SPECTRUM CONTROL, INC. 
By Customer orders up 14% and EPS up 11% from preceding quarter;
Record customer order backlog entering fiscal 2009
FlashResults
Spectrum Control, Inc. (SPEC)
(Numbers in Thousands, Except Per Share Data)
4th quarter 4th quarter
ended ended
11/30/2008 YTD 11/30/2007 YTD
Sales $33,842 $130,694 $34,676 $136,539
Net Income 2,532 8,851 3,191 11,141
Average Shares 12,699 13,189 13,894 13,798
EPS $0.20 $0.67 $0.23 $0.81
Spectrum Control, Inc. (Nasdaq: SPEC), a leading designer and manufacturer of custom electronic products and systems, today reported results for the fourth quarter and fiscal year ended
For the fourth quarter of fiscal 2008, the Company reported net income of
For the fiscal year 2008, the Company had net income of
Fourth Quarter Highlights
Key Acquisition
On
Improved Gross Margin
In the current quarter our gross margin was
Strong Cash Flow
Net cash provided by operating activities in the current quarter amounted to
Current Business Outlook
Mr. Southworth added, "Based on our current assessment of business conditions and customer demand, we presently anticipate our 2009 first quarter sales to be
Beyond the first quarter, which is historically our lowest quarter for revenues and earnings, we remain optimistic. Total customer orders received in fiscal year 2008 were
Forward-Looking Information
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors and risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Simultaneous Webcast and Teleconference Replay
Spectrum Control, Inc. will host a teleconference to discuss its fourth quarter and fiscal year 2008 results on
About Spectrum Control
Spectrum Control, Inc. is a leader in the design, development and manufacture of custom electronic products and systems for the defense, aerospace, communications, and medical industries worldwide. For more information about Spectrum Control and its products, please visit the Company's website at www.spectrumcontrol.com.
Spectrum Control, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
( Unaudited )
( Dollar Amounts in Thousands )
November 30, November 30,
2008 2007
---- ----
Assets
Current assets
Cash and cash
equivalents $5,397 $5,183
Accounts receivable,
net 24,043 25,461
Inventories 30,638 25,458
Deferred income taxes 1,684 1,332
Prepaid expenses and
other current assets 2,307 911
----- ---
Total current
assets 64,069 58,345
Property, plant and
equipment, net 27,250 26,177
Noncurrent assets
Goodwill 36,811 35,669
Other 6,654 6,728
----- -----
Total assets $134,784 $126,919
======== ========
Liabilities and Stockholders' Equity
Current liabilities
Short-term debt $10,000 $2,000
Accounts payable 6,541 6,764
Income taxes payable 36 1,391
Accrued liabilities 4,415 4,813
Current portion of
long-term debt 487 100
--- ---
Total current
liabilities 21,479 15,068
Long-term debt 545 1,031
Other liabilities 978 1,370
Deferred income taxes 8,491 7,582
Stockholders' equity 103,291 101,868
------- -------
Total liabilities
and stockholders'
equity $134,784 $126,919
======== ========
Spectrum Control, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
( Unaudited )
( Amounts in Thousands, Except Per Share Data )
For the Quarter For the Year
Ended Ended
November 30, November 30,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Net sales $33,842 $34,676 $130,694 $136,539
Cost of products sold 24,603 25,346 97,932 100,176
------ ------ ------ -------
Gross margin 9,239 9,330 32,762 36,363
Selling, general and
administrative expense 5,603 4,292 19,418 18,499
----- ----- ------ ------
Income from operations 3,636 5,038 13,344 17,864
Other income ( expense )
Interest expense (125) (108) (369) (561)
Other income and
expense, net 233 11 505 255
--- -- --- ---
108 (97) 136 (306)
--- --- --- ----
Income before provision
for income taxes 3,744 4,941 13,480 17,558
Provision for income
taxes 1,212 1,750 4,629 6,417
----- ----- ----- -----
Net income $2,532 $3,191 $8,851 $11,141
====== ====== ====== =======
Earnings per common
share :
Basic $0.20 $0.24 $0.68 $0.83
===== ===== ===== =====
Diluted $0.20 $0.23 $0.67 $0.81
===== ===== ===== =====
Average number of common
shares outstanding:
Basic 12,699 13,430 13,069 13,359
====== ====== ====== ======
Diluted 12,699 13,894 13,189 13,798
====== ====== ====== ======
Spectrum Control, Inc. and Subsidiaries
Selected Financial Data
( Unaudited )
For the Quarter For the Year
Ended Ended
November 30, November 30,
------------ ------------
Selected Financial Data, 2008 2007 2008 2007
as a Percentage of ---- ---- ---- ----
Net Sales :
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of products sold 72.7 73.1 74.9 73.4
---- ---- ---- ----
Gross margin 27.3 26.9 25.1 26.6
Selling, general and
administrative expense 16.6 12.4 14.9 13.5
---- ---- ---- ----
Income from operations 10.7 14.5 10.2 13.1
Other income ( expense )
Interest expense (0.3) (0.3) (0.3) (0.4)
Other income and expense,
net 0.7 - 0.4 0.2
--- - --- ---
Income before provision for
income taxes 11.1 14.2 10.3 12.9
Provision for income taxes 3.6 5.0 3.5 4.7
--- --- --- ---
Net income 7.5% 9.2% 6.8% 8.2%
=== === === ===
Selected Operating Segment Data :
( Dollar Amounts in Thousands )
Signal and power integrity components :
Customer orders received $11,607 $13,500 $55,908 $57,645
Net sales 12,020 15,121 52,060 60,713
Microwave components and systems :
Customer orders received 14,003 12,729 47,485 53,130
Net sales 13,712 12,294 45,942 47,748
Power management systems :
Customer orders received 2,722 2,274 10,534 8,044
Net sales 2,148 2,317 9,879 7,586
Sensors and controls :
Customer orders received 7,100 4,550 26,643 20,745
Net sales 5,962 4,944 22,813 20,492
SOURCE Spectrum Control, Inc.
