Elecsys Corporation Reports Second Quarter Financial Results
Sales for the quarter were $5,479,000, an increase of 37%, or $1,478,000, from $4,001,000 in the second quarter of fiscal 2010. Total sales year-to-date increased 40%, or $3,041,000, to $10,661,000. The increases were the result of both growth in bookings and backlog in custom electronic assemblies and an overall increase in sales of its proprietary products and services as compared to the prior year.
Total backlog as of October 31, 2010 grew by 63% to $8,080,000, an increase of $3,128,000 from a total backlog of $4,952,000 from one year earlier, and an increase of 30%, or $1,885,000, from July 31, 2010. This increase in backlog was largely due to increased orders from existing customers combined with the addition of several new customers during the current and preceding quarters.
Gross margin was approximately 32% of sales, or $1,729,000, for the three-month period ended October 31, 2010, compared to 31% of sales, or $1,239,000, for the prior year period.
Income before taxes for the quarter was $179,000, compared to a loss before taxes of $523,000 for the same quarter in the prior year. For the first six months of fiscal 2011, income before taxes grew to $341,000 from a loss before taxes of $1,160,000 in the first six months of fiscal 2010.
Karl B. Gemperli, Chief Executive Officer, stated, "We are pleased to announce second quarter results that reflect substantial growth in sales, an expanding order backlog, enhanced gross margins, and significantly improved bottom-line performance compared to the previous year. Demand for our proprietary products continued to grow while business with both new and established OEM partners strengthened during the quarter. We continued our investments in new product development during the quarter and are encouraged by the enthusiastic market acceptance of our recently introduced products, such as the Watchdog P2S-AC remote monitor, the Radix FW950 handheld computer, and the Director Series of communication products.
Gemperli continued, "With both next generation system solutions currently in development and additional products, such as the Watchdog VIP and secure industrial communication products, being introduced, we anticipate the expansion of our M2M solutions business to accelerate. In order to maximize our opportunities for growth in the rapidly expanding market sectors we are targeting, we will maintain our commitment to both new product development and investment in international sales and marketing initiatives. Although global economic conditions still present challenges, based on orders in backlog, new business opportunities, and our focus on continuously improving operations, we expect the positive trends in both revenues and earnings to continue during the coming quarters."
About Elecsys Corporation
Elecsys Corporation provides innovative machine to machine (M2M) communication technology solutions and custom electronic equipment for critical industrial applications worldwide. Elecsys develops, markets, and supports proprietary technology and products under the Pipeline Watchdog, Radix, eXtremeTAG, SensorCast, Director, and DCI brand names.
Source: Elecsys Corporation