News Release
Merrimac 1996 Fourth Quarter Sales and Backlog Surge
WEST CALDWELL, NJ (February 1997) - Merrimac Industries, Inc. (AMEX: MRM), announces results for the 1996 year, reflecting flat sales and a net loss after the impact of a restructuring charge.
Fourth quarter sales rebounded from $2,998,000 reported in the third quarter of 1996 to $4,042,000, an increase of $530,000 or 15.1% over the fourth quarter of the prior year. Net income declined $176,000 or 39% in the fourth quarter of 1996 compared to the fourth quarter 1995. Net income per share declined by $.09 or 33%, and the number of weighted average common shares outstanding was reduced by approximately 138,000 shares, primarily from common stock repurchases during 1996. More aggressive pricing and the completion costs of certain developmental defense contracts finished during the fourth quarter negatively impacted quarterly operating results. Also, coincident with the increase in sales volume, the continuation of non-recurring administrative costs associated with refocusing the Company's marketing direction and restructuring its management organization, plus the Costa Rica manufacturing facility start-up further aggravated fourth quarter costs.
The 1996 year-end backlog is up to $8.2 million, 45% above year-end 1995. Orders were strong for Merrimac products in the fourth quarter. Comparison of the fourth quarter to the third quarter of 1996 shows a 20% increase in backlog.
When compared to fiscal 1995, sales decreased 1.7% in 1996 to $14,153,000. There was a net loss of $297,000 or $.19 per share in 1996 (versus net income of $1,652,000 or $.95 per share in fiscal 1995). Restructuring charges (and related credit for income taxes) were adjusted downwards to $829,000 or $.52 per share from the amounts originally reported in the third quarter.
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., with locations in West Caldwell, NJ and San Jose, Costa Rica, has approximately 160 employees in the design and manufacture of high-performance components for communications, defense and aerospace 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 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
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MERRIMAC INDUSTRIES, INC.
Summary of Consolidated Statements of Income
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Quarter Ended
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Dec 28
1996
13 weeks
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DEC 30
1995
12 weeks
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(unaudited)
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Net sales
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$4,042,000
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$3,512,000
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Income before income taxes
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493,000
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721,000
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Provision for income taxes
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216,000
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268,000
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Net income (a)
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277,000
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453,000
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Net income per common share (a)
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$.18
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$.27
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Weighted average
common shares outstanding
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1,537,000
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1,675,000
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Year Ended
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DEC 28
1996
52 weeks
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DEC 30
1995
52 weeks
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(unaudited)
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Net sales
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$14,153,000
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$14,397,000
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Income (loss) before income taxes
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(491,000)
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2,591,000
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Provision (credit) for income taxes
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(194,000)
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939,000
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Net income (loss) (b)
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(297,000)
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1,652,000
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Net income (loss) per common share (b)
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($.19)
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$.95
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Weighted average
common shares outstanding
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1,586,000
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1,737,000
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(a) Reflects the effects of adjustments to restructuring charges
in the fourth quarter of 1996 which increased net income by $87,000 or $.05 per share.
(b) Reflects the effects of restructuring charges in 1996 which,
as adjusted in the fourth quarter from those amounts originally
reported in the third quarter, reduced net income by $829,000 or
$.52 per share.
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