EX-99.1 2 f16654exv99w1.htm EXHIBIT 99.1 exv99w1
 

     
NEWS RELEASE
    
 
For Release on January 25, 2006
  Contact: Mark H. Cosmez II
4:00 PM (ET) (925) 328-4656
  Vice President, Finance/Chief Financial Officer
Giga-tronics Reports Third Quarter FY 2006 Results
     San Ramon, CA — Giga-tronics Incorporated (NASDAQ:GIGA) reported today a net profit of $30,000 or $0.01 per fully diluted share for the three months ended December 24, 2005. This compares with the net profit of $28,000 or $0.01 per fully diluted share for the same period a year ago. Net loss for nine months ended December 24, 2005 was $(874,000) or $(0.18) per fully diluted share compared with a net profit of $409,000 or $0.09 per fully diluted share for the same period last year.
     Net sales from continuing operations increased 8% to $5,537,000 in the third quarter of fiscal 2006 versus $5,130,000 in the third quarter of fiscal 2005. Net sales for the nine months ended December 24, 2005 decreased 8% to $14,934,000 from $16,209,000 for the same period in the prior year.
     Orders booked for the third quarter of fiscal 2006 were $3,995,000 as compared to $4,032,000 for the third quarter of fiscal 2005. Book to bill ratio is 0.72 versus 0.79 for the same period a year ago. Backlog at quarter end was $12.1 million (approximately $6.3 million is shippable within one year) as compared to $8.9 million (approximately $7.0 million shippable within one year) at third quarter end of the prior year.
     Cash and cash equivalents were $2,537,000 at December 24, 2005 compared to $2,540,000 as of March 26, 2005.
     Giga-tronics will host a conference call today at 4:30 PM ET to discuss the third 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 25, 2006 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 Capital 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 and the ability to collect receivables. For further discussion, see Giga-tronics’ annual report on Form 10-KSB for the fiscal year ended March 26, 2005 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 24, 2005     March 26, 2005  
(Unaudited)                
Assets
                
Current assets
                
Cash and cash equivalents
   $ 2,537     $ 2,540  
Notes receivable
     —       7  
Trade accounts receivable, net
     3,324       3,145  
Inventories
     5,875       6,257  
Prepaid expenses
     247       227  
 
            
Total current assets
     11,983       12,176  
 
                
Property and equipment, net
     384       674  
Other assets
     68       111  
 
            
Total assets
   $ 12,435     $ 12,961  
 
            
 
                
Liabilities and shareholders’ equity
                
Current liabilities
                
Accounts payable
   $ 1,086     $ 1,075  
Accrued commissions
     182       200  
Accrued payroll and benefits
     625       720  
Accrued warranty
     264       378  
Customer advances
     454       2  
Other current liabilities
     395       464  
 
            
Total current liabilities
     3,006       2,839  
Deferred rent
     245       310  
 
            
Total liabilities
     3,251       3,149  
 
            
Shareholders’ equity
                
Preferred stock of no par value;
                
Authorized 1,000,000 shares; no shares outstanding at December 24, 2005 and March 26, 2005
     —       —  
Common stock of no par value;
                
Authorized 40,000,000 shares; 4,809,021 shares at December 24, 2005 and 4,728,646 shares at March 26, 2005 issued and outstanding
     13,002       12,756  
Accumulated deficit
     (3,818 )     (2,944 )
 
            
Total shareholders’ equity
     9,184       9,812  
 
            
Total liabilities and shareholders’ equity
   $ 12,435     $ 12,961  
 
            

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS
                                 
    Three Months Ended     Nine Months Ended  
(In thousands except per share data)   December 24, 2005     December 25, 2004     December 24, 2005     December 25, 2004  
(Unaudited)                                
Net sales
   $ 5,537     $ 5,130     $ 14,934       16,209  
 
                                
Cost of sales
     3,203       2,755       8,732       8,934  
 
                        
Gross profit
     2,334       2,375       6,202       7,275  
 
                                
Product development
     883       812       2,892       2,465  
Selling, general and administrative
     1,434       1,398       4,218       4,182  
 
                        
Operating expenses
     2,317       2,210       7,110       6,647  
 
                                
Operating income (loss)
     17       165       (908 )     628  
 
                                
Other expense
     —       (2 )     —       (2 )
Interest income (expense), net
     10       (2 )     24       1  
 
                        
Income (loss) from continuing operations before income taxes
     27       161       (884 )     627  
Provision for income taxes
     —       —       4       4  
 
                        
Income (loss) from continuing operations
     27       161       (888 )     623  
Income (loss) on discontinued operations, net of income taxes
     3       (133 )     14       (214 )
 
                        
Net income (loss)
   $ 30     $ 28     $ (874 )   $ 409  
 
                        
 
                                
Basic net income (loss) per share:
                                
From continuing operations
   $ 0.01     $ 0.04     $ (0.18 )   $ 0.13  
On discontinued operations
     0.00       (0.03 )     0.00       (0.04 )
 
                        
Basic net income (loss) per share
   $ 0.01     $ 0.01     $ (0.18 )   $ 0.09  
 
                        
 
                                
Diluted net income (loss) per share:
                                
From continuing operations
   $ 0.01     $ 0.04     $ (0.18 )   $ 0.13  
On discontinued operations
     0.00       (0.03 )     0.00       (0.04 )
 
                        
Diluted net income (loss) per share
   $ 0.01     $ 0.01     $ (0.18 )   $ 0.09  
 
                        
 
                                
Shares used in per share calculation:
                                
Basic
     4,809       4,725       4,773       4,725  
Dilutive
     4,917       4,734       4,773       4,734