American Access Technologies Reports Record Earnings in Quarter Ended June 30, 2006
August 09 2006 - 11:15AM
PR Newswire (US)
KEYSTONE HEIGHTS, Fla., Aug. 9 /PRNewswire-FirstCall/ -- American
Access Technologies, Inc. (NASDAQ:AATK) reported its historic best
net income in the quarter ended June 30, 2006. Other highlights of
the quarter include: * Net sales for the quarter were a historic
2nd best. * Quarterly marked improvement in gross margin. * Zone
Cabling division 46% of total sales. * Signed letter of intent to
combine with M & I Electric Industries, Inc. Net sales for the
three months ended June 30, 2006 were a 2nd best all- time
historical high of $2,159,883, an increase of 2.3% over sales of
$2,111,098 in the second quarter of 2005. Net sales for the six
months ended June 30, 2006 were $4,299,788, an increase of 9.3%
over sales of $3,935,697 for the six months ended June 30, 2005.
For the three months ended June 30, 2006, American Access generated
a record-breaking all-time historical high net income of $228,781
or $0.03 per basic and diluted share, which was an increase of
$200,379 (or 706%) from the net income of $28,402 or $0.00 per
basic and diluted share over the comparative three-month period in
2005. For the six months ended June 30, 2006, the Company generated
net income of $137,612 or $0.02 per basic and diluted share, which
was an increase of $208,033 (or 295%) from the net loss of $70,421
or ($0.01) per basic and diluted share over the comparative six-
month period in 2005. Joe McGuire, Chief Financial Officer,
commented on the quarterly results and outlook for the balance of
2006 as follows: "Our favorable results in the second quarter
reflect the progress we have made in improving our gross margin by
increased productivity, better pricing, and an improved mix of
business. These results support our confidence in projecting a
profitable 2006. However, quarter-to-quarter margin rates are
subject to fluctuations due to many factors. "Our higher-margin
zone cabling division represented better than 46% of our total
sales this quarter and clearly demonstrates the continued market
acceptance of zone cabling products. It also reflects the success
of our sales and marketing alliance with Chatsworth Products, which
represented approximately 36% of our total sales in the second
quarter. We anticipate that sales will continue to reflect positive
results from the relationships that the CPI sales force has
developed for these products and from the relationships that our
sales efforts have nurtured with the OEMs. "Our second quarter
sales were the fifth consecutive quarter with over $2 million in
sales and was the fifteenth quarter out of the last sixteen with
year-over-year quarterly sales increases, resulting in consistent,
steady sales growth. We expect 2006 will be our fourth consecutive
record sales year and the fifth consecutive year with double-digit
sales growth. American Access maintained its strong balance sheet
position during the second quarter, highlighted by reporting
approximately $1,000,000 in cash and cash equivalents and
maintaining its long-term debt-free status. American Access is
firmly committed to driving profitable growth and creating
shareholder value through the remainder of 2006." For further
detailed information about the quarter ended June 30, 2006, please
read the Company's financial statements and footnotes, which will
be included in our Quarterly Report on Form 10-QSB to be filed with
the Securities and Exchange Commission later this week. Update on
M&I Electric On July 6th, the Company announced a letter of
intent to combine with M&I Electric Industries, Inc., a
Houston-based provider of a wide range of switchgear, drives and
other electrical products and services primarily to the energy
industry. We are in the process of negotiating a definitive share
exchange agreement with M&I and its stockholders. Upon
execution of the definitive agreement we shall seek the approval of
our stockholders at a meeting, which we now expect to hold in the
fourth quarter of this year. About American Access Technologies,
Inc. American Access manufactures patented zone cabling and
wireless enclosures that mount in ceilings, raised floors, and in
custom furniture, for routing of telecommunications cabling, fiber
optics and wireless solutions to the office desktop. The Company's
concept of "zone cabling" reduces costs for initial network
installation and facilitates moves, adds, changes and upgrades for
the network installations of today and tomorrow. Our Omega Metals
division manufactures its proprietary products, and also employs
state-of-the-art metal fabrication and finishing techniques to
public and private companies and U.S. government contractors. Our
Company SEC filings, news and product/service information are
available at http://www.aatk.com/ . Investor Notice: American
Access Technologies, Inc. will file a proxy statement and other
documents with the Securities and Exchange Commission in relation
to the proposed business combination with M&I Electric
Industries, Inc. Investors and shareholders are urged to carefully
read these documents when they become available because they will
contain important information concerning American Access
Technologies, Inc., M&I Electric Industries, Inc. and the
proposed business combination. A definitive proxy statement will be
sent to shareholders of American Access seeking their approval of
the transactions contemplated in connection with the business
combination. Investors and security holders may obtain a free copy
of the proxy statement (when it is available) and other documents
containing information about American Access, without charge, at
the SEC's website at http://www.sec.gov/. Copies of the American
Access proxy statement and the SEC filings that will be
incorporated by reference in the proxy statement may also be
obtained free of charge by directing a request to Joseph McGuire,
CFO of American Access, at (352) 473-6673, by e-mail to or by
accessing the Company's website at http://www.aatk.com/ . American
Access Technologies, Inc. and its officers and directors may be
deemed to be participants in the solicitation of proxies from its
shareholders. Information about these persons and a description of
their direct or indirect interests, by security holdings or
otherwise, can be found in American Access' Annual Report on Form
10-KSB filed with the SEC, and additional information about such
persons may be obtained from the proxy statement related to this
transaction when it becomes available. This announcement shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities. The securities to be offered have not been
registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from registration. Cautionary Note Concerning
Forward-Looking Statements: This press release contains
forward-looking statements as defined in Section 27A of the
Securities Exchange Act of 1934, regarding future revenues and
profits. While the Company believes that such forward-looking
statements are based on reasonable assumptions, there can be no
assurance that such future revenues and profits will be achieved or
achieved on the schedule indicated. Furthermore, unanticipated
future events, conditions and financial trends may affect the
Company's revenues, operating results and financial position.
Investors are cautioned that these forward-looking statements are
not guarantees of future performance. Actual events or results may
differ from the Company's expectations, and are subject to various
risks and uncertainties, including those listed in the Company's
SEC filings. The Company assumes no obligation to publicly update
or revise its forward-looking statements even if experience or
future events make it clear that any of the projected results
expressed or implied herein will not be realized. Company Contact:
Joe McGuire, Chief Financial Officer (352) 473-6673/ DATASOURCE:
American Access Technologies, Inc. CONTACT: Joe McGuire, Chief
Financial Officer, American Access Technologies, Inc.,
+1-352-473-6673, or Web site: http://www.aatk.com/
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