ASY Elecsys Corp

OLATHE, Kan., July 23 /PRNewswire-FirstCall/ -- Elecsys Corporation (AMEX:ASY), today announced its financial results for the fourth quarter and fiscal year ended April 30, 2008. Sales for the quarter were $6,894,000, an increase of $1,716,000, or 33%, from the comparable period of Fiscal 2007. For the fiscal year ended April 30, 2008, sales were $23,418,000, an increase of $3,609,000, or 18%, from the fiscal year ended April 30, 2007. The increase in sales for the quarter and fiscal year resulted from substantial sales growth at NTG as well as the additional sales generated by our new Radix subsidiary. Sales at NTG were $3,692,000, an increase of 306% from the previous fiscal year. As noted in the previous period, continuing demand for NTG's new WatchdogCP products as well as for communication technology upgrades for existing products were the primary drivers of the increase in NTG sales. Total sales reported at DCI decreased approximately $1,346,000 from the prior fiscal year because sales reported at DCI no longer include sales made to its new Radix subsidiary. The prior year included sales of $4,454,000 to the former Radix International Corporation. Sales at our Radix Corporation subsidiary were $3,249,000 for the seven-month period from the acquisition in September 2007 through the close of the fiscal year ended April 30, 2008. Total consolidated backlog at April 30, 2008 was $5,166,000 as compared to total backlog of $10,403,000 on April 30, 2007. Backlog no longer includes orders with our Radix subsidiary as it had in past years when it was a separate company. Gross margin was approximately 37% of sales, or $2,523,000, for the fourth quarter ended April 30, 2008 as compared to 28% of sales, or $1,429,000, for the fourth quarter ended April 30, 2007. For the fiscal year ended 2008, gross margin was 35%, or $8,236,000, compared to 30%, or $5,851,000, for the 2007 fiscal year. Our improvement in consolidated gross margin resulted from the increase in sales volumes at NTG and Radix with their mix of higher margin proprietary equipment, service contract revenues and network messaging fees. Operating income for the quarter was $690,000, an increase of 69% as compared to $408,000 for the same quarter in the prior year. For the fiscal year ended April 30, 2008, operating income was $1,710,000, approximately 12% higher than the $1,528,000 reported in Fiscal 2007. Income tax expense totaled $304,000 for the quarter ended April 30, 2008, as compared to an income tax benefit of $2,000 for the quarter ended April 30, 2007. The difference was due to accrued income tax expense for the quarter plus an additional $97,000 of state income tax expense as a result of adopting a new accounting standard. For the quarter ended April 30, 2007, the Company had recorded income tax expenses and adjustments that ultimately generated a $2,000 income tax benefit. Net income was $263,000, or $0.08 per diluted share, for the quarter ended April 30, 2008. For the quarter ended April 30, 2007, net income was $326,000, or $0.09 per diluted share. For the fiscal year ended April 30, 2008, which included acquisition expenses of over $50,000, net income was $688,000, or $0.20 per fully diluted share. During Fiscal 2007, there was a $324,000 gain on the sale of the former facility and net income was $1,046,000, or $0.31 per fully diluted share. "We are very pleased to report the results of the fourth quarter and fiscal year-end, which included continued growth in both sales and gross margins due to the continuing demand for the products and technology provided by NTG and significant sales opportunities resulting from our addition of Radix Corporation," said Karl Gemperli, chief executive officer. "We believe NTG's proprietary Pipeline WatchdogCP has been very well- received in the energy infrastructure industry," Gemperli added. "As a result, NTG more than tripled its sales over the prior fiscal year. The addition of Radix products provides the company with an opportunity to diversify into new domestic and international markets and represents great potential for growth. DCI, the company's largest subsidiary continues to deliver quality products to niche markets and we expect that its specialized expertise in electronic design and manufacturing services should permit it to continue to experience steady growth." Gemperli concluded, "Fiscal 2008 was another record year for Elecsys Corporation with an increase of over 18% in consolidated sales and a record gross margin of 35%, based on the strength of our proprietary products, diversified product mix and customer base. We look forward to continued growth from all three subsidiaries and expect increased sales opportunities for our products and services going forward." About Elecsys Corporation Elecsys Corporation operates three wholly owned subsidiaries, DCI, Inc., NTG, Inc., and Radix Corporation. DCI provides electronic design and manufacturing services for original equipment manufacturers in the aerospace, transportation, communications, safety, security and other industrial product industries. DCI has specialized expertise and capabilities to integrate custom electronic assemblies with a variety of innovative display and interface technologies. NTG designs, markets, and provides remote monitoring solutions for the gas and oil pipeline industry as well as other industries that require remote monitoring. Radix develops, designs and markets ultra-rugged handheld computers, peripherals and portable printers. The markets served by its products include utilities, transportation logistics, traffic and parking enforcement, route accounting/deliveries, and inspection and maintenance. For more information, visit our website, http://www.elecsyscorp.com/. Safe-Harbor Statement The discussions set forth in this press release may contain forward- looking comments based on current expectations that involve a number of risks and uncertainties. Actual results could differ materially from those projected or suggested in the forward-looking comments. The difference could be caused by a number of factors, including, but not limited to the factors and conditions that are described in Elecsys Corporation's SEC filings, including the Form 10-KSB for the year ended April 30, 2008. The reader is cautioned that Elecsys Corporation does not have a policy of updating or revising forward-looking statements and thus he or she should not assume that silence by management of Elecsys Corporation over time means that actual events are bearing out as estimated in such forward-looking statements. Investor Relations Contact: Todd A. Daniels Elecsys Corporation (913) 647-0158, Phone (913) 647-0132, Fax Media Inquiries Contact: Shelley Bartkoski Hagen and Partners (913) 642-3715 Elecsys Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended April 30, April 30, 2008 2007 2008 2007 Sales $6,894 $5,178 $23,418 $19,809 Cost of products sold 4,371 3,749 15,182 13,958 Gross margin 2,523 1,429 8,236 5,851 Selling, general and administrative expenses 1,833 1,021 6,526 4,323 Operating income 690 408 1,710 1,528 Financial income (expense): Interest expense (124) (86) (491) (310) Gain on sale of Lenexa facility -- -- -- 324 Interest income 1 2 20 11 (123) (84) (471) 25 Income before income taxes 567 324 1,239 1,553 Income tax expense (benefit) 304 (2) 551 507 Net income $263 $326 $688 $1,046 Net income per share information: Basic $0.08 $0.10 $0.21 $0.32 Diluted $0.08 $0.09 $0.20 $0.31 Weighted average common shares outstanding: Basic 3,285 3,285 3,285 3,259 Diluted 3,444 3,435 3,452 3,402 DATASOURCE: Elecsys Corporation CONTACT: Investor Relations, Todd A. Daniels of Elecsys Corporation, +1-913-647-0158, or Fax, +1-913-647-0132, ; or Media, Shelley Bartkoski of Hagen and Partners, +1-913-642-3715, , for Elecsys Corporation Web site: http://www.elecsyscorp.com/

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