Tel-Instrument Electronics Corp. Reports Net Income Of $272,000 Or $0.08 Per Basic Share For The Second Quarter Of Fiscal 2017

Tel-Instrument Electronics Corp. ("Tel", "Tel-Instrument" or the "Company") (NYSE MKT:TIK), a leading designer and manufacturer of avionics test and measurement solutions, today reported its financial results for the second quarter ended September 30, 2016.

Highlights for Second Quarter of Fiscal Year 2017
  • Revenues decreased 25.6% to $5.08 million from $6.82 million in the second quarter of fiscal year 2016.
  • Gross margin percentage improved to 36.0% versus 32.9% for the comparable quarter in the previous year.
  • Legal expenses increased to $188k versus $108k in the year ago quarter.
  • Operating income decreased to $367k as compared to $916k in the second quarter of fiscal year 2016.
  • Non-GAAP Adjusted EBITDA was $411k as compared to $964k in the second quarter last year.
  • Pre-tax income in the second quarter of $382k versus $370k in the 2016 comparable period.
  • Net Income was $272k, or $0.08 per basic share versus $199k or $0.06 in the second quarter of 2016.
  • $1.8 million reduction in liabilities since March 31, 2016 including the satisfaction of the $720k BCA Mezzanine Fund LLP ("BCA") warrant liability.

Total sales for the three months ended September 30, 2016 decreased $1,742,361 (25.6%) to $5,076,029, as compared to $6,818,390 for the three months ended September 30, 2015. The decrease in revenues is mostly attributed to the decrease in shipment of the TS-4530A KITS, CRAFT and ITATS units associated with the U.S. Navy programs, which contracts have now been substantially completed. This decrease is partially offset by the shipment of the TS-4530A SETS and CRAFT units sold to Lockheed Martin for the Joint Strike Fighter ("JSF") program and to other customers. In addition commercial sales increased $247,627 (50.6%) to $737,265 for the three months ended September 30, 2016 as a result of increased sales of the TR-220 and our recently introduced TR-36 commercial Nav/Comm test set.