VIENNA, Va., April 26, 2002 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR) announces consolidated net sales, gross margins, net earnings and earnings per share for the first quarter ended March 31, 2002.
For the three months ended March 31, 2002, Allied Research earned $1.17 million, or $0.23 a share, on revenues of $16.9 million, compared to earnings of $1.14 million, or $0.23 a share, on revenues of $17.0 million for the same period in 2001. The gross margin increased by 5%, or $242,000, to approximately $5.23 million, as compared to $4.99 million for the same period in 2001.
Backlog as of March 31, 2002 was $189 million compared to $56 million at year-end and $73 million at March 31, 2001.
Sales for this quarter matched those from the same period of 2001. Consolidated sales include revenue generated by Allied Research's new subsidiary, NS Microwave. MECAR's revenue declined slightly from 2001 levels due to a shift in production to later quarters within the current year. A small decline in sales occurred at the VSK Group and is attributable to softened security industry conditions throughout Europe, which the Company expects will reverse in the second half of the year.
The quarterly earnings were positively impacted by reduced costs on a previously reported MECAR contract, which is nearly complete. The increase in operating income for the quarter, from $1,833 to $2,145, was offset by lower foreign currency transaction gains in 2002.
According to General (Retired) J.H. Binford Peay, III, Chairman, President and Chief Executive Officer, "The backlog has increased significantly in the last few months, and the earnings from this first quarter held steady, which is consistent with the Company's historically slower performance in the first half of the calendar year. Based on the substantial current backlog and current performance, we anticipate the Company matching or exceeding the profits it generated in 2001."
About Allied Research Corp.
Allied Research Corporation is a diversified defense and security firm, developing and producing conventional ammunition marketed to defense departments worldwide; and designing, producing and marketing sophisticated electronic security systems for European, Asian, African, North American and South American markets.
Allied Research Corporation
(All amounts in millions of U.S. Dollars except per
share amounts and shares outstanding)
Three Months Ended 3/31
2002 2001
--------- ---------
Sales $ 16.90 $ 17.00
Gross Margin $ 5.23 $ 4.99
Earnings $ 1.17 $ 1.14
Earnings Per Share (Basic and Diluted) $ 0.23 $ 0.23
Weighted average shares outstanding
(Basic) 5,147,712 4,870,515
(Diluted) 5,185,740 4,871,773
For more Information, please visit the Company Web site: www.alliedresearch.com
Certain statements contained herein are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.