News Release
Merrimac Reports Fourth Quarter and Fiscal Year 2001 Results
WEST CALDWELL, N.J., March 15, 2002: Merrimac Industries, Inc. (AMEX: MRM), a leader in the design and manufacture of RF Microwave components, assemblies and micro-multifunction modules (MMFM®), today announced results for the fourth quarter and fiscal year 2001.
Fourth quarter 2001 sales of $7,124,000 increased 5.7 percent compared to fourth quarter sales of $6,738,000 for the prior year. Net income for the fourth quarter of 2001 was $128,000 compared to net income of $221,000 for the fourth quarter of 2000. Net income per share was $.05 compared to net income per diluted share of $.08 reported for the fourth quarter of 2000.
For fiscal year 2001, sales of $25,793,000 increased 12.0 percent compared to sales of $23,036,000 for fiscal year 2000. Operating income for fiscal year 2001 was $217,000, before the effect of the charges associated with the reincorporation in Delaware of $330,000 in the first quarter of 2001, compared to $759,000 of operating income for fiscal year 2000, before the first quarter 2000 personnel restructuring charge of $315,000.
Net income for fiscal year 2001 was $24,000, after the net effects of the first quarter 2001 reincorporation charge of $198,000. For fiscal year 2000, net income of $315,000 was reported, after the net effects of the first quarter 2000 restructuring charge of $189,000.
Net income per share of $.01 was recorded for fiscal year 2001, after the net effects of the $.07 per share reincorporation charge reported in the first quarter of 2001. For fiscal year 2000, net income of $.14 per diluted share was reported, after the net effects of the $.08 per share restructuring charge for fiscal year 2000 that occurred in the first quarter of 2000.
The weighted average number of diluted shares outstanding decreased by approximately 52,000 shares or 1.9 percent for the fourth quarter of 2001 and increased by approximately 426,000 shares or 18.4 percent for fiscal year 2001 compared to the same periods of the prior year. The changes resulted from the issuance in private placements of 375,000 shares in the second quarter of 2000 and 360,000 shares in the fourth quarter of 2000, as well as stock option exercises and higher average stock prices during the prior year.
The backlog at the end of the fourth quarter of 2001 was $11.8 million, an increase of $1.2 million or approximately 11.4 percent when compared to the backlog of $10.6 million at the end of the fourth quarter of last year. Orders received during the fourth quarter of 2001, totaling $6.2 million, were exceeded by the fourth quarter of 2001 sales level by approximately 12.3 percent. Orders for fiscal year 2001, totaling $27.0 million, exceeded the fiscal year 2001 sales level by approximately 4.7 percent.
Chairman and CEO Mason N. Carter commented, "We have added a variety of new Multi-Mix PICOTM products to our portfolio and strengthened our customer relationships by providing customized solutions for our key space, defense and commercial customers. In the distressed wireless market, we are positioning ourselves with customers whose products we feel will be successful when market conditions become more favorable.
"On February 28, 2002, we announced that DuPont Electronic Technologies had purchased from Merrimac a 16.6% equity interest for a purchase price of approximately $5.3 million. The associated agreements provide both companies the opportunity to work closely together to better understand the dynamics of the markets for high-frequency electronic components and modules. David B. Miller, Vice President and General Manager of DuPont Electronic Technologies, has been appointed to our Board of Directors."
Mr. Carter continued, "In a year marked by worldwide economic challenges and the destructive impact of terrorism, we continued the expansion of our production facilities. The newly constructed expansion of our West Caldwell, New Jersey facility is in its final stages of completion and we are currently moving RF Microwave Group production processes into the building. The new Multi-Mix® facility in Costa Rica is in the process of being completed.
"Despite the general economic decline and more severe economic conditions within wireless, there are some positive signs within the year-end results and looking forward for our company. We received a production contract to provide an integrated proprietary Multi-Mix® PICO solution for use in a new 3G broadband basestation. In addition, Filtran designs have led to a production order for circuitry to be used in an Adaptive Cruise Control sensor that will detect and help avoid front-end automobile accidents. Finally, we have received an order for components and sub-assemblies for use in the next generation GPS satellite-based radio navigation system. This space-based system is to be operated by the U.S. Department of Defense."
About Merrimac
Merrimac Industries, Inc. is a leader in the design and manufacture of Multi-Mix PICO RF Microwave components, assemblies and micro-multifunction modules (MMFM), serving the wireless telecommunications industry worldwide with enabling technologies for space, defense and 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 circuitry is a patented method developed by 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 facilities are registered under ISO 9000, an internationally developed set of quality criteria for manufacturing operations.
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 250 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 Solutions for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Multi-Mix, Multi-Mix PICO, MMFM and Total Integrated Packaging Solutions are trademarks of Merrimac Industries, Inc. For more information about Merrimac Industries, Inc. and Filtran Microcircuits Inc., please visit http://www.merrimacind.com and http://www.filtranmicro.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: Merrimac news releases are also available on the Internet at: http://www.prnewswire.com.
Contact:
Mason N. Carter, Chairman & CEO
973.575.1300, ext. 1202
E-mail: mnc@merrimacind.com
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Quarter Ended
|
| |
December
29, 2001
|
December
30, 2000
|
Net sales
|
$7,124,000
|
$6,738,000
|
|
Gross profit
|
3,605,000
|
3,231,000
|
|
Selling, general and administrative expenses
|
2,555,000
|
2,488,000
|
|
Research and development
|
880,000
|
538,000
|
|
Interest and other expense (income), net
|
52,000
|
(56,000)
|
|
Income before income taxes
|
118,000
|
261,000
|
|
Provision (benefit) for income taxes
|
(10,000)
|
40,000
|
|
Net income
|
128,000
|
221,000
|
| |
|
|
|
Net income per common share - basic
|
$.05
|
$.09
|
|
Net income per common share - diluted
|
$.05
|
$.08
|
| |
|
|
|
Weighted average number of shares outstanding - basic
|
2,649,000
|
2,475,000
|
|
Weighted average number of shares outstanding - diluted
|
2,687,000
|
2,739,000
|
| |
Year Ended
|
| |
December
29, 2001
|
December
30, 2000
|
Net sales
|
$25,793,000
|
$23,036,000
|
|
Gross profit
|
13,279,000
|
11,186,000
|
|
Selling, general and administrative expenses
|
9,680,000
|
8,556,000
|
|
Research and development
|
3,382,000
|
1,871,000
|
|
Interest and other expense (income), net
|
(17,000)
|
59,000
|
|
Income (loss) before income taxes
|
(a) (96,000)
|
(b) 385,000
|
|
Provision (benefit) for income taxes
|
(a) (120,000)
|
(b) 70,000
|
|
Net income
|
(a) 24,000
|
(b) 315,000
|
| |
|
|
|
Net income per common share - basic
|
(a) $.01
|
(b) $.15
|
|
Net income per common share - diluted
|
(a) $.01
|
(b) $.14
|
| |
|
|
|
Weighted average number of shares outstanding - basic
|
2,624,000
|
2,135,000
|
|
Weighted average number of shares outstanding - diluted
|
2,736,000
|
2,310,000
|
(a) Reflects the effects of the first quarter 2001 reincorporation charge of $330,000 which reduced net income by $198,000 or $.07 per share for fiscal year 2001.
(b) Reflects the effects of the first quarter 2000 restructuring charge of $315,000 which reduced net income by $189,000 or $.08 per share for fiscal year 2000.
|
|
|
