News Release
Merrimac Reports Third Quarter And Nine Months 2000 Results; Backlog Continues To Increase
WEST CALDWELL, NJ (August 10, 2000) - Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and Micro- Multifunction Modules (MMFMTM), today announced results for the third quarter and first nine months ended September 30, 2000. Chairman and CEO Mason N. Carter commented, "Merrimac and Filtran have both received strong order input, and our backlog is at an all-time high, ahead of plan for nine months. A significant revenue increase of almost 21 percent, coupled with a 49 percent gross margin, provided a strong operating performance by our management team. We are very encouraged by the increase in development activity for our Multi-MixTM technology with the wireless telecommunications industry."
Third quarter 2000 sales of $6,437,000 increased $1,109,000 or 20.8 percent compared to third quarter sales of the prior year of $5,328,000. Net income for the third quarter of 2000 was $219,000, an increase of $110,000 compared to 1999. Diluted net income per share was $.09 compared to the diluted per share amount of $.06 reported for the third quarter of the prior year.
For the first nine months of 2000, sales of $16,298,000 increased $1,106,000 or 7.3 percent compared to prior year’s nine-month sales of $15,192,000. Net income for the first nine months of $94,000 was recorded, after the net effects of a first quarter personnel restructuring charge of $189,000. Net income of $405,000 was reported for the first nine months of 1999. Diluted net income per share was $.04, reflecting the first quarter of 2000 restructuring charge of $.09 per diluted share. For the first nine months of the prior year, diluted net income per share of $.23 was reported.
The weighted average number of basic and diluted shares outstanding increased for the third quarter and first nine months of 2000 resulting from the issuance of 375,000 shares to Ericsson Holding International, B.V. in the second quarter 2000, and higher average common stock prices that increased dilution from stock options.
The backlog at the end of the third quarter of 2000 was $11.7 million, an increase of $5.6 million or 92 percent over year-end 1999, and $3.8 million or 47 percent when compared to the backlog of $8.0 million at the end of the third quarter of last year. Orders received during the third quarter of 2000, totaling $7.3 million, exceeded the third quarter 2000 sales level by approximately 14 percent, and orders for the first nine months of 2000, totaling $21.9 million, exceeded the nine months 2000 sales level by approximately 35 percent.
Mr. Carter continued, "Multi-MixTM wireless product development is proceeding with a focus on basestation, broadband internet systems, with wireless local loop and point-to-point radio applications. A major Multi-MixTM R&D program offers what we believe is a breakthrough technology for innovative wireless applications solutions going forward.
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 200 co-workers in the design and manufacture of signal processing components, gold plating of high-frequency microstrip, bonded stripline and thick metal-backed Teflon (PTFE) micro-circuitry, MMFM™ and subsystems. 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 Merrimac (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; risks relating to governmental regulatory actions in communications and defense programs; and inventory risks due to technological innovation, as well as other risks and uncertainties, including but not limited to those detailed from time to time in Merrimac's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and Merrimac 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 |
| |
September 30, 2000 |
October 2, 1999 |
| |
| Net sales |
$6,437,000 |
$5,328,000 |
| Gross profit |
3,135,000 |
2,634,000 |
| Selling, general and administrative expenses |
2,273,000 |
1,821,000 |
| Research and development |
484,000 |
577,000 |
| Interest and other expense, net |
9,000 |
66,000 |
| Income before income taxes |
369,000 |
170,000 |
| Provision for income taxes |
150,000 |
60,000 |
| Net income |
219,000 |
110,000 |
| |
Net income per common share
- basic |
$.10 |
$.06 |
Net income per common share
- diluted |
$.09 |
$.06 |
| |
| Weighted average number of shares outstanding - basic |
2,186,000 |
1,741,000 |
| Weighted average number of shares outstanding - diluted |
2,379,000 |
1,772,000 |
| |
Nine Months Ended |
| |
September 30, 2000 |
October 2, 1999 |
| |
| Net sales |
$16,298,000 |
$15,192,000 |
| Gross profit |
7,955,000 |
7,345,000 |
| Selling, general and administrative expenses |
6,068,000 |
5,053,000 |
| Research and development |
1,333,000 |
1,524,000 |
| Interest and other expense, net |
115,000 |
145,000 |
| Income before income taxes (a) |
124,000 |
623,000 |
| Provision for income taxes (a) |
30,000 |
218,000 |
| Net income (a) |
94,000 |
405,000 |
| |
Net income per common share
- basic (a) |
$.05 |
$.23 |
Net income per common share
- diluted (a) |
$.04 |
$.23 |
| |
| Weighted average number of shares outstanding - basic |
2,021,000 |
1,750,000 |
| Weighted average number of shares outstanding - diluted |
2,171,000 |
1,776,000 |
(a) Reflects the effects of the first quarter 2000 restructuring charge of $315,000 which reduced the after-tax results of operations by $189,000 or $.09 per diluted share for the first nine months of 2000.
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