Elecsys Corporation
------------------------------------------------------------------------------
11300 W. 89th Street o Overland Park, Kansas 66214 USA o
913/495-6800 o Fax 913/492-0870
Contact: Thomas C. Cargin
Vice President - Finance and Administration
(913) 495-2614
ELECSYS CORPORATION REPORTS SECOND QUARTER RESULTS
OVERLAND PARK, Kansas, (November 22, 2000) - Elecsys Corporation (AMEX: ASY)
today reported results for the second quarter and six months of the Company's
2001 fiscal year.
For the three months ended October 31, 2000, Elecsys Corporation reported
consolidated net sales of $5.4 million compared with $4.6 million a year ago.
The Company reported a net loss for the second quarter of $208,000, or $0.08 per
share, versus net income of $76,000, or $0.03 per diluted share, in the
year-earlier period. Net sales for the first six months of fiscal 2000 totaled
$11.6 million compared with $7.3 million in the first half of fiscal 2000. The
Company reported a net loss for the first six months of $70,000, or $0.03 share,
compared with a net loss of $517,000, or $0.23 per diluted share, in the
year-earlier period.
For the three months ended October 31, 2000, the Company's DCI subsidiary
reported net sales of $1.9 million, and net income of $60,000. For the six
months ended October 31, 2000. DCI reported net sales of $3.8 million, and net
income of $93,000. DCI was acquired by the Company on February 7, 2000.
For the three months ended October 31, 2000, the Company's Airport Systems
subsidiary reported net sales of $3.6 million, and a net loss of $271,000,
compared to sales of $4.6 million a year ago and net income of $76,000. For the
six months ended October 31, 2000, the Airport Systems reported net sales $8.1
million, and a net loss of $160,000 compared to sales of $7.3 million and a loss
of $517,000 for the same period last year.
Keith S. Cowan, president and chief executive officer said, "While we were
disappointed by the lack of profitability, we are very pleased by the 59%
improvement in revenue over the first half of last year, and the very strong
level of orders received during the quarter. We were encouraged by our operating
profit of $420,000 in the first six months of this year, compared to a $431,000
operating loss in the first half of last year. The net loss this year was the
result of increased interest expense. Airport Systems orders for the quarter
included the previously announced Egypt lighting and U.S.A.F. localizer antenna
replacement projects. In addition, orders were received for three Doppler
VOR/DMEs in Asia, a VOR/DME in Africa, airfield lighting products from NASA and
three U.S. ILS. The total of these orders, including the $5.5 million in
U.S.A.F. localizer antenna options, is approximately $15 million. The higher
level of orders provides the opportunity for an increase in sales in the second
half of the year."
Cowan continued, "The Company's DCI subsidiary achieved several operational
accomplishments, including completion of delivery of its first dichroic liquid
crystal displays (LCD) to the Avionics Division of Kollsman, Inc. These dichroic
LCDs provide a higher contrast ratio and wider viewing angle than the company's
twisted pneumatic LCD devices. In addition, the Company launched its new
standard LCD module product line. These industry standard character and graphic
display modules are manufactured by DCI's offshore LCD manufacturing partner in
China and are sold through a network of representatives and distributors. In
addition, DCI completed two infrastructure projects, which were begun shortly
after the acquisition in February 2000. The implementation of a new integrated
Enterprise Resource Planning information system, which will allow more efficient
material planning and purchasing was completed. DCI also successfully
implemented the internationally recognized ISO 9001 quality system and passed
its registration audit. This quality system certification will allow DCI to
successfully compete for a greater range of contract electronic manufacturing
jobs."
<PAGE>
Elecsys Corporation is a designer and manufacturer of electronic components,
subassemblies and systems. Its Airport Systems International, Inc. subsidiary
designs, manufactures and implements ground-based radio navigation and landing
systems (navaids) and airfield lighting to aid the in-flight navigation and
ground movement of aircraft. The DCI, Inc. subsidiary provides contract
electronic manufacturing services, standard and custom liquid crystal display
devices and panel meters to a wide variety of medical electronics, consumer
products and aerospace OEMs.
<TABLE>
<CAPTION>
ELECSYS CORPORATION
Unaudited Financial Highlights
Three Months Ended
October 31,
------------------------------------------------------
2000 1999
------------------------- -------------------------
<S> <C> <C>
Sales $ 5,363,000 $ 4,566,000
Net income (loss) $ (208,000) $ 76,000
Net income (loss) per share - basic $ (0.08) $ 0.03
Net income (loss) per share - diluted $ (0.08) $ 0.03
Weighted average shares outstanding - basic 2,579,000 2,231,000
Weighted average shares outstanding - diluted 2,579,000 2,388,000
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
January 31,
------------------------------------------------------
2000 1999
------------------------- -------------------------
<S> <C> <C>
Sales $ 11,593,000 $ 7,336,000
Net income (loss) $ (70,000) $ (517,000)
Net income (loss) per share - basic $ (0.03) $ (0.23)
Net income (loss) per share - diluted $ (0.03) $ (0.23)
Weighted average shares outstanding - basic 2,579,000 2,231,000
Weighted average shares outstanding - diluted 2,579,000 2,231,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ELECSYS CORPORATION AND SUBSIBDIARY
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
---------------------------------- ---------------------------------------
2000 1999 2000 1999
--------------- --------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Sales $ 5,363 $ 4,566 $ 11,592 $ 7,336
Cost of Products Sold 3,758 3,257 8,027 5,317
-------- -------- -------- --------
Gross Margin 1,605 1,309 3,565 2,019
Selling, General and
Administrative Expenses 1,508 930 3,094 1,861
Research & Development Expenses 31 261 51 589
-------- -------- -------- --------
Operating Income (loss) 66 118 420 (431)
Other Income:
Interest Expense (274) (42) (490) (86)
Other, Net 0 0 0 0
-------- -------- -------- --------
Income (Loss) Before Income Taxes (208) 76 (70) (517)
Provision (benefit) For Income Taxes 0 0 0 0
Net Income (loss) $ (208) $ 76 $ (70) (517)
======== ======== ======== ========
Income (loss) Per Share:
Basic $ (0.08) $ .03 $ (0.03) $ (0.23)
======== ======== ======== ========
Diluted $ (0.08) $ .03 $ (0.03) $ (0.23)
======== ======== ======== ========
Weighted Average Common Shares
Basic 2,579 2,231 2,579 2,231
======== ======== ======== ========
Diluted 2,579 2,388 2,579 2,283
======== ======== ======== ========
</TABLE>
