Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced that it achieved a 23% increase in net income for the second quarter ended June 30, 2012. The Company achieved net income of $1,817,000 or $.21 per diluted share compared to net income of $1,481,000 or $.17 per diluted share for the quarter ended June 30, 2011. Revenues for the quarter decreased 7% to $26,836,000 compared to $28,862,000 last year, with 63% of the decrease due to the dollar strengthening against the Euro and Swedish Krona and 37% due to lower volume.
“Looking out at the remainder of the year, we don’t expect market conditions to change significantly from the current uncertain economic conditions in Europe, the slowdown in Asia and the relatively flat markets in North America”, commented Dick Warzala, President and CEO of Allied Motion. “Barring a complete collapse in all markets, we believe our geographic and market diversification will serve us well now and in the future during these continuing uncertain economic times. While macro-economic conditions are beyond our control, we will aggressively continue our platform product development efforts to emphasize value-added solutions and create new opportunities for our Company by designing innovative “ Motion Solutions That Change the Game” and meet the current and emerging needs of customers in our served market segments.”
Bookings for the quarter ended June 30, 2012 were $23,729,000 compared to $25,601,000 for the same quarter last year. Backlog at June 30, 2012 was $36,659,000, reflecting a 3% increase from June 30, 2011 and a 16.7% decrease from the end of 2011.
The 23% increase in net income achieved on a 7% decrease in sales is primarily the result of a 11% decrease in operating expenses, a $301,000 pre-tax gain ($222,000 after tax) realized from a former landlord for early termination of the Company’s building lease in Sweden, net of the expenses incurred to move to a new facility, and a lower effective income tax rate of 28% this quarter compared to 32% for the same period last year.