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ATLANTA, July 16, 2013 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE), a leading innovative American designer, manufacturer and distributor of specialty high end displays, today released financial results for its fiscal 2014 first quarter ended May 31, 2013.
Operating results for the first quarterly reporting period were in line, to slightly less, than Company expectations, and less than the comparative results of the first quarter of the previous year. Earnings results continued to be negatively impacted by the start-up expenses of the two new display divisions, Aydin Visual Solutions and Aydin CyberSecurity, as well as approximately $180,000 in interest rate penalties being assessed by PNC Bank on the Company's outstanding line of credit. Revenues, and therefore gross margins, continued to be negatively impacted by delays in shipments on defense contracts by our VDC Display Systems division.
Gross margins were substantially impacted, although overall net revenues remained slightly higher than the comparable period, due to the reduction higher margin revenues at the Company's Z-Axis Inc subsidiary and an offsetting increase in revenues of lower margin products at our AVS (Aydin Visual Solutions) division.
Ron Ordway, CEO, stated: "Based upon our first quarter results, although slightly less than previously forecast, the Company still remains confident that per share earnings for this fiscal year will be substantially greater than the results reported for the previous fiscal year. With our current backlog of existing orders and the potential contracts currently in the bidding process, we believe guidance for the current year revenue should be in the range of $55 million to $60 million resulting in earnings per share in the range of $0.52 to $0.58 versus $49 million in revenue and negligible earnings for the previous year."