Giga-tronics Reports Second Quarter Profits
SAN RAMON, Calif.--(BUSINESS WIRE)--
Giga-tronics Incorporated (NASDAQ:GIGA) reported today a net profit of $188,000 or $0.04 per fully diluted share for the quarter ended September 29, 2007. This compares with the net loss of ($403,000) or ($0.08) per fully diluted share for the same period a year ago. The net profit in the second quarter of fiscal 2008 resulted from an 18% net sales increase to $4,651,000 versus $3,934,000 in the second quarter of fiscal 2007. Operating expenses decreased 19% or $427,000 in the second quarter of fiscal 2008 over fiscal 2007. This was primarily due to restructuring efforts in fiscal 2007 and in the first quarter of fiscal 2008.
Net profit for the six months ended September 29, 2007 was $280,000 or $0.06 per fully diluted share compared with a net loss of ($1,430,000) or ($0.30) per fully diluted share for the same period last year. The net profit in the first half of fiscal 2008 resulted from a 27% increase in net sales to $9,279,000 versus $7,320,000 for the same period a year ago. Operating expenses decreased 16% or $744,000 in the first half of fiscal 2008 over fiscal 2007. Again, this was primarily due to restructuring efforts in fiscal 2007 and in the first quarter of fiscal 2008. Also included in the $280,000 net profit for the six month period ended September 29, 2007 was a one time restructuring charge of $80,000 or $0.02 per fully diluted share in severance costs.
Orders declined 36% in the second quarter of fiscal 2008 to $3,751,000 from $5,812,000 for the second quarter of fiscal 2007. Our book-to-bill ratio decreased to .81 versus 1.48 in the same period a year ago. However, for the first half of fiscal 2008, orders were $8,731,000 compared to $8,745,000 for the first half of fiscal 2007.
Backlog at quarter end was $7.9 million (approximately $5.4 million is shippable within one year) as compared to $11.8 million (approximately $8.0 million was shippable within one year) at the end of the second quarter of the prior year.
Cash and cash equivalents at September 29, 2007 were $1,617,000 compared to $1,815,000 as of June 30, 2007.
Giga-tronics will host a conference call today at 4:30 p.m. ET to discuss the second quarter results. To participate in the call, dial (866) 463-5401, and enter Access Code 835546#. The call will also be broadcast over the internet at www.gigatronics.com under "Investor Relations". The conference call discussion reflects management's views as of October 30, 2007 only.
Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in both defense electronics and wireless telecommunications.
Giga-tronics is a publicly held Company, traded on the NASDAQ Capital (formerly Small Cap) Market under the symbol "GIGA".
This press release contains forward-looking statements concerning profitability, backlog and shipments. Actual results may differ significantly due to risks and uncertainties, such as future orders, cancellations or deferrals, disputes over performance and the ability to collect receivables. For further discussion, see Giga-tronics' annual report on Form 10-KSB for the fiscal year ended March 31, 2007 Part I, under the heading "Certain Factors Which May Adversely Affect Future Operations or an Investment in Giga-tronics" and Part II, under the heading "Management's Discussion and Analysis of Financial Conditions and Results of Operations".
CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
(IN THOUSANDS EXCEPT SHARE DATA) SEPTEMBER 29, 2007 MARCH 31, 2007
----------------------------------------------------------------------
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 1,617 $ 1,804
Trade accounts receivable, net 2,591 2,750
Inventories 5,740 5,841
Prepaid expenses and other
assets 383 360
------------------ --------------
Total current assets 10,331 10,755
Property and equipment, net 353 324
Other assets 19 82
------------------ --------------
Total assets $ 10,703 $ 11,161
================== ==============
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 809 $ 1,106
Accrued commissions 206 192
Accrued payroll and benefits 555 666
Accrued warranty 181 207
Customer advances 538 681
Other current liabilities 443 623
------------------ --------------
Total current liabilities 2,732 3,475
Deferred rent 192 293
------------------ --------------
Total liabilities 2,924 3,768
------------------ --------------
Commitments
Shareholders' equity
Preferred stock of no par value;
Authorized 1,000,000 shares; no
shares issued and outstanding
at September 29, 2007 and March
31, 2007 --- ---
Common stock of no par value;
Authorized 40,000,000 shares;
4,814,021 shares at September
29, 2007 and 4,809,021 at March
31, 2007 issued and outstanding 13,271 13,165
Accumulated deficit (5,492) (5,772)
------------------ --------------
Total shareholders' equity 7,779 7,393
------------------ --------------
Total liabilities and shareholders'
equity $ 10,703 $ 11,161
================== ==============
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
(IN THOUSANDS
EXCEPT PER SHARE SEPTEMBER 29,SEPTEMBER 30,SEPTEMBER 29,SEPTEMBER 30,
DATA) 2007 2006 2007 2006
----------------------------------------------------------------------
(Unaudited)
----------------------------------------------------------------------
Net sales $ 4,651 $ 3,934 $ 9,279 $ 7,320
Cost of sales 2,570 2,077 5,254 4,264
------------ ------------ ------------ ------------
Gross profit 2,081 1,857 4,025 3,056
------------ ------------ ------------ ------------
Engineering 514 938 1,100 1,899
Selling, general
and
administrative 1,365 1,368 2,640 2,665
Restructuring -- -- 80 --
------------ ------------ ------------ ------------
Operating expenses 1,879 2,306 3,820 4,564
------------ ------------ ------------ ------------
Operating income
(loss) 202 (449) 205 (1,508)
Other expense 13 --- --- ---
Interest income,
net 9 37 23 66
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations before
income taxes 198 (412) 228 (1,442)
Provision for
income taxes --- 1 2 1
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations 198 (413) 226 (1,443)
(Loss) income on
discontinued
operations, net
of income taxes (10) 10 54 13
------------ ------------ ------------ ------------
Net income (loss) $ 188 $ (403) $ 280 $ (1,430)
============ ============ ============ ============
Basic net income
(loss) per share:
From continuing
operations $ 0.04 $ (0.08) $ 0.05 $ (0.30)
On discontinued
operations (0.00) 0.00 0.01 0.00
------------ ------------ ------------ ------------
Basic net income
(loss) per share $ 0.04 $ (0.08) $ 0.06 $ (0.30)
============ ============ ============ ============
Diluted net income
(loss) per share:
From continuing
operations $ 0.04 $ (0.08) $ 0.05 $ (0.30)
On discontinued
operations (0.00) 0.00 0.01 0.00
------------ ------------ ------------ ------------
Diluted net income
(loss) per share $ 0.04 $ (0.08) $ 0.06 $ (0.30)
============ ============ ============ ============
Shares used in per
share
calculation:
Basic 4,810 4,809 4,810 4,809
Diluted 4,880 4,809 4,871 4,809
Source: Giga-tronics Incorporated
Released October 30, 2007