CLEARWATER, Fla., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Technology Research Corporation ("TRC"), (Nasdaq:TRCI), today announced revenue and earnings for its second fiscal quarter ended September 30, 2009.
Revenue was $9.6 million for the fiscal quarter ended September 30, 2009, an increase of $0.3 million from revenue of $9.3 million for the fiscal quarter ended September 30, 2008. Net income for the second fiscal quarter ended September 30, 2009 was $1.2 million or $.20 per diluted common share compared with net income of $0.9 million or $0.16 per diluted common share for the fiscal quarter ended September 30, 2008.
Orders for the second fiscal quarter were $5.1 million, a decrease of $3.4 million from the same fiscal quarter last year. Military orders were $1.2 million, a decrease of $2.4 million from the second fiscal quarter of the previous year and commercial orders were $3.9 million, a decrease of $1.0 million from the second quarter of the prior year.
Net cash and cash equivalents and short-term investments were approximately $11.1 million at September 30, 2009, an increase of approximately $5.1 million from March 31, 2009. Inventories decreased approximately $1.7 million from $8.0 million at March 31, 2009 to $6.3 million at September 30, 2009.
Owen Farren, President & CEO said, "Our second fiscal quarter was strong primarily due to the timing of delivery requirements of our military business being heavily weighted to the first half of our fiscal year. This resulted in increased gross margin due to sales mix as well as improved overhead absorption related to the increased production volume.
"We anticipate that our military revenue will return to prior year levels in the second half of FY10. While we expect our operating results for the second half of FY10 will be profitable, we continue to be impacted on the commercial side by weakness in our traditional markets."
The first quarter dividend of $.02 per share was paid on October 15, 2009 to shareholders of record as of September 30, 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 Six Months Ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Commercial $ 3,679 5,526 7,044 11,088
Military 5,901 3,697 12,109 6,685
Royalty 47 74 173 155
---------- ---------- ---------- ----------
Total revenue 9,627 9,297 19,326 17,928
Cost of sales 5,721 5,773 11,370 11,870
---------- ---------- ---------- ----------
Gross profit 3,906 3,524 7,956 6,058
---------- ---------- ---------- ----------
Operating expenses:
Selling and marketing 608 824 1,280 1,511
General and
administrative 994 1,323 1,998 2,570
Research and
development 658 593 1,331 1,130
---------- ---------- ---------- ----------
Total operating
expenses 2,260 2,740 4,609 5,211
---------- ---------- ---------- ----------
Income from
operations 1,646 784 3,347 847
---------- ---------- ---------- ----------
Other income
(expense):
Other income, net 2 362 5 380
Interest expense -- (4) -- (4)
---------- ---------- ---------- ----------
Other income, net 2 358 5 376
---------- ---------- ---------- ----------
Income before income
taxes 1,648 1,142 3,352 1,223
Income tax expense 431 204 920 227
---------- ---------- ---------- ----------
Net income $ 1,217 938 2,432 996
========== ========== ========== ==========
Earnings per share -
basic $ 0.20 0.16 0.41 0.17
Earnings per share -
diluted $ 0.20 0.16 0.40 0.17
Shares outstanding -
basic 5,891,828 5,890,828 5,891,828 5,890,828
Shares outstanding -
diluted 5,985,691 5,899,593 5,944,280 5,901,197
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Sept. 30, March 31,
ASSETS 2009 2009
-------- --------
Current assets:
Cash and cash equivalents $ 7,068 2,954
Short-term investments 4,000 3,996
Trade and other accounts receivable, net of
allowance for doubtful accounts of $135 at
September 30, 2009 and $203 at March 31, 2009 5,421 5,372
Income taxes receivable 261 631
Inventories, net 6,306 8,013
Deferred income taxes 753 622
Prepaid expenses and other current assets 180 265
-------- --------
Total current assets 23,989 21,853
Property, plant and equipment, net of accumulated
depreciation of $10,105 and $9,852, respectively 2,736 3,189
Intangible asset, net of accumulated amortization
of $208 and $178, respectively 375 404
Deferred income taxes 100 --
Other assets 33 33
-------- --------
Total assets $ 27,233 25,479
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 1,351 1,309
Unsettled treasury obligation -- 998
Accrued expenses 1,507 1,422
Accrued dividends 121 121
-------- --------
Total current liabilities 2,979 3,850
Income taxes payable 330 111
Deferred income taxes -- 37
-------- --------
Total liabilities 3,309 3,998
Stockholders' equity:
Common stock $0.51 par value; 10,000,000 shares
authorized, 5,913,328 shares and 5,912,328
issued and 5,891,828 shares and 5,890,828
outstanding, respectively 3,016 3,015
Additional paid-in capital 10,233 9,982
Retained earnings 10,715 8,524
Common stock held in treasury, 21,500 shares at
cost (40) (40)
-------- --------
Total stockholders' equity 23,924 21,481
-------- --------
Total liabilities and stockholders' equity $ 27,233 25,479
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