DALLAS, Feb. 9, 2011 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today reported financial results for the three and six months ended January 1, 2011 and, as a subsequent event, reported that some of the holders of the Company's Series A Convertible Preferred Stock (the "Preferred Stock") have exercised their right to convert shares of Preferred Stock to Company common stock.
Second Quarter Fiscal Year 2011 Compared to Second Quarter Fiscal Year 2010
Revenues were $26.3 million, an increase of $1.8 million, or 7.2%, compared to revenues of $24.5 million.Gross profit was $8.1 million, or 30.9% of revenues, a decrease of $0.2 million, compared to $8.3 million, or 33.7% of revenues. Operating expenses were $8.4 million, consisting of $2.8 million sales and marketing, $2.0 million engineering and project management, and $3.6 million in general and administrative expenses, compared to operating expenses of $8.1 million, consisting of $2.6 million sales and marketing, $1.8 million engineering and project management, and $3.7 million in general and administrative expenses. Operating income (loss) was ($0.2) million, or 0.9% of revenues, a decrease of $0.4 million, compared to $0.2 million operating income, or 0.8% of revenues. Other income (expense) was $6.8 million, consisting of a $7.3 million gain on the fair value adjustment to embedded derivative liabilities, ($0.6) million net interest expense, and $0.1 million foreign exchange gain, compared to ($6.1) million, consisting of ($5.8) million loss on the fair value adjustment to embedded derivative liabilities, ($0.7) million net interest expense, $0.6 million foreign exchange gain and ($0.2) million other expense Income tax benefit (expense) was $0.3 million on $6.5 million of pre-tax earnings, compared to income tax expense of ($0.0) million on $5.9 million of pre-tax loss. Net earnings attributable to PMFG, Inc. common stockholders was $6.5 million, or $0.36 per diluted share, an increase of $12.7 million, or $0.83 per diluted share, compared to net loss of $6.2 million, or $0.47 per diluted share.