SI Technologies Announces Second-Quarter Operating Results
TUSTIN, Calif.--March 16, 2001--SI Technologies, Inc. , which designs, manufactures and markets high-performance industrial sensors, weighing and factory automation equipment and systems, and related products, today announced operating results for the second quarter and first half of FY2001.Revenues for the quarter ended January 31, 2001, totaled $9.6 million, compared with $10.0 million in the second quarter of the previous fiscal year. Strong worldwide sales of industrial measurement components were more than offset by weak domestic sales of industrial scales and engineered automation systems in the most recent quarter. As a result, net income declined slightly to $19,000, or $0.01 per diluted share, during the second quarter of FY2001, when compared with $28,000, or $0.01 per diluted share, in the prior-year period. EBITDA (earnings before interest, taxes, depreciation and interest) decreased 9.2% to $965,000, versus $1,063,000 in the quarter ended January 31, 2000.
Net sales for the six-month period ended January 31, 2001, decreased 4.6% to $19.5 million, versus net sales of $20.5 million in the first half of the prior fiscal year. The Company reported a net loss for the first half of FY2001 of ($40,000), or ($0.01) per diluted share, compared with net income of $122,000, or $0.03 per diluted share, in the corresponding period of the previous fiscal year. EBITDA decreased 14.1% to $1.8 million, compared with $2.2 million in the six months ended January 31, 2000.
Sales of industrial measurement components increased more than 9%, when measured in local currencies, during the second quarter of FY2001, and by almost 15% in the first half of FY2001. However, weakness in the Euro on international currency markets reduced the gain in sales of such products to 4% when translated into U.S. Dollars in the second quarter and to 7% for the first half of FY2001. Conversely, sales of industrial scale and engineered automation equipment declined by over 10% in the most recent quarter and 15% for the first half of FY2001, when compared with the prior-year periods. Industrial measurement components and industrial scales/automation equipment each represent approximately half of the Company's revenues.
"We are pleased with our ability to increase global sales of our core industrial measurement components during a period of deepening recession in the manufacturing sector of the U.S. economy," stated Rick Beets, President and Chief Executive Officer of SI Technologies, Inc. "Unfortunately, our scale and automation businesses have not escaped the influence of a weakening economy in the United States. The success of the facilities consolidation and cost reduction programs which management implemented during Fiscal 2000 has enabled SI Technologies to avoid posting significant losses in recent quarters, and we are positioned for a rebound in profitability when our markets recover."
"As announced earlier, one of our strategic objectives during Fiscal 2001 involves the negotiation of offshore manufacturing agreements, and I am pleased to announce that we are making significant progress in this regard," continued Beets. "By transferring the production of many higher-volume products offshore, we believe gross margins can expand and SI Technologies can move closer to its goal of becoming a low-cost manufacturer of such products. Since it is difficult to predict how long the manufacturing recession in the U.S. might last, we are currently developing a plan to address any further decline in capital goods spending."
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In Thousands Except Per-Share Data)
(Unaudited)
Three Months Ended
Jan. 31, Jan. 31,
2001 2000
--------------- --------------
Net Sales $ 9,622 $ 9,967
Cost of Sales 6,234 6,413
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Gross Profit 3,388 3,554
Selling, General & Admin. Expenses 2,321 2,354
Research, Develop. & Engineering Expenses 397 470
Amortization of Intangibles 114 118
------- -------
2,832 2,942
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Earnings from Operations 556 612
------- -------
Interest Expense (424) (498)
Other Income (Expense), net (5) 8
------- -------
Earnings Before Income Tax Expense 127 122
Income Tax Expense (108) (95)
------- -------
Net Earnings $ 19 $ 27
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Net Earnings Per Common Share:
Basic $ 0.01 $ 0.01
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Diluted $ 0.01 $ 0.01
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Weighted Average Shares Outstanding:
Basic 3,547 3,547
Diluted 3,547 3,589
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In Thousands Except Per-Share Data)
(Unaudited)
Six Months Ended
Jan. 31, Jan. 31,
2001 2000
--------------- --------------
Net Sales $19,515 $20,459
Cost of Sales 12,877 13,025
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Gross Profit 6,638 7,434
Selling, General & Admin. Expenses 4,629 4,944
Research, Develop. & Engineering Expenses 799 991
Amortization of Intangibles 226 230
------- -------
5,654 6,165
------- -------
Earnings from Operations 984 1,269
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Interest Expense (872) (924)
Other Income (Expense), net (1) 15
------- -------
Earnings Before Income Tax Expense 111 360
Income Tax Expense (151) (238)
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Net Earnings $ (40) $ 122
------- -------
Net Earnings Per Common Share:
Basic $ (0.01) $ 0.03
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Diluted $ (0.01) $ 0.03
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Weighted Average Shares Outstanding:
Basic 3,547 3,547
Diluted 3,547 3,592
SI TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
---------------------------
(In Thousands Except Per-Share Data)
January 31, July 31,
2001 2000
--------------- --------------
(Unaudited)
Current Assets:
Cash and Cash Equivalents $ 183 $ 112
Accounts Receivable, net 7,441 7,158
Unbilled Revenues 143 -
Inventories 10,252 8,867
Deferred Tax Assets 970 970
Other Current Assets 601 657
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Total Current Assets 19,590 17,764
Property and Equipment, net 5,111 5,649
Intangible Assets, net 9,299 9,280
Other Assets 279 325
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TOTAL ASSETS $34,279 $33,018
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Current Liabilities:
Current Maturities of Long-Term Debt 2,893 3,805
Accounts Payable 4,081 3,325
Customer Advances 120 353
Income Taxes Payable 79 59
Accrued Liabilities 2,157 1,998
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Total Current Liabilities 9,330 9,540
Long-Term Debt, Less Current Maturities 12,619 10,809
Other Liabilities 714 817
Deferred Taxes 160 160
Stockholders Equity:
Common Stock ($0.01 par value, 10,000
shares authorized, 3,547
shares issued and outstanding) 35 35
Additional Paid-In Capital 10,327 10,327
Retained Earnings 1,420 1,460
Accumulated other comprehensive income (326) (130)
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $34,279 $33,018
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