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Tel-Instrument Electronics Corp Announces First Quarter Results

ITATS (“Intermediate Level TACAN Test Set”) (AN/ARM-206) with the U.S. Navy

The AN/ARM-206 ITATS program is proceeding well with the enhancements funded by the U.S. Navy last year and platform verification both complete. TIC is in the process of performing final bench level verification testing on these units. This process should be completed in September and the Company expects to secure a production release on the 102 unit production order ($5.3 million) in the October timeframe.

At June 30, 2012, the Company’s backlog was approximately $38,900,000.

We encourage everyone to read our full results of operations contained in our Form 10-Q filed on August 20, 2012 at sec.gov.

About Tel-Instrument Electronics Corp

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.

This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

                       
 

TEL-INSTRUMENT ELECTRONICS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 
June 30, 2012 March 31, 2012
(unaudited)
ASSETS
 
Current assets:
Cash and cash equivalents $ 166,674 413,195
Accounts receivable, net 539,446 1,694,636
Unbilled government receivables 1,768,208 1,780,381
Inventories, net 7,101,996 5,023,975
Prepaid expenses and other 134,587 220,255
Deferred debt expense 108,321 108,321
Deferred income tax asset   1,288,631   1,288,631
Total current assets 11,107,863 10,529,394
 
Equipment and leasehold improvements, net 654,287 706,870
Deferred debt expenses – long-term 237,704 264,784
Deferred income tax asset – non-current 1,112,334 948,489
Other assets   56,872   56,872
Total assets $ 13,169,060 $ 12,506,409
 
LIABILITIES & STOCKHOLDERS’ EQUITY
 
Current liabilities:
Current portion long-term debt 605,492 542,382
Capital lease obligations 67,921 64,675
Accounts payable 3,821,297 2,850,432
Deferred revenues – current portion 25,765 34,767
Accrued payroll, vacation pay and payroll taxes 484,585 440,116
Accrued expenses   2,615,472   2,074,911
Total current liabilities 7,620,532 6,007,283
 
Subordinated notes payable-related parties, net of debt discount 250,000 250,000
Capital Lease Obligations 131,910 149,582
Deferred revenues 3,470 4,637
Warranty Liability 105,896 355,290
Long-term debt, net of debt discount   1,355,525   1,490,302
Total liabilities   9,467,333   8,257,094
 
Commitments
 
Stockholders' equity:
Common stock, par value $.10 per share, 2,710,715 and
2,646,215 issued and outstanding as of June 30,
2012 and March 31, 2012, respectively 271,071 268,421
Additional paid-in capital 6,040,003 5,921,441
Accumulated deficit   (2,609,347 )   (1,940,547 )
Total stockholders' equity   3,701,727   4,249,315
Total liabilities and stockholders' equity $ 13,169,060 $ 12,506,409
 
 
               
 

TEL-INSTRUMENT ELECTRONICS CORPORATION

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
Three Months Ended
June 30, 2012         June 30, 2011
(Restated)
Net sales $ 1,177,288 $ 3,990,211
Cost of sales   893,594     2,128,580  
 
Gross margin 283,694 1,861,631
 
Operating expenses:
Selling, general and administrative 653,888 798,822
Engineering, research and development   578,604     849,038  
Total operating expenses   1,232,492     1,647,860  
 
Income (loss) from operations (948,798 ) 213,771
 
Other income (expense):
Amortization of debt discount (13,392 ) (13,395 )
Amortization of debt expense (27,080 ) (27,080 )
Change in fair value of common stock warrants 249,394 (168,586 )
Proceeds from life insurance policy - 300,029
Interest income - 93
Interest expense   (92,468 )   (102,694 )
Total other income (expense)   116,454     (11,633 )
 
Income (loss) before income taxes (832,344 ) 202,138
 
Income tax provision (benefit)   (163,544 )   282,933  
 
Net loss $ (668,800 ) $ (80,795 )
 
Net loss per share:
Basic loss per common share $ (0.25 ) $ (0.03 )
Diluted loss per common share $ (0.25 ) $ (0.03 )
 
Weighted average shares outstanding:
Basic 2,698,984 2,647,138
Diluted 2,698,984 2,647,138
 
 




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