Allied Motion Technologies Inc.
(NASDAQ: AMOT) today announced it achieved record sales and profit for the first quarter ended March 31, 2011 with net income of $1,213,000 or $.14 per diluted share compared to net income of $734,000 or $.09 per diluted share for the quarter ended March 31, 2010. Revenues for the quarter increased 53% to $26,724,000 compared to $17,422,000 last year. Of this 53% increase, revenues from existing businesses increased 22% and incremental revenues achieved by the companies acquired in 2010 contributed 31% of the increase. This quarter’s results include the results from Agile Systems Inc., a subsidiary that was acquired on June 3, 2010 and continues to operate as Allied Motion Canada and Ostergrens Elmotor AB, a Swedish company acquired on December 30, 2010. Bookings for the quarter ended March 31, 2011 were $26,374,000 compared to $26,229,000 for the same quarter last year. Backlog at March 31, 2011 was $38,704,000, reflecting a 33% increase from March 31, 2010 and a 2% increase over backlog at the end of 2010.
Included in the first quarter results for 2010 was a pretax gain of $685,000 ($436,000 after tax) for the final business interruption insurance settlement for the October 2008 fire at Allied’s former encoder operation in Chatsworth, California and non-recurring expenses of $230,000 ($140,000 after tax) that were incurred to integrate the encoder operation into Allied’s Emoteq operation in Tulsa, Oklahoma. Excluding the insurance settlement gain and the nonrecurring costs, the net pretax profit for the first quarter of 2010 would have been $609,000 and the net income would have been $438,000, or $.06 per diluted share, as compared to the current quarter’s pretax profit of $1,784,000 and net income of $1,213,000, or $.14 per diluted share.
“The record sales and profit achieved during the first quarter of 2011 are a result of our actions taken during 2010 to streamline our operations and to generate growth organically and through acquisitions. While our latest acquisition, Ostergrens, supplemented our top line, the majority of the earnings increase was realized through profit improvements in our existing operations,” commented Dick Warzala, President and CEO of Allied Motion. “With the top line growth provided by our acquisitions, our team looks forward to increasing internal profits through the continuous implementation of Allied Systematic Tools (AST) to improve efficiencies and productivity and eliminate waste throughout our company. Our acquisitions also provide us with expanded electronic motion control products and development capabilities and we are hard at work to ensure the smooth assimilation of these capabilities to increase the value of our sales through the solution selling activities of our sales force. By designing innovative '
Motion Solutions That Change the Game'
to meet the needs of our served markets and customers and our ever increasing pipeline of new projects, we continue to have a positive outlook for our continued growth in the future.”
Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world.