News Release
Merrimac Reports Second Quarter and Six Months 2001 Results
WEST CALDWELL, N.J., August 7, 2001: 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 second quarter and first six months of 2001.
Second quarter 2001 sales of $6,766,000 increased 36.7 percent compared to second quarter sales of $4,949,000 for the prior year. Net income for the second quarter of 2001 was $136,000 compared to $40,000 for second quarter 2000. Diluted net income per share was $.05 compared to the diluted per share amount of $.02 reported for the second quarter of 2000.
For the first six months of 2001 sales of $12,857,000 increased 30.4 percent compared to sales of $9,861,000 for the first six months of 2000. Operating income for the first six months of 2001 was $396,000, before the effect of the charges associated with the reincorporation in Delaware of $330,000 in the first quarter 2001, compared to $176,000 of operating income for the first six months of 2000, before the first quarter 2000 personnel restructuring charge of $315,000.
Net income for the first six months of 2001 was $106,000, after the net effects of the first quarter 2001 reincorporation charge of $198,000. For the first six months of 2000, a net loss of $125,000 was reported, after the net effects of the first quarter 2000 restructuring charge of $189,000.
Net income per diluted share of $.04 was recorded for the first six months of 2001, after the net effects of the $.07 per share reincorporation charge reported in the first quarter of 2001. For the first six months of 2000, a net loss of $.06 per share was reported, after the net effects of a $.10 per share restructuring charge reported in the first quarter of 2000.
The weighted average number of diluted shares outstanding increased by approximately 455,000 shares or 20 percent for the second quarter 2001 and 813,000 shares or 41 percent for the first six months of 2001 compared to the same periods 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 the prior year.
The backlog at the end of the second quarter of 2001 was $12.2 million, an increase of $1.6 million or 15 percent over year-end 2000, and an increase of $1.4 million or 13 percent when compared to the backlog of $10.8 million at the end of the second quarter of last year. Orders received during the second quarter of 2001, totaling $6.9 million, exceeded the second quarter 2001 sales level by approximately 2 percent, and orders for the first six months of 2001, totaling $14.5 million, exceeded the six months 2001 sales level by approximately 12 percent.
Chairman and CEO Mason N. Carter commented, "As previously reported in our Mid-Year 2001 Update, we achieved record sales, order input exceeded sales and backlog remained strong. Highlighting our six-month operating performance was a 52 percent gross margin on our diversified product mix. These sales, orders and backlog levels have been achieved despite some market slowdown from our plan. Congratulations go to our management team and all co-workers, in particular our RF Microwave Group, for this outstanding performance.
"Our product development reinvestment levels have increased and the initial results of this investment manifested in the launch last week of Multi-Mix PICOTM, a revolutionary technology breakthrough that shrinks microwave components size by more than 84 percent. These tiny components handle the same high levels of power that, until now, required eight times the mass to handle. Clearly, there is nothing on the market to compare with it."
Carter continued, "Complementing this initial product launch of PICO quadrature hybrids and PICO directional couplers are soon to be announced Multi-Mix PICO in-line multicouplers, phase shifters, hybrid junctions, vector modulators and micro multifunction modules. Multi-Mix PICO is setting the industry standard by providing innovative RF Microwave design engineers and decision makers alternatives to conventional, bulky, high-priced components and multifunction modules.
"Multi-Mix PICO will have an enormous impact in both size and performance on wireless systems ranging from 2.5G and 3G wireless base stations, to hand-held wireless- enabled PDAs and other portable devices, wearable medical instruments, plus defense and aerospace systems."
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 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 www.merrimacind.com and 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: These 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
|
| |
June 30
2001
|
July 1
2000
|
Net sales
|
$6,766,000
|
$4,949,000
|
|
Gross profit
|
3,605,000
|
2,345,000
|
|
Selling, general and administrative expenses
|
2,497,000
|
1,772,000
|
|
Research and development
|
910,000
|
493,000
|
|
Interest and other expense (income), net
|
(13,000)
|
25,000
|
|
Income before income taxes
|
211,000
|
55,000
|
|
Provision for income taxes
|
75,000
|
15,000
|
|
Net income
|
136,000
|
40,000
|
| |
|
|
|
Net income per common share - basic
|
$.05
|
$.02
|
|
Net income per common share - diluted
|
$.05
|
$.02
|
| |
|
|
|
Weighted average number of shares outstanding - basic
|
2,619,000
|
2,130,000
|
|
Weighted average number of shares outstanding - diluted
|
2,761,000
|
2,306,000
|
| |
Six Months Ended
|
| |
June 30
2001
|
July 1
2000
|
Net sales
|
$12,857,000
|
$9,861,000
|
|
Gross profit
|
6,751,000
|
4,820,000
|
|
Selling, general and administrative expenses
|
4,807,000
|
3,795,000
|
|
Research and development
|
1,548,000
|
849,000
|
|
Interest and other expense (income), net
|
(50,000)
|
106,000
|
|
Income (loss) before income taxes
|
(a) 116,000
|
(b) (245,000)
|
|
Provision (benefit) for income taxes
|
(a) 10,000
|
(b) (120,000)
|
|
Net income (loss)
|
(a) 106,000
|
(b) (125,000)
|
| |
|
|
|
Net income (loss) per common share - basic
|
(a) $.04
|
(b) ($.06)
|
|
Net income (loss) per common share - diluted
|
(a) $.04
|
(b) ($.06)
|
| |
|
|
|
Weighted average number of shares outstanding - basic
|
2,612,000
|
1,984,000
|
|
Weighted average number of shares outstanding - diluted
|
2,797,000
|
1,984,000
|
(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 diluted share for the first six months 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 six months of 2000.
|
|
|
