Backlog at December 29, 2012 was $7.2 million (approximately $6.1 million shippable within one year) as compared to $3.8 million (approximately $3.8 million shippable within one year) at December 31, 2011.
Cash and cash equivalents at December 29, 2012 were $2,421,000 compared to $2,096,000 as of September 29, 2012 and $2,365,000 at March 31, 2012.
Mr. John Regazzi, the Company's CEO stated, "The operating losses for the third quarter and the first nine months of fiscal 2013 reflect our continued commitment to investing in new product development. Nearly half of the reported operating loss is due to these expenses, which we believe are necessary in order to position the Company to achieve future revenue growth and profitability."
Mr. Regazzi continued, "The balance of the reported loss is the result of insufficient sales volume relative to our fixed infrastructure. To address this issue, the company has committed to combining its Microsource division within its San Ramon headquarters to achieve greater capacity utilization and efficiencies. The move continues on schedule towards a May 1, 2013 completion date with projected benefits of both significant future cost savings and better alignment of our infrastructure costs with anticipated sales volume."Mr. Regazzi concluded, "This has been a challenging period as we turn the Company's primary focus toward new high performance synthesizer markets. We have restructured the management team, worked continuously towards reducing future expenses, and invested in a significant new product program all at the same time. I believe we will begin to see the benefits of these changes starting in May 2013 with improved gross margins following the relocation of the Microsource division and I anticipate Giga-tronics will return to profitability following the introduction of the new microwave product in fiscal 2014." Giga-tronics will host a conference call today at 4:30 p.m. ET to discuss the third quarter results. To participate in the call, dial (855) 410-0553 or (646) 583-7389 and enter PIN Code 169920#. The call will also be broadcast over the internet at www.gigatronics.com under "Investor Relations". The conference call discussion reflects management's views as of February 8, 2013 only. Giga-tronics is a publicly held company, traded on the NASDAQ Capital Market under the symbol "GIGA". Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in defense electronics, aeronautics and wireless telecommunications.