ROCKY HILL, Conn., Oct. 24, 2007 (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 quarter ended September 29, 2007.
During the third quarter, Axsys generated revenues of $45.2 million, compared to $33.6 million in the third quarter of 2006. Net income was $4.1 million or $0.37 per diluted share on a consolidated basis, up from $2.7 million or $0.25 per diluted share in the third quarter of 2006.
Previously, the company announced its intention to sell the Distributed Products Group, and consequently this business has been reclassified as a discontinued operation in the third quarter and prior periods. The discontinued operations contributed income of $0.4 million, or $0.03 diluted earnings per share in the third quarter, compared to $0.2 million, or $0.02 per share in the third quarter of 2006.
Third Quarter Financial Highlights from Continuing Operations
Period comparisons reference fiscal third quarter 2006.
* Sales increased 34% to a record $45.2 million; * Gross margin improved to 32.4% from 31.5%; * Operating margin improved to 13.5% from 11.7%; * Income increased 52% to $3.8 million; * Diluted earnings per share increased to $0.34 from $0.23; * Backlog increased to a record $138 million, representing a 38% increase compared to the end of the third quarter of 2006, and a 9% increase over the previous quarter.
The company continued to experience strong demand for surveillance cameras, lenses, and stabilized gimbal systems. Cineflex Camera Systems, purchased in April 2007, generated revenues of $6.5 million during the third quarter.
"Axsys' impressive growth is an indication of our company's increasingly enviable market position," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "The sales from our newly acquired stabilized camera systems business exceeded expectations, and the rest of our Optical Systems Group achieved 15% revenue growth during the quarter. Importantly, our order backlog also continued a strong upward trend with the addition of $57 million in new bookings during the quarter. With this added visibility, we are comfortable increasing our 2007 financial guidance."
Fiscal 2007 Earnings Guidance Revision
Axsys increased its full-year 2007 guidance for continuing operations as follows:
* Sales are expected to be in the range of $168 million to $171 million, up from the $159 million to $163 million range previously provided. * Income is expected to be in the range of $13.7 million to $13.9 million, up from the previous guidance of $12.5 million to $12.8 million. * Diluted earnings per share are expected to be in the range of $1.24 to $1.26, up from the previous guidance of $1.13 to $1.16.
Mr. Bershad continued, "We are witnessing an increased demand for our products that we believe will be sustained in the coming year. Our escalating booking and shipment rates, clear indicators of this trend, instill optimism about 2008."
Fiscal 2008 Earnings Guidance
The company announced guidance for continuing operations for full-year 2008:
* Sales are expected to be in the range of $193 million to $197 million. * Diluted earnings per share are expected to be between $1.57 and $1.60.
Conference Call
Management will conduct a conference call reviewing the financial results on Thursday, October 25, 2007 at 11:00 a.m. Eastern Time. Shareholders, institutional investors and equity research analysts are invited to participate in the call by dialing 1-866-872-5036 and providing the operator with the conference ID# 19290080 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 on file 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 successfully complete the planned sale of the Distributed Products business; 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 For the Nine Months Ended
-------------------------- --------------------------
September 29, September 30, September 29, September 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Sales $ 45,218 $ 33,640 $ 123,712 $ 96,170
Cost of sales 30,560 23,054 83,910 65,534
------------ ------------ ------------ ------------
Gross profit 14,658 10,586 39,802 30,636
Selling,
general and
administrative
expenses 7,131 5,399 18,720 16,266
Research,
development
and
engineering
expenses 1,436 1,261 4,383 3,380
------------ ------------ ------------ ------------
Operating
income 6,091 3,926 16,699 10,990
Interest
expense (191) (10) (463) (72)
Interest
income 55 70 174 221
Other income
(expense), net 17 (7) (235) 25
------------ ------------ ------------ ------------
5,972 3,979 16,175 11,164
Income from
continuing
operations
before income
taxes
Provision for
income taxes 2,216 1,510 6,135 4,235
------------ ------------ ------------ ------------
Income from
continuing
operations 3,756 2,469 10,040 6,929
Income from
discontinued
operations,
net of tax 383 225 929 768
------------ ------------ ------------ ------------
Net income $ 4,139 $ 2,694 $ 10,969 $ 7,697
============ ============ ============ ============
BASIC EARNINGS
PER SHARE:
Continuing
operations $ 0.35 $ 0.23 $ 0.94 $ 0.65
Discontinued
operations 0.04 0.02 0.09 0.07
------------ ------------ ------------ ------------
Total $ 0.39 $ 0.25 $ 1.03 $ 0.72
============ ============ ============ ============
Weighted-
average basic
common shares
outstanding 10,722,393 10,630,136 10,688,869 10,625,153
DILUTED
EARNINGS
PER SHARE:
Continuing
operations $ 0.34 $ 0.23 $ 0.91 $ 0.64
Discontinued
operations 0.03 0.02 0.08 0.07
------------ ------------ ------------ ------------
Total $ 0.37 $ 0.25 $ 0.99 $ 0.71
============ ============ ============ ============
Weighted-
average
diluted
common
shares
outstanding 11,140,374 10,883,385 11,031,234 10,877,734
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Dollars in thousands)
September 29, December 31,
2007 2006
(Unaudited) (Audited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,176 $ 6,044
Accounts receivable - net 20,270 17,298
Inventories - net 48,718 35,853
Assets held-for-sale 14,416 15,764
Income taxes - deferred 3,556 2,405
Prepaid expenses 941 829
Other current assets 379 368
------------ ------------
TOTAL CURRENT ASSETS 93,456 78,561
PROPERTY, PLANT AND EQUIPMENT - net 16,230 22,393
INTANGIBLE ASSETS - net 12,588 9,507
GOODWILL 82,649 60,791
OTHER ASSETS 1,574 1,093
------------ ------------
TOTAL ASSETS $ 206,497 $ 172,345
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $ 10,000 $ --
Accounts payable 11,307 7,550
Accrued expenses and other current
liabilities 20,978 18,218
Liabilities held-for-sale 2,648 3,430
Deferred income 10,064 6,088
------------ ------------
TOTAL CURRENT LIABILITIES 54,997 35,286
OTHER LONG-TERM LIABILITIES 8,243 5,871
SHAREHOLDERS' EQUITY:
Common stock 107 106
Capital in excess of par 101,143 99,111
Retained earnings 42,007 31,977
Treasury stock -- (6)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 143,257 131,188
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 206,497 $ 172,345
============ ============