Datron Systems Announces Second Quarter Fiscal 1998 Earnings.ESCONDIDO, Calif.--(BUSINESS WIRE)--Oct. 21, 1997--Datron Systems Incorporated (Nasdaq:DTSI DTSI Defense Trade Security Initiative DTSI Digital Twin Spark Ignition DTSI Datron/Transco Systems Incorporated DTSI DataTel Solutions, Inc. (San Antonio, Texas) ) Tuesday announced results for its second quarter ended Sept. 30, 1997. Net income for the quarter was $149,000, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net income in the second quarter last fiscal year of $155,000, or 6 cents per share. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter were $14,937,000, 2 percent higher than second-quarter net sales last fiscal year of $14,620,000. Second quarter results showed improvement from the first quarter, in which a net loss of $548,000, or 21 cents per share, was incurred on net sales of $10,341,000. Higher sales of radio products and remote sensing Deriving digital models of an area on the earth. Using special cameras from airplanes or satellites, either the sun's reflections or the earth's temperature is turned into digital maps of the area. systems were primarily responsible for the improvement. Net loss for the six months ended Sept. 30, 1997, was $399,000, or 15 cents per share, compared with net income of $184,000, or 7 cents per share, for the comparable period last fiscal year. Net sales for the six months were $25,278,000, 7 percent lower than net sales in the first six months last fiscal year of $27,077,000. The net loss was primarily due to lower gross profits on the lower sales, partially offset by lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . David A. Derby, president and chief executive officer, stated, "During the second quarter, some personnel changes were made at our Datron/Transco subsidiary which we think will result in improved operational efficiencies. The short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. effect of these changes included termination costs and other expenses that caused second-quarter earnings to be somewhat lower than expected. Nevertheless, the profitable second quarter was a welcome turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from the 21 cents per share loss incurred in the first quarter. "We are pleased to report our order 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 $30.0 million at the end of the second quarter was up sharply from the $17.9 million at March 31, 1997, and was well above the $23.1 million at the end of the second quarter of last fiscal year. "Several new products were introduced in the second quarter. The PRC2100 is a tactical radio system that features GPS, full-band frequency hopping A wireless modulation method that rapidly changes the center frequency of a transmission. See spread spectrum and 802.11. , digital encryption The reversible transformation of data from the original (the plaintext) to a difficult-to-interpret format (the ciphertext) as a mechanism for protecting its confidentiality, integrity and sometimes its authenticity. Encryption uses an encryption algorithm and one or more encryption keys. and a user interface that is programmable in almost any language. Deliveries of this VHF/FM radio are expected to begin in the first quarter of fiscal 1999. "We completed beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the and began initial shipments of a mobile DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. system for long-haul trucks with aerodynamic wind deflectors. This opens a new market for our DBS family of products. "Finally, we introduced and commenced production of a next generation airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. DBS system for commercial airlines. The DBS-2400 features simultaneous dual polarity (1) The direction of charged particles, which may determine the binary status of a bit. (2) In micrographics, the change in the light to dark relationship of an image when copies are made. (permits reception of all available channels) and is compatible with DBS satellites in almost all regions of the world." Datron Systems provides products and services addressing the needs of emerging satellite and radio communication markets.
DATRON SYSTEMS INCORPORATED
Consolidated Statements of Operations (Unaudited)
(in thousands, except per-share amounts)
Three Months Ended Six Months Ended
Sept. 30 Sept. 30
1997 1996 1997 1996
Net sales $14,937 $14,620 $25,278 $27,077
Cost of sales 11,326 10,711 19,312 19,712
Gross profit 3,611 3,909 5,966 7,365
Selling, general and
administrative 2,797 2,991 5,545 5,722
Research and development 471 482 860 1,040
Operating income (loss) 343 436 (439) 603
Interest expense (81) (177) (199) (294)
Other expense (4) -- (10) --
Income (loss) before
income taxes 258 259 (648) 309
Income taxes (benefit) 109 104 (249) 125
Net income (loss) $149 $155 ($399) $184
Net income (loss)
per share $0.06 $0.06 ($0.15) $0.07
Weighted average
shares outstanding 2,689 2,681 2,677 2,687
DATRON SYSTEMS INCORPORATED
(Condensed Consolidated Balance Sheets)
(in thousands)
Sept. 30, March 31,
1997 1997
(Unaudited)
ASSETS
Cash $376 $1,072
Accounts receivable,
net 16,555 17,896
Inventories 13,834 14,309
Other current assets 4,042 3,956
Total current assets 34,807 37,233
Property, plant and
equipment, net 11,293 12,030
Other assets 7,066 7,213
Total assets $53,166 $56,476
LIABILITIES AND EQUITY
Current liabilities $13,348 $12,477
Long-term debt 5,300 8,900
Restructuring reserve 180 435
Deferred income taxes 2,056 2,056
Total liabilities 20,884 23,868
Stockholders' equity 32,282 32,608
Total liabilities
and equity $53,166 $56,476
CONTACT: Datron Systems Incorporated William L. Stephan, 760/747-3734 |
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