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American Electric Technologies Reports First Quarter 2010 Results

HOUSTON, May 12, 2010 (GLOBE NEWSWIRE) -- American Electric Technologies, Inc. (Nasdaq:AETI), the premium supplier of custom-designed power delivery solutions for the traditional and renewable energy industries, announced the following results for the first quarter of the 2010 fiscal year (all financial information is presented in thousands of dollars except per share data).

Total sales for the three months ended March 31, 2010 were $9,658, a decline of $6,320 from the comparable 2009 period. The company reported a net loss of $(410), or a basic and diluted loss per share of $(0.05) for the three months ended March 31, 2010 compared with net income of $652, or basic and diluted earnings per share of $0.08 for the three months ended March 31, 2009.

"Although we are disappointed by the poor financial results resulting from worse than expected weakness in our traditional drilling and industrial markets, the company remains committed to investing in our emerging renewable market and product development activities," stated Charles Dauber, AETI's President and Chief Executive Officer.  "The company continues to maintain its sound financial position and we are hopeful that our traditional markets will improve as the year progresses. We are also encouraged by our renewable market progress including the launch in February of the industry's first wind farm switchgear product and look forward to incremental sales later in the year."

2010 AETI Key Data:

  • Our Technical Products and Services (TP&S) segment generated $5,642 in revenue in the first quarter of 2010, a decrease of $4,016 compared with the same 2009 period.
  • A substantial decline in the TP&S gross profit reflected particular weakness in the industrial services businesses as well as renewable product development expenditures.
  • As of March 31, 2010, the backlog for the TP&S segment was approximately $3,700, reduced from $5,900 as of December 31, 2009. All of this backlog should be realized during the 2010 fiscal year.
  • Our Electrical & Instrumentation Construction (E&I Construction) segment generated sales of $2,693 in this quarter, a decrease of $2,293 from the same period in 2009. Although the company continues to see weakness in our industrial and marine construction segments, most of the sales decline resulted from the successful withdrawal from the new school construction market. Gross profits from the segment were $151, an improvement from the $(88) loss experienced in the 2009 period. The gross profit improvement reflected the losses associated with the new school construction business in 2009. The backlog for the E&I Construction segment was $9,700 as of March 31, 2010, an increase of $1,800 from the December 31, 2009 total. Approximately 80 percent of this backlog should be realized in 2010.  
  • The American Access segment reported sales of $1,323 and a gross profit of $222 in 2010 as compared to the same sales level and a $79 gross profit in 2009. The gross profit improvement stemmed from an improved indirect manufacturing cost structure.
  • During Q1 2010, the company recorded equity income of $636. Our Singapore joint venture reported a loss of $70 reflecting weakness in the South East Asia market. The results include the reversal of a $660 expense accrual recorded in 2007 associated with our Chinese joint venture as more fully described in our Form 10Q for the March 31, 2010 period. On April 9, 2010 the Chinese joint venture declared a dividend in the amount of $1,000 that should be received in this quarter.  
  • Our cash position as of March 31, 2010 was $993 and long-term bank debt remained at $3,000.

Outlook for Fiscal 2010

We foresee continued uncertainty in many of the traditional markets the company serves. Although we continue to see a very soft market environment in both our domestic and international traditional markets, we are beginning to see some potential signs of improvement.  

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