Revenues and operating income rebounded from the second quarter, but
remain down from 3Q2006
Gross profit rate improved to over 32% of revenues, up three
percentage points from 3Q2006 and up seven percentage points from
2Q2007
The initial phase of the consolidation plan was completed via the
closure of the Wichita facility
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
October 27, 2006, with the U.S. Securities and Exchange Commission.
SUMMARY FINANCIAL RESULTS
Third Quarter
Nine Months
FY 2007
FY 2006
Change
FY 2007
FY 2006
Change
Revenues
$7,917,000
$8,957,000
($1,040,000)
$23,993,000
$27,009,000
($3,016,000)
Operating income
532,000
626,000
(94,000)
1,074,000
2,174,000
(1,100,000)
Operating margin
6.7%
7.0%
(0.3%)
4.5%
8.1%
(3.6%)
Net income
$270,000
$490,000
($220,000)
$776,000
$1,421,000
($645,000)
Earnings per share
Basic and diluted
$0.08
$0.12
($0.04)
$0.21
$0.36
($0.15)
Operating cash flow
($112,000)
$540,000
($652,000)
$732,000
$2,786,000
($2,054,000)
For its fiscal quarter ended October 27, 2006, the Company reported
revenues of approximately $7.9 million, down 12% as compared to revenues
of approximately $9.0 million for the fiscal quarter ended October 28,
2005. This decrease compared to last year was primarily attributed to
reduced spare parts revenue as well as reduced revenue recognition on
the nearly complete F-35 (Joint Strike Fighter) development contract.
The Company reported net
income for the quarter ended October 27, 2006 of approximately $270,000,
or $0.08 per share, versus net income of $490,000, or $0.12 per share
for the quarter ended October 28, 2005. This decrease was the result of
lower revenue, but the revenue shortfall was nearly offset by
improvements in gross profit rates as well as lower administrative costs
associated with the use of outside professionals during the period.
Income tax expense was higher due to a reduction in the estimate of
extraterritorial income tax credits in the current year.
For the nine months ended October 27, 2006, the Company reported
revenues of approximately $24.0 million, down 11% when compared to
revenues of approximately $27.0 million for the nine months ended
October 28, 2005. This decrease was primarily attributed to continued
weak spare parts sales as well as reduced revenue recognition on the
F-35 as the development program nears completion.
Net income for the nine months ended October 27, 2006 was approximately
$776,000, or $0.21 per share, down from $1,421,000, or $0.36 per share
for the nine months ended October 28, 2005. This decrease was driven by
a reduction in gross profit due to lower revenue as well as higher
income tax expense due to a reduction in the estimate of
extraterritorial income tax credits in the current year.
“We
have made progress toward reducing our operating costs, improving our
margins and positioning our Company for future growth,”
stated David Baldini, Aerosonic’s Chairman,
President and Chief Executive Officer. “We
completed the initial phase of our consolidation strategy by closing our
Wichita, Kansas location and moving its operations to Clearwater,
Florida. Consistent with the plan to further develop the capabilities of
our business, we will continue the execution of this strategy in a
phased approach to ensure that our cost structure is appropriate for our
business while preserving capacity for future growth.”
Aerosonic Corporation, headquartered in Clearwater, Florida, is
principally engaged in the manufacture of aviation products. Locations
of the Company include Clearwater, Florida and Earlysville, Virginia.
For additional information, visit the Company’s
website at 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.
