EXHIBIT 99.1
AXSYS TECHNOLOGIES ANNOUNCES 79% INCREASE IN THIRD QUARTER
OPERATING INCOME AND INCREASES 2004 GUIDANCE
ROCKY HILL,
CONN. – November 1, 2004 – Axsys Technologies, Inc. (NASDAQ: AXYS), a global leader in the design,
manufacture and distribution of precision opto-mechanical subsystems and
components, today announced financial results for the third quarter and
nine-month period ended October 2, 2004.
Third Quarter
Highlights – versus fiscal 2003 third quarter
• Sales
rose 24.3% to $26.4 million.
• Gross
margin increased to 30.2% from 26.9%.
• Operating
income was up 79.3% to $2.2 million; operating margin rose to 8.4% from 5.8%.
• Net
income grew to $1.9 million, or $0.27 per diluted share, from $1.2 million or
$0.17 per diluted share, a 58.8% increase in diluted EPS.
• Effective
tax rate for the current quarter was 10.0%, compared to a 4.5% rate in the
third quarter of 2003.
• Third
quarter bookings rose 87.8% to a record $37.7 million, bringing backlog to a
record $93.1 million.
• Significant
bookings for the quarter include the $9.8 million James Webb Space Telescope
project.
Axsys
exceeded its sales and bookings expectations for the quarter as a result of
heightened defense spending, general economic growth and the sale of
increasingly complex electro-optical solutions.
In addition, growth in the quarter included the results of the newly
integrated acquisition, Axsys Technologies IR Systems, formerly Telic Optics,
Inc. Excluding the acquisition, revenues
increased 18.0% and bookings increased 81.6% in the third quarter.
Segment Sales (in millions):
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Three Months Ended:
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Nine Months Ended:
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October 2,
2004
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September 27,
2003
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October 2,
2004
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September 27,
2003
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|
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Aerospace and Defense
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$
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16.6
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$
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12.5
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$
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45.5
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$
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37.1
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Commercial Products
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3.3
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3.3
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10.9
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10.3
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|
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Distributed Products
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6.5
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5.4
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19.1
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15.9
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“Our
third quarter results continue to build upon our successful track record,” said
Stephen W. Bershad, Chairman and Chief Executive Officer of Axsys. “Not only have we delivered solid revenue and
income growth, but our backlog is the strongest in the Company’s history. Our continuing efforts to deliver high
quality, competitive products to our broad base of customers in a timely manner
are resulting in larger and more sophisticated orders. Importantly, higher margins are stemming from
favorable product mix, volume-driven leverage and improved production
efficiencies.”
Financial Guidance
The
financial results for the first nine months of 2004, combined with the Company’s
strong backlog, have led Axsys to increase financial guidance for fiscal
2004. Axsys now anticipates its 2004
revenues of approximately $102 million and 2004 operating income of
approximately $9 million, representing year-over-year growth of 20% and 79%,
respectively. This compares to previous
guidance of 15% – 16% revenue growth and 55% – 60% operating income growth.
Mr.
Bershad concluded, “We are confident that Axsys is positioned for continued
growth. The Company’s strong financial
performance, large and growing backlog and solid balance sheet provide the
financial foundation to drive the business forward. We intend to build upon our successful
products and capabilities to deliver increasingly sophisticated electro-optical
solutions to our OEM customers.”
Conference Call
Management will conduct a conference call reviewing the financial
results on Tuesday, November 2, 2004 at 10:00 am ET. Interested parties may participate in the
call by dialing 913-905-3161 – please call in 10 minutes before the call is
scheduled to begin, and ask for the Axsys Technologies call. The conference call will be broadcast live
over the Internet via the Investors section of the Company’s web site at
www.axsys.com. To listen to the live
call please go to the website at least 15 minutes early to register, download
and install any necessary audio software.
If you are unable to listen live, the conference call will be archived
on the Company’s web site.
About Axsys
Axsys Technologies, Inc. is a vertically integrated OEM supplier of
precision optical and motion control assemblies and components for high
technology applications, serving the aerospace, defense, health imaging,
semiconductor and graphic arts markets.
For more information, visit www.axsys.com.
This press release
contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. One can identify these
forward-looking statements by the use of the words such as “expect,”
“anticipate,” “plan,” “may,” “will,”
“estimate” or other similar expressions. Because such statements apply to
future events, they are subject to risks and uncertainties that could cause the
actual results to differ materially. Important factors, which could cause
actual results to differ materially, are described in Axsys’ reports on Form
10-K and 10-Q on file with the Securities and Exchange Commission, including
without limitation: the introduction of competing products or technologies by
other companies and/or pricing pressures from competitors and/or customers, a
reversal or slowdown of the modest economic recovery presently being
experienced in the United States, Axsys’ inability to achieve synergies in
connection with the acquisition of Telic Optics, Inc., the incurrence of unexpected
costs in connection with the acquisition and other contingencies and risks
relating to the integration of Telic’s operations and business. These statements reflect the Company’s
current beliefs and are based upon information currently available to
Axsys. Be advised that developments
subsequent to this release are likely to cause these statements to become
outdated with the passage of time, and we specifically disclaim any obligation
to update these statements. For more
information concerning the foregoing risks and uncertainties, see the
Securities and Exchange Commission filings for Axsys.
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Unaudited, in thousands)
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For the Three Months Ended
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For the Nine Months Ended
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October 2,
2004
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September 27,
2003
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October 2,
2004
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September 27,
2003
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|
|
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Net sales
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$
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26,356
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$
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21,203
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$
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75,491
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$
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63,269
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|
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Cost of sales
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18,407
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|
15,489
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52,940
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46,122
|
|
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Gross margin
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7,949
|
|
5,714
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22,551
|
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17,147
|
|
|
|
|
|
|
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Selling, general and administrative
expenses
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5,055
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3,906
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14,321
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11,968
|
|
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Research, development and engineering
expenses
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|
681
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|
574
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1,984
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|
1,628
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Write off of restructuring accrual
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—
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—
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(50
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)
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—
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Operating income
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2,213
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|
1,234
|
|
6,296
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|
3,551
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Interest expense
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(75
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)
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(39
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)
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(183
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)
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(137
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)
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Interest income
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|
9
|
|
21
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|
43
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77
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Other (expense) income, net
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(7
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)
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67
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(29
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)
|
211
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Income before income taxes
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|
2,140
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|
1,283
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|
6,127
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|
3,702
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Provision for income taxes
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|
213
|
|
58
|
|
612
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|
167
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Net income
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$
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1,927
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$
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1,225
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$
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5,515
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$
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3,535
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BASIC INCOME PER SHARE (1):
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Total
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$
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0.27
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$
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0.18
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$
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0.79
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$
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0.51
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Weighted average basic common shares
outstanding
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7,040
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6,987
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7,009
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6,985
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|
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DILUTED INCOME PER SHARE (1):
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Total
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$
|
0.27
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$
|
0.17
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$
|
0.77
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$
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0.50
|
|
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Weighted average dilutive common shares
outstanding
|
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7,191
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7,103
|
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7,182
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7,047
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(1) Earnings per share and
shares outstanding for the three months and nine months ended September 27,
2003 have been restated to reflect the 3:2 stock split on June 30, 2004.
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CONTACT:
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-OR-
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INVESTOR RELATIONS COUNSEL:
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Axsys Technologies, Inc.
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The Equity Group Inc.
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David A. Almeida, CFO
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Loren G. Mortman
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(860) 257-0200
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(212) 836-9604,
LMortman@equityny.com
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www.axsys.com
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Lauren Barbera
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(212) 836-9610,
LBarbera@equityny.com
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www.theequitygroup.com
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