EX-99.1 2 w97437exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1

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8419 Terminal Road, P.O. Box 1430, Newington, VA 22122-1430
703.550.7000 Fax 703.550.0883
www.sensytech.com

NEWS RELEASE


For Immediate Release

Sensytech, Inc. Announces Q2 Results

NEWINGTON, VA, May 13, 2004 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced revenues and earnings for its second quarter ended March 31, 2004.

Revenues for the three months ended March 31, 2004 increased $1,166,000 or 9.1% to $14,019,000 compared to $12,853,000 for the prior year quarter. Revenue for the six months ended March 31, 2004 increased $2,108,000 or 8.6% to $26,684,000, compared to $24,576,000 for the prior year period.

Net income for the three months ended March 31, 2004 was $1,031,000, or $0.15 per diluted share, a decrease of 5.2% compared to $1,087,000 or $0.16 per diluted share for the prior year quarter. For the six months ended March 31, 2004 net income increased to $1,904,000, or $0.28 per diluted share, an increase of 0.7% compared to the prior year period of $1,891,000, or $.32 per diluted share.

S. Kent Rockwell, Chairman and CEO of Sensytech stated, “This quarter’s performance is very much in line with our expectations and concludes the anomalies of cost variance that we defined six months ago to occur as a result of the decision to move our production facilities from New Jersey to Pennsylvania. The resultant effects should be an increase in revenues and earnings as the new production facility and engineering facility now realizes improving efficiencies and utilization from an increasing level of new orders. The continuing quarters should reflect the beneficial impact of this strategic decision. Without this effort, we would not have been able to realize the growth goals for the company beyond 2005.

We are pleased to complete the addition of ISS in Winter Park, Florida, into our company. These imaging sensors will play an important part in the overall multi-sensor integration that is of growing interest to our customers.”

Financial Highlights

  Revenue for the second quarter increased 9.1% over the prior year quarter to $14,019,000
 
  Revenue for the six month period increased 8.6% over the prior year period to $26,684,000
 
  Net Income for the second quarter of $1,031,000, or $0.15 per diluted share, down $.01 per diluted share, from the prior year quarter
 
  Net Income for the six months period of $1,904,000, or $0.28 per diluted share, down $.04 per diluted share, from the prior year period

 


 

  Funded Backlog for the second quarter was 24,638,000, a decrease of 16.7% from the prior year quarter funded backlog of $29,574,000

About SenSyTech Inc.

Sensytech, Inc. designs, develops and manufactures electronic support measures (ESM), electronic intelligence (ELINT), and threat warning systems, active electronic warfare (EW) systems, airborne imaging systems, communications reconnaissance systems and other special purpose communications equipment serving worldwide markets. Sensytech, through its predecessor companies, has been providing cutting edge technology applications and cost-effective systems solutions for three decades.

Statements in this press release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that certain factors can cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances.

SENSYTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

                 
    March 31, 2004   September 30, 2003
ASSETS
 
(unaudited)
       
CURRENT ASSETS
               
Cash and cash equivalents
  $ 10,066,000     $ 13,445,000  
Accounts receivable, net
    13,695,000       15,916,000  
Unbilled contract costs, net
    12,091,000       8,486,000  
Inventories
    1,081,000       1,690,000  
Prepaid income taxes
    813,000        
Deferred income taxes
    657,000       793,000  
Other current assets
    284,000       328,000  
 
   
 
     
 
 
TOTAL CURRENT ASSETS
    38,687,000       40,658,000  
PROPERTY AND EQUIPMENT
    5,135,000       3,350,000  
OTHER ASSETS
           
Deferred income taxes
    196,000       224,000  
Intangibles, net
    83,000       133,000  
Other assets
    198,000       73,000  
 
   
 
     
 
 
TOTAL ASSETS
  $ 44,299,000     $ 44,438,000  
 
   
 
     
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 2,111,000     $ 3,780,000  
Accrued salaries, benefits, and related expenses
    2,235,000       2,628,000  
Other accrued expenses
    917,000       862,000  
Billings in excess of costs
    540,000       1,172,000  
Income taxes payable
          63,000  
 
   
 
     
 
 
TOTAL CURRENT LIABILITIES
  $ 5,803,000     $ 8,505,000  

 


 

STOCKHOLDERS’ EQUITY
               
Common Stock
    67,000       66,000  
Additional paid-in capital
    25,830,000       25,172,000  
Treasury stock, at cost
    (534,000 )     (534,000 )
Retained earnings
    13,133,000       11,229,000  
 
   
 
     
 
 
TOTAL STOCKHOLDERS’ EQUITY
    38,496,000       35,933,000  
 
   
 
     
 
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 44,299,000     $ 44,438,000  
 
   
 
     
 
 

SENSYTECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)

                                 
    For the Three Months Ended   For the Six Months Ended
    March 31,   March 31,
    2004   2003   2004   2003
REVENUES
                               
Contract revenues
  $ 14,019,000     $ 12,853,000     $ 26,684,000     $ 24,576,000  
 
   
 
     
 
     
 
     
 
 
COSTS AND EXPENSES
                               
Cost of revenues
    9,846,000       9,488,000       19,355,000       18,739,000  
General and administrative expenses
    2,526,000       1,559,000       4,224,000       2,622,000  
 
   
 
     
 
     
 
     
 
 
Total cost and expenses
    12,372,000       11,047,000       23,579,000       21,361,000  
 
   
 
     
 
     
 
     
 
 
INCOME FROM OPERATIONS
    1,647,000       1,806,000       3,105,000       3,215,000  
OTHER INCOME (EXPENSES)
                               
Interest income
    25,000       38,000       42,000       43,000  
Interest expense
          (3,000 )           (48,000 )
Other income (expenses), net
    3,000       3,000       7,000       (3,000 )
 
   
 
     
 
     
 
     
 
 
INCOME BEFORE INCOME TAXES
    1,675,000       1,844,000       3,154,000       3,207,000  
INCOME TAX PROVISION
    (644,000 )     (757,000 )     (1,250,000 )     (1,316,000 )
 
   
 
     
 
     
 
     
 
 
NET INCOME
  $ 1,031,000     $ 1,087,000     $ 1,904,000     $ 1,891,000  
 
   
 
     
 
     
 
     
 
 
PER SHARE AMOUNT
                               
Basic earnings per share
  $ 0.16     $ 0.17     $ 0.29     $ 0.33  
Diluted earnings per share
  $ 0.15     $ 0.16     $ 0.28     $ 0.32  
WEIGHTED AVERAGE SHARES OUTSTANDING Basic average shares outstanding
   

 

6,535,498

     

 

6,434,177

     

 

6,516,999

     

 

5,734,112

 
Diluted average shares outstanding
    6,696,681       6,598,020       6,684,195       5,876,308  
                                 
FOR MORE INFORMATION, CONTACT:
                               
Donald F. Fultz, Chief Financial Officer                                
don.fultz@sensytech.com                                
URL: www.sensytech.com