HSR Hi-Shear Technology Corp

Hi-Shear Technology Corporation, Torrance, CA (NYSE Alternext US: HSR) today announced results for its first quarter of fiscal 2009 ending August 31, 2008. Revenues recognized during the first quarter were $6,044,000 compared to the revenues of $5,659,000 for the same period last year. The 7% revenue growth was attributed to the increased military aircraft product line activity during the quarter. Net income for the quarter ended August 31, 2008 was $1,166,000, or $0.17 per share, compared to net income of $1,130,000, or $0.17 per share, for the quarter ended August 31, 2007. On October 9, 2008 the Company approved the distribution of a cash dividend of $0.50 per share, or approximately $3,410,000, payable on October 27, 2008, to shareholders of record as of the close of business October 24, 2008. Hi-Shear Technology Corporation provides pyrotechnic, mechanical, and electronic products to the aerospace and defense market in applications where safety, performance and high reliability are essential. It develops and produces advanced systems and products that are primarily used worldwide in space satellites, launch vehicles, national defense, and government programs. This release, as it relates to product announcements and other Company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company�s new products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights. The Company�s Form 10-QSB will be filed with the Securities and Exchange Commission on or about October 15, 2008. The 10-QSB will be available for download at www.hstc.com. For more information regarding this release or general information about the company contact Ms. Linda A. Nespole, (310) 784-7821. FINANCIAL INFORMATION � FINANCIAL STATEMENTS BALANCE SHEETS August 31, May 31, 2008 2008 (Unaudited) � ASSETS: Current Assets: Cash and cash equivalents $ 6,858,000 $ 1,655,000 Accounts receivable, net 9,769,000 14,474,000 Inventories, net 2,094,000 1,345,000 Deferred income taxes 2,251,000 2,430,000 Prepaid expenses and other current assets 318,000 182,000 Total current assets $ 21,290,000 $ 20,086,000 � Land 846,000 846,000 Equipment, net 1,973,000 2,003,000 Total assets $ 24,109,000 $ 22,935,000 � LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Bank line of credit/note payable $ 0 $ 0 Trade accounts payable 678,000 740,000 Accrued liabilities 6,182,000 5,872,000 Deferred revenue 930,000 1,204,000 Current portion of obligations under capital leases 40,000 40,000 Total current liabilities $ 7,830,000 $ 7,856,000 � Deferred income taxes 302,000 315,000 Obligation under capital leases (less current portion) 24,000 34,000 Total liabilities $ 8,156,000 $ 8,205,000 � Stockholders' Equity Preferred stock, $1.00 par value; 500,000 shares authorized; no shares issued 0 0 Common stock, $.001 par value - 25,000,000 shares authorized; 6,819,291 and 6,817,541 shares issued and outstanding at August 31, 2008 and May 31, 2008 respectively 7,000 7,000 Additional paid-in capital 7,880,000 7,823,000 Retained earnings 8,066,000 6,900,000 Total stockholders' equity $ 15,953,000 $ 14,730,000 � Total liabilities and stockholders' equity $ 24,109,000 $ 22,935,000 HI-SHEAR TECHNOLOGY CORPORATION � STATEMENTS OF OPERATIONS (UNAUDITED) � � � Three-Month Period Ended August 31, 2008 2007 � Revenues $ 6,044,000 $ 5,659,000 � Cost of Revenues 3,073,000 2,837,000 � Gross Margin 2,971,000 2,822,000 � Selling, General and Administrative Expenses 1,019,000 958,000 � Operating Income 1,952,000 1,864,000 � Interest Income, Net 11,000 12,000 � Income before Income Tax Expense 1,963,000 1,876,000 � Income Tax Expense 797,000 746,000 � Net Income $ 1,166,000 $ 1,130,000 � � Earnings per Common Share - Basic $ 0.17 $ 0.17 Earnings per Common Share - Diluted $ 0.17 $ 0.17 � Weighted # Common Shares Outstanding: Basic 6,818,000 6,790,000 Diluted 6,833,000 6,806,000