EX-99.1 2 pressrelease.htm PRESS RELEASE FOURTH QTR AND FY EARNINGS pressrelease.htm
Exhibit 99.1

 
For:  TECHNOLOGY RESEARCH CORPORATION
Contact: Thomas G. Archbold
5250 140th Avenue North
Chief Financial Officer
Clearwater, Florida   33760
Tel: (727) 812-0659
Owen Farren, President and CEO
Fax: (727) 535-9691
Web Page: www.trci.net
  


TECHNOLOGY RESEARCH CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR FINANCIAL RESULTS


CLEARWATER, FLORIDA, June 11, 2009 -- Technology Research Corporation (“TRC”), (NASDAQ-TRCI), today announced revenue and earnings for its fourth fiscal quarter and fiscal year ended March 31, 2009.

Revenue was $8.0 million for the fiscal quarter ended March 31, 2009, a decrease of $1.0 million from revenue of $9.0 million for the fiscal quarter ended March 31, 2008.  Net income for the fourth fiscal quarter ended March 31, 2009 was $0.4 million or $.07 per diluted common share compared with net loss of ($0.9) million or ($.15) per diluted common share for the fiscal quarter ended March 31, 2008.

Orders for the fourth fiscal quarter were $14.8 million, an increase of $4.2 million from the same fiscal quarter last year.  Military orders were $12.1 million, an increase of $7.6 million from the fourth fiscal quarter of the previous year and commercial orders were $2.7 million, a decrease of $3.4 million from the fourth quarter of the prior year.

Revenue was $33.7 million for the fiscal year ended March 31, 2009, a decrease of $3.5 million from revenue of $37.2 million for the fiscal year ended March 31, 2008.  Net income for the fiscal year ended March 31, 2009 was $1.6 million or $.28 per diluted common share compared with net income of $0.4 million or $0.06 per diluted common share for the fiscal year ended March 31, 2008.

Orders for the fiscal year were $40.8 million, an increase of $3.4 million from the prior fiscal year.  Military orders were $23.6 million, an increase of $10.0 million from the previous year and commercial orders were $17.2 million, a decrease of $6.7 million from the prior year.

Net cash and cash equivalents and short-term investments were approximately $6.0 million at March 31, 2009, an increase of approximately $2.3 million from March 31, 2008.

Owen Farren, President & CEO said, “Fiscal 09 was a transformational year for TRC.  We made great progress in streamlining our operations to lower our cost of operations and put in place systems that will support our internal growth and acquisition plans.  In October 2008, we received approval from the U.S. Government for a manufacturing license agreement with our subsidiary in Honduras in accordance with International Traffic in Army Regulations (ITAR).  We have already begun to transition work to our facility in Honduras which will primarily be completed in our second fiscal quarter of FY2010 and should have the effect of reducing our cost of sales.  Additionally, our Clearwater facility was certified under ISO 9000:2008.  We have further developed our engineering capabilities and are working on advanced designs with complex firmware and electronics as well as electrical and electromechanical capabilities.  These advanced engineering capabilities have enabled us to expand our design and low cost partnerships with key customers.”

The fourth quarter dividend of $.02 per share was paid on April 15, 2009 to shareholders of record as of March 31, 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.

“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
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
               
 
Three Months Ended
  
Year Ended
 
March 31,
  
March 31,
  
March 31,
  
March 31,
 
2009
  
2008
  
2009
  
2008
Revenue:
              
Commercial
                               3,562
  
5,930
  
18,582
  
22,680
Military
4,215
  
2,942
  
14,674
  
14,152
    Royalties
207
  
132
  
477
  
328
Total Revenue
7,984
  
9,004
  
33,733
  
37,160
               
Cost of sales
5,126
  
8,071
  
22,266
  
27,900
Gross profit
2,858
  
933
  
11,467
  
9,260
               
Operating expenses:
              
Selling and marketing
687
  
689
  
2,899
  
2,756
General and administrative
954
  
1,214
  
4,627
  
4,463
Research and development
665
  
474
  
2,381
  
1,904
Total Operating Expenses
2,306
  
2,377
  
9,907
  
9,123
               
Income (loss) from operations
552
  
(1,444)
  
1,560
  
137
               
Other income (expense)
              
       Other income, net
45
  
34
  
590
  
182
       Interest expense
-
  
-
  
(10)
  
(75)
Other income (expense), net
45
  
34
  
580
  
107
               
Income before income taxes
597
  
(1,410)
  
2,140
  
244
Income tax expense (benefit)
208
  
(526)
  
500
  
(112)
Net income (loss)
                                  389
  
(884)
  
1,640
  
356
               
Earnings per common share:
              
Basic
                                 0.07
  
(0.15)
  
0.28
  
0.06
Diluted
                                 0.07
  
(0.15)
  
0.28
  
0.06
               
Weighted average number of common shares outstanding:
              
Basic
5,890,828
  
5,889,828
  
5,890,828
  
5,889,136
Diluted
5,899,814
  
5,915,319
  
5,897,237
  
5,958,336
               
Dividend Paid
                                 0.02
  
0.02
  
0.08
  
0.08





 
 
 
 
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands)
       
       
ASSETS
March 31,
  
March 31,
 
2009
  
2008
Current assets:
      
Cash and cash equivalents
                                     2,954
  
2,132
Short-term investments
3,996
  
1,495
Accounts receivable, net
5,372
  
6,573
Other receivables
                                              -
  
869
Income taxes receivable
631
  
197
Inventories
8,013
  
7,788
Deferred income taxes
622
  
1,446
Prepaid expenses and other current assets
265
  
258
Total current assets
21,853
  
20,758
       
Property, plant and equipment, net
3,189
  
3,684
Intangible assets (net)
404
  
463
Other assets
33
  
45
Total Assets
                                   25,479
  
24,950
       
LIABILITIES AND STOCKHOLDERS' EQUITY
      
       
Current liabilities:
      
Trade accounts payable
                                     1,309
  
3,111
Unsettled treasury obligation
998
  
-
Accrued expenses
1,422
  
1,781
Accrued dividends
121
  
132
Total current liabilities
3,850
  
5,024
Income taxes payable
111
  
 -
Deferred income taxes
37
  
37
Total liabilities
3,998
  
5,061
       
Stockholders' equity:
      
Common stock
3,015
  
3,015
Additional paid-in capital
9,982
  
9,568
Retained earnings
8,524
  
7,346
Common stock held in treasury
(40)
  
(40)
Total stockholders' equity
21,481
  
19,889
Total liabilities and stockholders’ equity
                                   25,479
  
24,950