Message #3 From:
NewsBot Date: September 11, 2006 01:10:00 PM
AIM News Aerosonic Announces Results for the Second Quarter of Fiscal Year 2007
CLEARWATER, Fla.--(BUSINESS WIRE)--Sept. 11, 2006--Aerosonic Corporation (AMEX:AIM), a leading supplier of precision flight products for commercial, business and military aircraft, announced that today it filed its quarterly report on Form 10-Q for the quarter ended July 28, 2006, with the U.S. Securities and Exchange Commission.
For its fiscal quarter ended July 28, 2006, the Company reported revenues of approximately $7.6 million, down 15% as compared to revenues of approximately $9.0 million for the fiscal quarter ended July 29, 2005. This decrease was primarily attributed to a lower factory production of core products as well as reduced revenue recognition on the nearly complete F-35 (Joint Strike Fighter) development contract.
The Company reported a net loss for the quarter ended July 28, 2006 of $77,000, or $0.02 per share, versus net income of $482,000, or $0.12 per share for the quarter ended July 29, 2005. This decrease was the result of lower revenue that was partially offset by lower administrative costs associated with the use of outside professionals during the period. In addition, income tax expense was reduced due to lower earnings as well as a lower estimated effective income tax rate for the period.
For the six months ended July 28, 2006, the Company reported revenues of approximately $16.1 million, down 11% when compared to revenues of approximately $18.1 million for the six months ended July 29, 2005. This decrease was primarily attributed to lower factory production as well as reduced revenue recognition on the F-35 as the development program nears completion.
Net income for the six months ended July 28, 2006 was approximately $506,000, or $0.14 per share, down from $931,000, or $0.24 per share for the quarter ended July 29, 2005. This decrease was driven by a reduction in gross profit due to lower revenue that was partially offset by a reduction in income tax expense.
"While we do not expect this year to exhibit the same revenue growth as we experienced last year, we remain excited about the future of Aerosonic," stated David Baldini, Aerosonic's Chairman, President and Chief Executive Officer. "The reduction in revenue reflects a delay in the anticipated renewal or expansion of existing defense contracts as well as our strategy to refine our product offering by discontinuing the production of low margin products. Our goals are to perform at or above industry standards and exceed shareholder expectations by redirecting the efforts of the Company from the products that sustained us in the past to those product lines that will carry the Company into the future. As part of our strategy to achieve these goals, we will be executing a consolidation strategy that will result in a more efficient overhead structure and allow us to take advantage of near and long term opportunities that are essential to our growth."
Aerosonic Corporation, headquartered in Clearwater, Florida, is principally engaged in the manufacture of aviation products. Locations of the Company include Clearwater, Florida, Earlysville, Virginia and Wichita, Kansas. For additional information, visit the Company's website at http://www.aerosonic.com.
This document contains statements that constitute "forward-looking" statements within the meaning of the Securities Act of 1933 and the Securities Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. "Forward-looking" statements contained in this document include the intent, belief or current expectations of the Company and its senior management team with respect to future actions by officers and directors of the Company, prospects of the Company's operations, profits from future operations, overall future business prospects and long term stockholder value, as well as the assumptions upon which such statements are based.
Investors are cautioned that any such forward-looking statements are not guarantees of future performance, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements in this document include, but are not limited to, adverse developments involving operations of the Company's business units, failure to meet operating objectives or to execute the business plan, and the failure to reach revenue or profit projections. The Company undertakes no obligation to update or revise the forward-looking statements contained in this document to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results over time.
