APPLIED SIGNAL TECHNOLOGY, INC.
ANNOUNCES THIRD QUARTER OPERATING RESULTS
Sunnyvale,
CA. Thursday, August 19, 2003 – Applied
Signal Technology, Inc. (NASDAQ - APSG) announced its operating
results for the third quarter of fiscal year
2003 ended August 1, 2003.
Revenues
for the third quarter of fiscal year 2003 were $26,002,000, representing
a 43% increase compared with revenues of $18,207,000 recorded during
the third quarter of fiscal year 2002. Revenues for the first nine
months of fiscal year 2003 were $66,261,000, up 25% from revenues
of $53,022,000 recorded during the first nine months of fiscal year
2002. The increase in revenues recorded during the third quarter
and the first nine months of fiscal year 2003, when compared to
the same periods of fiscal year 2002, is primarily due to an increase
in engineering development efforts designed to provide a variety
of signal intelligence solutions to the United States Government.
Net income
for the third quarter of fiscal year 2003 was $1,730,000 or $0.16
per diluted share compared to net income for the third quarter of
fiscal year 2002 of $110,000 or $0.01 per diluted share. Net income for the first nine months of fiscal year 2003 was $5,742,000 or
$0.54 per diluted share, an increase of 85% when compared to net
income of $3,102,000 or $0.31 per diluted share for the first nine
months of fiscal year 2002. The increase in net income for the third
quarter and the first nine months of fiscal year 2003, when compared
to the same periods of fiscal year 2002, is primarily due to the
growth in revenues allowing the Company to grow into its existing
cost structure.
New orders
received during the third quarter of fiscal year 2003 were $41,031,000,
up 68% compared to orders received during the third quarter of fiscal
year 2002 of $24,419,000. Order levels for the first nine months
of fiscal year 2003 were $72,554,000, up 32% when compared to the
$54,800,000 reported for the same period of fiscal year 2002. The
increase in new orders during the third quarter and the first nine
months of fiscal year 2003, when compared to the same periods of
fiscal year 2002, is due to increased spending by the U.S. Government
on signal intelligence solutions.
Regarding
the third quarter operating results, Mr. Gary Yancey, President
and Chief Executive Officer of the Company, commented, "The
increased order activity and revenues are most certainly a result
of the United States Government's emphasis on counter-terrorism.
Government officials have recognized the Company as a major resource
in this campaign."
"Signal
intelligence (SIGINT) gathering is a key factor for an effective
campaign against terrorism and we are a pre-eminent supplier of
SIGINT solutions. We believe SIGINT will continue to be a top priority
requirement for years to come as the United States Government eliminates
current terrorism cells and strives to detect the creation of new
ones."
Mr. Yancey
went on to say; "We believe the tragic events that continue
to occur around the world have re-focused the United States Government
to the critical need for timely, and accurate, worldwide intelligence.
SIGINT is the primary element used in this intelligence gathering.
We believe the state of world affairs creates a marketplace we can
serve for the foreseeable future and as a result, believe our growth
can be sustained for some time to come."
he Company
will host a conference call on August 19, 2003 to discuss third
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 August 19, 2003 at 11:00 a.m. EST/8:00
a.m. PST. There is no pass code required. This call may be listened
to simultaneously over the Internet through PrecisionIR's Investor
Distribution Network, 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
August 1, October 31,
2003 2002
----------- -----------
(unaudited)
Current assets:
Cash and cash equivalents $ 5,414 $ 12,217
Short term investments 29,055 12,710
Accounts receivable 26,087 24,627
Inventory 6,735 7,259
Prepaids and other current assets 3,450 2,083
----------- -----------
Total current assets 70,741 58,896
Property and equipment, at cost 58,730 57,446
Accumulated depreciation and amortization (46,094) (42,932)
----------- -----------
Net property and equipment 12,636 14,514
Other assets 507 414
----------- -----------
Total assets $ 83,884 $ 73,824
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued payroll and benefits $ 8,027 $ 6,701
Other accrued liabilities 2,854 2,00 ----------- -----------
Total current liabilities 10,881 8,705
Other liabilities 220 146
Shareholders' equity 72,783 64,973
----------- ----------- Total liabilities and shareholders' equity $ 83,884 $ 73,824
=========== ===========
APPLIED SIGNAL TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDING AUGUST 1, 2003 AND AUGUST 2, 2002
(Unaudited)
(In thousands except per share data)
Three Months Ended Nine Months Ended
August 1, August 2, August 1, August 2,
2003 2002 2003 2002
--------- -------- --------- --------
Revenues from contracts $ 26,002 $ 18,207 $ 66,261 $ 53,022 Operating expenses:
Contract costs 17,538 11,769 42,950 33,190 Research and development 2,281 2,247 5,882 6,701 General and administrative 4,268 3,857 10,994 10,730 --------- -------- --------- -------- Total operating expenses 24,087 17,873 59,826 50,621 --------- -------- --------- --------
Operating income 1,915 334 6,435 2,401 Interest income/(expense), net 120 (121) 320 (52) --------- -------- --------- --------
Income before provision
for income taxes 2,035 213 6,755 2,349 Provision (benefit) for taxes 305 103 1,013 (753) --------- -------- --------- --------
Net income $ 1,730 $ 110 $ 5,742 $ 3,102 ========= ======== ========== =========
Net income per share-basic $0.16 $0.01 $0.55 $0.32
Average shares-basic 10,579 9,975 10,367 9,834
Net income per share-diluted $0.16 $0.01 $0.54 $0.31
Average shares-diluted 11,049 10,183 10,703 10,009
Contact:
James Doyle
Chief Financial Officer
or
Alice Delgado
Investor Relations
(408) 749-1888
