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.”