News Release
Merrimac Reports First Quarter 2002 Results
WEST CALDWELL, N.J. May 14, 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 first quarter of 2002.
First quarter 2002 sales of $6,851,000 increased 12.5 percent compared to first quarter 2001 sales of $6,090,000. Sales growth in the RF Microwave Products Group, derived from defense and satellite communications applications, was partly offset by softness in the Filtran Microcircuits Inc. microwave micro-circuitry business. Operating income was $275,000 compared to $198,000 before the effect of the charges associated with the reincorporation in Delaware of $330,000 in the first quarter of 2001.
Net income for the first quarter of 2002 was $143,000 compared to a net loss of $31,000 recorded for the first quarter of 2001, after the after-tax effects of the first quarter 2001 reincorporation charge of $198,000.
Net income per basic and diluted share of $.05 was recorded for the first quarter of 2002 compared to a net loss of $.01 per share reported for the first quarter of 2001, after the after-tax effects of the first quarter 2001 reincorporation charge of $.08 per share.
Chairman and CEO Mason N. Carter commented, "Operating income for the first quarter of 2002 increased $77,000 or 39 percent compared to the first quarter of 2001 operating income, before the first quarter 2001 reincorporation charge. Higher operating income resulted from gross profit due to the increase in sales. Notable sales orders which were booked in the first quarter of 2002 included a high-frequency 77GHz circuit board order for automotive adaptive cruise control, wireless basestation circuit boards, critical components for use in homeland security detection devices, and a Multi-Mix® defense order for complex multilayer integrated assemblies."
Carter continued, "It was with great pleasure that we announced that DuPont Electronic Technologies purchased from Merrimac a 16.6% equity interest for a purchase price of approximately $5.3 million. Furthermore, Merrimac and DuPont are working together to better understand the dynamics of the markets for high-frequency electronic components and modules. As the 'Module Evolution' spreads across industry segments, increasing the outsourcing of multifunction modules, Merrimac anticipates being strongly-positioned to meet the needs of a broad range of signal processing requirements with a breadth of packaging solutions."
The weighted average number of shares outstanding increased by approximately 338,000 shares or 13 percent for the first quarter of 2002 compared to the first quarter of 2001, resulting from the issuance of 528,000 new shares to DuPont Electronic Technologies during the first quarter of 2002.
The backlog at the end of the first quarter of 2002 was $10.8 million, a decrease of $1.0 million or 8.7 percent compared to year-end 2001, and $1.3 million or 10.5 percent when compared to the backlog of $12.1 million at the end of the first quarter of 2001. Orders received during the first quarter of 2002 totaling $5.8 million were exceeded by the first quarter of 2002 sales level by approximately 15.0 percent, reflecting a temporary softness in certain communications markets that are served by the Company.
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 240 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
|
| |
March
30, 2002
|
March
31, 2001
|
Net sales
|
$6,851,000
|
$6,090,000
|
|
Gross profit
|
3,194,000
|
3,146,000
|
|
Selling, general and administrative expenses
|
2,344,000
|
2,310,000
|
|
Research and development
|
575,000
|
638,000
|
|
Interest and other expense (income), net
|
62,000
|
(36,000)
|
|
Income (loss) before income taxes
|
213,000
|
(a)(96,000)
|
|
Provision (benefit) for income taxes
|
70,000
|
(a)(65,000)
|
|
Net income (loss)
|
143,000
|
(a)(31,000)
|
| |
|
|
|
Net income (loss) per common share - basic
|
$.05
|
(a) ($.01)
|
|
Net income (loss) per common share - diluted
|
$.05
|
(a) ($.01)
|
| |
|
|
|
Weighted average number of shares outstanding - basic
|
2,835,000
|
2,605,000
|
|
Weighted average number of shares outstanding - diluted
|
2,943,000
|
2,605,000
|
(a) Reflects the effects of the reincorporation charge of $330,000 which reduced the after-tax results of operations by $198,000 or $.08 per share in the first quarter of 2001.
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|
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