Science & Technology 
Science and Technology
Science and Technology 
Wed, April 1, 2009
Tue, March 31, 2009
Sutron Corporation: Sutron Reports Fourth Quarter Operating Results
STERLING, VA--(Marketwire - March 31, 2009) - Sutron Corporation (
Financial Highlights
The net loss for the fourth quarter ended December 31, 2008 was $168,373 or $.04 per share compared to net income of $415,221 or $.09 per share for the same quarter last year. Net income for the twelve months ended December 31, 2008 was $524,294 or $.12 per share compared to net income of $2,066,933 or $.46 per share for the twelve month period last year. Revenues for the fourth quarter ended December 31, 2008 were $3,701,490 compared to $4,896,265 in the fourth quarter of 2007. Revenues for the twelve months ended December 31, 2008 were $15,941,328 compared to $18,868,101 in the same twelve month period of 2007. The company's backlog as of December 31, 2008 was approximately $7,239,000.
"Our fourth quarter results were disappointing," said Raul McQuivey, CEO of Sutron. "We had expected to win several large projects in 2008 that would have benefited our operating results. We did win a contract with the National Weather Service for $765,000 in September 2008 but were not able to make any major deliveries before year end due to production scheduling. This project is expected to be shipped in the first and second quarters of 2009."
"Our 2008 fourth quarter operating results were impacted by operating losses of approximately $169,000 in our Hydrological Services Division and approximately $78,000 in our India operations. In India, we had fourth quarter foreign currency losses of approximately $35,000 as compared to foreign currency gains of approximately $20,000 in the fourth quarter of 2007. Foreign currency losses for the twelve months ended December 31, 2008 were approximately $180,000 as compared to a gain of approximately $179,000 in same period of 2007. We experienced increased general and administrative costs in the fourth quarter of 2008 as compared to the same period in 2007 due to legal fees relating to our Ilex Engineering acquisition, letter of credit fees relating to our contract with the Ministry of Energy and Water in Afghanistan and project management consulting fees relating to our new corporate building lease."
"We are pleased to report that we are in a strong financial position. We had cash on hand as of December 31, 2008 of approximately $4,490,000, including restricted cash. We had working capital as of December 31, 2008 of approximately $11,745,000. We do not have any long-term debt notes. We are also optimistic about our revenues and profitability in fiscal year 2009. We are aware of a significant international contract that is expected to be awarded to us within the next month. We are closely following the economic stimulus plan and believe that this will result in major customer orders in 2009 and 2010 from our federal and state customers."
About Sutron Corporation
Headquartered in Sterling, Virginia, Sutron designs, manufactures and sells hydrological, meteorological and oceanic monitoring products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities and hydropower companies. Sutron is a project driven business and the Company's quarterly results may fluctuate substantially based upon large contract awards that are difficult to project in terms of timing and may be delayed due to the differing time frames in securing government approvals.
Safe Harbor Statement
The statements in this press release that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "should" and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings with the SEC, including the disclosure under the heading "Business" and "Management's Discussion and Analysis" in the Company's Annual Report on Form 10-KSB filed on March 31, 2008. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Sutron Corporation Consolidated Balance Sheets December 31, 2008 and 2007 December 31, December 31, 2008 2007 ASSETS (Audited) (Audited) ------------ ------------ Current Assets: Cash and cash equivalents $ 3,705,475 $ 5,299,904 Restricted cash and cash equivalents 784,920 134,241 Accounts receivable, net 3,872,527 3,614,532 Inventory 4,053,788 4,114,014 Prepaid items and other assets 302,633 477,754 Income taxes receivable 983,875 - Deferred income taxes 308,000 312,000 ------------ ------------ Total Current Assets 14,011,218 13,952,445 ------------ ------------ Property and Equipment, Net 372,745 579,282 Other Assets Goodwill 570,150 - Other Assets 95,057 99,308 ------------ ------------ Total Assets $ 15,049,170 $ 14,631,035 ============ ============ LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 1,200,721 $ 823,114 Accrued payroll 129,142 285,829 Other accrued expenses 794,307 995,123 Notes payable - current 2,765 38,381 Billings in excess of costs and estimated earnings 139,117 246,448 ------------ ------------ Total Current Liabilities 2,266,052 2,388,895 ------------ ------------ Long-Term Liabilities Notes payable, net of current maturities - 2,075 Deferred income taxes 59,000 84,000 ------------ ------------ Total Long-term Liabilities 59,000 86,075 ------------ ------------ Total Liabilities 2,325,052 2,474,970 ------------ ------------ Stockholders’ Equity Common stock 45,707 45,257 Additional paid-in capital 2,778,775 2,694,416 Retained earnings 10,009,105 9,484,811 Accumulated other comprehensive loss (109,469) (68,419) ------------ ------------ Total Stockholders’ Equity 12,724,118 12,156,065 ------------ ------------ Total Liabilities and Stockholders’ Equity $ 15,049,170 $ 14,631,035 ============ ============ Sutron Corporation Consolidated Statements of Operations Three and Twelve Months Ended December 31, 2008 and 2007 Twelve Twelve Three Months Three Months Months Months Ended Ended Ended Ended December 31, December 31, December 31, December 31, ------------ ------------- ------------ ------------ 2008 2007 2008 2007 ------------ ------------- ------------ ------------ (Unaudited) (Unaudited) (Audited) (Audited) Revenues $ 3,701,490 $ 4,896,265 $ 15,941,328 $ 18,868,101 Costs of goods sold 2,700,775 3,123,666 10,566,685 11,219,321 ------------ ------------- ------------ ------------ Gross profit 1,000,715 1,772,599 5,374,643 7,648,780 ------------ ------------- ------------ ------------ Operating expenses: Selling, general and administrative expenses 1,013,541 888,507 3,511,079 3,312,088 Research and development expenses 320,285 352,503 1,228,661 1,293,207 ------------ ------------- ------------ ------------ Total operating expenses 1,333,826 1,241,010 4,739,740 4,605,295 ------------ ------------- ------------ ------------ Operating income (333,111) 531,589 634,903 3,043,485 Financing income, net 19,738 47,632 108,391 121,448 ------------ ------------- ------------ ------------ Income before income taxes (313,373) 579,221 743,294 3,164,933 Income tax expense (145,000) 164,000 (219,000) (1,098,000) ------------ ------------- ------------ ------------ Net income ($ 168,373) $ 415,221 $ 524,294 $ 2,066,933 ============ ============= ============ ============ Net income per share: Basic income per share $ (.04) $ .09 $ .12 $ .46 ============ ============= ============ ============ Diluted income per share $ (.03) $ .08 $ .10 $ .41 ============ ============= ============ ============