Electronics News Archive

Visit our Electronic Games section

Visit All-About-Electronics' we have lots of electronic games including online casino games pages. Although these days there are many gaming websites available on the net, not all of them combine high quality service with incredibly exciting casino offerings. It takes a lot of valuable time to filter the ones that are actually worth a player's attention from the ones that have nothing to offer. We are absolutely positive that you've already happened to play casino games that turned out to be dull and exceptionally boring. To spare you the disappointment, we have created a list of several of the hottest online gaming websites offering their customers the golden opportunity to play bingo games of superb quality and a wide range of other highly-praised casino games. In addition, the rising popularity of online poker reflected by many players' uncontrollable urge to play poker games encouraged us to include in our list the most prominent online poker rooms. All you have to do is visit these online casinos and have the time of your life!

Elecsys Corporation Reports Second Quarter Financial Results

5 March 2006

Elecsys Corporation (Amex: ASY) today announced its financial results for the three months and six months ended October 31, 2005.

Results for the second quarter ended October 31, 2005:

Sales for the quarter ended October 31, 2005 were approximately $3,546,000, an increase of $374,000 or 12% from $3,172,000 for the comparable period of fiscal 2005. Sales at DCI increased approximately $354,000, or 11%, from the prior year period. The increase was primarily the result of an increase in new and existing customer orders at DCI, specifically in the electronic assembly product line. Sales also increased, although at a slower pace, in the LCD product line. The current period sales in the hybrids product line were slightly lower than sales in the prior year period. Sales volumes at NTG, which was acquired in November 2004, were $284,000 for the current period. Sales at NTG increased $80,000, or 39%, from the previous three-month period ended July 31, 2005 and also contributed to the overall increase in sales shown in the consolidated financial results. Total backlog at October 31, 2005 was approximately $10,456,000, an increase of approximately $4,693,000, or 81%, from a total backlog of $5,763,000 on October 31, 2004 and an increase of $3,423,000 from a total backlog of $7,033,000 on July 31, 2005. Backlog represents purchase orders in place from our customers that are scheduled for shipment in future periods. As a result of the timing of shipments from orders in our backlog, we expect DCI sales volumes for the third quarter to be similar or slightly lower than the sales volumes achieved in the current quarter. We anticipate increases in sales in the fourth quarter of the current fiscal year and continuing sales increases in the first two quarters of fiscal 2007. Sales at NTG are expected to continue at a modest growth rate over the next few quarters as the new products continue to be marketed and additional marketplace applications for the products are explored.

Gross margin was approximately 33% of sales, or $1,167,000, for the quarter ended October 31, 2005 as compared to 30% of sales, or $945,000, for the quarter ended October 31, 2004. The increase in gross margin is primarily the result of overall product mix, increased sales volumes in the electronic assembly and LCD product lines at DCI, and the addition of NTG's products. We expect that gross margins over the next few quarters will continue at or near our historical margins of 27% - 30%.

Selling, general and administrative ("SG&A") expenses were $870,000, an increase of $184,000, or 27% from the same period a year ago. The increase was mainly due to the acquisition of NTG during the third fiscal quarter of the prior year, the SG&A expenses of which were approximately $161,000 for the period. Corporate expenses and DCI's SG&A expenses were also slightly higher than the comparable period in fiscal 2005. We expect that our SG&A expenses will continue at or near their current levels for the near term as a result of our continuing efforts to invest in NTG product development and sales.

Operating income for the three-month period was $297,000, as compared to operating income of $259,000 in the same three-month period in the prior year.

Interest expense was $41,000 and $36,000 for the three-month periods ended October 31, 2005 and 2004, respectively. The increase was due to higher borrowings outstanding on the line of credit as well as increases in the line of credit interest rate as compared to the previous year.

As a result of the above, net income was $257,000, or $0.08 per diluted share, for the three-month period ended October 31, 2005 as compared to net income of $224,000, or $0.07 per diluted share, reported for the three-month period ended October 31, 2004.

Results for the six-month period ended October 31, 2005:

Sales for the six months ended October 31, 2005 were approximately $7,026,000, an increase of $938,000, or 15%, from $6,088,000 for the comparable period of fiscal 2005. Sales at DCI increased $833,000, or approximately 14%, from the prior year period. The increase was primarily the result of an increase in new and existing customer orders at DCI, specifically in the electronic assembly and LCD product lines. The hybrids product line had sales during the current period that were slightly lower than sales in the prior year period. Sales volumes at NTG were $488,000 for the six-month period ended October 31, 2005 which also contributed to the overall increase in sales shown in the consolidated financial results.

Gross margin for the six-month period ended October 31, 2005, was 31%, or $2,190,000, compared to 28%, or $1,729,000, for the six-month period ended October 31, 2004. The increase in gross margin was primarily the result of product mix, increased sales volumes in the electronic assembly and LCD production product lines and the addition of NTG's products.

Operating expenses increased $459,000 to $1,756,000 in the six-month period ended October 31, 2005 from $1,297,000 in the six-month period ended October 31, 2004. The increase was mainly due to the acquisition of NTG during the third fiscal quarter of the prior year. Operating expenses at NTG were approximately $357,000 for the year to date period which represents a majority of the increase for the period. Corporate and DCI's operating expenses were also higher than the comparable period in fiscal 2005, primarily as a result of an increase in the number of personnel in the sales and engineering departments.

Operating income for the six-month period ended October 31, 2005 was $434,000 as compared to operating income of $432,000 for the same period in the prior fiscal year.

Net income for the six-month period ended October 31, 2005 was $371,000, or $0.11 per fully diluted share as compared to net income of $367,000, or $0.13 per fully diluted share, for the six-month period ended October 31, 2004.

Karl B. Gemperli, Chief Executive Officer, stated, "We are pleased to report the operating results of another successful quarter with both strong sales growth and increased gross margins. Our disciplined operating strategy yielded increased bookings, revenues and profitability while our backlog grew to over $10 million, an increase of almost 50% from the prior quarter. We are encouraged that gross margins for the quarter increased due to both continued operating efficiency and the addition of the proprietary NTG products to our overall product mix. At DCI, we are building significant additional business relationships through strategic partnerships with new customers and continue to pursue fresh growth prospects while adding manufacturing and engineering capacity to broaden our capabilities and sustain our anticipated long-term growth. With sales of the initial product line at NTG increasing, we plan to implement several new expansion initiatives that will help propel NTG into its next phase of growth."

Elecsys Corporation is a publicly traded holding company with two wholly owned subsidiaries, DCI, Inc. and NTG, Inc. DCI designs, manufactures, and integrates custom electronic interface solutions for original equipment manufacturers in the medical, aerospace, communications, industrial product, and other industries. DCI has specialized capabilities to design and efficiently manufacture custom electronic assemblies which integrate a variety of interface technologies, such as custom liquid crystal displays, light emitting diode displays, and keypads, with circuit boards and other electronic components. NTG designs, markets, and provides remote monitoring solutions for the gas and oil pipeline industry as well as other industries requiring remote monitoring solutions. For more information, visit our website at http://www.elecsyscorp.com .

Safe-Harbor statement: The discussions set forth in this press release may contain forward-looking comments based on current expectations that involve a number of risks and uncertainties. Actual results could differ materially from those projected or suggested in the forward-looking comments. The difference could be caused by a number of factors, including, but not limited to the factors and conditions that are described in Elecsys Corporation's SEC filings, including the Form 10-KSB for the year ended April 30, 2005. The reader is cautioned that Elecsys Corporation does not have a policy of updating or revising forward-looking statements and thus he or she should not assume that silence by management of Elecsys Corporation over time means that actual events are bearing out as estimated in such forward-looking statements.

Elecsys Corporation and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended Six Months Ende ctober 31,October 31,

2005 2004 2005 2004

Sales $3,546 $3,172 $7,026 $6,088

Cost of products sold 2,379 2,227 4,836 4,359

Gross margin 1,167945 2,190 1,729

Selling, general and

administrative expenses 870686 1,756 1,297

Operating income 297259434432