EX-99.1 2 ex-99_1.htm PRESS RELEASE DATED SEPTEMBER 17, 2009, ANNOUNCING FIRST QUARTER 2010 FINANCIAL RESULTS EX-99.1 Press release dated September 17, 2009, announcing first quarter 2010 financial results EX-99.1 Press release dated September 17, 2009, announcing first quarter 2010 financial results

EXHIBIT 99.1

Press Release Dated September 17, 2009

 

PHAZAR CORP ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS

 

 

PHAZAR CORP, (Nasdaq: ANTP) announced today the unaudited results of operations for the quarter ended August 31, 2009. 

 

First Quarter Fiscal Year 2010

 

The Company recognized a net loss of $107,948 or $.05 per share for the first quarter, compared to net income of $93,792 or $.04 per share, in last year’s fiscal first quarter.

 

Revenues are down $112,860 or 5.6% from $2,009,712 for the first quarter in fiscal year 2009 to $1,896,852 for the same quarter in fiscal year 2010. 

 

On a positive note, gross profit margins increased by 6%, from 38% for the three month period ended August 31, 2008 up to 44% for the three month period ended August 31, 2009.  The increase in gross profit margins is attributable to lower raw material costs and an improved product mix.  Taking advantage of the lower raw material costs and recognizing the historically low interest rates earned on idle cash balances, we modestly increased finished goods inventory as well.

 

Sales and administrative expenses are up $295,040, or 38% which included a $217,000 increase in research and development costs quarter over quarter associated with further development of our mesh radio wireless networking product line.  Other income is down $73,112, or 59% as the Company no longer has tax-exempt investments in auction-rate securities with high yields.

 

Commenting on the quarter, Garland P. Asher, Chairman and CEO, said “Given the long lead times in production of much of our product line, 90 to 120 days on average, the lower sales reported in the first quarter reflected the soft bookings we experienced in the February through May period. As bookings have shown modest improvement in the first quarter, revenues should also show similar improvement in the current quarter. Notwithstanding, we continue to aggressively monitor our controllable expenses and husband our cash.  Cash balances at quarter end were approximately $2.9 million despite the aforementioned increase in inventory.  Also, encouragingly, as discussed below, our backlog increased for the first time in three quarters.”

 

Backlog of Orders

 

The Company’s backlog of orders on August 31, 2009, totaled $2,135,560 compared to $1,970,266 at August 31, 2008, an increase of 8.4%.  Backlog at our May 31, 2009 year-end was $1,741,746.  Incoming orders for the three month period totaled $2,309,869 versus $1,492,888 for the comparable period last year.  The Company’s book to ship ratio was 121% for the three month period ended August 31, 2009 compared to 74% for the comparable three 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 first quarter ended August 31, 2009, estimated to be filed with the Securities and Exchange Commission on or around October 15, 2009. 

 

 

 

 

 

The Form 10-Q will also be available at the SEC’s website at www.sec.gov and PHAZAR CORP’S website at www.phazarcorp.com.

 

Product information is available at www.antennaproducts.com, www.truemeshnetworks.com and www.phazar.com.

 

For further information contact:

 

Kathy Kindle, Antenna Products Corporation

Tel: 940 325 3301  Fax: 940 325 0716

kindle@phazarcorp.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 STATEMENTS OF OPERATIONS

FOR THE PERIODS ENDED AUGUST 31, 2009 AND AUGUST, 2008

 

 

 

(Unaudited)

 

 

Three Months Ended

 

 

August  31, 2009

 

August 31, 2008

 

 

 

 

 

Sales and contract revenues

$                    1,896,852

 

$                    2,009,712

Cost of sales and contracts

1,055,118

 

1,253,734

    Gross profit

 

841,734

 

755,978

    Gross profit margin %

44%

 

38%

  

 

 

 

Sales and administration expenses

1,071,180

 

776,140

    Operating loss

 

(229,446)

 

(20,162)

 

 

 

 

Other income

 

 

 

     Interest income

35,718

 

89,408

     Other income

14,771

 

34,193

Total other income

50,489

 

123,601

 

 

 

 

 

Income (loss) from operations before income taxes

(178,957)

 

103,439

 

 

 

 

 

Income tax provision (benefit)

(71,009)

 

9,647

 

 

 

 

 

Net income (loss)

$                    (107,948)

 

$                         93,792

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

$                          (0.05)

 

$                             0.04

 

 

 

 

 

Diluted earnings (loss) per common share

 

$                          (0.05)

 

$                             0.04

 

 

 

 

 

 

 

 

 

 

Basic weighted average of common shares outstanding

 

2,297,334

 

2,360,706

Diluted weighted average of common shares outstanding

 

2,297,334

 

2,360,706

 

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AUGUST 31, 2009 AND MAY 31, 2009

 

 

 

 

 

 

 

August 31, 2009

 

May 31, 2009

 

 

(Unaudited)

 

(Audited)

CURRENT ASSETS

 

 

 

  Cash and cash equivalents

$              2,927,442

 

$            3,320,647

  Accounts receivable:

 

 

 

     Trade, net of allowance for doubtful accounts

 

 

 

        of $2,002 as of August 31, 2009 and May 31, 2009

566,399

 

663,499

 Inventories

 

2,715,209

 

2,531,816

 Prepaid expenses and other assets

170,130

 

76,261

 Income taxes receivable

404,559

 

343,145

 Deferred income taxes

74,853

 

74,853

 

 

 

 

 Total current assets

6,858,592

 

7,010,221

 

 

 

 

 Property and equipment, net

1,137,747

 

1,140,141

 

 

 

 

 

 Long –term deferred income tax

 

127,003

 

116,995

TOTAL ASSETS

$              8,123,342

 

$            8,267,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

 

 

 

  Accounts payable

$                 221,257

 

$               215,840

  Accrued expenses

438,383

 

486,666

  Deferred revenues

-

 

16,884

 

 

 

 

  Total current liabilities

659,640

 

719,390

 

 

 

 

 

 

 

 

    Total liabilities

659,640

 

719,390

 

 

 

 

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

 

 

 

    2,373,028 and 2,371,728 issued and outstanding

23,731

 

23,718

Additional paid in capital

4,008,453

 

3,974,476

Treasury stock, at cost, 74,691 and 71,341 shares in 2010 and 2009

(215,918)

 

(205,611)

Retained earnings

3,647,436

 

3,755,384

 

 

 

 

    Total shareholders’ equity

7,463,702

 

7,547,967

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$              8,123,342

 

$            8,267,357

PHAZAR CORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED AUGUST 31, 2009 AND AUGUST 31, 2008

 

 

 

(Unaudited)

 

Three Months Ended

 

August 31, 2009

 

August 31, 2008

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income (loss)

$            (107,948)

 

$              93,792

  Adjustments to reconcile net income (loss) to net cash

  used by operating activities:

 

 

 

      Depreciation

33,595

 

25,965

      Stock based compensation

33,990

 

139,060

      Tax benefit for employee stock options

 

 

-

      Deferred federal income tax

(10,008)

 

(37,489)

  Changes in operating assets and liabilities:

 

 

 

      Accounts receivable

97,100

 

(97,106)

      Inventory

(183,393)

 

(241,861)

      Income taxes receivable

(61,414)

 

47,135

      Prepaid expenses

(93,869)

 

(28,813)

      Accounts payable

5,417

 

(24,947)

      Accrued expenses

(48,283)

 

(24,098)

      Deferred revenues

(16,884)

 

76,976

          Net cash used by operating activities

(351,697)

 

(71,380)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

   Purchase of property and equipment

(31,201)

 

-

   Purchase of treasury stock

(10,307)

 

-

          Net cash used in investing activities   

(41,508)

 

-

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVIITES:

 

 

                         

   Proceeds from exercise of stock options

-

 

-

   Federal income tax benefit-stock options expensed

-

 

-

          Net cash provided by financing activities    

-

 

-

 

 

 

 

Net decrease  in cash and cash equivalents

(393,205)

 

(71,380)

CASH AND CASH EQUIVALENTS, beginning of period

3,320,647

 

2,446,563

CASH AND CASH EQUIVALENTS, end of period

$           2,927,442

 

$         2,375,183