EX-99.1 2 ex-99_1.htm PRESS RELEASE DATED DECEMBER 17, 2008, ANNOUNCING SECOND QUARTER 2009 FINANCIAL RESULTS EX-99.1 Press release dated December 17, 2008, announcing second quarter 2009 financial results

EXHIBIT 99.1

Press Release Dated December 17, 2008

 

PHAZAR CORP ANNOUNCES SECOND QUARTER 2009 FINANCIAL RESULTS

 

 

PHAZAR CORP, (NASDAQ: ANTP) announced today the unaudited results of operations for the three and six-month periods ended November 30, 2008. 

 

Second Quarter Fiscal Year 2009

 

Revenues of $2.1 million for the second quarter increased 23% compared to $1.7 million for the same period last year.  The Company recognized a net loss of $ 153,703, or $ 0.07 per share for the second quarter, compared to net income of $114,224, or $0.05 per share, in last year's fiscal second quarter. 

 

The increase in revenues is attributable to $333,417 of additional shipments in the antenna product line for the three month period ended November 30, 2008. The net loss in the second quarter of fiscal year 2009 is attributed to lower gross profit margins and an increase in sales and administration expense.  The lower gross profit margins were due to higher raw material costs on firm fixed price contracts.  The increase in sales and administration expense reflects higher compensation costs associated with newly hired employees, incremental research and development costs during the quarter for continued development of our new mesh radio wireless networking product line and an increase in legal and professional fees primarily associated with the litigation against UBS Financial Services.

 

Six Month Period Ending November 30, 2008

 

The Company reported revenues for the six-month period of $4.1 million, an increase of 15% compared to $3.6 million for the comparable period last year.   Net loss for the six-month period was $ 58,911, or $ 0.03 per share compared to net income of $290,466, or $0.13 per share for the comparable period last year.

 

Backlog of Orders

 

The Company's backlog of orders on November 30, 2008, totaled approximately $2.1 million compared to $4.0 million at November 30, 2007, a decrease of 47.5%.  Backlog at our May 31, 2008 year-end and our first quarter of fiscal year 2009 was $2.5 million and $2.0 million, respectively.  Incoming orders for the six month period totaled $3.8 million versus $4.0 million for the comparable period last year.

 

The Company's book to ship ratio was 93% for the six month period ended November 30, 2008 compared to 114% for the comparable six month period last year. 

 

More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the second quarter ended November 30, 2008, estimated to be filed with the Securities and Exchange Commission on or around January 15, 2009. 

 

 

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”.  This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts.  Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements.  The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.

 



PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE PERIODS ENDED NOVEMBER 30, 2008 AND 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

November 30,

 

November 30,

 

 

 

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and contract revenues

 

$

2,126,167

 

1,727,541

$

4,136,879

 

3,589,117

Cost of sales and contracts

 

 

1,561,007

 

1,193,182

 

2,814,741

 

2,220,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

565,160

 

534,359

 

1,322,138

 

1,368,917

 

Gross Profit Margin

 

 

 

27%

 

31%

 

32%

 

38%

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and administration expenses

 

828,000

 

404,654

 

1,604,140

 

1,025,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit (loss)

 

 

(262,840)

 

129,705

 

(282,002)

 

343,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

30,140

 

11,075

 

119,544

 

22,839

 

Other income

 

 

 

2,637

 

22,461

 

36,834

 

54,357

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income

 

 

 

32,777

 

33,536

 

156,378

 

77,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations before income taxes

(230,063)

 

163,241

 

(125,624)

 

420,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

 

(76,360)

 

49,017

 

(66,713)

 

129,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

$

(153,703)

 

114,224

$

(58,911)

 

290,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

$

(0.07)

 

0.05

$

(0.03)

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share

$

(0.07)

 

0.05

$

(0.03)

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

2,367,311

 

2,352,128

 

2,364,009

 

2,326,442

 

Diluted

 

 

 

 

2,367,311

 

2,352,128

 

2,364,009

 

2,337,271



 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

NOVEMBER 30, 2008 AND MAY 31, 2008

 

ASSETS

 

 

November 30, 2008

 

May 31, 2008

 

 

(Unaudited)

 

(Audited)

CURRENT ASSETS

 

 

 

  Cash and cash equivalents

$           4,989,037

 

$            2,446,563

  Accounts receivable:

 

 

 

     Trade, net of allowance for doubtful accounts

 

 

 

        of $2,002 as of November 30, 2008 and May 31, 2008

732,072

 

987,258

   Inventories

 

                1,995,685

 

1,777,335

   Prepaid expenses and other assets

 53,898

 

47,761

   Income taxes receivable

122,462

 

169,597

   Deferred income taxes

138,100

 

67,697

   Total current assets

8,031,254

 

5,496,211

 

 

 

 

   Property and equipment, net

1,062,540

 

939,084

   Marketable securities

 

0

 

2,346,840

   Long –term deferred income tax

 

120,653

 

178,739

   TOTAL ASSETS

$           9,214,447

 

$            8,960,874

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

CURRENT LIABILITIES

 

 

 

  Accounts payable

$              319,053

 

$               298,192

  Accrued liabilities

586,270

 

462,679

  Deferred revenues

106,446

 

               315,654

  Total current liabilities

1,011,769

 

1,076,525

 

 

 

 

TOTAL LIABILITIES

1,011,769

 

1,076,525

 

 

 

 

COMMITMENTS AND CONTINGENCIES

-

 

-

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

Preferred Stock, $1 par, 2,000,000 shares authorized, none issued or outstanding, attributes to be determined when issued

-

 

-

Common stock, $0.01 par, 6,000,000 shares authorized

 

 

 

    2,368,428 and 2,357,728 issued and outstanding

23,685

 

23,578

Additional paid in capital

3,900,326

 

3,723,278

Retained earnings

4,278,667

 

4,337,579

Accumulated other comprehensive loss, net of tax

0

 

(200,086)

    Total shareholders’ equity

8,202,678

 

7,884,349

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$           9,214,447

 

$            8,960,874

 

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED NOVEMBER 30, 2008 AND 2007

 

 

 

(Unaudited)

 

Six Months Ended

 

November 30, 2008

 

 

  November 30, 2007                   

 

    

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income

$             (58,911)

 

$            290,466

  Adjustments to reconcile net income to net cash

  provided by operating activities:

 

 

 

      Depreciation

                 52,674

 

56,842

      Stock based compensation

177,158

 

75,399

      Tax benefit for employee stock options exercised

-

 

(74,106)

      Deferred federal income tax

(115,393)

 

(12,969)

  Changes in assets and liabilities:

 

 

 

      Accounts receivable

255,186

 

(478,662)

      Inventory

(218,350)

 

(827,009)

      Income taxes receivable

47,135

 

82,945

      Prepaid expenses

(6,137)

 

3,029

      Accounts payable

20,861

 

82,133

      Accrued expenses

123,591

 

63,980

      Deferred revenues

(209,208)

 

-

    NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

68,606

 

(737,952)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 Redemption of marketable securities

2,650,000

 

-

 Purchase of property and equipment

(176,132)

 

-

    NET CASH PROVIDED BY INVESTING ACTIVITIES

2,473,868

 

-

CASH FLOWS FROM FINANCING ACTIVITIES:

                                         

 

                         

   Proceeds from exercise of stock options

-

 

                  78,000

   FIT benefit-stock options exercised

-

 

74,106

     NET CASH PROVIDED BY FINANCING ACTIVITIES

-

 

152,106

 

 

 

 

Net change in cash and cash equivalents

2,542,474

 

(585.846)

Cash and cash equivalents, beginning of period

2,446,563

 

        4,114,046

Cash and cash equivalents, end of period

$         4,989,037

 

$             3,528,200