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APPLIED SIGNAL TECHNOLOGY, INC.
ANNOUNCES FISCAL 1996 YEAR-END RESULTS
Sunnyvale, CA. December 16, 1996 - Applied Signal Technology, Inc. (NASDAQ - APSG) announced revenues and net income for the year ended October 31, 1996.
Revenues for fiscal year 1996 were a record $77,410,000 representing a 14% increase over fiscal year 1995 revenues of $67,664,000. Net income increased 101% to $1,815,000 or $0.23 per share for the year ended October 31, 1996 from $904,000 or $0.12 per share in fiscal 1995.
Revenues for the fourth quarter of fiscal 1996 were $25,138,000, down 5% from $26,483,000 for the fourth quarter of fiscal 1995. Net income for the fourth quarter of fiscal 1996 was $451,000 or $0.06 per share, down 45% compared to net income of $816,000 or $0.11 per share for the same period of fiscal 1995.
Consistent with the Company's past business practices and in anticipation of the high volume of contract awards, management again permitted selected early contract starts as well as the buildup of product inventory to support customer requirements. This action resulted in the strong fourth quarter revenue results seen in both fiscal 1995 and 1996. Net income for the fourth quarter of fiscal 1996 decreased to $451,000 primarily as a result of changing cost estimates at completion on certain of the Company's contracts.
New orders received during fiscal 1996 totaled $130,733,000, up 97% from fiscal 1995. Order levels for the fourth quarter of fiscal 1996 were $38,952,000, up 10% from the $35,308,000 reported for the same period of fiscal 1995.
Regarding the year-end operating results, Mr. Yancey, President and Chief Executive Officer of the Company, commented, "In light of the extreme difficulty in upsizing in these times of rapid economic growth, I am very pleased that our revenue growth rate in fiscal 1996 over fiscal 1995 was 14%. We believe we could have achieved a higher growth rate except for difficulty in bringing on new staff encountered during the first half of last fiscal year. This belief is certainly supported by our record backlog position. The strong increase in net income recorded between fiscal 1995 and fiscal 1996 is primarily due to the previously announced charge to earnings recorded during fiscal 1995 regarding the governments' investigation of certain contracts. Our challenge in fiscal 1997 will be to increase margins to meet our normal business model as well as to meet the upsizing requirements demanded by our expanding business base."
Applied Signal Technology designs, develops, manufactures and markets advanced digital signal processing equipment to collect and process a wide range of telecommunications signals for commercial and government applications. For additional Company-related information, visit the Company's website at http://www.appsig.com.
This news release may contain forward-looking statements which reflect the Company's current thinking on future events. These predictions or estimates involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include volatility of operating results, use of estimates in program costs-to-complete, 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, 1995.
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To business editors: Selected Income Statement Data
Selected income statement date, (in thousands except per share data):
Three Months Ended Twelve Months Ended
Oct. 31, 1996 Oct. 31, 1995 Oct. 31, 1996 Oct. 31, 1995
Revenue $25,138 $26,483 $77,410 $67,664
Net Income $451 $816 $1,815 $904
EPS $0.06 $0.11 $0.23 $0.12
Avg Sh O/S 8,035 7,687 7,919 7,635
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APPLIED SIGNAL TECHNOLOGY
CONDENSED BALANCE SHEETS
| ASSETS |
|
October 31, 1996
|
October 31, 1995
|
| Current assets: |
|
|
| Cash and cash equivalents |
$1,559 |
$369 |
| Short term investments |
767 |
0 |
| Accounts receivable |
30,019 |
29,565 |
| Refundable income taxes |
106 |
106 |
| Inventory |
3,208 |
3,474 |
| Prepaids and other current assets |
2,129
|
1,990
|
| Total current assets |
37,788 |
35,504 |
| Property and equipment, at cost |
30,069 |
24,747 |
| Accumulated depreciation and amortization |
(17,198)
|
(13,492)
|
| Net property and equipment |
12,871 |
11,255 |
| Long-term investments |
1,326 |
2,095 |
| Other assets |
118
|
176
|
| Total assets |
$52,103
|
$49,030
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| Current liabilities: |
|
|
| Accounts payable, accrued payroll and benefits |
$7,382 |
7,612 |
| Other accrued liabilities |
1,900 |
1,547 |
| Income taxes payable |
2,029
|
2,077
|
| Total current liabilities |
11,311 |
11,236 |
| Deferred income taxes |
827 |
847 |
| Shareholders' equity |
39,965
|
36,947
|
| Total liabilities and shareholders' equity |
$52,103
|
$49,030
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APPLIED SIGNAL TECHNOLOGY
CONDENSED STATEMENTS OF INCOME
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Three Months Ended |
Twelve Months Ended |
|
October 31,
1996 |
October 31,
1995 |
October 31,
1996 |
October 31,
1995 |
|
(In thousands except per share data) |
(In thousands except per share data) |
|
(Unaudited) |
|
| Revenues from contracts |
$ 25,138 |
$ 26,483 |
$ 77,410 |
$ 67,664 |
| Operating expenses: |
|
|
|
|
| Contract costs |
17,714 |
16,721 |
53,333 |
45,418 |
| Research and development |
3,032 |
4,001 |
9,380 |
9,873 |
| General and administrative |
3,709
|
4,572
|
11,954
|
11,221
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| Total operating expenses |
24,455 |
25,294 |
74,667 |
66,512 |
| Operating income |
683 |
1,189 |
2,743 |
1,152 |
| Interest income/(expense), net |
11
|
4
|
49
|
188
|
| Income before provision for taxes on income |
694 |
1,193 |
2,792 |
1,340 |
| Provision for taxes on income |
243
|
377
|
977
|
436
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| Net income |
$ 451
|
$ 816
|
$ 1,815
|
$ 904
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| Earnings per share - Fully diluted |
$0.13 |
$0.13 |
$0.13 |
$0.13 |
| Earnings per share |
$0.06 |
$0.11 |
$0.23 |
$0.12 |
| Average common shares outstanding |
8,035 |
7,687 |
7,919 |
7,635 |
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Contact:
James Doyle
Chief Financial Officer
or
Alice Delgado
Investor Relations
(408) 749-1888
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