WEST CALDWELL, N.J., Aug. 17 /PRNewswire-FirstCall/ -- Merrimac
Industries, Inc. (Amex: MRM), a leader in the design and manufacture of RF
Microwave components, assemblies and micro-multifunction modules (MMFM(R)),
today announced results for the second quarter and first six months of 2004.
Sales for the second quarter of 2004 were $7,896,000, a new Company sales
record, and an increase of 19.4 percent compared to second quarter of 2003
sales of $6,613,000. Operating income in the second quarter of 2004 was
$459,000 compared to an operating loss of $(529,000) in the second quarter of
2003. Net income for the second quarter of 2004 was $444,000 or $.14 per
diluted share compared to a net loss of $(475,000) or $(.15) per share for the
second quarter of 2003.
For the first six months of 2004 sales of $15,544,000 increased
18.4 percent compared to sales of $13,124,000 for the first six months of
2003. Operating income for the first six months of 2004 was $781,000 compared
to an operating loss for the first six months of 2003 of $(1,006,000). Net
income for the first six months of 2004 was $675,000 or $.21 per diluted share
compared to a net loss for the first six months of 2003 of $(930,000) or
$(.30) per share.
Sales for the second quarter and first six months of 2004 increased due to
an improvement in orders received during the first quarter and a higher
beginning backlog going into fiscal year 2004. Second quarter and six month
operating results of 2003 were impacted by expenses associated with bank
modification agreements entered into during the second quarter and additional
professional fee expenses incurred totaling approximately $300,000.
Orders of $6,913,000 were received during the second quarter of 2004, a
decrease of $182,000 or 2.6 percent compared to $7,095,000 in orders received
during the second quarter of 2003. Orders of $15,522,000 were received for
the first six months of 2004, an increase of $293,000 or 1.9 percent compared
to $15,229,000 in orders received for the first six months of 2003. Backlog
decreased by $22,000 to $12,373,000 at the end of second quarter 2004 compared
to $12,395,000 at year-end 2003.
Chairman and CEO Mason N. Carter commented, "We are proud of this all-time
record quarter for sales. The results also represent the third consecutive
quarter of record sales for each respective quarter. For the third consecutive
quarter we have achieved a gross margin above 40 percent. Strong operating
performance, favorable product mix and on-going process improvement are the
basis for this consistency.
"In June we introduced Multi-Mix Zapper(R), our next generation of
microwave components specially designed as drop-in replacements for
conventional surface mount components used in wireless base stations and a
broad range of other applications. The Zapper series offers 45 percent higher
power handling capability and twice the reliability of competitive products
their size, but at a fraction of the cost. We provide high power handling
without consuming valuable board space. Reliability is the name of the game
and Multi-Mix Zapper(R) provides unparalleled reliability and margin of
safety."
Investors are invited to participate in the financial results conference
call on Tuesday August 17, 2004 at 4:30 p.m. (Eastern) by dialing
1-800-289-0518 (for International callers: 1-913-981-5532) ten minutes prior
to the scheduled start time, and reference the Merrimac Industries second
quarter 2004 conference call. For those unable to participate, a replay will
be available for seven days by dialing 1-888-203-1112, or 1-719-457-0820 for
international callers, passcode number 817465.
This conference call will also be broadcast live over the Internet by
logging on to the web at this address:
http://phx.corporate-ir.net/playerlink.zhtml?c=73209&s=wm&e=929774
If you are unable to participate during the live webcast, a link to the
archived webcast will be listed on the Merrimac Industries, Inc. website
http://www.merrimacind.com .
About Merrimac
Celebrating its 50th anniversary, Merrimac Industries, Inc. is a leader in
the design and manufacture of Multi-Mix PICO(TM) 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 Solutions(R) with Multi-Mix(R) Microtechnology, a leading
edge competency providing value to our customers through miniaturization and
integration. The Multi-Mix(R) 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.,
are located in West Caldwell, NJ, San Jose, Costa Rica, and Ottawa, Ontario,
Canada, and have approximately 230 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(R) for
wireless applications. Merrimac (MRM) is listed on the American Stock
Exchange. Multi-Mix(R), Multi-Mix PICO(TM), MMFM(R) and Total Integrated
Packaging Solutions(R) 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: risks associated with demand for and market acceptance
of existing and newly developed products as to which the Company has made
significant investments, particularly its Multi-Mix(R) products; 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 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.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
Quarter Ended
July 3, 2004 June 28, 2003
Net sales $7,896,000 $6,613,000
Gross profit 3,308,000 2,554,000
Selling, general and administrative expenses 2,453,000 2,585,000
Research and development 396,000 424,000
Restructuring charges - 74,000
Operating income (loss) 459,000 (529,000)
Interest and other expense, net (70,000) (54,000)
Gain on disposition of assets - 71,000
Income (loss) before income taxes 389,000 (512,000)
Provision (benefit) for income taxes (55,000) (37,000)
Net income (loss) 444,000 (475,000)
Basic and diluted net income (loss)
per common share $.14 $(.15)
Weighted average number of shares
outstanding - basic 3,124,000 3,121,000
Weighted average number of shares
outstanding - diluted 3,164,000 3,121,000
Six Months Ended
July 3, 2004 June 28, 2003
Net sales $15,544,000 $13,124,000
Gross profit 6,656,000 5,006,000
Selling, general and administrative expenses 4,908,000 4,914,000
Research and development 967,000 1,024,000
Restructuring charges - 74,000
Operating income (loss) 781,000 (1,006,000)
Interest and other expense, net (151,000) (113,000)
Gain on disposition of assets - 71,000
Income (loss) before income taxes 630,000 (1,048,000)
Provision (benefit) for income taxes (45,000) (118,000)
Net income (loss) 675,000 (930,000)
Basic net income (loss) per common share $.22 $(.30)
Diluted net income (loss) per common share $.21 $(.30)
Weighted average number of shares
outstanding - basic 3,122,000 3,120,000
Weighted average number of shares
outstanding - diluted 3,146,000 3,120,000
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
July 3, 2004 January 3, 2004
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,839,000 $453,000
Income tax refunds receivable 128,000 136,000
Accounts receivable, net 5,866,000 6,299,000
Inventories 3,005,000 3,188,000
Other current assets 505,000 482,000
Deferred tax assets 783,000 611,000
Total current assets 12,126,000 11,169,000
Property, plant and equipment, net 16,185,000 17,222,000
Restricted cash 1,500,000 1,500,000
Other assets 817,000 854,000
Deferred tax assets 138,000 221,000
Goodwill 3,028,000 3,123,000
Total Assets $ 33,794,000 $ 34,089,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt $868,000 $954,000
Other current liabilities 3,530,000 3,341,000
Total current liabilities 4,398,000 4,295,000
Long-term debt 3,226,000 4,208,000
Deferred compensation 71,000 89,000
Deferred liabilities 41,000 48,000
Deferred tax liabilities 630,000 611,000
Total liabilities 8,366,000 9,251,000
Stockholders' equity 25,428,000 24,838,000
Total Liabilities and Stockholders' Equity $ 33,794,000 $ 34,089,000
Certain prior year amounts have been reclassified to conform to the
current presentation.
Contact: Mason N. Carter, Chairman & CEO
973-575-1300, ext. 1202
mnc@merrimacind.com
SOURCE Merrimac Industries, Inc.
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Related links:
http://www.merrimacind.com
http://www.filtranmicro.com
Company News On-Call:
http://www.prnewswire.com/comp/567525.html
CONTACT:
Mason N. Carter, Chairman & CEO of Merrimac
Industries, Inc., +1-973-575-1300, ext. 1202, or
mnc@merrimacind.com
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