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Contact:
Charles E. Miller Philip Bourdillon/Eugene Heller
President and CEO Silverman Heller Associates
303-651-0550 310-208-2550
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ENGINEERING MEASUREMENTS COMPANY REPORTS
FISCAL 2001 FIRST-QUARTER RESULTS
LONGMONT, COLORADO -- September , 2000 -- Engineering Measurements Company
(Nasdaq -- NMS: EMCO) today reported results for the three months ended July 31,
2000. The Company's current fiscal year ends on April 30, 2001.
For the three months ended July 31, 2000 the Company reported a net loss of
$124,000, or $0.03 per diluted share, on net sales of $2.5 million, compared to
net income of $5,000 on net sales of $2.2 million in the first quarter of fiscal
2000.
At the end of the first quarter of fiscal 2001, Company had $3.8 million in
working capital, no long-term debt, and stockholders' equity of $6.9 million.
As announced on July 6, 2000, the Company has entered into a definitive
agreement to be acquired by Advanced Energy Industries, Inc. (Nasdaq -- NMS:
AEIS) in an exchange of stock. Under the terms of the agreement, which is
subject to approval by EMCO's stockholders and certain other conditions, all of
EMCO's outstanding common stock as of the effective date of the merger will be
exchanged for shares of Advanced Energy Industries based upon an exchange ratio
which is determined by dividing 900,000 by the sum of EMCO's outstanding shares
plus outstanding options as of the closing of the transaction. At the Company's
latest fiscal year-end, there were outstanding approximately 4.1 million shares
of EMCO common stock and approximately 340,000 options to purchase such shares
of common stock
Engineering Measurements Company designs, manufactures, and markets
electronic and electro-mechanical precision instruments for measuring and
controlling the flow of liquids, steam, and gases, and also engages in contract
electronic printed circuit board assembly.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The matters discussed in this news release contain comments and
forward-looking statements based on current plans, expectations, events, and
financial and industry trends which may affect the Company's future operating
results and financial position. Such statements involve risks and uncertainties
which cannot be predicted or quantified and which may cause future activities
and results of operations to differ materially from those discussed above. The
historical results achieved are not necessarily indicative of future prospects
of the Company. For additional information, refer to the Company's filings with
the Securities and Exchange Commission.
(Statements of Operations Follow)
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ENGINEERING MEASUREMENTS COMPANY
STATEMENTS OF INCOME AND OPERATIONS
(UNAUDITED)
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THREE MONTHS ENDED
JULY 31,
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2000 1999
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Sales....................................................... $2,462,131 $2,227,590
Cost of sales............................................... 1,474,266 1,356,913
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Gross margin on sales....................................... 987,865 870,677
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Operating expenses:
Selling................................................... 576,983 453,997
General and administrative................................ 379,855 231,354
Research and development.................................. 267,302 237,627
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Total operating expenses.......................... 1,224,140 922,978
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Loss from operations........................................ (236,275) (52,301)
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Other income/(expense):
Gain/(loss) on sale of stock.............................. (2,309) 14,985
Interest expense.......................................... (8) (164)
Interest and dividend income.............................. 17,068 13,439
Other income.............................................. 4,738 45
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Total other income................................ 19,489 28,305
Loss from operations before income taxes.................... (216,786) (23,996)
Income tax benefit.......................................... (93,099) (29,457)
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Net earnings/(loss)......................................... $ (123,687) $ 5,461
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Other comprehensive income:
Unrealized holding gain/(loss)............................ 13,180 (1,313)
Tax benefit of stock option exercise...................... 112,201 0
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Comprehensive income........................................ $ 1,694 $ 4,148
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Net earnings/(loss) per share -- basic...................... $ (0.03) $ 0.00
Net earnings/(loss) per share -- diluted.................... $ (0.03) $ 0.00
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Weighted average number of shares outstanding -- basic and
diluted................................................... 4,155,717 4,021,729
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