Merrimac First Quarter 2001 Results; Sales and Backlog Increase

 
First quarter 2001 sales of $6,090,000 increased 24 percent compared to first quarter 2000 sales of $4,911,000. Operating income before the effect of the charges associated with the reincorporation in Delaware of $330,000 for the first quarter 2001 was $198,000, compared to $96,000 of operating income for the first quarter 2000 before a personnel restructuring charge of $315,000.

A net loss of $31,000 was recorded for the first quarter of 2001, after the net effects of the reincorporation charge of $198,000. For the first quarter of 2000, a net loss of $164,000 was reported, after the net effects of the restructuring charge of $189,000.

A net loss of $.01 per share was recorded for the first quarter of 2001, after the net effects of the $.07 per share reincorporation charge. For the first quarter of 2000, a net loss of $.09 per share was reported, resulting from the net effects of the $.10 per share restructuring charge.

First quarter 2001 operating profit before the reincorporation charge was approximately double the operating profit for the first quarter of 2000 before the personnel restructuring charge. Net earnings for the first quarter of 2001 before the reincorporation charge would have been $167,000 and $.06 per diluted share on a weighted average outstanding shares base that increased by approximately one-half over the first quarter of 2000.

The weighted average number of shares outstanding increased by 858,000 shares, or approximately 49 percent, for the first quarter of 2001 compared to the first quarter of the prior year, resulting from the issuance in private placements of 375,000 shares in the second quarter 2000 and 360,000 shares in the fourth quarter 2000, as well as stock option exercises during last fiscal year

 
The backlog at the end of the first quarter of 2001 was $12.1 million, an increase of $1.5 million or 13.7 percent over year-end 2000, and $3.1 million or 35.2 percent when compared to the backlog of $8.9 million at the end of the first quarter of last year. Orders received during the first quarter of 2001 totaling $7.5 million exceeded the first quarter 2001 sales level by approximately 24 percent.

A healthy consolidated gross profit margin of 51.6 percent, driven by a resurgence in demand for space-qualified Hi-Rel RF Microwave products, provided resources to fund our continuing research and development efforts targeting wireless telecommunications infrastructure and end-user markets. We are entering the second quarter with an all-time high backlog, and the solid book-to-bill ratio encourages efficient utilization of our manufacturing facilities.

All operating units performed exceptionally well, reflecting the efficiencies and operational progress we have achieved.Our strong booking rate and backlog reflect increased customer share driven by the "Merrimac Relationship Process", which provides increased value to our key account customers. This partnering technique is fundamental to our goal of providing key account customers with Total Integrated Packaging Solutions^TM.

Thank you for your continued support and confidence,

Mason N. Carter
Chairman and CEO May 10, 2001

 
Note: This press release contains statements relating to future results of the Company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties.These risks and uncertainties include, but are not limited to: general economic and industry conditions; slower than anticipated penetration into the satellite communications, defense and wireless markets; the risk that the benefits expected from the acquisition of Filtran Microcircuits Inc. are not realized; the ability to protect proprietary information and technology; competitive products and pricing pressures; the risk that the Company will not be able to continue to raise sufficient capital to expand its operations as currentlycontemplated by its business strategy; risks relating to governmental regulatoryactions in communications and defense programs; risks associated with demand for and market acceptance of existing and newly developed products; and inventory risks due to technological innovation and product obsolescence, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
 
 

$ 6,090,367

$ 4,911,373

3,145,911

2,475,026

2,310,066

2,022,952

637,916

355,970

330,000

315,000

(36,375)

80,491

(95,696)

(299,387)

(65,000)

(135,000)

(a) $ (30,696)

(b) $ (164,387)