Fiscal 2010 Results
Net sales in fiscal 2010 were $254,402,000, an increase of 8.8% over last year's net sales of $233,799,000. Lighting Segment net sales decreased (0.9)% to $159,105,000 (sales to the Commercial / Industrial lighting market decreased 18.9%), Graphics Segment net sales increased 12.6% to $68,395,000, Technology Segment net sales decreased 1.6% to $4,505,000, the Electronic Components Segment net sales were $16,116,000 with no net sales in the prior year, and net sales of the All Other Category decreased 21.3% to $6,281,000. The fiscal 2010 net income of $1,424,000, or $0.06 per share, compares to a fiscal 2009 net loss of $(13,414,000), or $(0.62) per share. The Company recorded a pre-tax non-cash intangible asset impairment expense of $(153,000) [represents $0.01 per share inclusive of the income tax effect] in its Lighting ($16,000) and Technology Segments ($137,000), as compared to a pre-tax non-cash goodwill impairment expense of $(14,467,000) [represents $(0.62) per share inclusive of the income tax effect] in its Lighting ($11,185,000) and Graphics ($716,000) Segments, and in its All Other Category ($2,566,000) in fiscal 2009. Earnings or loss per share represents diluted earnings or loss per share.
Robert J. Ready, President and Chief Executive Officer, commented, "Although operating results for fiscal 2010 improved over the prior fiscal year, the markets for our products continued to be depressed as a result of the general economic recession. Our fourth quarter results showed a 27% increase in net sales. Last time this year, fourth quarter sales had fallen 24% from the same period of fiscal 2008. Although the U.S. economy has begun to grow again, construction spending in the non-residential market continues to be depressed. This market normally lags improvement in the general economy and, in this instance, has also been adversely affected by a tight lending environment."There do appear to be early signs of an improving market. During the fourth quarter our Lighting Segment net sales increased nearly 19%, and sales to the large commercial / industrial lighting market increased by 6%. By comparison, during the fourth quarter of 2009, our Lighting Segment net sales decreased 29% and sales to the commercial / industrial lighting market segment decreased 33%. We believe we are either gaining or holding market share and our solid-state lighting initiative continues to show strong interest and growth. What is needed is the resumption of spending and growth in our end user markets. Until then, we continue to work on improving efficiencies, reducing costs, developing new products (primarily solid-state LED), carefully managing our working capital, and maintaining financial strength. When growth resumes we will be ready.