EX-99.1 2 f20551exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
NEWS RELEASE
 
For Release on May 10, 2006
  Contact: Mark H. Cosmez II
4:00 PM (ET)    (925) 328-4656
  Vice President, Finance/Chief Financial Officer
Giga-tronics Reports Fourth Quarter and FY 2006 Results
     San Ramon, CA — Giga-tronics, Incorporated (NASDAQ: GIGA) reported today that net sales for fiscal year 2006 were $20,620,000, down 4% from $21,477,000 a year ago. Net loss from continuing operations was $988,000 or $0.21 per fully diluted share versus a net profit from continuing operations of $845,000 or $0.18 per fully diluted share last year.
     For the fiscal year ended March 25, 2006, net loss was $961,000 or $0.20 per fully diluted share versus a net profit of $612,000 or $0.13 per fully diluted share for the same period a year ago.
     In the fourth quarter, net sales were $5,686,000, up 8% from $5,268,000 in the same quarter for the prior year. Net loss for the period was $87,000 or $0.02 per fully diluted share compared with a net profit of $203,000 or $0.04 per fully diluted share for the same period a year ago. Loss from continuing operations for the fourth quarter was $100,000 or $0.02 per fully diluted share compared to income from continuing operations of $222,000 or $0.05 per fully diluted share for the same period a year ago.
     Our book-to-bill ratio in the fourth quarter of fiscal 2006 was .67 compared to 2.31 in the fourth quarter of fiscal 2005.
     Orders booked in the fourth quarter from continuing operations were $3,822,000 compared to $12,162,000 last year and for the 2006 fiscal year were $15,157,000 compared to $20,914,000 a year ago. Backlog at quarter end was $10.3 million (approximately $5.9 million is shippable within one year) as compared to $15.8 million (approximately $8.1 million shippable within one year) at the end of the fourth quarter of the prior year.
     Cash and cash equivalents at March 25, 2006 were $3,412,000 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 fourth quarter and full fiscal year 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 May 10, 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 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 25, 2006 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)   March 25, 2006     March 26, 2005  
Assets
               
Current assets
               
Cash and cash equivalents
   $ 3,412     $ 2,540  
     Notes receivable, net of allowance of $250 and $250, respectively
     3       7  
     Trade accounts receivable, net of allowance of $63 and $77, respectively
     3,435       3,145  
     Inventories
     4,813       6,257  
     Prepaid expenses and other assets
     219       227  
 
            
Total current assets
   $ 11,882     $ 12,176  
 
            
 
                
Property and equipment
               
Leasehold improvements
   $ 373     $ 373  
     Machinery and equipment
     15,592       15,786  
     Office furniture and fixtures
     723       721  
 
            
          Property and equipment
     16,688       16,880  
          Less accumulated depreciation and amortization
     16,351       16,206  
 
            
Property and equipment, net
     337       674  
Other assets
     127       111  
 
            
Total assets
   $ 12,346     $ 12,961  
 
            
 
                
Liabilities and shareholders’ equity
                
Current liabilities
                
Accounts payable
   $ 870     $ 1,075  
     Accrued commissions
     171       200  
     Accrued payroll and benefits
     781       720  
     Accrued warranty
     250       378  
     Customer advances
     521       2  
     Other current liabilities
     433       464  
 
            
Total current liabilities
   $ 3,026     $ 2,839  
Deferred rent
     222       310  
 
            
Total liabilities
   $ 3,248     $ 3,149  
 
            
Shareholders’ equity
    —       —  
Preferred stock of no par value
Authorized 1,000,000 shares; no shares outstanding
at March 25, 2006 and March 26, 2005
     —       —  
Common stock of no par value;
                
     Authorized 40,000,000 shares; 4,809,021 shares at
March 25, 2006 and 4,728,646 shares at
March 26, 2005 issued and outstanding
     13,003       12,756  
Accumulated Deficit
     (3,905 )     (2,944 )
 
            
Total shareholders’ equity
     9,098       9,812  
 
            
Total liabilities and shareholders’ equity
   $ 12,346     $ 12,961  
 
            

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 
    Three Months Ended     Twelve Months Ended  
(In thousands except share data)   March 25, 2006     March 26, 2005     March 25, 2006     March 26, 2005  
Net sales
   $ 5,686     $ 5,268     $ 20,620     $ 21,477  
Cost of sales
     3,588       2,945       12,320       11,879  
Gross profit
     2,098       2,323       8,300       9,598  
 
                                
Product development
     868       905       3,760       3,370  
Selling, general and administrative
     1,338       1,208       5,556       5,390  
Operating expenses
     2,206       2,113       9,316       8,760  
 
                                
Operating (loss) income from continuing operations
     (108 )     210       (1,016 )     838  
Other income
     —       15       —       11  
Interest income, net
     8       (3 )     32       —  
(Loss) income from continuing operations before income taxes
     (100 )     222       (984 )     849  
Provision for income taxes
     —       —       4       4  
(Loss) income from continuing operations
   $ (100 )   $ 222     $ (988 )   $ 845  
Income (loss) on discontinued operations, net of income taxes of nil for 2006 and 2005
     13       (19 )     27       (233 )
Net (loss) income
   $ (87 )   $ 203     $ (961 )   $ 612  
 
                                
Basic net (loss) income per share:
                                
From continuing operations
   $ (0.02 )   $ 0.05     $ (0.21 )   $ 0.18  
On discontinued operations
     0.00       (0.01 )     0.01       (0.05 )
Basic net (loss) income per share
   $ (0.02 )   $ 0.04     $ (0.20 )   $ 0.13  
 
                                
Diluted net (loss) income per share:
                                
From continuing operations
   $ (0.02 )   $ 0.05     $ (0.21 )   $ 0.18  
On discontinued operations
     0.00       (0.01 )     0.01       (0.05 )
Diluted net (loss) income per share
   $ (0.02 )   $ 0.04     $ (0.20 )   $ 0.13  
 
                                
Shares used in per share calculation:
                                
Basic
     4,809       4,727       4,782       4,725  
Diluted
     4,809       4,802       4,782       4,741