IFR Systems Inc. Reports Second Quarter Profit Versus Prior Year Loss From Continuing Operations.Business Editors WICHITA, Kan.--(BUSINESS WIRE)--Oct. 20, 2000 IFR IFR abbr. instrument flight rules Systems Inc. (Nasdaq:IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ) reported today that net income for the second quarter ended Sept. 30, 2000 was $247,000, or $0.03 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, on revenue of $35,862,000. Earnings and revenue were higher than the prior year's second quarter, which had a net 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 of $993,000, or $0.12 per share, on revenue of $34,705,000. For the six months ended Sept. 30, 2000, net income was $729,000, or $0.09 per diluted share, on revenue of $70,408,000. For the first half of the prior year, the net loss from continuing operations was $2,094,000, or $0.25 per share, on revenue of $68,696,000. Gross margin continued to improve, increasing to 42.7% for this year's second quarter from 39.6% a year earlier. 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. as a percentage of revenue increased to 6.5% in the quarter from 0.6% for the second quarter a year ago. Excluding amortization of goodwill, operating income as a percentage of revenue increased to 8.3% from 2.4% in the prior year's second quarter. Chief executive officer Jeffrey Bloomer said, "While we still have work to do to achieve our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. for growth and profitability, our efforts to improve IFR's operating efficiency are moving the Company in the right direction." Bloomer said, "We also are encouraged by our achievements to enhance revenue growth by applying a team approach to the development and marketing of advanced digital wireless test solutions for the communications test industry. "A good example of how we are translating this strategy into successful new products is our new Model 2975 digital radio test system, which was launched during the second quarter. "This new product addresses the emerging market opportunity created by the conversion of the nation's public-safety radio communications system In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. from analog to digital standards. We believe that this transition creates an opportunity for significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue for IFR." Bloomer added, "During the second quarter we also established a new distribution agreement with LeCroy Corporation, and introduced a variety of enhancements that add value to several of our most popular product lines. In addition, we brought on board senior staff professionals in human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and marketing to more effectively support IFR's growing global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. ." New orders for the six months ended Sept. 30, 2000 were $72.7 million compared to $66.8 million for the same period in the prior year. "This increase in orders is encouraging, considering the negative effects of weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. currencies in 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. . We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that IFR will report further progress in the implementation of its strategic growth plan in the year's second half," Bloomer said. IFR -- Advancing Wireless Test IFR is a leading designer and manufacturer of advanced wireless test solutions for communications, avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. , and general test and measurement applications. For more information about IFR 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. , contact: IFR, 10200 West York West York may refer to one of these places:
IFR will host a conference call today at 11 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT in connection with the release of its second quarter results. To participate in the call, dial 212/271-4542. For a replay, dial 800/633-8284, reservation number 16541166. IFR is also hosting a real-time WebCast and replay, which can be accessed at www.streetfusion.com or the company's Web page at www.ifrsys.com. This news release may contain 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. pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to future anticipated projected plans, performance and developments, as well as other statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future operations. All such forward-looking statements are only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors which could affect IFR Systems Inc. are included in the company's reports on file with the Securities and Exchange Commission.
IFR SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
September 30, September 30,
2000 1999 2000 1999
Sales $ 35,862 $ 34,705 $ 70,408 $ 68,696
Cost of
products sold 20,555 20,954 40,569 40,015
Gross profit 15,307 13,751 29,839 28,681
Operating expenses
Selling 5,642 5,749 11,679 11,935
Administrative 2,935 3,182 5,581 6,260
Engineering 3,754 3,963 7,193 8,238
Goodwill 633 633 1,266 1,266
12,964 13,527 25,719 27,699
Operating income 2,343 224 4,120 982
Other expense (1,986) (1,777) (3,065) (4,381)
Income (Loss)
from continuing
operations before
income taxes 357 (1,553) 1,055 (3,399)
Income tax expense
(benefit) 110 (560) 326 (1,305)
Income (Loss)
from continuing
operations 247 (993) 729 (2,094)
Income from
discontinued operations
less applicable
income taxes -- 10,134 -- 10,460
Net income $ 247 $ 9,141 $ 729 $ 8,366
Earnings (loss)
per share -- basic:
Income (loss)
from continuing
operations $ 0.03 $ (0.12) $ 0.09 $ (0.25)
Income from
discontinued
operations -- 1.23 -- 1.27
Net income $ 0.03 $ 1.11 $ 0.09 $ 1.02
Earnings (loss)
per share --
diluted:
Income (loss)
from continuing
operations $ 0.03 $ (0.12) $ 0.09 $ (0.25)
Income from
discontinued
operations -- 1.23 -- 1.27
Net income $ 0.03 $ 1.11 $ 0.09 $ 1.02
Average common
shares
outstanding 8,256 8,231 8,250 8,227
Dilutive common
shares
outstanding 8,300 8,231 8,324 8,227
IFR SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Sep. 30, Mar. 31,
2000 2000
(unaudited) (audited)
Assets
Current assets
Cash and cash equivalents $ 2,686 $ 3,169
Accounts receivable -- net 30,758 29,267
Inventories 35,598 36,989
Prepaid and deferred items 6,267 6,549
Total current assets 75,309 75,974
Property and equipment, net 21,676 23,983
Goodwill 19,753 20,125
Intangibles, net 28,198 29,092
Other assets 2,536 1,972
Total assets $ 147,472 $ 151,146
Liabilities and shareholders' equity
Current liabilities
Short-term bank borrowings $ 20,900 $ 15,700
Accounts payable 9,575 12,493
Accrued expenses 9,564 10,617
Other current liabilities 10,122 7,240
Total current liabilities 50,161 46,050
Capital lease obligations 3,140 3,248
Long-term debt 52,135 56,135
Deferred income taxes 10,619 10,895
Shareholders' equity 31,417 34,818
Total liabilities and
shareholders' equity $ 147,472 $ 151,146
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