APPLIED SIGNAL TECHNOLOGY, INC.
ANNOUNCES FIRST QUARTER OPERATING RESULTS
Sunnyvale,
CA. Thursday, February 18, 2003 –
Applied Signal Technology, Inc. (NASDAQ: APSG) announced
its operating results for the first quarter of fiscal year 2003
ended January 31, 2003.
Revenues
for the first quarter of fiscal year 2003 were $18,178,000 representing
a 12% increase compared with revenues of $16,231,000 recorded during
the first quarter of fiscal year 2002. The increase in revenues
recorded during the first quarter of fiscal year 2003, when compared
to the first quarter of fiscal year 2002, is due to increased revenues
generated by the Company’s engineering development programs.
The revenues generated by these programs were primarily a result
of the new orders received during the third and fourth quarters
of fiscal year 2002.
Net
income for the first quarter of fiscal year 2003 was $1,785,000
or $0.17 per diluted share an increase of 6% when compared to the
first quarter of fiscal year 2002 net income of $1,691,000 or $0.17
per diluted share. This increase in net income is primarily due
to the growth in revenues during the first quarter of fiscal year
2003 when compared to the first quarter of fiscal year 2002.
New
orders received during the first quarter of fiscal year 2003 were
$12,044,000, down 9% compared to fiscal year 2002 first quarter
orders of $13,162,000. The decline in new orders is due to what
the Company believes to be the typical fluctuations experienced
in the U.S. Government procurement process.
Regarding
the first quarter operating results, Mr. Gary Yancey, President
and Chief Executive Officer of the Company, commented, “There
are some obvious reasons that the Company is experiencing growth
at this time. The current state of world affairs and the Bush Administration’s
reactions to them provides increasing opportunities for APSG.”
“In
addition, we believe our stellar program performance is allowing
us the opportunity to get exposure to new program initiatives as
well as new customers. As a result of our superior performance on
two prior programs, the Company has been selected for a major cyber
security contract that will be awarded soon. The Company is keeping
a strong emphasis on program performance in order to earn our way
to continued growth.”
Mr.
Yancey went on to say, “We are pleased with our first quarter
results and definitely see the path for continued growth the remainder
of this fiscal year and into the foreseeable future. I believe our
marketplace and strategic plans provide growth opportunities on
a continued basis. Our job as management is to see to it that we
continue to perform superbly on our programs.”
The
Company will host a conference call on February 18, 2003 to discuss
first quarter results. If you wish to participate in the conference
call, please dial 1-877-407-8035 for domestic callers or 1-201-689-8035
for international callers on February 18, 2003 at 5:00 p.m. EST/2:00
p.m. PST. There is no pass code required. This call may be listened
to simultaneously over the Internet through World Investor Links’
Vcall Website, located at www.vcall.com.
A rebroadcast of the call will be available upon its completion
and will remain available for a limited time.
Applied
Signal Technology, Inc. designs, develops, manufactures and markets
advanced digital signal processing equipment to collect and process
a wide range of telecommunications signals for signal reconnaissance
applications. For additional Company-related information, visit
the Company’s website at www.appsig.com.
Except
for historical information contained herein, matters discussed in
this news release may contain forward-looking statements that involve
risks and uncertainties. Statements as to beliefs concerning potential
contract options, the Company’s ability to successfully complete
the initial contract to position it to win future phases, whether
or not the U.S. Government decides to procure subsequent phases,
potential synergistic effects from working with other companies,
and beliefs concerning contractual opportunities for further orders
are forward-looking statements. These risks and uncertainties include
whether these potential orders will be issued by the U. S. Government;
whether the Company will be successful in obtaining contracts for
these orders if they are forthcoming and when such orders may be
forthcoming and awarded; whether the Company can successfully complete
the initial contract and any options, if awarded; and other risks
detailed from time to time in the Company’s SEC reports including
its latest Form 10-K filed for the fiscal year ended October 31,
2002.
APPLIED SIGNAL TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
January 31, October 31,
2003 2002
----------- -----------
(unaudited)
Current assets:
Cash and cash equivalents $ 10,174 $ 12,217
Short term investments 20,557 12,710
Accounts receivable 18,766 24,627
Inventory 9,497 7,259
Prepaids and other current assets 1,928 2,083
----------- -----------
Total current assets 60,922 58,896
Property and equipment, at cost 58,405 57,446
Accumulated depreciation and amortization (44,065) (42,932)
----------- -----------
Net property and equipment 14,340 14,514
Other assets 414 414
----------- -----------
Total assets $ 75,676 $ 73,824
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued payroll and benefits $ 5,873 $ 6,701
Other accrued liabilities 1,927 2,004
Income taxes payable 52 -
----------- -----------
Total current liabilities 7,852 8,705
Other liabilities 146 146
Shareholders' equity 67,678 64,973
----------- -----------
Total liabilities and shareholders' equity $ 75,676 $ 73,824
=========== ===========
APPLIED SIGNAL TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands except per share data)
Three Months Ended
January 31, February 1,
2003 2002
--------- --------
Revenues from contracts $ 18,178 $ 16,231
Operating expenses:
Contract costs 11,556 9,759
Research and development 1,701 1,917
General and administrative 2,921 2,700
--------- ---------
Total operating expenses 16,178 14,376
--------- ---------
Operating income 2,000 1,855
Interest income/(expense), net 100 24
--------- ---------
Income before provision for income taxes 2,100 1,879
Provision (benefit) for taxes 315 188
--------- ---------
Net income $ 1,785 $ 1,691
========= ==========
Net income per share-basic $0.17 $0.17
Average shares-basic 10,216 9,732
Net income per share-diluted $0.17 $0.17
Average shares-diluted 10,429 9,888
Contact:
James Doyle
Chief Financial Officer
or
Alice Delgado
Investor Relations
(408) 749-1888
