ROCKY HILL, Conn., April 22, 2009 (GLOBE 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 28, 2009.
During the first quarter of 2009, Axsys generated sales of $66.6 million, compared to $56.4 million in the first quarter of 2008. Net income was $7.0 million or $0.61 per diluted share, up from $5.1 million or $0.45 per diluted share in the first quarter of 2008.
First Quarter Financial Highlights
Period comparisons vs. the first quarter of 2008.
* Sales increased 18% to $66.6 million; * Gross margin was 33.1% compared to 34.0%; * Operating margin improved to 16.4% from 14.2%; * Net income increased 37% to $7.0 million; * Backlog increased 3% year over year to $162.1 million.
Broad-based demand within both business segments drove sales growth in the first quarter of 2009. Gross margin was impacted by the increased overhead associated with the new Nashua facility and start up costs associated with a large infrared lens order. Improved leverage on the company's operating expenses resulted in higher operating margins in both business segments.
Segment Sales
(Millions)
Three Months Ended:
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Mar 28, 2009 Mar 29, 2008
------------ ------------
Surveillance Systems Group $ 20.9 $ 17.9
Imaging Systems Group 45.7 38.5
The Surveillance Systems Group's sales increased by 17% compared to the same period of the prior year due to continued demand for a variety of camera systems, with the strongest demand in the areas of land-based perimeter security and airborne surveillance. The Imaging Systems Group's sales grew 19% year over year driven mainly by an increasing demand for infrared lenses and military-grade motion control products.
"Our quarterly financial results continue to demonstrate the strength of our business and the growing demand for leading-edge intelligence, surveillance, reconnaissance and targeting (ISRT) technologies," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "The recently proposed defense budget, as outlined by Secretary of Defense Robert Gates, confirms our view that these technologies will play an increasingly prominent role in the years to come. The company's strong market position, backlog and first quarter performance give us confidence that we will achieve our financial projections for 2009."
Conference Call
Management will conduct a conference call to review the Company's financial results on Thursday, April 23, 2009 at 10:00 a.m. Eastern Time. Shareholders, institutional investors and equity research analysts are invited to participate in the call by dialing 1-866-770-7125 and providing the operator with the conference ID# 10969089 to enter the call. Callers are advised to dial into the call at least ten minutes prior to the call to register.
The conference call will be webcast live via the Investors 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 including, without limitation, as a result of the current economic downturn; 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; 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 28, 2009 March 29, 2008
-------------- --------------
Sales $ 66,585 $ 56,430
Cost of sales 44,557 37,223
-------------- --------------
Gross profit 22,028 19,207
Selling, general and administrative
expenses 8,406 9,257
Research, development and engineering
expenses 2,721 1,957
-------------- --------------
Operating income 10,901 7,993
Interest expense (14) (13)
Interest income 52 120
Other (expense) income, net (16) 36
-------------- --------------
Income before income taxes 10,923 8,136
Provision for income taxes 3,925 3,028
-------------- --------------
Net income $ 6,998 $ 5,108
-------------- --------------
BASIC EARNINGS PER SHARE:
Total $ 0.62 $ 0.47
Weighted average basic common shares
outstanding 11,308,619 10,896,424
DILUTED EARNINGS PER SHARE:
Total $ 0.61 $ 0.45
Weighted average diluted common
shares outstanding 11,511,779 11,451,052
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Dollars in thousands)
March 28, 2009 December 31,
(Unaudited) 2008
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 26,119 $ 24,693
Accounts receivable, net 34,361 27,131
Inventories, net 63,321 63,432
Income taxes - deferred 4,622 5,172
Prepaid expenses and other current
assets 2,500 1,945
-------------- --------------
TOTAL CURRENT ASSETS 130,923 122,373
PROPERTY AND EQUIPMENT, net 25,596 25,507
INTANGIBLE ASSETS, net 10,908 11,188
GOODWILL 86,422 86,422
OTHER ASSETS 1,509 1,544
-------------- --------------
TOTAL ASSETS $ 255,358 $ 247,034
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 17,116 $ 17,718
Accrued expenses and other current
liabilities 17,938 16,806
Deferred income 9,333 10,045
-------------- --------------
TOTAL CURRENT LIABILITIES 44,387 44,569
OTHER LONG-TERM LIABILITIES 11,517 11,134
STOCKHOLDERS' EQUITY: 199,454 191,331
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 255,358 $ 247,034
============== ==============