Axsys Technologies Announces Third Quarter Results; New Orders Increase, Earnings Improve Over Second Quarter due to Significant Cost Reduction Actions.Business & Technology 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)--Oct. 30, 2001 Axsys Technologies, Inc. (Nasdaq: AXYS), a global leader in the design, manufacture and distribution of precision components and systems for high-technology markets, today announced third quarter fiscal 2001 results. Sales amounted to $21.6 million in the quarter ended September September: see month. 30, 2001, compared to $24.2 million in the comparable quarter in fiscal 2000, a decrease of $2.6 million, or 11 percent. For the third quarter ended September 30, 2001, Axsys reported a net loss of $72 thousand, or ($0.02) per share, compared to net income of $91 thousand, or $0.02 per share in the quarter ended September 30, 2000. Sales of the Company's Precision Components Group totaled $13.4 million in the third fiscal quarter of 2001, compared to $12.9 million in the quarter ended September 30, 2000. The three percent increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher sales of motion control components and other products to aerospace and defense customers. Sales of fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. automation systems totaled $1.3 million in the third quarter, an increase of 107 percent over the prior year and an increase of 164 percent over the second quarter of 2001. Sales included the Company's first shipments of FAST(TM) products from its Fiber Automation Division in Pittsburgh Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. , PA. Automation Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. in total were $2.7 million in the third quarter of 2001, compared to $3.2 million in 2000, a decrease of $0.5 million or 14 percent, as a result of continued weak demand from the data storage and semiconductor markets. Sales of the Distributed Products Group were $5.5 million in the quarter ended September 30, 2001, compared to $8.1 million in the comparable prior year period, a decrease of $2.6 million, or 32 percent. Weakness in commercial and industrial markets continued to negatively affect our sales of precision bearings. The Company reported a net loss of $72 thousand, or ($0.02) per share. Despite lower gross margin due to significantly lower sales volume compared to the third quarter last year, operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. were mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. through the cost reduction actions implemented late in the second quarter of this year. Commenting on the quarter, 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 stated, "While we were disappointed with revenue levels recorded in the quarter which continued to be negatively affected by general economic weakness, we were pleased with the overall results for the quarter. We substantially reduced our break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. while continuing to invest in growth opportunities throughout the business." Mark J. Bonney Bon·ney , William H. Known as Bil·ly the Kid 1859-1881. American outlaw who murdered 21 men and was shot dead by Sheriff Pat Garrett (1850-1908). Noun 1. , President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. commented, "In the third quarter, we achieved several important milestones including our reduced break-even, our bookings which grew by 20 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , and our initial FAST(TM) product shipments that were achieved less than one year from the launch of this effort. We have invested heavily in our fiber automation strategy and believe our broadened product portfolio will achieve wide acceptance as market conditions improve." For the nine-month period ended September 30, 2001, sales amounted to $69.2 million, compared to $67.8 million in 2000, an increase of $1.4 million, or 2 percent. Excluding non-recurring gains and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , the loss 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 for the nine months ended September 30, 2001 was $1.1 million or ($0.23) per share, compared to a loss of $1.0 million, or ($0.22) per share in the nine months ended September 30, 2000. The Company recorded new orders of $22.3 million in the third quarter of 2001, a 20 percent increase over new orders booked last quarter. Compared to orders of $32.4 million in the third quarter of 2000, the $10.1 million decline in orders received in the third quarter of 2001 was due to weaker demand for most products in our commercial markets. Axsys ended the third quarter with a 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 $53.4 million, up from $52.7 million at June June: see month. 30, 2001, but down $11.5 million from the December December: see month. 31, 2000 backlog of $64.9 million. Mark Bonney added, "We believe that the actions taken in June have substantially reduced our cost structure while allowing critical investments in new product development and marketing to continue. Based on the achievement of our cost reduction objectives, our current backlog of orders, and various actions to improve asset 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 , we expect sequentially higher revenues and modest profitability in the fourth quarter. With our breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations lowered, we can continue to focus on several key growth opportunities in line with our strategy to move from a components supplier to a systems supplier. In particular, our product offering in fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber assembly is now well positioned to capture significant sales when the market improves." Axsys' management invites you to listen to a conference call regarding third quarter 2001 results to be held on Wednesday Wednesday: see week. , October October: see month. 31st, 2001 at 4:30 p.m. (Eastern Standard Time). The domestic dial-in number is 866-494-7673 and the international dial-in number is 212-341-7085, and the access number is 19828941. A replay of the conference call will begin on Wednesday, October 31, 2001 at 6:30 p.m. (Eastern Standard Time) and will be available until November November: see month. 14, 2001 at 6:30 p.m. The replay can be accessed by dialing 800-633-8284 (858-812-6440 if outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ), with an access number of 19828941. Axsys Technologies, Inc. is a vertically integrated supplier of precision system solutions for high-technology markets, including fiber optics, data storage and semiconductor, as well as providing aerospace guidance and electronic capital equipment. Axsys has created its precision systems capabilities by leveraging its success with unique component capabilities. For more information, contact Axsys Technologies, Inc. at www.Axsys.com. This news release contains certain 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. . Our business is subject to various risks and uncertainties. As a result, actual future results and developments may be materially different from those expressed or implied in any forward-looking statements. Disclosure regarding factors affecting Axsys' future results and developments is contained in our public filings with the Securities and Exchange Commission, including our 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. for the fiscal year ended December 31, 2000.
AXSYS TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited)
September 30, December 31,
2001 2000
--------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $ 7,801 $ 14,850
Accounts
receivable - net 13,345 13,937
Inventories - net 22,779 25,435
Other current
assets 5,619 3,293
--------------- ---------------
TOTAL CURRENT ASSETS 49,544 57,515
PROPERTY, PLANT AND
EQUIPMENT - net 13,898 12,816
EXCESS OF COST OVER
NET ASSETS ACQUIRED
- net 3,064 3,062
OTHER ASSETS 1,113 199
--------------- ---------------
TOTAL ASSETS $ 67,619 $ 73,592
=============== ===============
LIABILITIES AND
SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,456 $ 7,009
Accrued expenses
and other liabilities 8,793 8,172
Current portion of
capital lease obligation 691 814
--------------- ---------------
TOTAL CURRENT LIABILITIES 14,940 15,995
CAPITAL LEASES, less
current portion 978 1,485
OTHER LONG-TERM LIABILITIES 5,016 2,691
SHAREHOLDERS' EQUITY:
Common stock, authorized
30,000,000 shares,
issued 4,792,674 shares at
September 30, 2001 and
December 31, 2000 47 47
Capital in excess of par 39,568 39,675
Retained Earnings 8,131 14,965
Treasury stock, at cost,
98,804 shares at
September 30, 2001 and
108,553 at
December 31, 2000 (1,061) (1,266)
--------------- ---------------
TOTAL SHAREHOLDERS'
EQUITY 46,685 53,421
--------------- ---------------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY $ 67,619 $ 73,592
=============== ===============
AXSYS TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands)
Three-Months Ended Nine-Months Ended
September 30, September 30,
------------------------- ------------------------
2001 2000 2001 2000
------------ ------------ ------------ -----------
NET SALES $ 21,603 $ 24,245 $ 69,209 $ 67,772
Cost of sales 16,303 18,060 59,702 55,156
Selling,
general
and
administrative
expenses 4,905 5,488 16,291 15,964
Research
and
development
expenses 633 747 2,971 2,440
Restructuring
charge -- -- 1,360 1,655
Amortization
of intangible
assets (1) 35 (2) 105
----------- ------------ ------------ ----------
OPERATING (LOSS) (237) (85) (11,113) (7,548)
Interest income
- net 13 175 122 304
Other income 109 60 143 165
----------- ------------ ------------ ----------
(LOSS) INCOME
FROM CONTINUING
OPERATIONS
BEFORE
TAXES (115) 150 (10,848) (7,079)
Benefit from
(provision)
for income
taxes 43 (59) 4,014 2,768
----------- ------------ ------------ ----------
(LOSS) INCOME
FROM
CONTINUING
OPERATIONS (72) 91 (6,834) (4,311)
DISCONTINUED
OPERATIONS:
Income from
operations
- net of
taxes -- -- -- 513
Gain on disposal
- net of taxes
-- -- -- 13,776
----------- ------------ ------------ ----------
NET (LOSS)
INCOME $ (72) $ 91 $ (6,834) $ 9,978
============ ============ ============ ===========
BASIC (LOSS)
EARNINGS
PER SHARE:
(Loss) income
from continuing
operations $ (0.02) $ 0.02 $ (1.46) $ (0.92)
Income from
discontinued
operations -- -- -- 3.07
------------ ------------ ----------- -----------
TOTAL $ (0.02) $ 0.02 $ (1.46) $ 2.15
============ ============ ============ ===========
Weighted
average
basic
common
shares
outstanding
(1) 4,688 4,660 4,686 4,651
DILUTED (LOSS)
EARNINGS
PER SHARE:
(Loss) income
from continuing
operations $ (0.02) $ 0.02 $ (1.46) $ (0.92)
Income from
discontinued
operations -- -- -- 3.07
----------- ----------- ---------- -----------
TOTAL $ (0.02) $ 0.02 $ (1.46) $ 2.15
============ ========== =========== ===========
Weighted average
diluted common
shares outstanding (1) 4,688 4,753 4,686 4,651
(1) As per generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of the net loss per share is based on the weighted average basic shares outstanding when there is a loss from continuing operations. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion