News Release
Merrimac Reports First Quarter 2001 Results and Backlog Increase
WEST CALDWELL, NJ (May 10, 2001) - Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules, today announced results for the first quarter 2001 and an increase in its backlog.
First quarter 2001 sales of $6,090,000 increased 24.0 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.
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 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.
Chairman and CEO Mason N. Carter commented, "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 a backlog of $12.1 million, an all-time high, and the solid book-to-bill ratio encourages efficient utilization of our manufacturing facilities.
"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."
Carter further stated, "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 SolutionsTM."
About Merrimac
Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave components, assemblies and Micro-Multifunction (MMFM®) Modules serving the wireless telecommunications industry worldwide with enabling technologies for commercial applications. Merrimac is focused on providing Total Integrated Packaging SolutionsTM with Multi-Mix® Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. The Multi-Mix® process for microwave, multilayer integrated MMFM® circuits is a patented method developed at Merrimac Industries based on fluoropolymer composite substrates. The fusion bonding of multilayer structures provides a homogeneous dielectric medium for superior electrical performance at microwave frequencies. The bonded layers may incorporate embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional subsystem enclosure that requires no further packaging. Merrimac Industries, Inc. is ISO 9001 certified.
Merrimac Industries, Inc. and its subsidiary Filtran Microcircuits Inc., with locations in West Caldwell, NJ, San Jose, Costa Rica and Ottawa, Ontario, Canada, have approximately 260 co-workers dedicated to the design and manufacture of signal processing components, gold plating of high frequency microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro-circuitry and subsystems providing Total Integrated Packaging SolutionsTM wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. For more information about Merrimac Industries, visit its home page at www.merrimacind.com.
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 currently contemplated by its business strategy; risks relating to governmental regulatory actions 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.
Note: These news releases are also available on the Internet at: www.prnewswire.com.
Contacts
Mason N. Carter, Chairman and CEO,
Tel: 973.575.1300, Ext. 1202; Fax: 973.882.5989
E-mail: mnc@merrimacind.com
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Quarter Ended
|
| |
March 31,
2001
|
April 1,
2000
|
|
Net sales
|
$6,090,000
|
$4,911,000
|
|
Gross profit
|
3,146,000
|
2,475,000
|
|
Selling, general and administrative expenses
|
2,310,000
|
2,023,000
|
|
Research and development
|
638,000
|
356,000
|
|
Interest and other expense (income), net
|
(36,000)
|
80,000
|
|
Loss before income taxes
|
(a) (96,000)
|
(b) (299,000)
|
|
Benefit for income taxes
|
(a) (65,000)
|
(b) (135,000)
|
|
Net loss
|
(a) (31,000)
|
(b) (164,000)
|
| |
|
|
|
Net loss per common share-basic
|
(a) ($.01)
|
(b) ($.09)
|
|
Net loss per common share-diluted
|
(a) ($.01)
|
(b) ($.09)
|
| |
|
|
|
Weighted average shares outstanding-basic
|
2,605,000
|
1,747,000
|
|
Weighted average shares outstanding-diluted
|
2,815,000
|
1,817,000
|
(a) Reflects the effects of the reincorporation charge of $330,000 which reduced the after-tax results of operations by $198,000 or $.07 per share for the first quarter of 2001.
(b) Reflects the effects of a restructuring charge of $315,000 which reduced the after-tax results of operations by $189,000 or $.10 per share for the first quarter of 2000.
|
|
|
