Giga-tronics Reports Third Quarter FY 2011 Results
SAN RAMON, Calif., Feb. 1, 2011 (GLOBE NEWSWIRE) -- Giga-tronics Incorporated (Nasdaq:GIGA) reported today a net loss of $11,000 or $0.00 per fully diluted share for the quarter ended December 25, 2010. This compares with a net profit of $309,000 or $0.06 per fully diluted share for the same period a year ago. Net sales decreased 3% to $4,640,000 in the third quarter of fiscal 2011 compared to $4,784,000 in the third quarter of fiscal 2010. Gross margin of $2,066,000 increased by $12,000 over the same quarter last year. Gross margin as a percentage of net sales increased by 1.6% to 44.5% in the third quarter of fiscal 2011 as compared to 42.9% in the third quarter of fiscal 2010 due to a more favorable product mix on new switching business. Operating expenses increased 18% or $315,000 in the third quarter of fiscal 2011 over the third quarter of fiscal 2010 primarily due to an increase of $246,000 in product development expenses. The increase in product development expenses is due to lower customer funded projects. Orders decreased 19% in the third quarter of fiscal 2011 to $6,221,000 from $7,715,000 for the third quarter of fiscal 2010.
Net profit for the nine month period ended December 25, 2010 was $13,536,000 or $2.70 per fully diluted share. This compares with a net profit of $1,015,000 or $0.21 per fully diluted share for the same period a year ago. It should be noted that in the first quarter of FY 2011 the Company reversed the valuation allowance against the deferred tax asset, resulting in an income tax benefit of $13,569,000. Net sales increased 2% to $14,090,000 in the nine month period ended December 25, 2010 compared to $13,876,000 for the same period a year ago. Gross margin of $5,909,000 decreased by $372,000 over the same nine month period last year. Gross margin as a percentage of net sales decreased by 3.3% to 42.0% in the first nine months of fiscal 2011 as compared to 45.3% in the first nine months of fiscal 2010. Operating expenses increased by 15% or $768,000 in the first nine months of fiscal 2011 due to an increase of $551,000 in product development expenses and an increase of $217,000 in selling, general and administrative expenses. Orders decreased 14% for the nine months ended December 25, 2010 to $12,910,000 compared to $15,098,000 for the same period last year.
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