Aeroflex Announces First Quarter Fiscal 2013 Results

Aeroflex Holding Corp. ("Aeroflex") (NYSE:ARX), a leading global provider of high performance microelectronic components, and test and measurement equipment, today announced its financial results for the first quarter of fiscal 2013, which ended September 30, 2012.

For the first quarter of fiscal 2013:
  • Net sales were $141.2 million compared to $154.9 million in the first quarter of fiscal 2012.
  • Operating loss was $(5.5) million and net loss was $(14.1) million, or $(0.17) per share, compared to operating income of $0.5 million and a net loss of $(5.0) million, or $(0.06) per share, in the first quarter of fiscal 2012.
  • On a Non-GAAP basis, operating income was $14.5 million, net income was $3.2 million, or $0.04 per share, and Adjusted EBITDA was $19.4 million compared to operating income of $20.9 million, net income of $8.3 million, or $0.10 per share, and Adjusted EBITDA of $25.7 million, in the first quarter of fiscal 2012.

“Compared to our expectations, I am pleased with the performance of both AMS and ATS this quarter,” said Len Borow, Chief Executive Officer of Aeroflex. “Our AMS business has continued its consistent execution despite the challenging economic and political environment we are operating within. After our initial reorganization efforts this summer, our ATS business has begun to perform according to our expectation. We had a strong book-to-bill this quarter of over one-to-one led by ATS. We also generated sufficient cash that allowed us repay $25 million of debt this quarter. We look forward to continuing our recent success as we move throughout our fiscal year.”

The following tables present selected financial information for the three months ended September 30, 2012 and 2011 prepared in accordance with generally accepted accounting principles (“GAAP”) and on a basis other than GAAP (“Non-GAAP”). The 32% Non-GAAP effective tax rate in the fiscal 2013 period and 34% in the fiscal 2012 period result from Aeroflex’s geographic mix of Non-GAAP pre-tax income. These rates were applied to Aeroflex’s Non-GAAP pre-tax income for the three month periods ended September 30, 2012 and 2011, respectively. A reconciliation between GAAP and Non-GAAP amounts is presented at the end of this press release.
 

Selected GAAP Results

(In thousands, except percentages and per share data)
 
  Three Months Ended
September 30,
2012   2011
 
Net sales $ 141,153 $ 154,884
 
Gross profit 68,899 78,519
Gross margin 48.8 % 50.7 %
 
Operating income (loss) (5,529 ) 538
 
Net loss $ (14,139 ) $ (5,042 )
 
Net loss per common share:
Basic and diluted $ (0.17 ) $ (0.06 )
 
Weighted average number of common shares outstanding:
Basic and diluted   84,836     84,789  
 

Selected Non-GAAP Results

(In thousands, except percentages and per share data)
 
  Three Months Ended
September 30,
2012   2011
Net sales $ 141,153 $ 154,884
 
Gross profit 69,094 78,509
Gross margin 48.9 % 50.7 %
 
Operating income 14,547 20,941
 
Net income $ 3,214   $ 8,299  
 
Net income per common share:
Basic $ 0.04   $ 0.10  
Diluted $ 0.04   $ 0.10  
 
Weighted average number of common shares outstanding:
Basic   84,836     84,789  
Diluted   84,861     84,789  
 
Adjusted EBITDA $ 19,440   $ 25,711  

Business Outlook

For the fiscal second quarter ending December 31, 2012, Aeroflex expects net sales to be between $147 million and $155 million, GAAP net loss to be between $(7) million and $(4) million, Adjusted EBITDA to be between $22 million and $26 million, GAAP net loss per share to be between $(0.09) and $(0.04), and Non-GAAP net income per share to be between $0.06 and $0.09.

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