002 related to the sale of our Automation businesses and Teletrac Inc., we have reassessed the timing of the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the $6.0 million net deferred tax asset reported at the time of our earnings release on February February: see month. 13, 2003. As a result of this reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. , we have elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to establish a valuation allowance, resulting in a $4.6 million tax charge within 2002 (see Exhibit I and II). Although this non-cash valuation allowance results in a reduction of net deferred taxes as a balance sheet asset, Axsys will still be able to utilize these amounts to reduce future tax obligations in profitable periods. 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 Financial Accounting Standard No. 109 "Accounting for Income Taxes," this deferred tax asset valuation allowance will be reduced and the future tax benefits will be recognized as taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. is generated in 2003 and beyond. Although the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating results remain unchanged, as a result of the establishment of the valuation allowance, the net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. results previously announced for 2002 will be adjusted. The net loss of $2.4 million, or ($0.52) 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 for the year ended December December: see month. 31, 2002 will be adjusted to a net loss of $7.1 million, or ($1.50) per diluted share. Each of the quarters of 2002 will be adjusted to reflect the establishment of the valuation allowance as set forth in Exhibit III. This change will have no impact on our cash flow. During 2002, Axsys has focused on improving our resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs , expense management, and execution within our core operations. Axsys' management believes that we are well positioned for the future, both financially and from a product offerings standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the . As announced in our February 13, 2003 earnings release, we reported income before taxes from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in the fourth quarter of 2002 of $1.4 million. These financial results include a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of $235,000 for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and special charges originally recorded earlier in the year. We believe that Axsys will remain profitable during 2003. In the event that future profits are recognized, the related taxes would reduce the valuation allowance until it is exhausted as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to being reported as an expense, which would have the effect of increasing future reported earnings per share. Axsys Technologies, Inc. is a vertically integrated supplier of precision optical and motion control components and assemblies for high-technology applications, serving the aerospace, defense, semiconductor and graphic arts graphic arts: see aquatint; drawing; drypoint; engraving; etching; illustration; linoleum block printing; lithography; mezzotint; niello; pastel; poster; silk-screen printing; silhouette; silverpoint; sketch; stencil; woodcut and wood engraving. markets. For more information, contact Axsys Technologies Inc, at 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 and 10-Q on file with the Securities and Exchange Commission.
EXHIBIT I
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Dollars in thousands, except share data)
----------------------------------------------------------------------
As of December 31, 2002
-----------------------
Originally
Reported
Revised (Unaudited)
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 9,920 $ 9,920
Accounts receivable - net 10,068 10,068
Inventories - net 22,080 22,080
Income tax - deferred and current 4,077 7,398
Other current assets 1,046 1,046
---------- ----------
TOTAL CURRENT ASSETS 47,191 50,512
PROPERTY, PLANT AND EQUIPMENT - net 11,263 11,263
EXCESS OF COST OVER NET ASSETS ACQUIRED - net 3,600 3,600
OTHER ASSETS 318 318
----------- -----------
TOTAL ASSETS $ 62,372 $ 65,693
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,108 $ 3,108
Accrued expenses and other liabilities 9,285 9,285
Deferred income 3,115 3,115
Current portion of capital lease obligations 1,055 1,055
----------- -----------
TOTAL CURRENT LIABILITIES 16,563 16,563
CAPITAL LEASES, less current portion 1,191 1,191
OTHER LONG-TERM LIABILITIES 5,525 4,215
SHAREHOLDERS' EQUITY:
Common stock, authorized 30,000,000 shares,
issued 4,792,674 shares at December 31,
2002 and 2001 47 47
Capital in excess of par 39,587 39,581
Retained earnings 752 5,383
Treasury stock, at cost, 138,988 shares and
96,876 shares at December 31, 2002 and
2001, respectively (1,293) (1,287)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 39,093 43,724
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 62,372 $ 65,693
=========== ===========
EXHIBIT II
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Dollars in thousands, except share data - Unaudited)
For the Twelve
Months Ended
December 31, 2002
-----------------------
Originally
Revised Reported
(Unaudited)
----------- -----------
Net sales $ 79,586 $ 79,586
Cost of sales 60,500 60,500
----------- -----------
Gross margin 19,086 19,086
Selling, general and administrative expenses 16,262 16,262
Research and development expenses 1,003 1,003
Restructuring and special charges 1,854 1,854
----------- -----------
Operating loss (33) (33)
----------- -----------
Interest expense - net (22) (22)
Other income 10 10
----------- -----------
Loss from continuing operations before taxes
and cumulative effect of change in accounting
principle (45) (45)
(Provision for) benefit from income taxes (2,969) 1,662
----------- -----------
(Loss) income from continuing operations
before cumulative effect of change in
accounting principle (3,014) 1,617
Loss from discontinued operations (4,582) (4,582)
Cumulative effect of change in accounting
principle 535 535
----------- -----------
Net loss $ (7,061) $ (2,430)
=========== ===========
BASIC AND DILUTED (LOSS) INCOME PER SHARE:
(Loss) income from continuing operations
before cumulative effect of change in
accounting principle $ (0.64) $ 0.34
Loss from discontinued operations (0.97) (0.97)
Cumulative effect of change in accounting
principle 0.11 0.11
----------- -----------
Total $ (1.50) $ (0.52)
=========== ===========
Weighted average basic and diluted common
shares outstanding 4,692 4,692
EXHIBIT III
Axsys Technologies, Inc,
Reconciliation of Quarterly Statements of Operations - Unaudited
Three Months Ended
March 30, 2002
-----------------------------------
Originally Adjustment Adjusted
Reported
----------- ----------- -----------
Net sales $ 19,092 -- $ 19,092
Cost of sales 14,978 -- 14,978
----------- ----------- -----------
Gross margin 4,114 -- 4,114
Selling, general and administrative
expenses 4,006 -- 4,006
Research and development expenses 307 307
Restructuring and special charges 1,281 -- 1,281
----------- ----------- -----------
Operating loss (1,480) -- (1,480)
Other income (expenses) 61 -- 61
----------- ----------- -----------
Loss from continuing operations
before taxes and cumulative effect
of change in accounting principle (1,419) -- (1,419)
Benefit from (provision for) income
taxes 1,533 (1,975) (442)
----------- ----------- -----------
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle 114 (1,975) (1,861)
Loss from discontinued operations (899) -- (899)
Cumulative effect of change in
accounting principle 535 -- 535
----------- ----------- -----------
Net loss $ (250) $ (1,975) $ (2,225)
=========== =========== ===========
Three Months Ended
June 29, 2002
-----------------------------------
Originally Adjustment Adjusted
Reported
----------- ----------- -----------
Net sales $ 20,586 -- $ 20,586
Cost of sales 15,623 -- 15,623
----------- ----------- -----------
Gross margin 4,963 -- 4,963
Selling, general and administrative
expenses 4,494 -- 4,494
Research and development expenses 180 180
Restructuring and special charges 794 -- 794
----------- ----------- -----------
Operating loss (505) -- (505)
Other income (expenses) (192) -- (192)
----------- ----------- -----------
Loss from continuing operations
before taxes and cumulative effect
of change in accounting principle (697) -- (697)
Benefit from (provision for) income
taxes 413 (950) (537)
----------- ----------- -----------
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle (284) (950) (1,234)
Loss from discontinued operations (859) -- (859)
Cumulative effect of change in
accounting principle -- -- --
----------- ----------- -----------
Net loss $ (1,143) $ (950) $ (2,093)
=========== =========== ===========
Three Months Ended
September 28, 2002
-----------------------------------
Originally Adjustment Adjusted
Reported
----------- ----------- -----------
Net sales $ 19,086 -- $ 19,086
Cost of sales 14,346 -- 14,346
----------- ----------- -----------
Gross margin 4,740 -- 4,740
Selling, general and administrative
expenses 3,906 -- 3,906
Research and development expenses 242 242
Restructuring and special charges -- -- --
----------- ----------- -----------
Operating income 592 -- 592
Other income 42 -- 42
----------- ----------- -----------
Income from continuing operations
before taxes and cumulative effect
of change in accounting principle 634 -- 634
Provision for income taxes (204) (1,221) (1,425)
----------- ----------- -----------
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle 430 (1,221) (791)
Loss from discontinued operations (2,508) -- (2,508)
Cumulative effect of change in
accounting principle -- -- --
----------- ----------- -----------
Net (loss) income $ (2,078) $ (1,221) $ (3,299)
=========== =========== ===========
Three Months Ended
December 31, 2002
-----------------------------------
Originally Adjustment Adjusted
Reported
----------- ----------- -----------
Net sales $ 20,822 -- $ 20,822
Cost of sales 15,553 -- 15,553
----------- ----------- -----------
Gross margin 5,269 -- 5,269
Selling, general and administrative
expenses 3,856 -- 3,856
Research and development expenses 274 274
Restructuring and special charges (221) -- (221)
----------- ----------- -----------
Operating income 1,360 -- 1,360
Other income 77 -- 77
----------- ----------- -----------
Income from continuing operations
before taxes and cumulative effect
of change in accounting principle 1,437 -- 1,437
Provision for income taxes (80) (485) (565)
----------- ----------- -----------
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle 1,357 (485) 872
Loss from discontinued operations (316) -- (316)
Cumulative effect of change in
accounting principle -- -- --
----------- ----------- -----------
Net (loss) income $ 1,041 $ (485) $ 556
=========== =========== ===========
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