WEB NEWS Comments & Business Outlook
(Dollars in thousands except share data)
(Unaudited)
Three months ended
Six months ended
06/01/13
05/26/12
06/01/13
05/26/12
NET SALES
$ 5,093 $ 4,098 $ 9,731 $ 7,812
COST AND EXPENSES:
Cost of goods sold
(3,062 ) (3,054 ) (6,044 ) (5,659 )
Research and development
(434 ) (81 ) (773 ) (203 )
Selling, general & administrative expenses
(990 ) (947 ) (1,979 ) (1,815 )
Total cost and expenses
(4,486 ) (4,082 ) (8,796 ) (7,677 )
OPERATING INCOME BEFORE INTEREST, OTHER
INCOME AND INCOME TAXES
607 16 935 135
Interest and other income
- 3 1 6
INCOME BEFORE TAXES
$ 607 $ 19 $ 936 $ 141
Provision for taxes
(219 ) (7 ) (337 ) (51 )
NET INCOME
$ 388 $ 12 $ 599 $ 90
NET INCOME PER SHARE, BASIC AND DILUTED
$ .15 $ - $ .23 $ .03
DIVIDENDS PER SHARE
$ - $ - $ .10 $ .10
WEIGHTED AVERAGE OF SHARES, basic and diluted
2,578,315 2,578,315 2,578,315 2,578,315
The major increase in sales was associated with a new order for a custom medical sensor product and an increase in sales of various standard solid state relay products. The Company's management expects sales and operating income to increase in the second half of 2013 as compared to 2012, based on the current backlog and anticipated new orders in the second half of 2013.
New orders for the second quarter and year-to-date 2013 totaled $5,380,000 and $9,728,000, respectively, compared to $6,934,000 and $11,109,000 for the comparable periods of 2012. The fluctuation resulted from a delay in one order for a custom optoelectronic product for a military program which is anticipated to be booked in the third quarter of 2013. Backlog totaled $9,847,000 on June 1, 2013 compared to $9,606,000 as of May 26, 2012 and $9,850,000 on November 30, 2012. The majority of the backlog is expected to be shipped in the next twelve (12) months and represents a good mix of the company’s products and technologies with 23% in the commercial market, 66% in the military market, and 11% in the space market compared to 14% in the commercial market, 71% in the military market, and 15% in the space market at May 26, 2012. The Company cannot assure that the results of operations for the interim period presented are indicative of total results for the entire year due to fluctuations in customer delivery schedules, or other factors over which the Company has no control.
Comments & Business Outlook
New orders for the second quarter and year-to-date 2010 totaled $4,612,000 and $10,033,000, respectively, compared to $4,285,000 and $7,298,000 for the comparable periods of 2009 or an increase of 7.6% and 37.5%, respectively. The increase in new orders is associated with higher orders for one custom optoelectronic product and various space level microcircuits.
Liquidity Requirements
The
Company expects to generate adequate amounts of cash from the sale of products and services and the collection thereof to meet its liquidity needs.
