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Contact:
Charles E. Miller Philip Bourdillon / Eugene Heller
President and CEO Silverman Heller Associates
303-651-0550 310-208-2550
ENGINEERING MEASUREMENTS COMPANY REPORTS
FISCAL YEAR-END RESULTS
LONGMONT, COLORADO - JULY 26, 2000 - ENGINEERING MEASUREMENTS COMPANY (NASDAQ -
NMS: EMCO) today reported results for the twelve months ended April 30, 2000.
For the twelve months ended April 30, 2000 the Company reported a net loss of
$139,000, or $0.03 per diluted share, on net sales of $9.2 million, compared to
net income of $197,000, or $0.05 per diluted share, on net sales of $9.7 million
in fiscal 1999.
At fiscal year-end the Company had $3.4 million in working capital, no long-term
debt, and stockholders' equity of $6.4 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
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 OPERATIONS AND COMPREHENSIVE OPERATIONS
<TABLE>
<CAPTION>
Twelve Months Ended
April 30,
2000 1999
---- ----
<S> <C> <C>
Sales $ 9,234,052 $ 9,694,913
Cost of sales 5,693,569 5,711,006
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Gross margin on sales 3,540,483 3,983,907
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Operating expenses:
Selling 1,917,928 2,142,086
General and administrative 872,223 937,873
Research and development 880,932 790,252
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Total operating expenses 3,671,083 3,870,211
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Income (loss) from operations (130,600) 113,696
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Other income/(expense):
Loss on sale of stock (119,025) (6,574)
Interest expense (744) (266)
Interest and Dividend Income 54,697 93,237
Other income 4,807 31,817
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Total other income/(expense) (60,265) 118,214
Income/(loss) before income taxes (190,865) 231,910
Income tax provision/(benefit) (52,005) 34,972
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Net income/(loss) $ (138,860) $ 196,938
============ ============
Other comprehensive income (loss)
Unrealized holding loss (10,551) (12,441)
Tax benefit of stock option exercise 93,400 0
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Comprehensive income (loss) (56,011) 184,497
============ ============
Net earnings/(loss) per share $ (0.03) $ 0.05
Net earnings/(loss) per share on a fully
diluted basis $ (0.03) $ 0.05
============ ============
Weighted average number of
shares outstanding 4,082,890 4,021,729
============ ============
</TABLE>
