Giga-tronics Reports Third Quarter FY 2007 Results
SAN RAMON, Calif.--(BUSINESS WIRE)--
Giga-tronics Incorporated (NASDAQ:GIGA) reported today a net profit of $58,000 or $0.01 per fully diluted share for the three months ended December 30, 2006. This compares with the net profit of $30,000 or $0.01 per fully diluted share for the same period a year ago. Net loss for the nine months ended December 30, 2006 was $1,372,000 or $0.29 per fully diluted share compared with a net loss of $874,000 or $0.18 per fully diluted share for the same period last year.
Orders booked for the third quarter of fiscal 2007 were $3,714,000 as compared to $3,995,000 for the third quarter of fiscal 2006. Book to bill ratio is 0.67 versus 0.72 for the same period a year ago. Orders for the nine months ended December 30, 2006 increased 10% to $12,459,000 as compared to $11,335,000 for the same period a year ago.
Net sales increased 1% to $5,564,000 in the third quarter of fiscal 2007 versus $5,537,000 in the third quarter of fiscal 2006. Net sales for the nine months ended December 30, 2006 decreased 14% to $12,884,000 from $14,934,000 for the same period in the prior year.
Backlog at quarter end was $9.9 million (approximately $6.4 million is shippable within one year) as compared to $12.1 million (approximately $6.3 million shippable within one year) at third quarter end of the prior year.
Cash and cash equivalents were $2,646,000 at December 30, 2006 compared to $3,286,000 as of September 30, 2006.
In an effort to improve results and make optimal use of its resources, Giga-tronics has decided to integrate all ASCOR and Instrument Division engineering and manufacturing activities at the San Ramon, California facility. The Microsource subsidiary, located in Santa Rosa, California, will remain strictly a manufacturing operation, with all product development work being performed in San Ramon. Management is in the process of estimating the financial impact of the restructuring on the Company's fourth quarter results.
Giga-tronics will host a conference call today at 4:30 PM ET to discuss the third quarter results. To participate in the call, dial (612) 288-0329. The call will also be broadcast over the internet at www.gigatronics.com under "Corporate Info/Investor Relations." The conference call discussion reflects management's views as of January 26, 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 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 25, 2006 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) December 30, 2006 March 25, 2006
------------------------------------ ----------------- ---------------
(Unaudited)
------------------------------------
Assets
Current assets
Cash and cash equivalents $ 2,646 $ 3,412
Notes receivable, net --- 3
Trade accounts receivable, net 2,739 3,435
Inventories 5,735 4,813
Prepaid expenses 174 219
----------------- ---------------
Total current assets 11,294 11,882
Property and equipment, net 336 337
Other assets 93 127
----------------- ---------------
Total assets $ 11,723 $ 12,346
================= ===============
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 1,392 $ 870
Accrued commissions 215 171
Accrued payroll and benefits 801 781
Accrued warranty 196 250
Customer advances 739 521
Other current liabilities 384 433
----------------- ---------------
Total current liabilities 3,727 3,026
Deferred rent 151 222
----------------- ---------------
Total liabilities 3,878 3,248
----------------- ---------------
Shareholders' equity
Preferred stock of no par value;
Authorized 1,000,000 shares; no
shares outstanding at December
30, 2006 and March 25, 2006 --- ---
Common stock of no par value;
Authorized 40,000,000 shares;
4,809,021 shares at December
30, 2006 and March 25, 2006
issued and outstanding 13,122 13,003
Accumulated deficit (5,277) (3,905)
----------------- ---------------
Total shareholders' equity 7,845 9,098
----------------- ---------------
Total liabilities and shareholders'
equity $ 11,723 $ 12,346
================= ===============
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
(In thousands except per Dec. 30, Dec. 24, Dec. 30, Dec. 24,
share data) 2006 2005 2006 2005
------------------------ ----------- --------- ---------- -----------
(Unaudited)
------------------------
Net sales $ 5,564 $ 5,537 $ 12,884 $ 14,934
Cost of sales 3,170 3,203 7,434 8,732
----------- --------- ---------- -----------
Gross profit 2,394 2,334 5,450 6,202
----------- --------- ---------- -----------
Product development 949 883 2,848 2,892
Selling, general and
administrative 1,429 1,434 4,094 4,218
----------- --------- ---------- -----------
Operating expenses 2,378 2,317 6,942 7,110
----------- --------- ---------- -----------
Operating income (loss) 16 17 (1,492) (908)
Interest income, net 25 10 91 24
----------- --------- ---------- -----------
Income (loss) from
continuing operations
before income taxes 41 27 (1,401) (884)
Provision for income
taxes --- --- 1 4
----------- --------- ---------- -----------
Income (loss) from
continuing operations 41 27 (1,402) (888)
Income on discontinued
operations, net of
income taxes 17 3 30 14
----------- --------- ---------- -----------
Net income (loss) $ 58 $ 30 $ (1,372) $ (874)
=========== ========= ========== ===========
Basic earnings (loss)
per share:
From continuing
operations $ 0.01 $ 0.01 $ (0.29) $ (0.18)
On discontinued
operations 0.00 0.00 0.00 0.00
----------- --------- ---------- -----------
Basic net income (loss)
per share $ 0.01 $ 0.01 $ (0.29) $ (0.18)
=========== ========= ========== ===========
Diluted earnings (loss)
per share:
From continuing
operations $ 0.01 $ 0.01 $ (0.29) $ (0.18)
On discontinued
operations 0.00 0.00 0.00 0.00
----------- --------- ---------- -----------
Diluted net income
(loss) per share $ 0.01 $ 0.01 $ (0.29) $ (0.18)
=========== ========= ========== ===========
Shares used in per share
calculation:
Basic 4,809 4,809 4,809 4,773
Dilutive 4,884 4,917 4,809 4,773
Source: Giga-tronics Incorporated
Released January 26, 2007