New
York State
|
11-2160665
|
(State
or other jurisdiction of
Incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
89
Arkay Drive, Hauppauge, New York
|
11788
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Three
Months Ended
|
||||||||
6/30/07
|
6/30/06
|
|||||||
Net
Sales
|
$ |
17,139,820
|
$ |
14,674,683
|
||||
Cost
of Sales
|
9,921,658
|
8,760,459
|
||||||
Gross
Profit
|
7,218,162
|
5,914,224
|
||||||
Operating
expenses:
|
||||||||
Selling,
general and
administrative
expense
|
4,820,779
|
4,705,977
|
||||||
Engineering
& development expense
|
1,277,756
|
1,154,364
|
||||||
6,098,535
|
5,860,341
|
|||||||
Operating
income
|
1,119,627
|
53,883
|
||||||
Interest
expense
|
34,814
|
40,833
|
||||||
Interest
and other income
|
(52,812 | ) | (23,820 | ) | ||||
Income
before income taxes
|
1,137,625
|
36,870
|
||||||
Income
tax expense
|
103,000
|
-
|
||||||
Net
income
|
$ |
1,034,625
|
$ |
36,870
|
||||
Earnings
per share:
|
||||||||
Basic
|
$ |
.22
|
$ |
.01
|
||||
Diluted
|
$ |
.20
|
$ |
.01
|
||||
Shares
used in computing
earnings
per share:
|
||||||||
Basic
|
4,775,354
|
4,573,084
|
||||||
Diluted
|
5,059,661
|
4,667,823
|
Nine
Months Ended
|
||||||||
6/30/07
|
6/30/06
|
|||||||
Net
Sales
|
$ |
51,915,052
|
$ |
41,156,338
|
||||
Cost
of Sales
|
30,347,091
|
25,028,433
|
||||||
Gross
Profit
|
21,567,961
|
16,127,905
|
||||||
Operating
expenses:
|
||||||||
Selling,
general and
administrative
expense
|
14,626,362
|
13,444,825
|
||||||
Engineering
& development expense
|
3,782,973
|
3,315,533
|
||||||
18,409,335
|
16,760,358
|
|||||||
Operating
income (loss)
|
3,158,626
|
(632,453 | ) | |||||
Interest
expense
|
108,065
|
124,592
|
||||||
Interest
and other income
|
(204,695 | ) | (93,557 | ) | ||||
Income
(loss) before income taxes
|
3,255,256
|
(663,488 | ) | |||||
Income
tax expense
|
303,000
|
-
|
||||||
Net
income (loss)
|
$ |
2,952,256
|
$ | (663,488 | ) | |||
Earnings
(loss) per share:
|
||||||||
Basic
|
$ |
.63
|
$ | (.15 | ) | |||
Diluted
|
$ |
.60
|
$ | (.15 | ) | |||
Shares
used in computing
earnings
(loss) per share:
|
||||||||
Basic
|
4,696,184
|
4,571,507
|
||||||
Diluted
|
4,904,926
|
4,571,507
|
ASSETS
|
6/30/07
|
9/30/06
|
||||||
(Unaudited)
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ |
6,980,189
|
$ |
5,639,334
|
||||
Marketable
securities
|
129,855
|
126,697
|
||||||
Accounts
receivable, net
|
11,289,670
|
11,269,529
|
||||||
Inventories:
|
||||||||
Parts,
components, and materials
|
3,899,932
|
2,809,152
|
||||||
Work-in-process
|
2,244,864
|
2,347,354
|
||||||
Finished
products
|
7,663,082
|
6,812,732
|
||||||
13,807,878
|
11,969,238
|
|||||||
Prepaid
expenses and other current assets
|
509,053
|
484,713
|
||||||
TOTAL
CURRENT ASSETS
|
32,716,645
|
29,489,511
|
||||||
Property,
plant and equipment
|
13,449,654
|
13,050,211
|
||||||
Less
accumulated depreciation and amortization
|
(7,559,903 | ) | (6,821,126 | ) | ||||
5,889,751
|
6,229,085
|
|||||||
Other
assets
|
182,865
|
236,521
|
||||||
TOTAL
ASSETS
|
$ |
38,789,261
|
$ |
35,955,117
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Current
maturities of long-term debt
|
$ |
1,816,675
|
$ |
331,830
|
||||
Accounts
payable
|
2,916,003
|
4,162,263
|
||||||
Accrued
compensation and employee benefits
|
2,547,691
|
2,427,525
|
||||||
Accrued
expenses
|
1,621,223
|
1,429,566
|
||||||
Unearned
revenue
|
769,244
|
806,142
|
||||||
Income
taxes payable
|
320,174
|
151,323
|
||||||
TOTAL
CURRENT LIABILITIES
|
9,991,010
|
9,308,649
|
||||||
Long-term
debt
|
-
|
1,740,335
|
||||||
Unearned
revenue
|
470,459
|
457,474
|
||||||
Other
long-term liabilities
|
490,252
|
429,818
|
||||||
SHAREHOLDERS’
EQUITY
|
||||||||
Common
stock, par value $.01
|
50,461
|
48,609
|
||||||
Additional
paid in capital
|
22,806,110
|
22,562,126
|
||||||
Retained
earnings
|
4,686,746
|
1,734,490
|
||||||
27,543,317
|
24,345,225
|
|||||||
Less
treasury stock, at cost
|
(1,139,728 | ) | (1,299,999 | ) | ||||
Accumulated
other comprehensive income
|
1,433,951
|
973,615
|
||||||
TOTAL
SHAREHOLDERS’ EQUITY
|
27,837,540
|
24,018,841
|
||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ |
38,789,261
|
$ |
35,955,117
|
Nine
Months Ended
|
||||||||
6/30/07
|
6/30/06
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income (loss)
|
$ |
2,952,256
|
$ | (663,488 | ) | |||
Adjustments
to reconcile net income (loss) to
net
cash provided by (used in)
operating
activities:
|
||||||||
Depreciation
and amortization
|
673,010
|
717,768
|
||||||
Amortization
of deferred compensation
|
7,937
|
7,558
|
||||||
Stock
compensation expense
|
134,830
|
108,882
|
||||||
Change
in assets and liabilities:
|
||||||||
Accounts
receivable, net
|
350,804
|
(593,748 | ) | |||||
Inventories
|
(1,628,280 | ) | (820,013 | ) | ||||
Prepaid
expenses and other current assets
|
(6,437 | ) | (104,676 | ) | ||||
Other
assets
|
58,084
|
41,123
|
||||||
Accounts
payable
|
(1,336,167 | ) |
672,295
|
|||||
Accrued
compensation and employee benefits
|
95,188
|
(20,449 | ) | |||||
Accrued
expenses
|
169,515
|
162,206
|
||||||
Unearned
revenue
|
(23,913 | ) |
3,429
|
|||||
Income
taxes payable
|
152,906
|
(35,404 | ) | |||||
Other
liabilities
|
35,596
|
68,837
|
||||||
Net
cash provided by (used in)
operating
activities
|
1,635,329
|
(455,680 | ) | |||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(236,032 | ) | (436,377 | ) | ||||
Net
increase in marketable securities
|
(4,639 | ) | (3,174 | ) | ||||
Net
cash used in investing activities
|
(240,671 | ) | (439,551 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Repayments
of long-term debt
|
(257,882 | ) | (316,723 | ) | ||||
Proceeds
from exercise of stock options
|
263,340
|
7,700
|
||||||
Net
cash provided by (used in)
financing
activities
|
5,458
|
(309,023 | ) | |||||
Effect
of exchange rate changes on cash
|
(59,261 | ) |
26,859
|
|||||
Net
increase (decrease) in cash
|
1,340,855
|
(1,177,395 | ) | |||||
Cash
at beginning of year
|
5,639,334
|
5,818,178
|
||||||
Cash
at end of period
|
$ |
6,980,189
|
$ |
4,640,783
|
Three
Months
Ended
June 30,
|
Nine
Months
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Basic
EPS Computation
|
||||||||||||||||
Net
income (loss)
|
$ |
1,034,625
|
$ |
36,870
|
$ |
2,952,256
|
$ | (663,488 | ) | |||||||
Weighted
average shares
outstanding
|
4,775,354
|
4,573,084
|
4,696,184
|
4,571,507
|
||||||||||||
Basic
earnings (loss) per
share
|
$ |
.22
|
$ |
.01
|
$ |
.63
|
$ | (.15 | ) |
Three
Months
Ended
June 30,
|
Nine
Months
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Diluted
EPS Computation
|
||||||||||||||||
Net
income (loss)
|
$ |
1,034,625
|
$ |
36,870
|
$ |
2,952,256
|
$ | (663,488 | ) | |||||||
Weighted
average shares
outstanding
|
4,775,354
|
4,573,084
|
4,696,184
|
4,571,507
|
||||||||||||
Stock
options
|
257,938
|
76,795
|
176,477
|
|
-
|
|||||||||||
Stock
compensation arrangements
|
26,369
|
17,944
|
32,265
|
-
|
||||||||||||
Diluted
shares outstanding
|
5,059,661
|
4,667,823
|
4,904,926
|
4,571,507
|
||||||||||||
Diluted
earnings (loss) per
share
|
$ |
.20
|
$ |
.01
|
$ |
.60
|
$ | (.15 | ) |
Three
Months
Ended
June 30,
|
Nine
Months
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
income (loss)
|
$ |
1,034,625
|
$ |
36,870
|
$ |
2,952,256
|
$ | (663,488 | ) | |||||||
Other
comprehensive income (loss),
net of tax:
|
||||||||||||||||
Decrease
(increase) in unrealized
loss on securities
|
(1,855 | ) | (610 | ) | (1,482 | ) | (1,986 | ) | ||||||||
Unrealized
loss on
derivatives
|
(19,095 | ) | (19,534 | ) | (24,838 | ) | (21,910 | ) | ||||||||
Foreign
currency translation
adjustment
|
160,069
|
408,101
|
486,656
|
361,852
|
||||||||||||
Comprehensive
income (loss)
|
$ |
1,173,744
|
$ |
424,827
|
$ |
3,412,592
|
$ | (325,532 | ) |
June
30,
2007
|
September
30,
2006
|
|||||||
Foreign
currency translation adjustment
|
$ |
1,484,788
|
$ |
998,132
|
||||
Unrealized
loss on derivatives
|
(46,679 | ) | (21,841 | ) | ||||
Unrealized
loss on securities
|
(4,158 | ) | (2,676 | ) | ||||
Accumulated
other comprehensive income
|
$ |
1,433,951
|
$ |
973,615
|
||||
Payments
Due By
Period
|
Debt
Repayments
|
Lease
Commitments
|
Total
|
|||||||||
Less
than 1 year
|
$ |
1,817,000
|
$ |
532,000
|
$ |
2,349,000
|
||||||
1-3
years
|
-
|
597,000
|
597,000
|
|||||||||
3-5
years
|
-
|
-
|
-
|
|||||||||
Total
|
$ |
1,817,000
|
$ |
1,129,000
|
$ |
2,946,000
|
/s/
Kenneth M. Darby
|
/s/
John M. Badke
|
Kenneth
M. Darby
|
John
M. Badke
|
Chairman
and
|
Senior
Vice President, Finance
|
Chief
Executive Officer
|
Chief
Financial Officer
|