EMS Technologies Announces Higher First Quarter Earnings

Revenues Up 13 Percent, Operating Income Increased 18 Percent From Q1 2007


ATLANTA, April 30, 2008 (PRIME NEWSWIRE) -- EMS Technologies, Inc. (Nasdaq:ELMG) today reported first quarter 2008 earnings from continuing operations of $4.2 million, or $.26 per share, on revenues of $75.5 million. In the comparable quarter of 2007, the Company reported earnings from continuing operations of $2.9 million, or $.19 per share, on revenues of $66.6 million. The 2008 earnings included a net benefit of $.03 per share for an increase in U.S. research and development tax credits available to the Company. First quarter operating income increased 18 percent in 2008 compared with 2007, excluding the 2008 SG&A expenses related to the preparation of the R&D tax credit claim.

Paul Domorski, president and chief executive officer, commented, "We were pleased with the financial results for the first quarter. Excluding the additional R&D tax credits and related expenses, the Company earned $.23 per share from continuing operations, 21 percent higher than we earned during the first quarter of the prior year."

He continued, "The satellite communications business had another quarter of excellent results -- 27 percent higher revenue and 20 percent higher operating income compared with the same period last year. Defense and space revenues rose 13 percent, while the backlog grew to another record high -- $74 million. The mobile logistics business recorded revenues comparable with those of last year's first quarter."

Customers Upgrade to SwiftBroadband, More Direct Sales for Aeronautical Products

Continued strong aeronautical demand for high-speed data terminals fueled the growth in satellite communications revenues. EMS upgraded its full line of aeronautical products to enable communications using SwiftBroadband, Inmarsat's newest broadband service. SwiftBroadband upgrades were not limited to commercial customers, but included a major military application in the first quarter.

Sales of CNX(r) Cabin Gateway networking products, which work with the new Wi-Fi-enabled BlackBerry(r), jumped 36 percent in Q1 2008, compared with the prior-year first quarter. Higher gross margins in Q1 2008 reflected more direct sales of high-speed data terminals to commercial and military customers. Sales to the air transport market were also up significantly compared with Q1 2007.

New SATCOM product initiatives also moved forward in the quarter, including significant work on development of the core module that will form the basis of Inmarsat's global satellite/GSM phone.

Defense and Space's New B-2 Contract Contributes to Record Backlog, Expansion Plans

Backlog for the defense and space business increased 13 percent since the beginning of the year. A key contributor was a new Northrop Grumman B-2 antenna contract valued at approximately $13 million. The antenna system for the B-2's new extremely high frequency (EHF) satellite communications system will enable the B-2 to send and receive battlefield information at substantially faster speeds than its current satellite communications system supports.

Additional backlog growth came from a combination of multi-million dollar orders. These contracts represent continued expansion in three defense and space markets: communications-on-the-move, sensors and countermeasures, and national security space. EMS believes that demand for its capabilities is strong in these areas, and this well-rounded portfolio provides several avenues to support future growth.

"EMS is ramping up technical staffing and expanding facilities -- including engineering, design and test, and production areas -- to keep pace with the continuing growth in the defense and space business. EMS believes these enhanced capabilities will directly benefit our performance for the remainder of 2008," Domorski said.

LXE Revenues Up, Americas Showing Early Signs of Recovery

LXE revenues during Q1 2007 increased 5 percent compared with Q1 of last year. Channel sales in the Americas increased by almost 25 percent over Q1 of 2007. The Company believes that a factor limiting overall revenue growth was recent uncertainty in financial and currency markets, which may have influenced customer decisions on potential Q1 orders.

New account wins in the quarter included Nordic Cold Storage, The Washington Post, McCoy's Building Supply and CEVA Logistics. LXE introduced a new ergonomic handheld computer specifically designed for extreme low-temperature environments. The product is strategic because more than 20 percent of U.S. warehousing space is refrigerated, freezer or climate-controlled storage.

The acquisition of Akerstroms Trux AB, the Nordics market leader in vehicle-mount computing (VMC) solutions, was completed mid-quarter, and integration is progressing well. The Company expects benefits and synergies from the acquisition to be realized during 2008. The Trux business significantly strengthens LXE's VMC offerings and adds strong customers and distribution partners in the Nordics, continental Europe, and the United States.

First Quarter Summary

Domorski concluded, "The Company's first quarter was led by exceptional revenues from satellite communications, where demand for aeronautical products remains strong. Revenues through SATCOM distribution partners are up, and customers appear eager to upgrade to SwiftBroadband service-enabled products. We believe the market and business trends are favorable, with the European Union opening the way for air travelers to use mobile phones on planes throughout Europe's airspace.

"We expect the defense and space business, with its healthy backlog, strong orders and expansion plans, to be a major contributor to EMS's performance for the remainder of 2008. In the LXE mobile logistics business, we continue to enhance the product line, expand the customer base and increase our market presence, and these are encouraging signs for the remainder of 2008. Expected earnings from continuing operations for the 2008 fiscal year remain in the range of $1.30 to $1.40 per share."

About EMS Technologies, Inc.

EMS Technologies, Inc. (Nasdaq:ELMG) is a leading innovator in the design, manufacture, and marketing of wireless communications technologies addressing the enterprise mobility, communications-on-the-move and in-flight connectivity markets for both the commercial and government industries. EMS focuses on the needs of the mobile information user and the increasing demand for wireless broadband communications. EMS products and services enable communications across a variety of coverage areas, ranging from global, to regional, to within a single facility. EMS has three operating segments:



 * LXE is a leading provider of rugged computers and wireless data
   networks used for logistics applications such as distribution
   centers, warehouses and container ports. LXE automatic
   identification and data capture products serve mobile information
   users at over 7,500 sites worldwide;

 * Defense & Space Systems supplies highly-engineered subsystems for
   defense electronics and sophisticated satellite applications --
   from military communications, radar, surveillance and
   countermeasure to commercial high-definition television, satellite
   radio, and live TV for today's most innovative airlines; and

 * SATCOM supplies a broad array of terminals and antennas that enable
   end-users in aircraft and other mobile platforms, such as military
   command vehicles or over-the-road trucks, to communicate over
   satellite networks at a variety of data speeds.

For more information, visit EMS at www.ems-t.com.

There will be a conference call at 9:30 AM Eastern time on Wednesday, April 30, 2008 in which the Company's management will discuss the financial results for the first quarter of 2008. If you would like to participate in this conference, please call 866.682.6100 (international callers call 201.499.0416) approximately 10 minutes before the call is scheduled to begin. A taped replay of the conference call will also be available through Wednesday, May 7, 2008 by dialing 888-346-3949 and entering codes: 0069873#, 4, 20080221175399#. (international callers use 404-260-5385 and enter same codes).

Statements contained in this press release regarding the Company's expectations for its financial results for 2008, and concerning the potential for various businesses and products, are forward-looking statements. Actual results could differ from those statements as a result of a wide variety of factors. Such factors include, but are not limited to...



 * economic conditions in the U.S. and abroad and their effect on
   capital spending in the Company's principal markets;

 * difficulty predicting the timing of receipt of major customer
   orders, and the effect of customer timing decisions on our
   quarterly results;

 * successful completion of technological development programs by the
   Company and the effects of technology that may be developed by, and
   patent rights that may be held or obtained by, competitors;

 * U.S. defense budget pressures on near-term spending priorities;

 * uncertainties inherent in the process of converting contract awards
   into firm contractual orders in the future;

 * volatility of foreign exchange rates relative to the U.S. dollar
   and their effect on purchasing power by international customers,
   and the cost structure of the Company's non-U.S. operations, as
   well as the potential for realizing foreign exchange gains and
   losses associated with non-U.S. assets or liabilities held by the
   Company;

 * successful resolution of technical problems, proposed scope
   changes, or proposed funding changes that may be encountered on
   contracts;

 * changes in the Company's consolidated effective income tax rate
   caused by the extent to which actual taxable earnings in the U.S.,
   Canada and other taxing jurisdictions may vary from expected
   taxable earnings;

 * successful transition of products from development stages to an
   efficient manufacturing environment;

 * changes in the rates at which our products are returned for repair
   or replacement under warranty;

 * customer response to new products and services, and general
   conditions in our target markets (such as logistics and space-based
   communications), and whether these responses and conditions develop
   according to our expectations;

 * the success of certain of our customers in marketing our line of
   high-speed commercial airline communications products as a
   complementary offering with their own lines of avionics products;

 * the availability of financing for satellite data communications
   systems;

 * development of successful working relationships with local business
   and government personnel in connection with distribution and
   manufacture of products in foreign countries;

 * the demand growth for various mobile and high-speed data
   communications services;

 * the Company's ability to attract and retain qualified senior
   management and other personnel, particularly those with key
   technical skills;

 * the ability to negotiate successfully with potential acquisition
   candidates, finance acquisitions, or effectively integrate the
   acquired businesses, products or technologies into our existing
   businesses and products, and the risk that any acquired businesses,
   products or technologies do not perform as expected, are subject to
   undisclosed or unanticipated liabilities, or are otherwise dilutive
   to our earnings;

 * the potential effects, on cash and results of discontinued
   operations, of final resolution of potential liabilities under
   warranties and representations made by the Company, and obligations
   assumed by purchasers, in connection with the Company's
   dispositions of discontinued operations;

 * the availability, capabilities and performance of suppliers of
   basic materials, electronic components and sophisticated subsystems
   on which the Company must rely in order to perform according to
   contract requirements, or to introduce new products on the desired
   schedule; and

 * uncertainties associated with U.S. export controls and the export
   license process, which restrict the Company's ability to hold
   technical discussions with customers, suppliers and internal
   engineering resources and can reduce the Company's ability to
   obtain sales from foreign customers or to perform contracts with
   the desired level of efficiency or profitability.

Further information concerning relevant factors and risks are identified under the caption "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2007.



                       EMS Technologies, Inc.
                Consolidated Statements of Operations
                (In millions, except per-share data)
                              Unaudited

                                                        Quarters Ended
                                                       ---------------
                                                       Mar 29   Mar 31
                                                        2008     2007
                                                       -------  -------
 Net sales                                            $  75.5     66.6 
 Cost of sales                                           46.8     41.6
 Selling, general and administrative expenses            20.3     17.6
 Research and development expenses                        5.0      4.3
                                                       -------  -------
   Operating income                                       3.4      3.1
 Interest income and other                                1.0      1.4
 Interest expense                                        (0.4)    (0.4)
 Foreign exchange gain (loss)                             0.1     (0.2)
                                                       -------  -------
   Earnings before income taxes                           4.1      3.9
 Income tax expense (benefit)                            (0.1)     1.0
                                                       -------  -------
   Earnings from continuing operations                    4.2      2.9
 Loss from discontinued operations                         --     (0.5)
                                                       -------  -------
   Net earnings                                       $   4.2      2.4
                                                       =======  =======

 Net earnings (loss) per share:
   Basic - from continuing operations                 $  0.27     0.19
   Basic - from discontinued operations                    --    (0.03)
                                                       -------  -------
     Basic earnings per share                         $  0.27     0.16
                                                       =======  =======
   Diluted - from continuing operations               $  0.26     0.19
   Diluted - from discontinued operations                  --    (0.03)
                                                       -------  -------
     Diluted earnings per share                       $  0.26     0.16
                                                       =======  =======

 Weighted average number of shares:
   Basic                                                 15.5     15.3
   Diluted                                               15.8     15.4


                       EMS Technologies, Inc.
                     Consolidated Balance Sheets
                            (In millions)
                              Unaudited

                                                        Mar 29  Dec 31
                                                         2008    2007
                                                        ------  ------
 Cash and cash equivalents                             $ 123.5   134.0
 Receivables billed, net                                  63.1    61.1
 Unbilled receivables under long-term contracts           29.7    24.0
                                                        ------  ------
   Trade accounts receivable, net                         92.8    85.1
                                                        ------  ------
 Inventories                                              31.6    28.9
 Other current assets                                      9.3     9.1
                                                        ------  ------
   Current assets                                        257.2   257.1
                                                        ------  ------
 Net property, plant and equipment                        39.8    39.9
 Goodwill                                                 21.5    10.0
 Other assets                                             19.3    16.8
                                                        ------  ------
                                                       $ 337.8   323.8
                                                        ======  ======

 Bank debt and current installments of long-term debt  $   3.2     3.2
 Accounts payable                                         26.5    22.4
 Other current liabilities                                34.2    33.0
                                                        ------  ------
   Current liabilities                                    63.9    58.6
 Long-term debt, less current installments                10.2    10.5
 Other liabilities                                        11.1     7.6
 Shareholders' equity                                    252.6   247.1
                                                        ------  ------
                                                       $ 337.8   323.8
                                                        ======  ======


                       EMS Technologies, Inc.
                            Segment Data
                            (In millions)
                              Unaudited

                                                        Quarters Ended
                                                       ---------------
                                                        Mar 29  Mar 31
                                                         2008    2007
                                                        ------  ------
 Net sales
 LXE                                                   $ 34.2    32.6
 Defense & Space Systems                                 15.5    13.7
 SATCOM                                                  25.8    20.3
                                                        ------  ------
   Total                                               $ 75.5    66.6
                                                        ======  ======

 Operating income
 LXE                                                   $  0.5     0.9
 Defense & Space Systems                                  0.5     1.0
 SATCOM                                                   3.1     2.5
 Corporate and Other                                     (0.7)   (1.3)
                                                        ------  ------
   Total                                               $  3.4     3.1
                                                        ======  ======

 Earnings from continuing operations
 LXE                                                   $  0.3     0.5
 Defense & Space Systems                                  0.3     0.6
 SATCOM                                                   3.4     2.5
 Corporate and Other                                      0.2    (0.7)
                                                        ------  ------
   Total                                               $  4.2     2.9
                                                        ======  ======


                       EMS Technologies, Inc.
          Reconciliation of Non-GAAP Financial Information
                For the Quarter Ended March 29, 2008
                (in millions, except per share data)

 This press release contains information regarding our operating
 income, earnings from continuing operations, and diluted earnings per
 share, excluding R&D-related income tax credits and the operating
 expenses related to the preparation of the R&D tax credit claim in the
 quarter ended March 29, 2008. This measure is not prescribed by U.S.
 generally accepted accounting principles ("GAAP"). Management believes
 this non-GAAP measure provides more useful information to investors
 than the most comparable GAAP measure, because the non-GAAP measure
 more clearly reflects the performance of our businesses' operating
 activities. Further, this non-GAAP measure is consistent with the
 manner in which management evaluated the financial performance of
 those businesses. However, this information should not be considered
 in isolation or in lieu of the Company's operating and other financial
 information determined in accordance with GAAP. Following is a
 reconciliation of our operating income, earnings from continuing
 operations and diluted earnings per share to the non-GAAP financial
 measure that excludes R&D-related income tax benefits and the
 operating expenses related to the preparation of the R&D tax credit
 claim for the period.


                                                    Earnings
                                                      from
                                        Operating  Continuing  Diluted
                                          Income   Operations    EPS
                                        ---------  ----------  -------

 As reported                             $   3.4       4.2       0.26

 Professional fees to assist in 
  analysis of research and development 
  expenditures                               0.2       0.2       0.01
  
 Increase in estimate of U.S. income tax 
  credits for research and development        --      (0.7)     (0.04)
                                        ---------  ----------  -------
As adjusted                              $   3.6       3.7       0.23
                                        =========  ==========  =======


            

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