Science & Technology
Science and Technology
Science and Technology
Mon, August 17, 2009
Sun, August 16, 2009
Fri, August 14, 2009 Sutron Corporation: Sutron Reports Second Quarter Operating Results
STERLING, VA--(Marketwire - August 14, 2009) - Sutron Corporation (
Financial Highlights
Net income for the second quarter ended June 30, 2009 was $358,793 or $.08 per share compared to net income of $258,883 or $.06 per share for the same quarter last year. Net income for the six months ended June 30, 2009 was $465,451 or $.10 per share compared to net income of $505,800 or $.11 per share for the six month period last year. Revenues for the second quarter ended June 30, 2009 were $4,786,898 compared to $4,025,016 in the second quarter of 2008. Revenues for the six months ended June 30, 2009 were $8,361,929 compared to $7,844,063 in the same six month period of 2008. The backlog of customer orders at June 30, 2009 was $11,990,000 as compared to $7,737,000 at June 30, 2008.
"We are pleased to report a 19% increase in revenue and a 39% increase in earnings in the second quarter," said Raul McQuivey, Sutron's Chairman and Chief Executive Officer. "Our gross margin in the second quarter of 2009 improved to 40.6% compared to 33.3% in 2008. Our operating income increased 72% to $569,006 in the second quarter of 2009 as compared to $330,776 in 2008. During the second quarter, shipments and work performed on the Tamil Nadu Agricultural University (TNAU) contract resulted in revenue of approximately $1.3 million. We were also excited with our customer orders during the second quarter that totaled approximately $10,625,000 as compared to orders of approximately $2,389,000 in 2008. The increase was due to the TNAU contract of approximately $2,979,000 that was received in April 2009 as well as two orders from the U.S. Geological Survey that totaled approximately $3,972,000 that were received in June 2009.
"Our move into our new corporate headquarters and operations facility in Sterling, Virginia was completed during the second quarter. One-time costs associated with the move into our new facility totaled approximately $31,000 during the second quarter. Sales and marketing costs were higher in the second quarter of 2009 as compared to 2008 due to selling costs relating to our new Ilex Division, increased Integrated Systems' and Sutron HydroMet Systems' (our wholly owned subsidiary in India) selling costs and increased General Services Administration (GSA) contract funding fees due to higher orders received from the U.S. Geological Survey. Product development expenses increased due to higher use of subcontractors, an increase in R&D personnel and lower direct bill labor by R&D personnel. The effective income tax rate was higher as well in the second quarter of 2009 as compared to 2008. The exercise of employee stock options in the second quarter of 2008 resulted in tax deductible compensation which lowered income tax expense while there were no employee stock option exercises in 2009.
"We ended the quarter with cash of approximately $4.85 million which includes restricted cash of approximately $1,050,000. We continue to be optimistic in regards to future business. We are closely following global economic stimulus plans and believe that we will receive major customer orders in 2009 and 2010 as a result of increased government spending around the world."
About Sutron Corporation
Sutron was founded in 1975 and is 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.
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-K filed on March 31, 2009. 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 FINANCIAL SUMMARY (Unaudited) For the Three Months Ended June 30, HIGHLIGHTS OF OPERATING RESULTS 2009 2008 ----------- ----------- Revenues $ 4,786,898 $ 4,025,016 Cost of sales 2,843,518 2,685,418 ----------- ----------- Gross profit 1,943,380 1,339,598 Operating expenses 1,374,374 1,008,822 ----------- ----------- Operating income 569,006 330,776 Interest and other income 22,487 26,107 ----------- ----------- Income before income taxes 591,493 356,883 Income tax expense (benefit) 232,700 98,000 ----------- ----------- Net income $ 358,793 $ 258,883 =========== =========== PER SHARE AMOUNTS: Basic income per share $ 0.08 $ 0.06 =========== =========== Diluted income per share $ 0.07 $ 0.05 =========== =========== (Unaudited) For the Six Months Ended June 30, HIGHLIGHTS OF OPERATING RESULTS 2009 2008 ----------- ----------- Revenues $ 8,361,929 $ 7,844,063 Cost of sales 5,032,260 5,009,866 ----------- ----------- Gross profit 3,329,669 2,834,197 Operating expenses 2,743,498 2,180,826 ----------- ----------- Operating income 586,171 653,371 Interest and other income 194,980 66,429 ----------- ----------- Income before income taxes 781,151 719,800 Income tax expense (benefit) 315,700 214,000 ----------- ----------- Net income $ 465,451 $ 505,800 =========== =========== PER SHARE AMOUNTS: Basic income per share $ 0.10 $ 0.11 =========== =========== Diluted income per share $ 0.09 $ 0.10 =========== =========== Balance Sheets (Unaudited) (Audited) June 30, December 31, 2009 2008 ------------ ------------ ASSETS Current Assets: Cash and cash equivalents $ 3,804,097 $ 3,705,475 Restricted cash and cash equivalents 1,050,451 784,920 Accounts receivable, net 5,233,444 3,872,527 Inventory 3,454,200 4,053,788 Prepaid items and other assets 266,048 302,633 Income taxes receivable 98,709 983,875 Deferred income taxes 294,000 308,000 ------------ ------------ Total Current Assets 14,200,949 14,011,218 Property and Equipment, Net 2,065,184 372,745 ------------ ------------ Other Assets Goodwill 570,150 570,150 Other Assets 139,852 95,057 ------------ ------------ Total Assets $ 16,976,135 $ 15,049,170 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 1,144,682 $ 1,200,721 Accrued payroll 202,394 129,142 Other accrued expenses 852,123 794,307 Notes payable - current - 2,765 Billings in excess of costs and estimated earnings 85,143 139,117 ------------ ------------ Total Current Liabilities 2,284,342 2,266,052 Long-Term Liabilities Deferred rent 1,379,260 - Deferred income taxes 51,000 59,000 ------------ ------------ Total Long-term Liabilities 1,430,260 59,000 ------------ ------------ Total Liabilities 3,714,602 2,325,052 ------------ ------------ Stockholders' Equity Common stock 45,707 45,707 Additional paid-in capital 2,841,010 2,778,775 Retained earnings 10,474,556 10,009,105 Accumulated other comprehensive loss (99,740) (109,469) ------------ ------------ Total Stockholders' Equity 13,261,533 12,724,118 ------------ ------------ Total Liabilities and Stockholders' Equity $ 16,976,135 $ 15,049,170 ============ ============
