PHAZAR CORP Announces Third Quarter Fiscal 2012 Financial Results

PHAZAR CORP, (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the unaudited results of operations for the three and nine month periods ended March 31, 2012.

Third Quarter Fiscal Year 2012

Revenues for the quarter were $1,485,107 down $506,571, or 25% from $1,991,678 for the third quarter of fiscal year 2011. The sales declines are largely attributable to significantly lower FAA related sales. The gross profit margin for the quarter, at 56% is up 20 percentage points from the 36% gross profit margin reported in the comparable period last year. The prior year gross profit margin was depressed due to start-up expenses related to new tower designs.

Sales and administrative expenses of $1,113,677 at March 31, 2012 were up $405,680, or 57% from $707,997 for the three month period in the prior year, reflecting an increase in the level of marketing wages and a one-time stock option grant. Research and development costs of $171,075 were up $76,501 from $94,574 last year, attributed to engineering costs on new antenna designs.

The Company recognized a net loss of $286,471, or $0.12 per share for the third quarter, compared to a net loss of $550,841, or $0.24 per share, in last year’s fiscal third quarter.

Nine Month Period Ending March 31, 2012

The Company reported revenues for the nine-month period of $4,992,692, a decrease of $1,856,818, or 27% compared to $6,849,510 for the comparable period last year. Net loss for the nine-month period was $402,255, or $0.17 per share compared to a net loss of $274,456, or $0.12 per share for the comparable period last year.

Backlog of Orders

The Company’s backlog of orders on March 31, 2012, totaled $1,449,250, down 27% compared to backlog of $1,985,379 at March 31, 2011 and down 36% from June 30, 2011. Incoming orders for the nine-month period ended March 31, 2012 totaled $4,190,148 versus $6,320,453 for the nine-month period ended March 31, 2011, a decrease of 34% year over year.

More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the third quarter ended March 31, 2012, estimated to be filed with the Securities and Exchange Commission in the middle of May, 2012.

The Form 10-Q will also be available at the SEC’s website at www.sec.gov and PHAZAR CORP’s website at www.phazarcorp.com.

Product information is available at www.antennaproducts.com and www.phazar.com.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.
 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
   
Three Months Ended Nine Months Ended
March 31, March 31,
2012   2011   2012   2011
    (Unaudited)   (Unaudited)
Sales and contract revenues $ 1,485,107 $ 1,991,678 $ 4,992,692 $ 6,849,510
Cost of sales and contracts   651,211       1,276,435       2,703,592       4,001,801  
Gross profit 833,896 715,243 2,289,100 2,847,709
Gross profit margin % 56 % 36 % 46 % 42 %
 
Selling, general and administration expenses 1,113,677 707,997 2,578,635 2,048,735
Research and development costs       171,075       94,574       397,935       547,106  
Total operating expenses 1,284,752 802,571 2,976,570 2,595,841
 
Operating income (loss) (450,856 ) (87,328 ) (687,470 ) 251,868
 
Other income
Interest income 23,759 13,307 91,636 40,853
Other income   8,622       51       19,973       21,821  
Total other income 32,381 13,358 111,609 62,674
 
Income (loss) from operations before income taxes (418,475 ) (73,970 ) (575,861 ) 314,542
 
Income tax expense (benefit)   (142,282 )     (1,490 )     (195,793 )     110,637  
 
Net income (loss) before discontinued operations (276,193 ) (72,480 ) (380,068 ) 203,905
 
Loss from discontinued operations (15,572 ) (724,789 ) (33,616 ) (724,789 )
Income tax benefit from discontinued operations   5,294       246,428       11,429       246,428  
Net loss from discontinued operations (10,278 ) (478,361 ) (22,187 ) (478,361 )

Net loss
    $ (286,471 )   $ (550,841 )   $ (402,255 )   $ (274,456 )
 
Basic income (loss) per common share
Continuing operations $ (0.12 ) $ (0.03 ) $ (0.16 ) $ 0.09
Discontinued operations       -       (0.21 )     (0.01 )     (0.21 )
Net loss $ (0.12 ) $ (0.24 ) $ (0.17 ) $ (0.12 )
 
Diluted income (loss) per common share
Continuing operations $ (0.12 ) $ (0.03 ) $ (0.16 ) $ 0.09
Discontinued operations       -       (0.21 )     (0.01 )     (0.21 )
Net loss $ (0.12 ) $ (0.24 ) $ (0.17 ) $ (0.12 )
 
Basic weighted average of common shares outstanding 2,315,080 2,307,588 2,313,264 2,305,987
Diluted weighted average of common shares outstanding 2,315,080 2,310,510 2,313,264 2,308,853

 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
   
      March 31, 2012

(Unaudited)
  June 30, 2011

CURRENT ASSETS
Cash and cash equivalents $ 857,430 $ 1,169,318
Accounts receivable:
Trade, net of allowance for doubtful accounts of $0
as of March 31, 2012 and June 30, 2011 688,736 785,664
Inventories 2,675,766 2,732,232
Prepaid expenses and other assets 52,445 125,989
Income taxes receivable 29,321 236,366
Deferred income taxes     224,875       224,875  
Total current assets 4,528,573 5,274,444
 
Property and equipment, net 1,030,955 1,043,435
 
Note receivable 1,363,053 963,684
Deferred income tax – non-current       430,877       252,617  
TOTAL ASSETS   $ 7,353,458     $ 7,534,180  
 
CURRENT LIABILITIES
Accounts payable $ 194,407 $ 216,575
Accrued liabilities 383,086 284,969
Deferred revenues 4,620 2,355
Liabilities held for discontinued operations     114,571       178,060  
Total current liabilities 696,684 681,959
 
TOTAL LIABILITIES   $ 696,684     $ 681,959  
 
COMMITMENTS AND CONTINGENCIES $ - $ -
 
SHAREHOLDERS’ EQUITY
Preferred Stock, $1 par, 2,000,000 shares authorized, none issued
or outstanding, attributes to be determined when issued - -
 
Common stock, $0.01 par, 6,000,000 shares authorized

2,390,628 and 2,385,128 issued on March 31, 2012 and June 30, 2011, respectively
23,907

23,852
 

Additional paid in capital
4,723,987 4,517,234

Treasury stock, at cost, 74,691 shares on March 31, 2012 and June 30, 2011

 
(215,918 ) (215,918 )
Retained earnings     2,124,798       2,527,053  
Total shareholders’ equity     6,656,774       6,852,221  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 7,353,458     $ 7,534,180  

 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Nine Months Ended
    March 31, 2012

(Unaudited)
  March 31, 2011

(Unaudited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (402,255 ) $ (274,456 )
Adjustments to reconcile net loss to net cash

provided by (used in) operating activities:
Depreciation 97,040 98,784
Loss from discontinued operations 22,187 -
Stock based compensation 206,808 84,829
Deferred federal income tax (178,260 ) (104,040 )
Changes in operating assets and liabilities:
Accounts receivable 96,928 4,887
Inventories 56,466 463,899
Income taxes receivable 207,045 25,538
Prepaid expenses and other assets 73,544 29,781
Accounts payable (22,168 ) (496,463 )
Accrued liabilities 98,117 118,202
Deferred revenues 2,265 (3,716 )
Net cash used in discontinued operations     (85,676 )     -  
Net cash provided by (used in) operating activities 172,041 (52,755 )
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Funding of note receivable (399,369 ) (323,000 )
Purchase of property and equipment     (84,560 )     (16,003 )
Net cash used in investing activities (483,929 ) (339,003 )
 
Net decrease in cash and cash equivalents (311,888 ) (391,758 )
CASH AND CASH EQUIVALENTS, beginning of period     1,169,318       1,403,839  

CASH AND CASH EQUIVALENTS, end of period
  $ 857,430     $ 1,012,081  

Copyright Business Wire 2010

If you liked this article you might like

Monday's Small-Cap Winners & Losers

Monday's Small-Cap Winners & Losers

Friday's Tech Winners & Losers

Friday's Tech Winners & Losers

Monday's Small-Cap Winners & Losers

Monday's Small-Cap Winners & Losers

Tuesday's Tech Winners & Losers

Tuesday's Tech Winners & Losers

Monday's Tech Winners & Losers

Monday's Tech Winners & Losers