Axsys Technologies Announces Third Quarter Results and Issues Guidance for 2007.Company Expects 2006 Earnings at High End of Guidance Range 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 third quarter ended September 30, 2006. Third Quarter Financial Highlights - versus fiscal 2005 third quarter: * Sales increased 12% to a record $39.8 million. * Gross margin was comparable at 31%. * 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. grew 8% to $4.3 million. * Net income increased 63% to $2.7 million. * 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 increased to $0.25 from $0.22. * Total backlog of firm orders at the end of the third quarter was $115.2 million. Third quarter revenue growth was driven primarily by strong demand for thermal imaging cameras and lenses. The operating income comparison was adversely affected by a $348,000 pre-tax expense for stock-based compensation, pursuant to FAS 123R accounting policies that the Company adopted on January 1, 2006. Adjusting for the effect of FAS 123R, the operating income growth would have been 17%. The year-over-year net income comparison was affected by a net pre-tax interest expense of $849,000 and a $480,000 loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt in the third quarter of 2005. The diluted earnings per share comparison was further affected by a 43% increase in the weighted-average 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. shares outstanding as a result of the Company's September 2005 equity offering. [TABLE OMITTED] "I am pleased to report another robust quarter," said Stephen W. Bershad, Chairman and Chief Executive Officer. "Our Optical Systems Group continued to perform particularly well with 15% growth in revenue and 19% growth in income before taxes, relative to the third quarter of last year. We are clearly establishing a reputation as a major supplier of military-grade electro-optical systems." 2006 and 2007 Earnings Guidance Axsys announced that revenues and earnings per diluted share for the 2006 calendar year are expected to be at the high end of the guidance ranges previously provided, which were $151 to $155 million, and $0.91 to $0.95 per share, respectively. The Company also provided guidance for 2007. "We have made a great deal of progress in 2006," continued Mr. Bershad. "We consolidated our IR Systems business, introduced new products and penetrated new markets. These successes, in addition to the encouraging opportunities that we now see before us, lead us to expect another year of solid growth. Consequently, we are establishing our 2007 revenue growth guidance between 8% and 10%, with earnings per diluted share growth between 13% and 15%." Conference Call Management will conduct a conference call reviewing the financial results on Thursday, October 26, 2006 at 10:00 am ET. Shareholders, institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and equity research analysts are invited to participate in the call by dialing 866-356-4279 (conference passcode 21742510). The conference call will be webcast live via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's web site at www.axsys.com. A replay of the webcast will be available shortly after the conclusion of the call for a period of approximately 90 days. 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. 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 pricing pressures from competitors and/or customers; the potential for the Company's backlog to be reduced or cancelled; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully; 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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