Video Display Releases Results of Operations for Fiscal 2006.ATLANTA -- Video Display Corporation (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 :VIDE vi·de v. Abbr. v. See. Used to direct a reader's attention. [Latin vid  , sing. ) today reported
that revenues for the fourth quarter of fiscal 2006 ended February 28,
2006 declined $0.3 million or 1.5% over the fourth quarter of fiscal
2005 to $20.4 million. The Company reports a net loss of $1.5 million,
or ($.15) per fully 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, for the fourth quarter ended February 28, 2006 compared to a net income of $0.2 million, or $.02 per fully diluted share, for the fourth quarter ended February 28, 2005. Revenues for the fiscal year ended February 28, 2006 increased $1.1 million or 1.4% over the fiscal year ended February 28, 2006. Net income was $0.4 million, or $.04 per fully diluted share, for the fiscal year ended February 28, 2006 compared to $3.5 million, or $.36 per fully diluted share, for the fiscal year ended February 28, 2005. Company 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. , Ron Ordway, stated, "Fiscal 2006 was a difficult year for VDC VDC Volts Direct Current VDC Venture Development Corporation VDC Vehicle Dynamic Control VDC Village Development Committee (Nepal) VDC Virtual Data Center VdC Verband der Cigarettenindustrie . Our net income for the fourth quarter and fiscal year ended February 28, 2006 were negatively impacted by a variety of factors including an increase in charges for inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. , costs associated with integration of acquired operations, increased design costs in development of new products, higher professional fees, additional expenses associated with the Company's call center operations and increased interest charges." He further stated, "Management's goal for fiscal 2007 is to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose those operations that have shown losses for this past year and with little probability of turning profitable for the current year. We intend to allocate To reserve a resource such as memory or disk. See memory allocation. our resources to those areas of highest potential for growth and profit in an effort to further streamline VDC's business and operations. With fiscal 2006 behind us, fiscal 2007 is projected to return toward historical level of profitability with each successive quarter projected to generate better results than its predecessor." Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial use with emphasis on high end training and simulation applications. Its product offerings include ruggedized CRT (1) (C RunTime) See runtime library. (2) (Cathode Ray Tube) A vacuum tube used as a display screen in a computer monitor or TV. The viewing end of the tube is coated with phosphors, which emit light when struck by electrons. and AMLCD (Active Matrix LCD) See active matrix. displays as well as complete projection systems utilizing VDC's Marquee(TM) line of projectors. Video Display Corporation operates 11 display design and manufacturing plants plus eight sales facilities throughout 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. and Europe. This document 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 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Video Display Corporation or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an 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: executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions, including items discussed in the Company's 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. for the year ended February 28, 2006, filed with the Securities and Exchange Commission. The Company undertakes no duty to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
Video Display Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
Fourth Quarter Fiscal Year
Ended Ended
February 28, February 28,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Net sales $20,428 $20,739 $83,878 $82,740
Cost of goods sold 16,511 14,369 59,376 55,729
-------- -------- -------- --------
Gross profit 3,917 6,370 24,502 27,011
-------- -------- -------- --------
Operating expenses
Selling and delivery 1,709 1,798 7,235 7,035
General and administrative 4,220 3,771 15,125 13,323
-------- -------- -------- --------
5,929 5,569 22,360 20,358
-------- -------- -------- --------
Operating profit (2,012) 801 2,142 6,653
-------- -------- -------- --------
Other income (expense)
Interest expense (446) (328) (1,474) (1,060)
Other, net (4) (12) 82 176
-------- -------- -------- --------
(450) (340) (1,392) (884)
-------- -------- -------- --------
Income before income taxes (2,462) 461 750 5,769
Income tax expense (930) 232 305 2,262
-------- -------- -------- --------
Net income $(1,532) $ 229 $ 445 $ 3,507
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Basic earnings per share of
common stock $ (.16) $ .02 $ .05 $ .36
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Diluted earnings per share of
common stock $ (.15) $ .02 $ .04 $ .36
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Basic weighted average shares
outstanding 9,653 9,706 9,684 9,673
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Diluted weighted average shares
outstanding 9,897 9,959 9,964 9,903
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