EX-99.1 2 f05126exv99w1.htm EXHIBIT 99.1 exv99w1
 

NEWS RELEASE    
 
For Release on January 28, 2005   Contact: Mark H. Cosmez II
4:00 PM (ET)   (925) 328-4656   Vice President, Finance/Chief Financial Officer

Giga-tronics Reports Third Quarter FY 2005 Results

     San Ramon, CA – Giga-tronics Incorporated (NASDAQ:GIGA) reported today a net profit from continuing operations of $161,000 or $0.04 per fully diluted share for the quarter ending December 25, 2004. This compares with a net loss of $1,084,000 or $0.23 per fully diluted share for the same period a year ago. For the nine month period ending December 25, 2004 profit from continuing operations was $623,000 or $0.13 per fully diluted share compared to a loss of $2,717,000 or $0.58 per fully diluted share for the same period a year ago.

     For the three month period ended December 25, 2004, net profit including discontinued operations was $28,000 or $0.01 per fully diluted share. This compares with the net loss of $994,000 or $0.21 per fully diluted share for the same period a year ago. Net profit for the nine months ending December 25, 2004, including discontinued operations, was $409,000 or $0.09 per fully diluted share compared with a net loss of $5,109,000 or $1.09 per fully diluted share for the same period last year.

     Net sales from continuing operations increased 34% to $5,130,000 in the third quarter of fiscal 2005 versus $3,822,000 in the third quarter of fiscal 2004.

     Orders booked for the third quarter of fiscal 2005 were $4,032,000 as compared to $5,151,000 for the third quarter of fiscal 2004. Book to bill ratio is .79 versus 1.35 for the same period a year ago. Backlog at quarter end was $8.9 million (approximately $7.0 million is shippable within one year) as compared to $14.4 million (approximately $6.4 million shippable within one year) at the end of the third quarter of the prior year.

     Cash and cash equivalents at December 25, 2004 were $2,685,000 compared to $2,214,000 as of September 25, 2004.

     Giga-tronics will host a conference call today at 4:30 PM ET to discuss the first quarter results. To participate in the call, dial 612-332-0923. The call will also be broadcast over the internet at www.gigatronics.com

 

 

under “Corporate Info/Investor Relations”. The conference call discussion reflects management’s views as of January 28, 2005 only.

     Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in both defense electronics and wireless telecommunications.

     Giga-tronics is a publicly held Company, traded on the NASDAQ Small Cap Market under the symbol “GIGA”.

     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, the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control, civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type, the involvement of the United Sates in war or other hostilities, restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends, the ability to collect receivables, and other risks and unforeseen events. For further discussion, see Giga-tronics’ annual report on Form 10-K for the fiscal year ended March 27, 2004 Part I, under the heading “Certain Factors Which May Adversely Affect Future Operations or an Investment in Giga-tronics” and Part II, under the heading “Management’s Discussion and Analysis of Financial Conditions and Results of Operations”.

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
                 
(In thousands except share data)   December 25, 2004     March 27, 2004  
(Unaudited)            
Assets
                
Current assets
                
Cash and cash equivalents
   $ 2,685     $ 2,752  
Notes receivable
     82       253  
Trade accounts receivable, net
     2,826       1,959  
Inventories
     6,834       6,920  
Prepaid expenses
     191       271  
 
            
Total current assets
     12,618       12,155  

Property and equipment, net

     761       1,251  
Other assets
     117       327  
 
            
Total assets
   $ 13,496     $ 13,733  
 
            

Liabilities and shareholders’ equity

                
Current liabilities
                
Accounts payable
   $ 1,045     $ 1,686  
Accrued commissions
     305       293  
Accrued payroll and benefits
     805       889  
Accrued warranty
     474       548  
Customer advances
     391       58  
Obligations under capital lease
     —       10  
Other current liabilities
     544       674  
 
            
Total current liabilities
     3,564       4,158  
Deferred rent
     327       379  
 
            
Total liabilities
     3,891       4,537  
 
            
Shareholders’ equity
                
Preferred stock of no par value;
                
Authorized 1,000,000 shares; no shares outstanding at December 25, 2004 and March 27, 2004
     —       —  
Common stock of no par value;
                
Authorized 40,000,000 shares; 4,724,896 shares at December 25, 2004 and 4,724,896 shares at March 27, 2004 issued and outstanding
     12,752       12,752  
Accumulated deficit
     (3,147 )     (3,556 )
 
            
Total shareholders’ equity
     9,605       9,196  
 
            
Total liabilities and shareholders’ equity
   $ 13,496     $ 13,733  
 
            

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 
                                 
    Three Months Ended     Nine Months Ended  
(In thousands except per share data)   December 25, 2004     December 27, 2003     December 25, 2004     December 27, 2003  
(Unaudited)                        
Net sales
   $ 5,130     $ 3,822     $ 16,209       14,196  

Cost of sales

     2,755       2,732       8,934       9,828  
 
                        
Gross profit
     2,375       1,090       7,275       4,368  

Product development

     812       961       2,465       2,814  
Selling, general and administrative
     1,398       1,209       4,182       4,273  
 
                        
Operating expenses
     2,210       2,170       6,647       7,087  

Operating income (loss)

     165       (1,080 )     628       (2,719 )

Other expense

     (2 )     (4 )     (2 )     (4 )
Interest (expense) income, net
     (2 )     —       1       10  
 
                        
Income (loss) from continuing operations before income taxes
     161       (1,084 )     627       (2,713 )
Provision for income taxes
     —       —       4       4  
 
                        
Income (loss) from continuing operations
     161       (1,084 )     623       (2,717 )
(Loss) income on discontinued operations, net of income taxes
     (133 )     90       (214 )     (2,392 )
 
                        
Net income (loss)
   $ 28     $ (994 )   $ 409     $ (5,109 )
 
                        

Basic net income (loss) per share:

                                
From continuing operations
   $ 0.04     $ (0.23 )   $ 0.13     $ (0.58 )
On discontinued operations
     (0.03 )     0.02       (0.04 )     (0.51 )
 
                        
Basic net income (loss) per share
   $ 0.01     $ (0.21 )   $ 0.09     $ (1.09 )
 
                        

Diluted net income (loss) per share:

                                
From continuing operations
   $ 0.04     $ (0.23 )   $ 0.13     $ (0.58 )
On discontinued operations
     (0.03 )     0.02       (0.04 )     (0.51 )
 
                        
Diluted net income (loss) per share
   $ 0.01     $ (0.21 )   $ 0.09     $ (1.09 )
 
                        

Shares used in per share calculation:

                                
Basic
     4,725       4,708       4,725       4,699  
Dilutive
     4,734       4,708       4,734       4,699