"The Company earned a profit of $252,703 or $.11 per share for the first quarter, compared to net loss of $285,606 or $.12 per share, in last year's recast fiscal first quarter."
PHAZAR CORP Announces First Quarter 2011 Financial Results
MINERAL WELLS, Texas--(BUSINESS WIRE)--October 12, 2010--PHAZAR CORP, (NASDAQ: ANTP) announced today the unaudited results of operations for the one month period ended June 30, 2010 and the three month period ended September 30, 2010.
First Quarter Fiscal Year 2011
Revenues of $2,536,304 for the first quarter ended September 30, 2010 increased 36% compared to the prior year recast first quarter of $1,864,411, reflecting a significant upturn in both the commercial products and traditional governmental segments of our business. Prior year’s numbers are recast to reflect the change in our fiscal year end to June 30 th from May 31 st . Gross profit margin for the quarter, at 50% continues to remain strong, up 13 percentage points from the 37% gross margin reported in the comparable period last year. Lower raw material costs, an improved product mix and longer production runs were responsible for the improvement.
Sales and administrative expenses were down 21% to $682,966 from $867,058 in the prior year, reflecting continued robust indirect expense control and a significant increase in plant utilization rates. Research and Development costs of $218,397 were also down from $301,760 last year, but this is a timing issue, as the Company intends to maintain a vigorous R&D effort. The costs incurred are a combination of continued development on the mesh product line and new antenna designs for the commercial market.
The Company earned a profit of $252,703 or $.11 per share for the first quarter, compared to net loss of $285,606 or $.12 per share, in last year's recast fiscal first quarter.
Commenting on the quarter, Garland P. Asher, Chairman and CEO, said, “On several occasions over recent quarters, I’ve observed that the gross margin improvement we were working diligently to achieve and the strict expense control would hopefully be reflected in improved profitably once revenue levels returned to acceptable levels. That scenario unfolded in textbook fashion in our first quarter. Sales were up by 36%, led by a more than doubling of commercial sales of DAS antennas to the cell phone carriers. But our traditional governmental customer base also showed substantial recovery and revenue growth. With sales gains of that magnitude combined with the above mentioned gross margin expansion, the Company was able to show the best quarterly earnings in more than two years.”
Additionally Mr. Asher stated, “Also encouraging as we go forward, we were able to add to our backlog. The backlog of orders was $3,263,000 at September 30, 2010, 12% ahead of the $2,908,000 at our May 31, 2010 year-end and up 59% from September 30, 2009. Incoming orders for the three month period totaled $3,298,468, versus $2,447,530 for the comparable period last year.”
In closing Mr. Asher remarked, “I have been too chastened by the economic events of the last two years and its effects on PHAZAR CORP to hazard a specific projection of results going forward. Having said that, when I see the explosive growth in smart phones and other wireless devices and the resulting taxing of available bandwidth in virtually all of the major metropolitan areas, I am encouraged. By not retreating from our robust R&D program during the downturn, we have developed the most extensive family of DAS (Distributed Antenna Systems) right when the industry needs them.”
More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the first quarter ended September 30, 2010, to be filed with the Securities and Exchange Commission on or before November 13, 2010.
The Form 10-Q will be available at the SEC’s website at www.sec.gov and PHAZAR CORP’S website at www.phazarcorp.com .
Product information is available at www.antennaproducts.com , www.truemeshnetworks.com and www.phazar.com .
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