SYRACUSE, N.Y., Aug. 3 /PRNewswire-FirstCall/ -- Anaren, Inc.
(NASDAQ:ANEN) today reported record net sales for the fourth
quarter ended June 30, 2006 of $29.1 million, up 21% from the
fourth quarter of fiscal year 2005. (Logo:
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO ) Net
income for the fourth quarter was $3.7 million, or $0.20 per
diluted share including $0.8 million, or $0.04 per diluted share in
equity based compensation expense. This compares to net income of
$2.6 million, or $0.14 per diluted share for the fourth quarter of
fiscal 2005. Excluding equity based compensation expense, net
income for the fourth quarter was $4.4 million, or $0.24 per
diluted share, an increase of 68% from the fourth quarter of last
year. The effective tax rate for the fourth quarter of fiscal 2006
was 18.3%, compared to 15.2% for the fourth quarter of fiscal 2005.
Operating income for the fourth quarter of fiscal 2006 was $3.8
million, or 12.9% of net sales, including $0.8 million in equity
based compensation expense. This compares to operating income of
$2.6 million, or 10.6% of net sales, for the fourth quarter of
fiscal 2005. Excluding equity based compensation expense, operating
income for the fourth quarter was $4.5 million, or 15.5% of net
sales, an increase of 77% from the fourth quarter of last year.
Lawrence A. Sala, Anaren's President and CEO said, "The growth in
net sales for the quarter was driven by both the Wireless and Space
& Defense business groups. We continue to pursue numerous new
Space & Defense opportunities and net sales for the group grew
28% for the fiscal year. In our Wireless business, demand for the
quarter increased across all product lines." Mr. Sala added, "We
are pleased with our organic growth opportunities, and we are
confident that the recently announced expansion of our Syracuse, NY
and Suzhou, China facilities will support our business growth." For
the fiscal year ended June 30, 2006, net sales were a record $105.5
million, up 11.6% from $94.5 million for fiscal 2005. Operating
income for the year was $12.1 million, or 11.5% of net sales,
including $3.3 million, or 3.1% of net sales, in equity based
compensation expense. Operating income before equity based
compensation expense for fiscal 2006 was 14.6% of net sales. Income
from continuing operations for fiscal 2006 was $11.3 million, or
$0.64 per diluted share, including $3.0 million, or $0.17 per
diluted share in equity based compensation expense, net of tax.
This compares to income from continuing operations for fiscal 2005
of $7.4 million, or $0.37 per diluted share. Net income for the
fiscal year ended June 30, 2006 was $12.2 million, or $0.69 per
diluted share, including income from discontinued operations of
$0.8 million, or $0.05 per diluted share, compared to net income of
$7.4 million, or $0.37 per diluted share for fiscal 2005. Balance
Sheet Cash, cash equivalents and marketable debt securities at June
30, 2006 were $88.6 million. During the quarter, the Company
generated $5.8 million in cash from operations, bringing the total
for fiscal 2006 to $16.6 million. The Company expended $3.2 million
on capital additions during the quarter. Wireless Group Wireless
Group net sales for the quarter were $18.8 million, up 16% from the
fourth quarter of fiscal 2005. The increase in net sales from the
fourth quarter of last year was driven by increased demand across
all wireless product lines. Sales of consumer component products
were $1.1 million for the quarter, up 113% from the fourth quarter
of fiscal 2005, driven by continued robust demand for satellite
television applications. Wireless Group research and development
spending remains focused on consumer and ferrite component
development activity. In addition, progress continued during the
quarter establishing volume ferrite based custom product
manufacturing and test capability in our Suzhou, China operation.
Customers that were 10% of Wireless Group net sales or greater for
the quarter included Motorola, Inc., Nokia Corp. and Richardson
Electronics Ltd. Space & Defense Group Space & Defense
Group net sales for the quarter were $10.3 million, up 31% from the
fourth quarter of fiscal 2005. New orders for the quarter totaled
$11.4 million and included contracts for Passive Ranging Subsystems
and radar antenna subassemblies. For the fiscal year, net sales
were a record $38.7 million, up 28% from fiscal 2005. New orders
for the year were $39.2 million resulting in Space & Defense
backlog at June 30, 2006 of $47.8 million. Outlook We expect
continued market demand volatility for wireless infrastructure
products, a seasonally driven increase in demand for the consumer
component product line and consistency from the backlog-driven
Space & Defense segment. As a result, we expect net sales to be
in the range of $27.5 - $29.5 million for the first quarter of
fiscal 2007. With an anticipated tax rate of approximately 24% and
an expected equity based compensation expense of approximately
$0.04 per diluted share, we expect net earnings per diluted share
to be in the range of $0.16 - $0.20 for the first quarter.
Forward-Looking Statements The statements contained in this news
release which are not historical information are "forward-looking
statements." These, and other forward- looking statements, are
subject to business and economic risks and uncertainties that could
cause actual results to differ materially from those discussed. The
risks and uncertainties described below are not the only risks and
uncertainties facing our Company. Additional risks and
uncertainties not presently known to us or that are currently
deemed immaterial may also impair our business operations. If any
of the following risks actually occur, our business could be
adversely affected, and the trading price of our common stock could
decline, and you may lose all or part of your investment. Such
known factors include, but are not limited to: the Company's
ability to timely ramp up to meet some of our customers' increased
demands; unanticipated delays and/or difficulties associated with
ramping up the Company's Suzhou China facility to meet existing and
anticipated demand for Wireless products; unanticipated delays in
successfully completing customer orders within contractually
required timeframes; increased pricing pressure from our customers;
decreased capital expenditures by wireless service providers; the
possibility that the Company may be unable to successfully execute
its business strategies or achieve its operating objectives,
generate revenue growth or achieve profitability expectations;
successfully securing new design wins from our OEM customers,
reliance on a limited number of key component suppliers,
unpredictable difficulties or delays in the development of new
products; order cancellations or extended postponements; the risks
associated with any technological shifts away from the Company's
technologies and core competencies; unanticipated impairments of
assets including investment values and goodwill; diversion of
defense spending away from the Company's products and or
technologies due to on-going military operations; and litigation
involving antitrust, intellectual property, environmental, product
warranty, product liability, and other issues. You are encouraged
to review Anaren's 2005 Annual Report, Anaren's Form 10-K for the
fiscal year ended June 30, 2005 and Anaren's Form 10-Q for the
three months ended March 31, 2006 and exhibits to those Reports
filed with the Securities and Exchange Commission to learn more
about the various risks and uncertainties facing Anaren's business
and their potential impact on Anaren's revenue, earnings and stock
price. Unless required by law, Anaren disclaims any obligation to
update or revise any forward-looking statement. Conference Call
Anaren will host a live teleconference, open to the public, on the
Anaren Investor Info, Live Webcast Web Site
(http://www.anaren.com/) and ccbn.com at
http://www.streetevents.com/ on Thursday, August 3, 2006 at 5:00
p.m. EDT. A replay of the conference call will be available at 8:00
p.m. (EDT) beginning August 3, 2006 through midnight August 7,
2006. To listen to the replay, interested parties may dial in the
U.S. at 1-888-203-1112 and international at 1-719-457-0820. The
access code is 3954920. If you are unable to access the Live
Webcast, the dial in number for the U.S. is 1-800-967-7184 and
International is 1-719-457-2633. Company Background Anaren designs,
manufactures and sells complex microwave signal distribution
networks and components for the wireless communications, satellite
communications and defense electronics markets. For more
information on Anaren's products, visit our Web site at
http://www.anaren.com/. Consolidated Condensed Statements of Income
(Unaudited) Three Months Ended Twelve Months Ended June 30, June
30, June 30, June 30, 2006 2005 2006 2005 Net Sales $29,129,782
$24,120,268 $105,464,236 $94,461,065 Cost of sales 18,788,050
16,054,707 67,188,568 64,590,866 Gross profit 10,341,732 8,065,561
38,275,668 29,870,199 35.5% 33.4% 36.3% 31.6% Operating expenses:
Marketing 1,745,913 1,707,082 7,036,240 6,857,974 Research and
development 2,256,418 1,620,284 8,747,463 6,287,514 General and
administrative 2,573,686 2,184,577 10,345,398 8,685,332
Restructuring -- -- -- 458,335 Total operating expenses 6,576,017
5,511,943 26,129,101 22,289,155 Operating income 3,765,715
2,553,618 12,146,567 7,581,044 12.9% 10.6% 11.5% 8.0% Other income
(expense): Other, primarily interest income 708,176 507,977
2,452,914 1,598,914 Interest expense (6,774) (7,637) (25,203)
(29,422) Total other income (expense), net 701,402 500,340
2,427,711 1,569,492 Income from continuing operations before income
taxes 4,467,117 3,053,958 14,574,278 9,150,536 Income taxes 816,000
464,000 3,225,000 1,738,000 Income from continuing operations
3,651,117 2,589,958 11,349,278 7,412,536 12.5% 10.7% 10.8% 7.8%
Discontinued operations: Income from discontinued operations -- --
817,177 -- Income tax benefit -- -- -- -- Net income from
discontinued operations -- -- 817,177 -- Net income $3,651,117
$2,589,958 $12,166,455 $7,412,536 12.5% 10.7% 11.5% 7.8% Basic
earnings per share: Income from continuing operations $0.21 $0.14
$0.66 $0.38 Income from discontinued operations 0.00 0.00 0.05 0.00
Net income $0.21 $0.14 $0.71 $0.38 Diluted earnings per share:
Income from continuing operations $0.20 $0.14 $0.64 $0.37 Income
from discontinued operations 0.00 0.00 0.05 0.00 Net income $0.20
$0.14 $0.69 $0.37 Shares used in computing net earnings Per share:
Basic 17,253,753 18,315,130 17,156,720 19,346,491 Diluted
17,859,192 18,669,847 17,682,231 19,831,710 Anaren, Inc.
Consolidated Condensed Balance Sheets (Unaudited) June 30, June 30,
Mar. 31, 2006 2005 2006 Assets: Cash, cash equivalents and
short-term investments $ 82,492,947 $ 58,408,721 $75,464,470
Accounts receivable, net 16,362,011 14,780,146 15,611,714 Other
receivables 1,176,009 1,144,680 958,174 Inventories 22,132,680
19,403,348 22,127,577 Other current assets 2,312,471 1,771,658
1,894,413 Total current assets 124,476,118 95,508,553 116,056,348
Net property, plant and equipment 27,635,161 24,983,653 25,689,775
Securities available for sale -- 3,500,000 -- Securities held to
maturity 6,131,425 20,100,547 5,502,468 Goodwill 30,715,861
30,715,861 30,715,861 Other assets 373,273 673,241 423,588 Total
assets $189,331,838 $175,481,855 $178,388,040 Liabilities and
stockholders' equity Liabilities: Accounts payable $6,798,793
$6,077,313 $5,167,651 Accrued expenses 3,254,816 2,331,885
2,475,492 Customer advance payments 483,722 -- 483,722 Other
liabilities 1,446,011 2,545,847 1,906,643 Total current liabilities
11,983,342 10,955,045 10,033,508 Other non-current liabilities
4,897,687 5,448,247 6,500,242 Total liabilities 16,881,029
16,403,292 16,533,750 Stockholders' equity: Retained earnings
70,826,262 58,659,807 67,175,145 Common stock and additional
paid-in capital 182,049,235 171,346,105 176,098,404 Accumulated
comprehensive loss (441,397) (747,539) (1,435,968) Less: cost of
treasury stock (79,983,291) (70,179,810) (79,983,291) Total
stockholders' equity 172,450,809 159,078,563 161,854,290 Total
liabilities and stockholders' equity $189,331,838 $175,481,855
$178,388,040 Anaren, Inc. and Subsidiaries Consolidated Condensed
Statements of Income (Unaudited) Three Months Ended GAAP Results
SFAS 123R EXP W/O SFAS 123R June 30, June 30, June 30, 2006 2006
2006 Net sales $29,129,782 $-- $29,129,782 Cost of sales 18,788,050
137,627 18,650,423 Gross profit 10,341,732 137,627 10,479,359 35.5%
36.0% Operating expenses: Marketing 1,745,913 69,274 1,676,639
Research and development 2,256,418 108,785 2,147,633 General and
administrative 2,573,686 448,000 2,125,686 Restructuring -- -- --
Total operating expenses 6,576,017 626,059 5,949,958 Operating
income 3,765,715 763,686 4,529,401 12.9% 15.5% Other income
(expense): Other, primarily interest income 708,176 -- 708,176
Interest expense (6,774) -- (6,774) Total other income 701,402 --
701,402 Income from continuing operations before income tax
4,467,117 763,686 5,230,803 Income taxes 816,000 (56,000) 872,000
Income from continuing operations $3,651,117 $707,686 $4,358,803
12.5% 15.0% Discontinued operations Income from discontinued
operations -- -- -- Income tax benefit -- -- -- Net income from
discontinued operations -- -- -- Net income $ 3,651,117 $707,686
$4,358,803 12.5% 15.0% Basic earnings per share Income from
continuing operations $0.21 $0.04 $0.25 Income from discontinued
operations $0.00 $-- $0.00 Net income $0.21 $0.04 $0.25 Diluted
earnings per share Income from continuing operations $0.20 $0.04
$0.24 Income from discontinued operations $0.00 $-- $0.00 Net
income $0.20 $0.04 $0.24 Shares used in computing net income per
share: Basic 17,253,753 17,253,753 17,253,753 Diluted 17,859,192
17,859,192 17,859,192 Anaren, Inc. and Subsidiaries Consolidated
Condensed Statements of Income (Unaudited) Twelve Months Ended GAAP
Results SFAS 123R EXP W/O SFAS 123R June 30, June 30, June 30, 2006
2006 2006 Net sales $105,464,236 $-- $105,464,236 Cost of sales
67,188,568 875,258 66,313,310 Gross profit 38,275,668 875,258
39,150,926 36.3% 37.1% Operating expenses: Marketing 7,036,240
274,631 6,761,609 Research and development 8,747,463 346,167
8,401,296 General and administrative 10,345,398 1,771,221 8,574,177
Total operating expenses 26,129,101 2,392,019 23,737,082 Operating
income 12,146,567 3,267,277 15,413,844 11.5% 14.6% Other income
(expense): Other, primarily interest income 2,452,914 -- 2,452,914
Interest expense (25,203) -- (25,203) Total other income, net
2,427,711 -- 2,427,711 Income from continuing operations before
income tax 14,574,278 3,267,277 17,841,555 Income taxes 3,225,000
(227,000) 3,452,000 Income from continuing operations $11,349,278
$3,040,277 $ 14,389,555 10.8% 13.6% Discontinued operations Income
from discontinued operations 817,177 -- 817,177 Net income
$12,166,455 $3,040,277 $ 15,206,732 11.5% 14.4% Basic earnings per
share Income from continuing operations $0.66 $0.18 $0.84 Income
(loss) from discontinued operations $0.05 $-- $0.05 Net income
$0.71 $0.18 $0.89 Diluted earnings per share Income from continuing
operations $0.64 $0.17 $0.81 Income (loss) from discontinued
operations $0.05 $-- $0.05 Net income $0.69 $0.17 $0.86 Shares used
in computing net income per share: Basic 17,156,720 17,156,720
17,156,720 Diluted 17,682,231 17,682,231 17,682,231 Anaren, Inc.
and Subsidiaries Consolidated Condensed Statements of Cash Flows
(Unaudited) Fiscal Year Three Months Ended Ended June 30, 2006 June
30, 2006 Cash flows from operating activities: Net income
$12,166,455 $3,651,117 Net income gain/(loss) from discontinued
operations 817,177 -- Net income from continuing operations
11,349,278 3,651,117 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization of plant and equipment 4,875,335 1,281,709 Loss on
sale of equipment 15,875 -- Amortization of intangibles 332,870
83,217 Provision for doubtful accounts (40,948) (28,335) Deferred
income taxes 121,873 (125,532) Equity based compensation 3,474,761
884,270 Receivables (1,540,917) (721,962) Inventories (2,729,332)
(5,103) Accounts payable 755,007 1,631,142 Other assets and
liabilities 113,365 (888,527) Net cash provided by continuing
operations 16,727,167 5,761,996 Net cash used for discontinued
operations (97,241) -- Net cash provided by operating activities
16,629,926 5,761,996 Cash flows from investing activities: Capital
expenditures (7,543,718) (3,227,095) Proceeds from sale of
equipment 1,000 -- Net maturities (purchases) of marketable debt
and equity securities 3,217,269 313,485 Net cash (used in) provided
by investing activities (4,325,449) (2,913,610) Cash flows from
financing activities: Stock options exercised 5,549,220 3,765,729
Tax benefit from exercise of stock options 1,679,149 1,300,831
Purchase of treasury stock (9,803,481) -- Net cash (used in)
provided by financing activities (2,575,112) 5,066,560 Effect of
exchange rates 103,008 55,973 Net increase (decrease) in cash and
cash equivalents 9,832,373 7,970,919 Cash and cash equivalents at
beginning of period 5,900,841 7,762,295 Cash and cash equivalents
at end of period $15,733,214 $15,733,214
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO
DATASOURCE: Anaren, Inc. CONTACT: Joseph E. Porcello, VP of Finance
of Anaren, Inc., +1-315-432-8909 Web site: http://www.anaren.com/
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