VPF.. $3.14 Earnings..
HOPKINTON, Mass.--(BUSINESS WIRE)--October 29, 2010--
Valpey Fisher Corporation (NASDAQ: VPF), a leader in low-noise timing solutions, today reported results for the third quarter ended October 3, 2010.
For the third quarter of 2010, the Company reported an operating profit of $ 270,000 and net earnings of $174,000 or $.04 per share on sales of $3,803,000, compared to an operating loss of $264,000 and a net loss of $138,000 on sales of $2,502,000 for the same period last year.
Michael Ferrantino Jr., the Company's President and Chief Executive Officer, commented, "We are pleased to report 2010 third quarter results that include a 52% increase in revenue and a $534,000 increase in operating profit over the same period of 2009. This increase in operating profit is after the negative impact of our $204,000 investment in marketing and development expenses incurred by our Microwave Product line that was formed in the fourth quarter of 2009. New customer orders were up $1,043,000 or 38% from the third quarter of last year. Our backlog amounted to $2,201,000 at October 3, 2010 compared to $1,765,000 at the end of the third quarter of 2009."
"Our products continued to gain traction during the third quarter. We again saw sales increases across all of our product lines with our High Precision Product line increasing by 114% over the prior year. Our customer base is clearly recognizing the value of these industry leading oscillators, timing modules and integrated subsystems. Valpey Fisher recently received "Preferred Vendor" status by a major telecom OEM," added Ferrantino.
About Valpey Fisher:
Valpey Fisher is a pioneer in the design of high-accuracy subsystems used in digital and optical telecommunications systems in use throughout the world for digital, voice, data and military communications. The Company's products enable communications systems vendors to increase network data capacity and improve voice and video quality. Valpey Fisher manufactures precision low-noise timing modules used in Point-to-Point Radio, Satellite, Base Station, Test & Measurement, Microwave Communications and Synthesizers. The Company's major OEM customers include Alcatel-Lucent, Blade Networks, Juniper Networks, Harris, Raytheon, BAE Systems and L-3 Communications.
For more information on Valpey Fisher's innovative products including the Microwave Product line, please visit www.valpeyfisher.com.
Forward Looking Statements
Certain statements made herein contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Words such as "expects", " believes", "estimates", "plans" or similar expressions are intended to identify such forward-looking statements. The forward-looking statements are based on our current views and assumptions and involve risks and uncertainties that include, but not limited to: our results for 2010 may be negatively impacted by the current global economic conditions and uncertainties, our ability to develop, market and manufacture new innovative products competitively, the fluctuations in product demand of the telecommunications industry, our ability, including that of our suppliers to produce and deliver materials and products competitively, a significant portion of our revenues is derived from sales to a few customers and the loss of one or more of our significant customers could have an adverse impact on our operating results and financial condition, a significant portion of our revenue is derived from products manufactured by one supplier and a significant change in the supplier's manufacturing capability or in our relationship with this supplier could have an adverse impact on our operating results and financial condition, our operating results and financial condition could be negatively affected if after receiving design wins from OEMs, which in turn outsource the manufacture of their products to electronics manufacturing services ("EMS") companies, we fail to negotiate terms and successfully obtain orders from the EMS companies directly, and compliance with changing corporate governance and public disclosure regulations may result in additional expenses.
Valpey-Fisher
Corporation
Consolidated
Statements of
Operations
(Unaudited) (In
thousands,
except per share
data)
Three Months Ended Nine Months Ended
----------------------- -------------------------
10/3/2010 9/27/2009 10/3/2010 9/27/2009
--------- --------- --------- ---------
Net sales $ 3,803 $ 2,502 $ 11,170 $ 7,580
Cost of sales 2,310 1,621 6,879 5,035
----------------- --------- --------- --------- ---------
Gross profit 1,493 881 4,291 2,545
Operating
expenses:
Selling and
advertising 542 410 1,601 1,238
General and
administrative 356 332 1,079 1,005
Retirement
agreement - 265 - 265
Research and
development 325 138 964 423
----------------- --------- --------- --------- ---------
1,223 1,145 3,644 2,931
Operating profit
(loss) 270 (264) 647 (386)
Interest income 4 7 13 27
----------------- --------- --------- --------- ---------
Earnings (loss)
before income
taxes 274 (257) 660 (359)
Income tax
expense
(benefit) 100 (119) 255 (122)
----------------- --------- --------- --------- ---------
Net earnings
(loss) $ 174 $ (138) $ 405 $ (237)
----------------- --------- --------- --------- ---------
Basic and diluted
earnings (loss)
per share $ .04 $ (.03) $ .09 $ ( .06)
----------------- --------- --------- --------- ---------
Basic weighted
average shares 4,306 4,298 4,302 4,298
Diluted weighted
average shares 4,496 4,298 4,450 4,298
Valpey-Fisher Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(In thousands, except share data)
10/3/2010 12/31/2009
------------- ----------
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 4,315 $ 4,053
Restricted cash 201 -
Receivables, net 2,618 1,744
Inventories, net 1,361 1,105
Deferred income taxes 837 848
Other current assets 28 111
--------------------------------------------------- ------------- ----------
Total current assets 9,360 7,861
Property, plant and equipment, at cost 11,961 11,613
Less accumulated depreciation 10,456 10,128
--------------------------------------------------- ------------- ----------
1,505 1,485
Other assets 214 203
--------------------------------------------------- ------------- ----------
Total assets $11,079 $9,549
--------------------------------------------------- ------------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,307 $ 949
Accrued liabilities 1,563 861
--------------------------------------------------- ------------- ----------
Total current liabilities 2,870 1,810
Deferred income taxes 195 175
Stockholders' equity:
Preferred stock, $1.00 par value- Authorized
1,000,000 shares; issued none - -
Common stock, $.05 par value- Authorized
10,000,000 shares; Issued and outstanding:
4,306,638 and 4,297,898 shares 215 215
Capital surplus 5,712 5,667
Retained earnings 2,087 1,682
--------------------------------------------------- ------------- ----------
Total stockholders' equity 8,014 7,564
--------------------------------------------------- ------------- ----------
Total liabilities and stockholders' equity $11,079 $9,549
--------------------------------------------------- ------------- ----------
CONTACT: Valpey Fisher Corporation
Michael J. Kroll, 508-435-6831 X600
Vice
President, Treasurer and CFO
SOURCE: Valpey Fisher Corporation Copyright Business Wire 2010
