National Technical Systems Announces Fiscal 2007 Third Quarter, Nine Months Results.CALABASAS, Calif. -- National Technical Systems, Inc. (Nasdaq:NTSC (National TV Standards Committee) The committee that developed the television standards for the U.S, which are also used in Canada, Japan, South Korea and several Central and South American countries. Both the committee and the standard are called "NTSC. ) (NTS NTS National Technical Systems NTS National Trust for Scotland NTS Nevada Test Site NTS NT Server (Microsoft Windows) nts Not the Same NTS National Traffic System (amateur radio) ) today announced results for its fiscal 2007 third quarter and nine months ended October 31, 2006. Total revenues for the third quarter of fiscal 2007 increased to $29.8 million from $28.5 million for the same period in the prior year. Total revenues for the nine months ended October 31, 2006 increased to $86.4 million from $82.7 million for the same period in the prior year. 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. improved to $1,278,000 for the third quarter of fiscal 2007, compared to $1,205,000 for the same period in the prior year, primarily due to the increase in revenues in the Engineering & Evaluation segment, partially offset by a decrease in operating income in the Technical Solutions segment. Net income for the third quarter of fiscal 2007 was $409,000 as compared to $590,000 for the same period in the prior year with corresponding 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 of $0.04 in the current period compared to $0.06 for the same quarter in the prior year. Net income for the nine months ended October 31, 2006 was $1,008,000 as compared to $1,792,000 for the same period in the prior year with corresponding diluted earnings per share of $0.11 in the current period compared to $0.19 for the same period in the prior year. Earnings for the third quarter and nine months ended October 31, 2006 were primarily impacted by after-tax share-based compensation expense of $125,000 or $0.01 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 and $430,000 or $0.05 per diluted share, respectively. The Company adopted the provisions of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123(R) at the beginning of fiscal 2007. Earnings were also impacted by the higher interest expense in fiscal 2007. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William McGinnis William McGinnis may refer to:
William "Bill" McGinnis, Ph.D. is a molecular biologist and professor of biology at the University of California, San Diego (UCSD). commented: "Revenues in our Engineering & Evaluation segment grew nicely with operating income increasing by $265,000 during the third quarter this year, compared to the same period last year. The Company has experienced a moderate increase this year in business in the aerospace and registration markets and a steady increase in business in the defense, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and power markets. We expect increased growth in the Engineering & Evaluation segment as our bookings in the third quarter were very strong. In addition, the Company has experienced an immediate benefit from the revenues contributed by the newly acquired B&B Technologies and Dynamic Labs as we continue to integrate the additional EMI/EMC EMI/EMC Electromagnetic Interference/Electromagnetic Compatibility capability acquired from Dynamic Labs into our Arizona facility and add additional capacity from the dynamic and climatic equipment acquired at our Texas and California facilities." Revenues from Engineering & Evaluation for the fiscal 2007 third quarter increased 14.3% to $20.7 million, compared to $18.1 million for the same period in the prior year. For the nine months ended October 31, 2006, revenues increased 12.3% to $59.1 million, compared to $52.6 million for the same period in the prior year. The year-over-year increase in revenues was primarily due to additional revenues from the acquisitions of B&B Technologies and Dynamic Labs on June 9, 2006 and August 1, 2006, respectively, increases in aerospace revenues from the Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, laboratory as a result of the enhanced capability and capacity at that facility and increases in overall revenues from the telecommunications, software testing Software testing is the process used to measure the quality of developed computer software. Usually, quality is constrained to such topics as correctness, completeness, security, but can also include more technical requirements as described under the ISO standard ISO 9126, such and registration markets. These increases were partially offset by a decrease in the automotive testing business and defense business due to program delays. Operating income in the Engineering & Evaluation group increased to $1,142,000 in the current quarter, compared to $877,000 for the same period in the prior year. For the nine months ended October 31, 2006, operating income decreased to $2,857,000, compared to $3,434,000 for the same period in the prior year. Revenues from Technical Solutions for the fiscal 2007 third quarter decreased 12.5% to $9.1 million compared to $10.4 million for the year-earlier period. For the nine months ended October 31, 2006, revenues decreased 9.2% to $27.3 million, compared to $30.1 million for the same period in the prior year. The decrease in revenues was primarily due to the increased price compression Price compression The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price. in the general IT service business and competition from off-shore companies. Operating income in the Technical Solutions group decreased to $136,000 in the current quarter compared to $328,000 for the year-earlier period. For the nine months ended October 31, 2006, operating income was $216,000 compared to $385,000 for the same period in the prior year. The decrease in operating income was primarily due to the decrease in revenues discussed above, partially offset by the decrease in selling, general and administrative expenses. Conference Call NTS is conducting a conference call to review the financial results tomorrow, December 15th, at 10:00 a.m. Pacific Time (11:00 a.m. Mountain Time, 12:00 p.m. Central Time, 1:00 p.m. Eastern Time). The dial-in number for the call is 800-240-4186 (this is an operator assisted call; ask for the NTS 2007 3rd Qtr. Results conference call). A live web cast of the call can be accessed at www.ntscorp.com. About National Technical Systems, Inc. National Technical Systems, Inc. is a business-to-business services company providing organizations in the aerospace, defense, information technology (IT) and high technology markets integrated testing, certification, quality registration, systems evaluation and engineering solutions. For additional information about National Technical Systems, visit its web site at www.ntscorp.com. Cautionary Note Regarding 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. : The statements in this press release that relate to future plans, events or performance, are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties 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 customer orders, demand for services and products, development of markets for the companies' services and products and other risks identified in the companies' SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. [TABLE OMITTED] |
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