Science & Technology
Science and Technology
Science and Technology
Wed, June 9, 2010 AML Communications Reports Fourth Quarter and Fiscal 2010 Year End Results
CAMARILLO, Calif.--([ BUSINESS WIRE ])--AML Communications, Inc. (OTCBB: [ AMLJ ]), a producer of specialized amplifiers and integrated assemblies for the defense electronic warfare industry, today announced results for its fourth quarter and the fiscal year ended March 31, 2010.
"After years of investment in R&D and new program orders, Fiscal 2010 rewarded us with record revenues of $16.3 million and record operating profits of $2.3 million. Strong growth in revenues was driven by increased sales of AML integrated assemblies for Unmanned Aerial Vehicles (aUAV"
Fourth Quarter 2010 Highlights
- Net sales increased 30 percent to $4.2 million.
- Operating profit increased 336 percent to $564,000.
- Gross margins increased to 49 percent compared with 42 percent for the same period last year.
Fiscal 2010 Year End Highlights
- Net sales increased 23 percent to $16.3 million.
- Operating profit increased 158 percent to $2.3 million.
- Gross margins increased to 48 percent compared with 43 percent for the prior fiscal year.
- Cash balance of $3.3 million compared to $1.6 million a year ago.
CEO Commentary
aWe are very pleased to report strong growth in revenues and earnings for the fourth quarter and fiscal year 2010,a said Jacob Inbar, President and Chief Executive Officer of AML. aAfter years of investment in R&D and new program orders, Fiscal 2010 rewarded us with record revenues of $16.3 million and record operating profits of $2.3 million. Strong growth in revenues was driven by increased sales of AML integrated assemblies for Unmanned Aerial Vehicles (aUAVas), Surveillance and Radar applications, part of long term programs. Disciplined manufacturing overhead costs coupled with the utilization of automated manufacturing process allowed us to achieve record operating profits.a
Fourth Quarter and Fiscal 2010 Year End Financial Results Summary
Net sales for the fourth quarter of fiscal year 2010 increased 30 percent to $4.2 million, compared with $3.3 million for the same period a year earlier. Net income for the quarter ended March 31, 2010 rose 127 percent to $477,000, or $0.04 per share, compared with $210,000, or $0.02 per share, a year ago. Gross margin for the quarter ended March 31, 2010 was 49% compared with 42% for the same period last year.
Net sales for the fiscal year ended March 31, 2010 increased 23 percent to $16.3 million, compared with $13.3 million for the prior fiscal year. Net income for the fiscal year ended March 31, 2010 rose 54 percent to $1.5 million, or $0.14 per share, compared with $959,000, or $0.09 per share (this includes a one time book entry gain of $0.05 per share), a year ago. Gross margin for the fiscal year ended March 31, 2010 was 48% compared with 43% for the prior fiscal year.
Balance Sheet Overview
AML ended the fiscal year 2010 with a strong financial position including $3.3 million in cash, $9.1 million in working capital, and total stockholdersa™ equity of $15.1 million.
Conference Call
A conference call to discuss the fiscal year 2010 results is scheduled for Tuesday, June 8, 2010 at 1:00 p.m. Pacific Time/4:00 p.m. Eastern Time.
The conference call dial-in number is 877-212-8197 for domestic participants and 816-249-4432 for international participants. The Conference ID number is 79581959. A recording of the call will be available for playback through the Companya™s website, [ http://www.amlj.com/ir.html ], after 6:00 a.m. Pacific Time on Wednesday, June 9, 2010.
About AML Communications
AML Communications is a designer, manufacturer, and marketer of specialized amplifiers and integrated assemblies that address the defense electronic warfare markets. Its key customers include Raytheon, Lockheed Martin, Northrop Grumman, L-3 Communications, BAE, and others. The Companya™s extensive range of microwave low noise amplifiers and power amplifiers can be found in leading defense projects. For more information, visit [ www.amlj.com ].
Forward-Looking Statements
This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Companya™s views on future profitability, commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by words such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," "schedules,a and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: reductions or cancellations in orders from new or existing customers; success in the design of new products; the opportunity for future orders from domestic and international customers including, in particular defense customers; general economic conditions; the limited number of potential customers; variability in gross margins on new products; inability to deliver products as forecast; failure to acquire new customers; continued or new deterioration of business and economic conditions in the wireless communications industry; and intensely competitive industry conditions with increasing price competition. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements.
AML COMMUNICATIONS,INC.& SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| ASSETS | March 31, | March 31, | ||||||||||||||
| Current Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 3,327,000 | $ | 1,581,000 | ||||||||||||
| Accounts receivable, net | 3,148,000 | 2,367,000 | ||||||||||||||
| Inventories, net | 3,498,000 | 3,290,000 | ||||||||||||||
| Note receivable | 4,000 | 7,000 | ||||||||||||||
| Prepaid expenses | 218,000 | 189,000 | ||||||||||||||
| Deferred tax asseta"current | 1,277,000 | 867,000 | ||||||||||||||
| Total current assets | 11,472,000 | 8,301,000 | ||||||||||||||
| Property and equipment, at cost | 7,417,000 | 7,313,000 | ||||||||||||||
| Less: Accumulated depreciation | (5,534,000 | ) | (5,229,000 | ) | ||||||||||||
| Property and equipment, net | 1,883,000 | 2,084,000 | ||||||||||||||
| Deferred tax asset | 2,931,000 | 3,916,000 | ||||||||||||||
| Intangible Assets: | ||||||||||||||||
| Technologies, net | 1,583,000 | 1,778,000 | ||||||||||||||
| Patents, net | 51,000 | 75,000 | ||||||||||||||
| Customer relationship, net | 32,000 | 41,000 | ||||||||||||||
| Trademarks and brand names | 202,000 | 203,000 | ||||||||||||||
| 1,868,000 | 2,097,000 | |||||||||||||||
| Deposits | 42,000 | 33,000 | ||||||||||||||
| $ | 18,196,000 | $ | 16,431,000 | |||||||||||||
| LIABILITIES AND STOCKHOLDERSa™ EQUITY | ||||||||||||||||
| Current Liabilities: | ||||||||||||||||
| Line of credit | $ | 161,000 | $ | 496,000 | ||||||||||||
| Accounts payable | 832,000 | 854,000 | ||||||||||||||
| Current portion of notes payable and capital lease obligation | 111,000 | 58,000 | ||||||||||||||
| Accrued expenses: | ||||||||||||||||
| Accrued payroll and payroll related expenses | 993,000 | 659,000 | ||||||||||||||
| Other accrued liabilities | 273,000 | 242,000 | ||||||||||||||
| Total current liabilities | 2,370,000 | 2,309,000 | ||||||||||||||
| Long term notes payable | 574,000 | 594,000 | ||||||||||||||
| Capital lease obligations, net of current portion | 103,000 | a" | ||||||||||||||
| Commitments | a" | a" | ||||||||||||||
| Stockholdersa™ Equity: | ||||||||||||||||
Common stock, $0.01 par value: 15,000,000 shares authorized; 10,680,915 and 10,654,665 shares issued and outstanding at March 31, 2010 and March 31, 2009, respectively. 38,600 shares held in treasury as of March 31, 2010. | 107,000 | 106,000 | ||||||||||||||
| Capital in excess of par value | 14,203,000 | 14,034,000 | ||||||||||||||
| Retained earnings (Accumulated deficit) | 866,000 | (612,000 | ) | |||||||||||||
| Less: Treasury stock at cost | (27,000 | ) | a" | |||||||||||||
| Total stockholdersa™ equity | 15,149,000 | 13,528,000 | ||||||||||||||
| $ | 18,196,000 | $ | 16,431,000 | |||||||||||||
AML COMMUNICATIONS,INC. CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| For the Years Ended | ||||||||||||||||
| March 31, 2010 | March 31, 2009 | |||||||||||||||
| Net sales | $ | 16,317,000 | $ | 13,288,000 | ||||||||||||
| Cost of goods sold | 8,485,000 | 7,549,000 | ||||||||||||||
| Gross profit | 7,832,000 | 5,739,000 | ||||||||||||||
| Operating Expenses: | ||||||||||||||||
| Selling, general and administrative | 3,407,000 | 2,925,000 | ||||||||||||||
| Research and development | 2,152,000 | 1,932,000 | ||||||||||||||
Total operating expenses | 5,559,000 | 4,857,000 | ||||||||||||||
| Income from operations | 2,273,000 | 882,000 | ||||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Gain on settlement of debt | - | 567,000 | ||||||||||||||
| Gain on sale of fixed assets | 20,000 | - | ||||||||||||||
| Interest & other expense | (78,000 | ) | (100,000 | ) | ||||||||||||
| Total other income (expense) | (58,000 | ) | 467,000 | |||||||||||||
| Income before provision for income taxes | 2,215,000 | 1,349,000 | ||||||||||||||
| Provision for income taxes | (737,000 | ) | (390,000 | ) | ||||||||||||
| Net income | $ | 1,478,000 | $ | 959,000 | ||||||||||||
| Basic earnings per common share | $ | 0.14 | $ | 0.09 | ||||||||||||
| Basic weighted average number of shares of common stock outstanding | 10,631,000 | 10,575,000 | ||||||||||||||
| Diluted earnings per common share | $ | 0.14 | $ | 0.09 | ||||||||||||
| Diluted weighted average number of shares of common stock outstanding | 10,824,000 | 10,688,000 | ||||||||||||||
