FOR IMMEDIATE RELEASE
Micronetics Reports FY2002 Sales and Earnings
For FY2002, the Company had net sales of $7,566,261, as compared to net sales of $7,793,306 for FY2001, a decrease of approximately 3%. For FY2002, the Company had income from operations of $593,785 as compared to $1,033,236 in Fiscal 2001. For FY2002, the Company had income before taxes and extraordinary item of $221,199, as compared to $1,087,105 in FY2001. The FY2002 period includes a one-time non-cash write-down of approximately $404,000 of goodwill. For FY2002, the Company had income before extraordinary item of $275,757 as compared to $873,232 for FY2001. For FY2002, the Company had income from extraordinary item of $59,005 from the sale of an old product line. For FY2002, the Company had net income of $334,762, or $.08 per share-basic and diluted, as compared to net income for the prior fiscal year of $873,232, or $.22 per share-basic and $.21 per share-diluted. The weighted average shares outstanding for FY2002 were 4,130,716-basic and 4,453,647-diluted, and for FY2001 were 4,025,701-basic and 4,216,739-diluted.
Richard Kalin, President & CEO, stated "These results reflect growth and increased efficiencies in our Defense Electronics Group, offset by modest declines in our Test Solutions and VCO Products Groups. The current results reflect a 90% decline in shipments to our largest customer in FY2001 due to market conditions (which was in the Test Solutions Group), which were largely able to be replaced. Our transition to increased production of integrated subassemblies in our Defense Electronics Group has been successful and it has allowed us to increase sales opportunities and improve our backlog over last year. The recent acquisition of Enon Microwave, Inc. also positions us well to develop increased defense and aerospace opportunities. In support of this, our backlog at March 31, 2002 was at a record level. We also were able to substantially increase our cash position even after purchasing Enon Microwave, Inc. just before year end."
Kalin continued, "Due to the fact that market conditions are not as they have been in recent years, we have determined that the remaining goodwill from some of our earlier acquisitions of companies or product lines or new product development initiatives, is impaired. As a result we wrote this goodwill down to zero, reducing earnings over $265,000. In addition, for similar reasons, we wrote down intangible assets of $139,000 to zero. Other than goodwill related to our recent acquisition of Enon Microwave, Inc., all goodwill and intangible assets have been written down to zero. In a similar manner, we established $242,000 of inventory reserves or allowances in FY2002 as compared to $105,000 or 42% of that amount last year. Total non-cash write-downs in FY2002 amounted to approximately $650,000."
"Due to the recent acquisition of Enon Microwave, Inc., current backlog and the initial reception of the introduction of our Wave3G multipath fading test equipment platform, we are optimistic our financial performance in Fiscal 2003 will reflect significant increases in revenues and profitability over FY2002."
Micronetics, operating through its Defense Electronics, Test Solutions and VCO Products Groups, manufactures and designs test equipment and components that test the strength, durability and integrity of communication signals in communications equipment. Micronetics also manufactures microwave and radio frequency (RF) components and integrated subassemblies used in a variety of defense, aerospace and commercial applications. Micronetics serves a diverse customer base, including Aerosat, Alcatel, BAE Systems, Boeing, EADS, Ericsson, Honeywell, L-3 Communications, Lockheed Martin, Motorola, NEC, Northrop Grumman, Raytheon, Southwest Research, Teradyne, Tektronix and Thales. Micronetics also operates through its wholly-owned subsidiaries, Microwave & Video Systems, Inc. and Enon Microwave, Inc.
Some of the statements contained in this news release are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, including but not limited to the success of the products into which the Company's products are integrated, internal projections as to the demand for certain types of equipment, competitive products and pricing, the success of new product development efforts, the timely release for production and the delivery of products under existing contracts, access to financial resources, future economic conditions generally, as well as other factors. The information in this release should be reviewed in conjunction with Micronetics' Annual Report for its fiscal year ended March 31, 2002.
INCOME STATEMENT DATA
($000s omitted except per share data)
Year Ended March 31,
2002 2001
Net sales $7,566 $7,793
Income from operations 594 1,033
Income before taxes and
extraordinary item 221 1,087
Income before extraordinary item 276 873
Extraordinary item 59 -
Net income 335 873
Income per share:
Before extraordinary item
Basic .07 .22
Diluted .07 .21
Extraordinary item
Basic .01 -
Diluted .01 -
Net income
Basic .08 .22
Diluted .08 .21
Wgt. avg. shares outstanding:
Basic 4,131 4,026
Diluted 4,454 4,217
BALANCE SHEET DATA
March 31,
2002 2001
Working capital $ 6,078 $4,931
Total assets 10,595 8,224
Non-current liabilities 1,625 760
Shareholders' equity 7,634 6,572
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