New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Elecsys Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: December 13, 2010 09:20AM

Elecsys Corp. (ESYS) filed Quarterly Report for the period ended 2010-10-31. Elecsys Corp. has a market cap of $13.07 million; its shares were traded at around $3.45 with and P/S ratio of 0.77.



Highlight of Business Operations:

Total consolidated backlog at October 31, 2010 was approximately $8,080,000, an increase of $2,038,000, or 33.7%, from a total backlog of $6,042,000 on April 30, 2010 and an increase of approximately $3,128,000, or 63.2%, from a total backlog of $4,952,000 on October 31, 2009. EDMS orders typically specify several shipments and services provided over a period of time or delivery schedule. Orders for our proprietary products are usually completed and shipped to the customer soon after the order is received. Certain larger proprietary product orders have specific deliveries scheduled through December 2011 or may not yet be scheduled for delivery due to uncertain field installation and deployment schedules and similar related factors. These product orders, with future or unscheduled delivery dates, are included in the calculation of consolidated backlog.

Selling and marketing expenses were $382,000 for the three-month period ended October 31, 2010 and 2009, respectively. The increase of $20,000 was the result of decreases in professional business development fees and sales contractor costs of $72,000, reductions in commissions/royalties due to changes in products sold as compared to the prior year of approximately $13,000, increases in marketing costs including advertising, website development, and conferences of approximately $19,000, and an increase in personnel and personnel-related expenses of approximately $78,000 as compared to the prior year period.

Financial expense, including interest expense, was $75,000 and $100,000 for the three-month periods ended October 31, 2010 and 2009, respectively. The decrease of $25,000 resulted from lower total outstanding borrowings compared to the previous fiscal year period. During the three-month period ended October 31, 2010, there were no additional borrowings on the operating line of credit and the Company made payments of $200,000 that lowered the total amount outstanding to $3,300,000. There was an additional $3,078,000 in outstanding long-term borrowings at the end of the fiscal quarter. These long-term borrowings represent the Industrial Revenue Bonds related to the Company s headquarters and production facility. We plan to continue to make regular payments on our operating line of credit to lower the total amount of

Sales of our Radix rugged handheld computer hardware, peripherals and related services, including maintenance contract revenues and our eXtremeTAG RFID solutions, were approximately $1,628,000 for the six-month period ended October 31, 2010, an increase of $289,000, or 21.6%, from the prior year period. Ultra-rugged handheld computer sales were approximately $271,000 of the increase during the period that was the result of improving overall economic conditions and included sales of our latest model handheld computer, the FW950. The increase in handheld computer sales was complemented by a slight increase in RFID tag sales of approximately $21,000 during the period as compared to the comparable period of the prior year. The remaining $3,000 decrease in sales was due to a mixture of an increase in maintenance revenues of approximately $15,000 along with a reduction in sales of software and installation services. We expect the FW950, its related peripherals, product enhancements, maintenance contract revenues, and our eXtremeTAG RFID tags and solutions, will continue to produce slight increases in sales over the next few quarters as compared to the most recently completed fiscal quarter.

Selling and marketing expenses increased approximately $38,000 for the three-month period ended October 31, 2010 to $801,000 from $763,000 for the three-month period ended October 31, 2009. The change was the result of decreases in professional business development fees and sales contractor costs of $143,000, increases in commissions/royalties of approximately $24,000, reductions in travel costs of roughly $22,000, increases in marketing costs including advertising, website development, and conferences of about $23,000, and an increase in personnel and personnel-related expenses of approximately $156,000 as compared to the prior year period.

Financial expenses, including interest expense, were $159,000 and $213,000 for the six-month periods ended October 31, 2010 and 2009, respectively. This decrease of $54,000 resulted from the decrease in the total outstanding borrowings compared to the previous fiscal year period. During the six-month period ended October 31, 2010, there were no additional borrowings on the operating line of credit and $400,000 in payments that lowered the total amount outstanding to $3,300,000. As of October 31, 2010, there was $3,078,000 outstanding in long-term borrowings compared to $3,334,000 at October 31, 2009. These long-term borrowings represent the Industrial Revenue Bonds related to the Company s headquarters and production facility. We plan to utilize the operating line of credit when necessary over the next few quarters to fund the increases in our production activity, but we also plan to make regular payments on our operating line of credit so that the amount of outstanding borrowings will remain stable or decrease.

Read the The complete Report



Stocks Discussed: ESYS,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial