SYRACUSE, N.Y., Aug. 28 /PRNewswire-FirstCall/ -- Anaren, Inc.
(NASDAQ:ANEN) today reported record net sales for the fourth
quarter ended June 30, 2007 of $35.9 million, up 23% from the
fourth quarter of fiscal year 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO ) Net
income for the fourth quarter of fiscal 2007 was $4.3 million, or
$0.25 per diluted share, up 20% from $3.6 million, or $0.20 per
diluted share for the fourth quarter of last year. Net income for
the quarter included $0.04 per diluted share in stock based
compensation expense. Excluding stock based compensation expense,
net income for the fourth quarter of fiscal 2007 was $5.1 million,
or $0.29 per diluted share compared to $4.3 million, or $0.24 per
share for the fourth quarter of fiscal 2006. The effective tax rate
for the fourth quarter of fiscal 2007 was 24.6%, compared to 18.8%
for the fourth quarter of fiscal 2006 as a result of the on- going
phase out of the federal extraterritorial tax credit and the
current increasing level of income. Operating income for the fourth
quarter of fiscal 2007 was $4.9 million, or 13.5% of net sales, up
30% from the fourth quarter of last year. Operating income for the
quarter included $881,000 of stock based compensation expense.
Excluding stock based compensation expense, operating income for
the fourth quarter of fiscal 2007 was $5.7 million, or 16.0% of net
sales compared to $4.5 million, or 15.6% of net sales for the
fourth quarter of fiscal 2006. The Company incurred a lease charge
in the fourth quarter in the amount of $542,000 related to the
future lease cost in excess of the expected rental income generated
from the Company's Frimley, U.K. facility. Lawrence A. Sala,
Anaren's President and CEO said, "The growth in net sales for the
quarter was driven by the Wireless Group due to very strong demand
for custom assembly products from a wireless infrastructure
customer as well as continued relatively strong demand across our
wireless infrastructure customer base. Our Suzhou, China operation
responded well to the significant surge in demand for custom
wireless products that was not forecasted." Mr. Sala added, "The
Space & Defense Group also contributed to the growth in net
sales for the quarter, ending the year with record net sales and
new orders." For the 2007 fiscal year ended June 30, 2007, net
sales were a record $129.0 million, up 22% from fiscal 2006.
Operating income for fiscal 2007 was $17.0 million, or 13.2% of net
sales, up 44% from last year. Operating income for fiscal 2007
included $3.4 million in stock based compensation expense.
Operating income before stock based compensation expense for fiscal
2007 was 15.8% of net sales compared to operating income before
stock based compensation expense of 14.4% of net sales for fiscal
2006. Net income for fiscal 2007 was $15.3 million, or $0.87 per
diluted share, including $0.15 per diluted share in stock based
compensation expense. This compares to net income for fiscal 2006
of $11.1 million, or $0.63 per diluted share, which included $3.4
million, or $0.17 per diluted share in stock based compensation
expense. Balance Sheet During the fourth quarter, the Company
generated $13.9 million in cash from operations and used $13.6
million to repurchase 786,000 shares of its common stock.
Expenditures for capital additions in the fourth quarter were $5.4
million driven primarily by the building expansion of the Company's
East Syracuse, New York manufacturing facility. Funds required for
stock repurchases and capital expenditures in excess of funds
generated by operations came from maturities of the Company's
investments. Cash, cash equivalents and marketable debt securities
at June 30, 2007 were $74.6 million. Wireless Group Wireless Group
net sales for the quarter were $23.2 million, up 23.2% from the
fourth quarter of fiscal 2006. Demand for custom assembly products
from a wireless infrastructure customer rose significantly and
overall wireless demand remained relatively strong throughout the
quarter. Sales of consumer component products were $0.5 million for
the quarter, down 58% from the fourth quarter of last year due to a
significant decline in demand from our largest consumer component
customer. Our customer has previously announced that a product
performance issue, unrelated to our components, has significantly
reduced demand for their products that utilize our components. Both
consumer component and wireless infrastructure product development
and design in activity remained robust. During the quarter, design
in activity continued on several ferrite component and custom
assembly opportunities for wireless infrastructure applications and
on WLAN and satellite television opportunities for consumer
wireless applications. Customers that generated greater than 10% of
Wireless Group net sales for the quarter were Nokia, Richardson,
and Huawei. Space & Defense Group Space & Defense Group net
sales for the quarter were $12.7 million, up 23.4% from the fourth
quarter of fiscal 2006. For the 2007 fiscal year, Space &
Defense Group net sales were a record $51.2 million, up 32% from
fiscal 2006. New orders for the quarter totaled $27.4 million and
included the previously announced order for ferrite based shipborne
radar subassemblies. This is the first large ferrite based assembly
contract win for the Space & Defense Group, and the group is
currently pursuing several new programs requiring ferrite based
microwave assemblies. Additional orders for the quarter included
contracts for passive ranging and airborne jamming subsystems. For
the year, the Space & Defense book to bill ratio was 1.16 to
1.0 resulting in a record Space & Defense backlog at June 30,
2007 of $56.0 million. Non-GAAP Measurements Non-GAAP results
reported in this release, which are a supplement to financial
results based on GAAP, exclude charges for stock based
compensation. The Company believes these non-GAAP financial
measures provide useful information to both management and
investors to help understand and compare business trends among
reporting periods on a consistent basis. Additionally, these
non-GAAP financial measurements are one of the primary indicators
management uses for planning and forecasting in future periods. The
presentation of this additional information should not be
considered in isolation or as a substitute for results prepared in
accordance with accounting principles generally accepted in the
United States. Outlook For the first quarter of fiscal 2008, we
expect a decline in demand for wireless infrastructure products, an
increase in demand for consumer component products and a decrease
in sales for the Space & Defense segment as a result of the
anticipated decline in sales of counter-Improvised Explosive Device
related components. As a result, we expect net sales to be in the
range of $30.0 - $32.0 million for the first quarter of fiscal
2008. With an anticipated tax rate of approximately 28-30%, an
expected stock based compensation expense of approximately $0.04
per diluted share, and a less favorable overall product mix, we
expect net earnings per diluted share to be in the range of
$0.13-$0.16 for the first quarter. Forward-Looking Statements The
statements contained in this news release which are not historical
information are "forward-looking statements". These, and other
forward- looking statements, are subject to business and economic
risks and uncertainties that could cause actual results to differ
materially from those discussed. The risks and uncertainties
described below are not the only risks and uncertainties facing our
Company. Additional risks and uncertainties not presently known to
us or that are currently deemed immaterial may also impair our
business operations. If any of the following risks actually occur,
our business could be adversely affected, and the trading price of
our common stock could decline, and you may lose all or part of
your investment. In September, 2007, the Company expects to file
amended Quarterly Reports on Form 10-Q/A restating the Company's
consolidated condensed financial statements for the periods ending
December 31, 2006 and March 31, 2007, modifying related
disclosures, and disclosing a material weakness in the Company's
disclosure controls and procedures. The Company cannot predict the
reaction to the filing of these Amended Reports and if adverse, the
market price of the Company's stock could decline. Other known
factors include, but are not limited to: the Company's ability to
timely ramp up to meet some of our customers' increased demands;
unanticipated delays in successfully completing customer orders
within contractually required timeframes; unanticipated penalties
resulting from failure to meet contractually imposed delivery
schedules; increased pricing pressure from our customers; decreased
capital expenditures by wireless service providers; the possibility
that the Company may be unable to successfully execute its business
strategies or achieve its operating objectives, generate revenue
growth or achieve profitability expectations; successfully securing
new design wins from our OEM customers, reliance on a limited
number of key component suppliers, unpredictable difficulties or
delays in the development of new products; order cancellations or
extended postponements; the risks associated with any technological
shifts away from the Company's technologies and core competencies;
unanticipated impairments of assets including investment values and
goodwill; diversion of defense spending away from the Company's
products and or technologies due to on-going military operations;
and litigation involving antitrust, intellectual property,
environmental, product warranty, product liability, and other
issues. You are encouraged to review Anaren's 2006 Annual Report,
Anaren's Form 10-K/A for the fiscal year ended June 30, 2006 and
exhibits to those Reports filed with the Securities and Exchange
Commission to learn more about the various risks and uncertainties
facing Anaren's business and their potential impact on Anaren's
revenue, earnings and stock price. Unless required by law, Anaren
disclaims any obligation to update or revise any forward-looking
statement. Conference Call Anaren will host a live teleconference,
open to the public, on the Anaren Investor Info, Live Webcast Web
Site (http://www.anaren.com/) and ccbn.com at
http://www.streetevents.com/ on Tuesday, August 28 at 5:00 p.m.
EDT. A replay of the conference call will be available at 8:00 p.m.
(EDT) beginning August 28, 2007 through midnight September 1, 2007.
To listen to the replay, interested parties may dial in the U.S. at
1-888-203-1112 and international at 1-719-457-0820. The access code
is 8645500. If you are unable to access the Live Webcast, the dial
in number for the U.S. is 1-800-946-0741 and International is
1-719-457-2649. Company Background Anaren designs, manufactures and
sells complex microwave components and subsystems for the wireless
communications, satellite communications and defense electronics
markets. For more information on Anaren's products, visit our Web
site at http://www.anaren.com/. Anaren, Inc. and Subsidiaries
Consolidated Condensed Statements of Income (Unaudited) Three
Months Ended Twelve Months Ended June 30, June 30, June 30, June
30, 2007 2006 2007 2006 Sales $35,860,574 $29,129,782 $128,987,104
$105,464,236 Cost of sales 23,094,111 18,809,002 83,125,048
67,493,977 Gross profit 12,766,463 10,320,780 45,862,056 37,970,259
35.6% 35.4% 35.6% 36.0% Operating expenses: Marketing 1,844,594
1,745,913 7,416,140 7,036,240 Research and development 2,458,105
2,256,418 9,134,147 8,747,463 General and administrative 3,070,673
2,573,686 11,755,535 10,345,398 Lease charge 542,056 - 542,056 -
Total operating expenses 7,915,428 6,576,017 28,847,878 26,129,101
Operating income 4,851,035 3,744,763 17,014,178 11,841,158 13.5%
12.9% 13.2% 11.2% Other income (expense): Other income, primarily
interest 883,371 708,177 3,571,354 2,452,914 Interest expense
(6,143) (6,774) (24,572) (25,203) Total other income (expense)
877,228 701,403 3,546,782 2,427,711 Income before income taxes
5,728,263 4,446,166 20,560,960 14,268,869 Income expense 1,411,000
836,000 5,211,000 3,252,000 Net income from continuing operations $
4,317,263 $ 3,610,166 $ 15,349,960 $11,016,869 12.0% 12.4% 11.9%
10.4% Discontinued operations: Income from discontinued operations
of Anaren Europe - - - 81,713 Income tax benefit - - - - Net income
(loss) from discontinued operations $ - $ - $ - $ 81,713 Net income
$ 4,317,263 $ 3,610,166 $ 15,349,960 $11,098,582 12.0% 12.4% 11.9%
10.5% Basic earnings per share: Income from continuing operations $
0.26 $0.21 $0.89 $0.64 Income from discontinued operations 0.00
0.00 0.00 0.01 Net income $0.26 $0.21 $0.89 $0.65 Diluted earnings
per share: Income from continuing operations $0.25 $0.20 $0.87
$0.62 Income from discontinued operations 0.00 0.00 0.00 0.01 Net
income $0.25 $0.20 $0.87 $0.63 Shares used in computing net income
Per share: Basic 16,757,148 17,253,753 17,318,508 17,156,720
Diluted 17,114,850 17,859,192 17,720,723 17,682,231 Anaren, Inc.
and Subsidiaries Consolidated Condensed Balance Sheets June 30,
2007 June 30, 2006 (Unaudited) (Unaudited) Assets: Cash, cash
equivalents and short-term investments $ 43,014,064 $ 82,492,947
Accounts receivable, net 19,768,701 16,362,011 Other receivables
1,606,093 1,176,009 Inventories 24,331,597 21,827,271 Other current
assets 2,637,401 2,312,471 Total current assets 91,357,856
124,170,709 Net property, plant and equipment 37,091,786 27,635,161
Securities held to maturity 31,540,247 6,131,425 Goodwill
30,715,861 30,715,861 Other assets 68,947 373,273 Total assets
$190,774,697 $189,026,429 Liabilities and stockholders' equity
Liabilities: Accounts payable $ 12,259,176 $ 6,798,793 Accrued
expenses 3,365,596 3,254,816 Customer advance payments 1,318,812
483,722 Other liabilities 1,985,856 1,473,011 Total current
liabilities 18,929,440 12,010,342 Other non-current liabilities
5,051,109 4,897,687 Total liabilities 23,980,549 16,908,029
Stockholders' equity: Retained earnings 85,306,813 70,493,853
Common stock and additional paid-in capital 188,149,232 182,049,235
Accumulated comprehensive loss (984,640) (441,397) Less cost of
treasury stock (105,677,257) (79,983,291) Total stockholders'
equity 166,794,148 172,118,400 Total liabilities and stockholders'
equity $190,774,697 $189,026,429 Anaren, Inc. and Subsidiaries
Reconciliation of GAAP and Proforma Gross Profit, Operating Income,
and Earnings Per Share (Unaudited) Three Months Ended Twelve Months
Ended June 30, June 30, June 30, June 30, 2007 2006 2007 2006 Sales
$35,860,574 $29,129,782 $128,987,104 $105,464,236 GAAP gross profit
12,766,463 10,320,780 45,862,056 37,970,259 % of sales 35.6% 35.4%
35.6% 36.0% Stock based compensation expense 131,182 164,260
876,939 981,791 Gross profit excluding stock based compensation
expense $12,897,645 $10,485,040 $46,738,995 $38,952,050 % of sales
36.0% 36.0% 36.2% 36.9% GAAP operating income $4,851,035 $3,744,763
$17,014,178 $11,841,158 % of sales 13.5% 12.9% 13.2% 11.2% Stock
based compensation expense 880,915 793,320 3,415,905 3,383,811
Operating income excluding stock based compensation expense
$5,731,950 $4,538,083 $20,430,083 $15,224,969 % of sales 16.0%
15.6% 15.8% 14.4% GAAP net income 4,317,263 3,610,166 15,349,960
11,098,582 % of sales 12.0% 12.4% 11.9% 10.5% Stock based
compensation expense, net of tax 769,915 723,920 2,781,905
3,087,811 Net income excluding stock based compensation expense
$5,087,178 $4,334,086 $18,131,865 $14,186,393 % of sales 14.2%
14.9% 14.1% 13.5% Diluted earnings per share: GAAP net income $0.25
$0.20 $0.87 $0.63 Stock based compensation expense, net of tax 0.04
0.04 0.15 0.17 Net income per share excluding stock based
compensation expense $0.29 $0.24 $1.02 $0.80 Shares used in
computing net income per share: Diluted 17,114,850 17,859,192
17,720,723 17,682,231
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO
http://photoarchive.ap.org/ DATASOURCE: Anaren, Inc. CONTACT:
Joseph E. Porcello, VP of Finance of Anaren, Inc., +1-315-432-8909
Web site: http://www.anaren.com/ http://www.streetevents.com/
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