ROCKY HILL, Conn., April 23, 2008 (PRIME NEWSWIRE) -- Axsys Technologies, Inc. (Nasdaq:AXYS), a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, today announced financial results for the first quarter ended March 29, 2008.
During the first quarter, Axsys generated revenues of $56.4 million, compared to $35.5 million in the first quarter of 2007. Net income was $5.1 million or $0.45 per diluted share, up from $3.0 million or $0.27 per diluted share in the first quarter of 2007. The results for the first quarter of 2007 include net income of $249 thousand or $0.02 per diluted share from the discontinued AST Bearings business, which was sold in November 2007.
First Quarter Financial Highlights from Continuing Operations
Period comparisons vs. the first quarter of 2007.
* Sales increased 59% to a record $56.4 million; * Gross margin improved to 34.0% from 31.1%; * Operating margin improved to 14.2% from 13.0%; * Income increased 87% to $5.1 million; * Diluted earnings per share increased to $0.45 from $0.25; * Backlog increased to a record $158 million, representing a 13% increase compared to the end of the fourth quarter of 2007.
Compared to the same period in the prior year, the increase in sales was due to both strong organic growth across the company and the acquisition of the gyrostabilized gimbal business in April 2007. Margins were favorably impacted by the faster growth rate in the higher margin Surveillance Systems Group. Backlog growth was mainly attributable to the large infrared lens orders that we received for the Common Remotely Operated Weapon Station (CROWS) and Thermal Weapons Sight (TWS) programs.
Segment Sales
(Millions) Three Months Ended:
-------------------
Mar 29, Mar 31,
2008 2007
-------------------
Surveillance Systems Group $ 17.9 $ 9.2
Imaging Systems Group 38.5 26.3
Compared to the first quarter of 2007, the Surveillance Systems Group's sales grew 95%. Cineflex generated $4.3 million of sales in the first quarter of 2007 and, consequently, pro forma sales growth, including the first quarter 2007 results for Cineflex, was 32%.
The Imaging Systems Group's sales grew 46% year over year. All business areas within the Imaging Systems segment grew during the quarter, with the infrared lens business performing particularly well.
"Both of our business segments achieved impressive results in the first quarter," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "The Surveillance Systems Group met our high expectations, while increased throughput at our Imaging Systems Group produced better than expected results. The strong performance by both reporting segments has led the management team to increase its financial guidance for fiscal 2008."
Fiscal 2008 Earnings Guidance Increase
Axsys is increasing its full-year 2008 guidance as follows:
* Sales are expected to be in the range of $224 million to $228 million, up from the $208 million to $212 million range previously provided. * Diluted earnings per share are expected to be in the range of $1.88 to $1.92, up from the previous guidance of $1.70 to $1.75.
"Our excellent first quarter results combined with a record backlog provide additional evidence of our enviable market position," continued Mr. Bershad. "To support continued growth, we plan to expand the manufacturing footprint of our infrared camera and lens businesses by leasing a new facility in the southern New Hampshire area. We expect this new facility to be operational during the second half of the year. With this additional capacity, we believe that we will be well-positioned for growth in the coming years."
Conference Call
Management will conduct a conference call to review the Company's financial results on Thursday, April 24, 2008 at 10:00 a.m. Eastern Time. Shareholders, institutional investors and equity research analysts are invited to participate in the call by dialing 1-888-713-4209 and providing the operator with the conference ID# 70467556 to enter the call.
The conference call will be webcast live via the Investor Relations section of the Company's web site at www.axsys.com. A replay of the webcast will be available shortly after the conclusion of the call for a period of approximately 90 days.
About Axsys
Axsys Technologies, Inc. is a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, serving the aerospace, defense, and high-performance commercial markets. For more information, visit www.axsys.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including without limitation: changes in the U.S. federal government spending priorities; the Company's ability to compete in the industries in which it operates, including the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers; the potential for the Company's backlog to be reduced or cancelled; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully, including the recent acquisition of Cineflex; the Company's ability to manage costs under the Company's fixed-price contracts effectively; and changes in general economic and business conditions. These statements reflect the Company's current beliefs and are based upon information currently available to the Company. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time, and we specifically disclaim any obligation to update these statements.
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Dollars in thousands, except share and
per share data - Unaudited)
For the Three Months Ended
--------------------------------
March 29, 2008 March 31, 2007
-------------- --------------
Sales $ 56,430 $ 35,539
Cost of sales 37,223 24,496
------------ ------------
Gross profit 19,207 11,043
Selling, general and
administrative expenses 9,257 5,341
Research, development and
engineering expenses 1,957 1,083
------------ ------------
Operating income 7,993 4,619
Interest expense (13) (9)
Interest income 120 63
Other income (expense), net 36 (263)
------------ ------------
Income from continuing operations
before income taxes 8,136 4,410
Provision for income taxes 3,028 1,676
------------ ------------
Income from continuing operations 5,108 2,734
Income from discontinued operations,
net of income taxes -- 249
------------ ------------
Net income $ 5,108 $ 2,983
============ ============
BASIC EARNINGS PER SHARE:
Continuing operations $ 0.47 $ 0.26
Discontinued operations -- 0.02
------------ ------------
Total $ 0.47 $ 0.28
============ ============
Weighted average basic common
shares outstanding 10,896,424 10,657,209
DILUTED EARNINGS PER SHARE:
Continuing operations $ 0.45 $ 0.25
Discontinued operations -- 0.02
------------ ------------
Total $ 0.45 $ 0.27
============ ============
Weighted average diluted common
shares outstanding 11,451,052 10,945,641
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Dollars in thousands)
March 29, 2008 December 31,
(Unaudited) 2007
------------ -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 12,053 $ 15,304
Accounts receivable - net 23,919 14,140
Inventories - net 54,498 52,362
Income taxes - deferred 4,804 3,923
Prepaid expenses 1,315 1,047
Other current assets 404 491
--------- ---------
TOTAL CURRENT ASSETS 96,993 87,267
PROPERTY, PLANT AND EQUIPMENT - net 18,486 17,876
INTANGIBLE ASSETS - net 12,028 12,286
GOODWILL 85,620 85,620
OTHER ASSETS 1,556 1,634
--------- ---------
TOTAL ASSETS $ 214,683 $ 204,683
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 13,074 $ 9,325
Accrued expenses and other
current liabilities 22,846 21,650
Deferred income 10,284 12,742
--------- ---------
TOTAL CURRENT LIABILITIES 46,204 43,717
OTHER LONG-TERM LIABILITIES 9,198 8,836
SHAREHOLDERS' EQUITY:
Common stock
110 108
Capital in excess of par 106,920 104,674
Accumulated other comprehensive
income (271) (81)
Retained earnings 52,924 47,816
Treasury stock
(402) (387)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 159,281 152,130
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 214,683 $ 204,683
========= =========
AXSYS TECHNOLOGIES, INC.
Reconciliation of Pro Forma Sales Growth *
(Dollars in thousands - Unaudited)
For the Three Months Ended
-------------------------------
March 29, March 31, Growth
Surveillance Systems Segment 2008 2007 Rate
-------- -------- ------
Surveillance Systems Sales
- As Reported $ 17,872 $ 9,189 94%
Gyrostabilized Gimbal Sales -- 4,332 --
-------- -------- ------
Surveillance Systems Sales
- Pro Forma $ 17,872 $ 13,521 32%
======== ======== ======
For the Three Months Ended
-------------------------------
March 29, March 31, Growth
Axsys Technologies Consolidated 2008 2007 Rate
-------- -------- ------
Axsys Technologies Sales
- As Reported $ 56,430 $ 35,539 59%
Gyrostabilized Gimbal Sales -- 4,332 --
-------- -------- ------
Axsys Technologies Sales
- Pro Forma $ 56,430 $ 39,871 42%
======== ======== ======
* Sales presented on a pro forma basis to include pre-acquisition
sales of Cineflex is a non-GAAP financial measure. Axsys presents
pro forma sales because it believes that this information is a
useful tool for investors to understand Axsys' post-acquisition
sales growth.