Boonton Electronics reports nine month results.PARSIPPANY, N.J.--(BUSINESS WIRE)--Aug. 26, 1996--Boonton Electronics Corp. (Nasdaq Over-the-Counter Bulletin Board: BOON Boon A general term that refers to a benefit or improvement for investors. This can include such things as increased dividends, a stock market rally and stock buybacks. Notes: ) announced today its results for the nine month fiscal period ended June 30, 1996. Sales for the nine months ended June 30, 1996 were $4,601,618 compared to $4,967,463 for the same period last year. The decrease in sales was primarily due to a decline in domestic revenues of $338,757 which was attributed to an overall industry decline in 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. . As noted in the company's previous quarterly financial reports there has been a pent-up demand within U.S. government agencies which existed due to a need for budgetary resolution. Release of this governmental agency demand has been expected for some time. In August 1996, subsequent to the period being reported, the company was awarded two significant contracts by the United States Air Force United States Air Force (USAF) Major component of the U.S. military organization, with primary responsibility for air warfare, air defense, and military space research. It also provides air services in coordination with the other military branches. U.S. that total approximately $1.7 million. One contract is for 99 peak power meters and the other contract is for 225 CW power meters. Deliveries against the peak power meter contract will commence in September 1996 and deliveries for the CW power meter contract will start during the company's 1997 first fiscal quarter. Gross income increased by $64,178 above the prior year and improved to 48 percent of sales versus a prior year's 42 percent of sales. Commission expense increased by $38,753 over the prior year due to an increase as a percentage of revenues for export sales which carry a higher commission rate. All other operating costs operating costs npl → gastos mpl operacionales increased in total by $301,943. "CE Mark" certification of Boonton's products exported to the European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. , which will be a one-time expense, accounted for $81,119 of increased professional fees. Also, $32,308 of the increase was for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when commission. The company reported an operating loss 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. of $61,306. A net loss before extraordinary item of $138,513 was reported versus an income of $6,849 for the prior year. An extraordinary item of $151,344 was reported due to the charges for environmental professionals. 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 the GMME GMME Groupe de Météorologie à Moyenne Échelle agreement, the company was required to obtain an agreement, acceptable to GMME, with the New Jersey Department of Environmental Protection The New Jersey Department of Environmental Protection (NJDEP) is a government agency in the U.S. state of New Jersey that is responsible for managing the state's natural resources and addressing issues related to pollution. NJDEP now has a staff of approximately 3,400. (DEP DEP Deposit DEP Deputy DEP Department of Environmental Protection DEP Dependent DEP Departure DEP Depot DEP Deposition DEP deployed (US DoD) DEP Data Execution Prevention (computer security) ) for finalizing the clean-up of a site the company formerly leased. These charges were deemed not to be in the ordinary course of business and were thus reported as an extraordinary item. The loss per share was $0.21 with $0.11 of the loss per share being attributable to the extraordinary item. The June 30, 1996 inventory balance was $1,337,700 which was a $134,342 increase above the Sept. 30, 1995 balance of $1,203,358. The increase in inventory was in raw materials and finished goods, purchased and processed, for orders already in the company's backlog. Work-in-process decreased in total by $9,380. Trade receivable balances were $897,033 as compared to $1,011,980 as of Sept. 30, 1995. The current ratio as of June 30, 1996 increased to 3.36 from 3.02 at Sept. 30, 1995. Effective Aug. 15, 1996, the company was informed, in accordance with the terms of the definitive stock purchase agreement executed on Feb. 23, 1996 by and between the company and General de Mesure et de Maintenance Electronique. S.A. (GMME), that GMME would not exercise its rights to further invest in the company and purchase 523,700 of authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: but unissued common shares. GMME remains as a shareholder of the company as a result of its purchase of 180,300 common shares from treasury at $3.125 a share. It is the intent of both companies to continue to pursue an additional investment by GMME in the company. The primary issue for finalizing such an investment remains the environmental situation noted above. -0-
BOONTON ELECTRONICS CORP.
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
1996 1995 1996 1995
Sales $1,410,126 $1,818,211 $4,601,618 $4,967,463
Income/(loss) from
operations (128,401) 138,685 (61,306) 215,212
Income/(loss) before
extraordinary item (143,540) 99,128 (138,513) 6,849
Extraordinary item (151,344) -- (151,344) --
Net income/(loss) (294,884) 99,128 (289,857) 6,849
Earnings/(loss) per share:
Before extraordinary item $(0.09) $0.07 $(0.10) $0.01
Extraordinary item (0.10) -- (0.11) --
Net $(0.19) $0.07 $(0.21) $0.01
Weighted average shares
outstanding 1,537,244 1,326,785 1,428,545 1,326,785
CONTACT: Boonton Electronics Boonton Electronics is an American manufacturer of electronic test equipment. Originally founded in 1947 in Morris Plains, New Jersey, they are now located nearby in Parsippany. Boonton became a wholly owned subsidiary of the Wireless Telecom Group in 2000. Corp., Parsippany John E. Titterton, Vice President, Finance, 201/386-9696 |
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