EX-99.1 2 a05-17551_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contacts:

 

Frederick M. Green,
President and Chief Executive Officer
Phone: (763) 592-1900

William J. Birmingham
Interim Chief Financial Officer
Phone: (763) 592-1900

 

Ault Incorporated Reports First Quarter Fiscal Year 2006 Results

 

Conference Call Set for Tuesday, October 11 at 8:00 a.m. CT

 

MINNEAPOLIS —October 10, 2005 — Ault, Incorporated (Nasdaq NMS: AULTE) reported results for its first quarter fiscal 2006 ended August 28, 2005.  For the fiscal quarter, net sales were $9.2 million, down 11 percent from $10.3 million reported for the first quarter of fiscal 2005.  Company officials noted two reasons for the decline: 1) shifts in strategic market focus for China that decreased sales by $550,000; and 2) orders scheduled for shipment at year-end of fiscal 2004 that shipped in the first quarter of fiscal year 2005 amounting to $588,000.

 

For the first quarter of fiscal 2006, the Company recorded a net loss applicable to common stockholders of $(458,000) or $(0.09) per diluted share, compared to a net loss applicable to common stockholders of $(119,000), or $(0.02) per diluted share for the same period last fiscal year.

 

Professional services and a severance payment totaled $446,000 for the quarter ended August 28, 2005, an increase of $327,000 over the comparable quarter of the prior year.

 

Frederick M. Green, Ault president and chief executive officer, commented, “We continue to make significant progress toward our goal of achieving profitability in fiscal 2006 and remain optimistic about sales increases through the end of the year. The expected increases in sales are driven primarily by two existing customers that have new product launches planned during our second quarter.”

 

For more information on this announcement, please join the Ault first quarter 2006 conference call on Tuesday, October 11, 2005 at 8:00 a.m. Central Daylight Time.  To join the conference call, please call 1-800-638-5439 and enter the pass code 11632370.  Please call five to ten minutes before the designated start time.  The live webcast of the call may be accessed online on StreetEvents at www.streetevents.com or on Ault’s web site at www.aultinc.com.  The call will be archived at StreetEvents and Ault’s web site for 90 days.  You may also listen to an encore recording of the conference call from 11:00 a.m. Central Daylight Time Tuesday, October 11 through Tuesday, October 18, 2005 by dialing 1-888-286-8010 and then the pass code, 42107555.

 

Ault is a leading manufacturer of power conversion products headquartered in North America.  The Company is a major supplier to original equipment manufacturers of wireless and wireline communications infrastructure, computer peripherals and handheld devices, medical equipment, industrial equipment and printing/scanning equipment.

 

Statements regarding Ault’s anticipated future performance are forward-looking and therefore involve risks and uncertainties that could cause results or developments to differ significantly from those indicated in the forward-looking statements.  These include, but are not limited to: market conditions in the global electronics industry, buying patterns of major customers, competitive products and technologies, the ability to control expense growth, and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

 

- Financials Follow -

 


 

AULT INCORPORATED & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Share and Amounts Per Share)

 

 

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

August 28,
2005

 

August 29,
2004

 

 

 

 

 

 

 

Net Sales

 

$

9,198

 

$

10,336

 

 

 

 

 

 

 

Cost of Goods Sold

 

6,593

 

7,575

 

Gross Profit

 

2,605

 

2,761

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Marketing

 

798

 

784

 

Design Engineering

 

697

 

721

 

General & Administrative

 

1,571

 

1,299

 

 

 

3,066

 

2,804

 

 

 

 

 

 

 

Operating Loss

 

(461

)

(43

)

 

 

 

 

 

 

Non Operating Income (Expense):

 

 

 

 

 

Interest Expense

 

(49

)

(88

)

Other

 

90

 

13

 

 

 

41

 

(75

)

 

 

 

 

 

 

Loss Before Income Taxes

 

(420

)

(118

)

 

 

 

 

 

 

Income Tax Expense

 

2

 

1

 

 

 

 

 

 

 

Loss From Continuing Operations

 

(422

)

(119

)

 

 

 

 

 

 

Discontinued Operations

 

—

 

36

 

 

 

 

 

 

 

Net Loss

 

(422

)

(83

)

 

 

 

 

 

 

Redeemable Convertible Preferred Stock Dividends

 

(36

)

(36

)

 

 

 

 

 

 

Net Loss Applicable to Common Stockholders

 

$

(458

)

$

(119

)

 

 

 

 

 

 

Net Basic and Diluted Loss Per Common Share:

 

 

 

 

 

Continuing Operations

 

$

(0.09

)

$

(0.03

)

Discontinued Operations

 

—

 

0.01

 

Loss Per Common Share

 

$

(0.09

)

$

(0.02

)

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

4,831,546

 

4,787,937

 

Diluted

 

4,831,546

 

4,787,937

 

 


 

AULT INCORPORATED & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)

 

 

 

(Unaudited)

 

 

 

August 28,
2005

 

May 29,
2005

 

Assets:

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and Cash Equivalents

 

$

2,918

 

$

2,191

 

Trade Receivables, Less Allowance for Doubtful Accounts of $786 at August 28, 2005; $781 at May 29, 2005

 

6,197

 

5,766

 

Inventories

 

3,283

 

3,377

 

Note Receivable JEC – Current Portion

 

1,125

 

563

 

Prepaid and Other Expenses

 

796

 

741

 

Total Current Assets

 

14,319

 

12,638

 

 

 

 

 

 

 

Note Receivable JEC – Non-current portion

 

1,125

 

1,687

 

 

 

 

 

 

 

Property Equipment and Leasehold Improvements:

 

 

 

 

 

Building and Leasehold Improvements

 

764

 

764

 

Machinery and Equipment

 

5,302

 

5,314

 

Office Furniture

 

378

 

344

 

Data Processing Equipment

 

1,669

 

1,630

 

 

 

8,113

 

8,052

 

 

 

 

 

 

 

Less Accumulated Depreciation

 

5,718

 

5,677

 

 

 

 

 

 

 

 

 

2,395

 

2,375

 

 

 

 

 

 

 

Other Assets

 

92

 

106

 

 

 

 

 

 

 

Total Assets

 

$

17,931

 

$

16,806

 

 


 

 

 

(Unaudited)

 

 

 

August 28,
2005

 

May 29,
2005

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Current Maturities of Long-Term Debt

 

$

296

 

$

290

 

Accounts Payable

 

6,495

 

4,892

 

Accrued Compensation

 

934

 

978

 

Accrued Commissions

 

239

 

272

 

Other

 

370

 

350

 

Total Current Liabilities

 

8,334

 

6,782

 

 

 

 

 

 

 

Redeemable Convertible Preferred Stock, No Par Value, 2,074 Shares Issued and Outstanding; Liquidation Preference of $1,000 Per Share

 

2,074

 

2,074

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Preferred Stock, No Par Value, Authorized, 1,000,000 Shares;

 

 

 

 

 

Common Shares, No Par Value, Authorized 10,000,000 Shares; Issued and Outstanding 4,861,192 on August 28, 2005; and 4,806,116 on May 29, 2005;

 

21,520

 

21,390

 

Notes Receivable arising from the sale of common stock

 

(43

)

(44

)

Accumulated Other Comprehensive Income (Loss)

 

(45

)

55

 

Accumulated Deficit

 

(13,909

)

(13,451

)

 

 

7,523

 

7,950

 

 

 

 

 

 

 

 

 

$

17,931

 

$

16,806

 

 

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