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Applied Signal Technology, Inc.
Announces Second Quarter Operating Results
Sunnyvale, CA. May 28, 2008 - Applied Signal Technology, Inc.
(NASDAQ - APSG) announced its operating results for the second
quarter of fiscal year 2008 ended May 2, 2008.
New orders received during the second quarter of fiscal year 2008
were $48,150,000 representing a 28.0% increase when compared to
new orders of $37,631,000 received during the second quarter of
fiscal year 2007. New orders for the first six months of fiscal
year 2008 were $75,039,000 compared to new orders of $76,780,000
for the same period of fiscal year 2007.
Revenues for the second quarter of fiscal year 2008 were $45,284,000
representing a 10.3% increase when compared to revenues of $41,054,000
for the second quarter of fiscal year 2007. Revenues for the first
six months of fiscal year 2008 were $88,009,000 representing a
4.0% increase when compared to revenues of $84,598,000 for the
first six months of fiscal year 2007.
Operating income for the second quarter and first six months of
fiscal year 2008 was $2,835,000 and $5,215,000, respectively, compared
to operating income of $2,476,000 and $5,616,000 for the second
quarter and first six months of fiscal year 2007, respectively.
Net income for the second quarter and first six months of fiscal
year 2008 was $2,015,000 or $0.16 per diluted share and $3,503,000
or $0.28 per diluted share, respectively, compared to net income
for the second quarter and first six months of fiscal year 2007
of $1,580,000 or $0.13 per diluted share and $3,443,000 or $0.28
per diluted share, respectively. Company taxes were reduced during
the second quarter of fiscal 2008 as a result of a discrete event
related to the change in our method of calculating the depreciation
of fixed assets for tax purposes. The effective tax rate for fiscal
year 2008 is estimated to be 45.3%, compared to an effective tax
rate of 43.2% for fiscal 2007.
Regarding the operating results, Mr. William
Van Vleet, President and Chief Executive Officer commented, “Our
strong backlog and focus on operational execution are producing
a growth in revenues over last fiscal year. Our operating income
increased for the second quarter of fiscal 2008 as a result of
increased royalties associated with the commercialization of
our intellectual property.”
Mr. Van Vleet concluded his remarks, “We
anticipate continued revenue growth this fiscal year in response
to increasing customer demand in our largest division.”
Attached to this news release are unaudited condensed statements
of operations and balance sheets.
The Company will host a conference call
on May 28, 2008 to discuss second 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 May 28, 2008 at 5:00 p.m. eastern time/2:00 p.m. pacific time.
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. provides
advanced digital signal processing products, systems and services
in support of intelligence, surveillance, and reconnaissance
for global security. For further information about Applied Signal
Technology’s products and
services visit our 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 that could cause actual results
to differ materially. Statements as to the Company’s fiscal
2008 revenue growth as well as increased customer demand in our
largest division are forward-looking statements. The risks and
uncertainties associated with these statements include whether
orders will be issued by procurers, including the U. S. Government;
the timing of any orders placed by procurers; whether we will be
successful in obtaining contracts for these orders if they are
forthcoming; whether any contracts obtained by us will be profitable
and whether any such contracts might be terminated prior to completion;
whether we will be able to hire qualified staff as needed; and
other risks detailed from time to time in our SEC reports including
our latest Form 10-K filed for the fiscal year ended October 31,
2007. The Company assumes no obligation to update the information
provided in this news release.
Applied Signal Technology, Inc.
Condensed Consolidated Statements of Income
for the Periods Ended May 2, 2008 and May 4, 2007
(in thousands, except per share data)
|
May 2,
2008 |
May 4,
2007 |
May 2,
2008 |
May 4,
2007 |
| Revenues from contracts |
$45,284 |
$41,054 |
$88,009 |
$84,598 |
| Operating expenses: |
|
|
|
|
| Contract costs |
31,492 |
28,583 |
60,863 |
57,443 |
| Research and development |
3,554 |
3,410 |
6,533 |
6,995 |
| General and administrative |
7,403
---------- |
6,585
---------- |
15,398
---------- |
14,544
---------- |
| Total operating expenses |
42,449
---------- |
38,578
---------- |
82,794
---------- |
78,982
---------- |
| Operating income |
2,835 |
2,476 |
5,215 |
5,616 |
| Interest income/(expense), net |
147
---------- |
105
---------- |
380
---------- |
265
---------- |
| Income before provision for income taxes |
2,982 |
2,581 |
5,595 |
5,881 |
| Provision for income taxes |
967
---------- |
1,001
---------- |
2,092
---------- |
2,438
---------- |
| Net income |
$2,015
======== |
$1,580
======== |
$3,503
======== |
$3,443
======== |
| Net income per share - basic |
$0.16 |
$0.13 |
$0.28 |
$0.29 |
| Average shares - basic |
12,400 |
12,039 |
12,371 |
12,006 |
| Net income per share - diluted |
$0.16 |
$0.13 |
$0.28 |
$0.28 |
| Average shares - diluted |
12,523 |
12,285 |
12,513 |
12,228 |
Applied Signal Technology, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
|
May
2,
2008 |
October
31,
2007 |
| ASSETS |
|
|
| Current assets: |
|
|
Cash, cash equivalents,
and
short term investments |
34,848 |
34,933 |
| Accounts receivable |
43,147 |
44,476 |
| Inventory |
9,739 |
5,944 |
| Refundable income tax |
— |
647 |
| Other current assets |
9,572
--------- |
9,760
--------- |
| Total
current assets |
97,306 |
95,760 |
|
|
|
| Property and equipment, at cost |
64,917 |
62,565 |
| Accumulated depreciation and amortization |
(48,454)
--------- |
(46,096)
--------- |
| Net property and equipment |
16,463 |
16,469 |
|
|
|
| Goodwill |
19,964 |
19,964 |
|
|
|
| Intangible assets, net |
293 |
616 |
|
|
|
| Long-term deferred tax asset, net |
5,465 |
5,021 |
| Long term investment |
7,961 |
4,114 |
| Other assets |
771
--------- |
789
--------- |
|
|
|
| Total assets |
$148,223
======= |
$142,733
======= |
|
|
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
| Current liabilities: |
|
|
Accounts payable, accrued
payroll and benefits |
$16,501 |
$16,983 |
| Notes payable |
1,429 |
1,429 |
| Income taxes payable |
— |
14 |
| Other accrued liabilities |
2,344
--------- |
1,997
--------- |
| Total
current liabilities |
20,274 |
20,423 |
|
|
|
| Long-term liabilities: |
|
|
| Long-term notes payable |
4,524 |
5,357 |
| Other long-term liabilities |
3,894
--------- |
2,117
--------- |
| Total
long-term liabilities |
$8,418 |
$7,474 |
|
|
|
| Shareholders' equity |
119,531
--------- |
114,836
--------- |
|
|
|
| Total liabilities and shareholders' equity |
$148,223
======= |
$142,733
======= |
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