EX-99.1 2 ex99-1.htm EX 99.1 PR 012909 ex99-1.htm
EXHIBIT 99.1

NEWS RELEASE
  
For Release on January 29, 2009
Contact:  Pat Lawlor
4:00 PM (ET)    (925) 328-4656
Vice President, Finance/Chief Financial Officer

Giga-tronics Reports Third Quarter FY09 Profit


San Ramon, CA - Giga-tronics Incorporated (NASDAQ:GIGA) reported today a net profit of $349,000 or $0.07 per fully diluted share for the quarter ended December 27, 2008.  This compares with a net profit of $31,000 or $0.01 per fully diluted share for the same period a year ago.  Net sales increased 3% to $5,099,000 in the third quarter of fiscal 2009 compared to $4,953,000 in the third quarter of fiscal 2008.  Operating expenses increased 5% or $95,000 in the third quarter of fiscal 2009 over fiscal 2008.
 
Orders improved 93% in the third quarter of fiscal 2009 to $9,461,000 from $4,905,000 for the third quarter of fiscal 2008.  Our book-to-bill ratio was 1.86 for the third quarter of fiscal 2009 compared to .99 in the same period a year ago.  Orders also improved for the nine months ended December 27, 2008 to $16,774,000 compared to $13,636,000 for the same period of fiscal 2008.
 
Net loss for the nine months ended December 27, 2008 was $713,000 or $0.15 per fully diluted share compared with a net profit of $311,000 or $0.06 per fully diluted share for the same period last year.  Net sales decreased 14% to $12,276,000 in the nine month period ended December 27, 2008 compared to $14,232,000 for the same period a year ago.  Operating expenses increased 3% or $154,000 in the first nine months of fiscal 2009 over fiscal 2008.  Also included in the $311,000 net profit for the nine month period ended December 29, 2007 was a one time restructuring charge of $80,000 or $0.02 per fully diluted share in severance costs.
 
Income from discontinued operations for the nine month period ended December 27, 2008 was $75,000.  This resulted from the foreclosure and resale of the Dymatix assets to a third party.  During the nine month period ended December 29, 2007, the Company recorded $34,000 as income on discontinued operations primarily due to a payment of a previously written off asset.
 
Backlog at quarter end was $12.0 million (approximately $8.9 million is shippable within one year) as compared to $7.8 million (approximately $4.5 million was shippable within one year) at the end of the third quarter of the prior year.
 
Cash and cash equivalents at December 27, 2008 were $2,113,000 compared to $1,577,000 as of September 27, 2008.
 
Giga-tronics will host a conference call today at 4:30 p.m. ET to discuss the second quarter results.  To participate in the call, dial (866) 551-3680, and enter Access Code 5324530#.  The call will also be broadcast over the internet at www.gigatronics.com under “Investor Relations”.  The conference call discussion reflects management’s views as of January 29, 2009 only.
 
Founded in 1980, Giga-tronics Incorporated is a publicly held company, traded on the NASDAQ Capital Market under the symbol “GIGA”.  Giga-tronics is a leading engineering and design manufacturer of best-in-class RF and microwave signal generators, power amplifiers, power meters, and USB power sensors and broadband switching matrices.  Research and Development production and calibration managers, scientists, engineers and technicians around the world use Giga-tronics test equipment and realize higher productivity and greater ease of use in many applications:  ATE systems, aerospace and defense telecommunications and general component test.
 
This press release contains forward-looking statements concerning profitability, backlog and shipments.  Actual results may differ significantly due to risks and uncertainties, such as future orders, cancellations or deferrals, disputes over performance and the ability to collect receivables.  For further discussion, see Giga-tronics’ annual report on Form 10-K for the fiscal year ended March 29, 2008 Part I, under the heading “Risk Factors” and Part II, under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.
 

 
 
 
 


CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
  
(In thousands except share data)
  
December 27, 2008
March 29, 2008
  
Assets
            
Current assets
            
    Cash and cash equivalents
   $ 2,113     $ 1,845  
    Trade accounts receivable, net of allowance of $156 and $93,
                
         respectively
     2,043       2,693  
    Inventories, net
     5,012       5,008  
    Prepaid expenses and other current assets
     337       383  
Total current assets
     9,505       9,929  
                 
Property and equipment, net
     344       400  
Other assets
     16       32  
Total assets
   $ 9,865     $ 10,361  
                 
Liabilities and shareholders’ equity
                
Current liabilities
                
    Accounts payable
   $ 647     $ 649  
    Accrued commissions
     172       181  
    Accrued payroll and benefits
     544       526  
    Accrued warranty
     187       190  
    Customer advances
     765       646  
    Reserve for lease obligations
     183       247  
    Current portion of capital lease obligation
     16       ---  
    Other current liabilities
     363       359  
Total current liabilities
     2,877       2,798  
Long term obligations
     136       171  
Total liabilities
     3,013       2,969  
                 
Commitments
                
                 
Shareholders’ equity
                
Preferred stock of no par value;
                
    Authorized 1,000,000 shares; no shares outstanding at
                
         December 27, 2008 and March 29, 2008
     ---       ---  
Common stock of no par value;
                
    Authorized 40,000,000 shares; 4,824,021 shares at
                
         December 27, 2008 and 4,824,021 at March 29, 2008
                
         issued and outstanding
     13,571       13,398  
Accumulated deficit
     (6,719 )     (6,006 )
Total shareholders’ equity
     6,852       7,392  
Total liabilities and shareholders’ equity
   $ 9,865     $ 10,361  

 

 
 
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
  
   
Three Months Ended
    
Nine Months Ended
  
(In thousands except per share data)
  
December 27, 2008
    
December 29, 2007
    
December 27, 2008
    
December 29, 2007
  
                         
Net sales
   $ 5,099     $ 4,953     $ 12,276     $ 14,232  
                                 
Cost of sales
     2,679       2,904       7,121       8,158  
Gross profit
     2,420       2,049       5,155       6,074  
                                 
Engineering
     479       520       1,557       1,620  
Selling, general and administrative
     1,590       1,454       4,391       4,094  
Restructuring
     ---       ---       ---       80  
    Total operating expenses
     2,069       1,974       5,948       5,794  
                                 
Operating income (loss) from
                               
   continuing operations
     351       75       (793 )     280  
                                 
Other expense
     ---       30       ---       30  
Interest (expense) income, net
     (2 )     6       7       29  
Income (loss) from continuing operations before income taxes
      349       51       (786 )     279  
Provision for income taxes
     ---       ---       2       2  
Income (loss) from continuing operations
      349       51       (788 )     277  
Income (loss) on discontinued operations, net of income taxes
      ---       (20 )     75       34  
Net income (loss)
   $ 349     $ 31     $ (713 )   $ 311  
                                 
Basic and diluted net earnings (loss) per share:
                                
     From continuing operations
   $ 0.07     $ 0.01     $ (0.16 )   $ 0.05  
     On discontinued operations
     ---       (0.00 )     0.01       0.01  
Basic and diluted net earnings (loss) per share
   $ 0.07     $ 0.01     $ (0.15 )   $ 0.06  
                                 
Shares used in per share calculation:
                                
Basic
     4,824       4,814       4,824       4,811  
Diluted
     4,824       4,913       4,824       4,884