CLEARWATER, Fla., Feb. 4, 2010 (GLOBE NEWSWIRE) -- Technology Research Corporation ("TRC"), (Nasdaq:TRCI), today announced revenue and earnings for its third fiscal quarter ended December 31, 2009.
Revenue was $7.6 million for the fiscal quarter ended December 31, 2009, a decrease of $0.2 million from revenue of $7.8 million for the fiscal quarter ended December 31, 2008. Net income for the third fiscal quarter ended December 31, 2009 was $0.5 million or $.08 per diluted common share compared with net income of $0.3 million or $0.04 per diluted common share for the fiscal quarter ended December 31, 2008.
Orders for the third fiscal quarter were $5.8 million, a decrease of $4.8 million from the same fiscal quarter last year. Military orders were $1.5 million, a decrease of $5.3 million from the third fiscal quarter of the previous year and commercial orders were $4.3 million, an increase of $0.5 million from the third quarter of the prior year.
Net cash and cash equivalents and short-term investments were approximately $12.1 million at December 31, 2009, an increase of approximately $6.2 million from March 31, 2009.
Owen Farren, President & CEO said, "Our third fiscal quarter reflected a $0.5 million improvement in operating margin resulting from an increase in gross margin, which increased as a percentage of revenue to 36.3% in the quarter ended December 31, 2009 from 32.6% in the comparable quarter in the prior year as well as a $0.3 million reduction in operating expenses. The increased gross margin reflects both a favorable product mix and cost reductions, particularly in overhead."
The first quarter dividend of $.02 per share was paid on January 15, 2010 to shareholders of record as of December 31, 2009.
TRC is an internationally recognized leader in electrical safety products that prevent electrocution and electrical fires and protect against serious injury from electrical shock. Based on its core technology in ground fault sensing, products are designed to meet the needs of the consumer, commercial and industrial markets worldwide. The Company also supplies power monitors and control equipment to the United States Military and its prime contractors.
The Technology Research Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6266
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Some of the statements in this report constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These statements are related to future events, other future financial performance or business strategies, and may be identified by terminology such as "may," "will," "should," "expects," "scheduled," "plans," "intends," "anticipates," "believes," "estimates," "potential," or "continue," or the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events as well as results may differ materially. In evaluating these statements, you should specifically consider the factors described throughout this report. We cannot be assured that future results, levels of activity, performance or goals will be achieved.
| TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (In thousands, except share and per share data) | ||||
| (Unaudited) | ||||
|
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||
| 2009 | 2008 | 2009 | 2008 | |
| Revenue: | ||||
| Commercial | $3,525 | 3,932 | 10,569 | 15,021 |
| Military | 3,978 | 3,774 | 16,087 | 10,459 |
| Royalty | 85 | 115 | 258 | 269 |
| Total revenue | 7,588 | 7,821 | 26,914 | 25,749 |
| Cost of sales | 4,832 | 5,270 | 16,202 | 17,140 |
| Gross profit | 2,756 | 2,551 | 10,712 | 8,609 |
| Operating expenses: | ||||
| Selling and marketing | 582 | 701 | 1,862 | 2,212 |
| General and administrative | 919 | 1,103 | 2,917 | 3,673 |
| Research and development | 565 | 586 | 1,896 | 1,716 |
| Total operating expenses | 2,066 | 2,390 | 6,675 | 7,601 |
| Income from operations | 690 | 161 | 4,037 | 1,008 |
| Other income (expense): | ||||
| Other income, net | -- | 165 | 5 | 545 |
| Interest expense | -- | (6) | -- | (10) |
| Other income,net | -- | 159 | 5 | 535 |
| Income before income taxes | 690 | 320 | 4,042 | 1,543 |
| Income tax expense | 208 | 65 | 1,128 | 292 |
| Net income | $482 | 255 | 2,914 | 1,251 |
| Earnings per share - basic | $0.08 | 0.04 | 0.49 | 0.21 |
| Earnings per share - diluted | $0.08 | 0.04 | 0.48 | 0.21 |
| Shares outstanding - basic | 5,896,728 | 5,890,828 | 5,892,903 | 5,890,828 |
| Shares outstanding - diluted | 6,022,855 | 5,897,310 | 5,975,212 | 5,902,647 |
| TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
| (Unaudited) | ||
| ASSETS | December 31, 2009 | March 31, 2009 |
| Current assets: | ||
| Cash and cash equivalents | $11,117 | 2,954 |
| Short-term investments | 1,000 | 3,996 |
|
Trade and other accounts receivable, net of allowance for doubtful accounts of $135 at December 31, 2009 and $203 at March 31, 2009 |
4,725 | 5,372 |
| Income taxes receivable | 597 | 631 |
| Inventories, net | 6,243 | 8,013 |
| Deferred income taxes | 692 | 622 |
| Prepaid expenses and other current assets | 295 | 265 |
| Total current assets | 24,669 | 21,853 |
| Property, plant and equipment, net of accumulated depreciation of $10,314 and $9,852, respectively | 2,695 | 3,189 |
| Intangible asset, net of accumulated amortization of $222 and $178, respectively | 360 | 404 |
| Deferred income taxes | 94 | -- |
| Other assets | 33 | 33 |
| Total assets | $27,851 | 25,479 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Trade accounts payable | $1,383 | 1,309 |
| Unsettled treasury obligation | -- | 998 |
| Accrued expenses | 1,503 | 1,422 |
| Accrued dividends | 121 | 121 |
| Total current liabilities | 3,007 | 3,850 |
| Income taxes payable | 418 | 111 |
| Deferred income taxes | -- | 37 |
| Total liabilities | 3,425 | 3,998 |
| Stockholders' equity: | ||
|
Common stock $0.51 par value; 10,000,000 shares authorized, 5,945,787 shares issued and 5,920,002 shares outstanding and 5,912,328 shares issued and 5,890,828 outstanding, respectively |
3,030 | 3,015 |
| Additional paid-in capital | 10,375 | 9,982 |
| Retained earnings | 11,077 | 8,524 |
| Common stock held in treasury, 25,785 and 21,500 shares, respectively, at cost | (56) | (40) |
| Total stockholders' equity | 24,426 | 21,481 |
| Total liabilities and stockholders' equity | $27,851 | 25,479 |