|New Threads Only:|
|New Threads & Replies:|
Forum List » Business News and Headlines|
SEC Filings, Earing Reports, Press Releases
Elecsys Corp. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: July 11, 2011 09:27AM
Elecsys Corp. (ESYS) filed Annual Report for the period ended 2011-04-30.
Highlight of Business Operations:
The EDMS business segment designs and manufactures integrated displays and custom electronics for OEM customers on a contract basis and thus is not engaged in any independent, self-funded research and development programs. Our proprietary products, marketed under the Watchdog, Radix, eXtremeTAG and SensorCast brand names, develop proprietary and innovative machine to machine communication technology solutions in addition to the design and manufacture of custom products and assemblies for OEM customers that are targeted at specific industry applications and involve electronic hardware and system software design. Total research and development expenses for our proprietary products and technology solutions were approximately $1,366,000 and $1,131,000 for the fiscal years 2011 and 2010, respectively. We believe that our internal engineering resources combined with qualified third-party engineering consultants will be able to satisfy the current needs of our customer bases.
The general economic and capital market conditions in the United States continue to adversely affect businesses access to capital as well as an increased cost of such capital. If the current economic conditions in the United States continue or become worse, our cost of debt and equity capital and the access to capital markets could be adversely affected. Pursuant to our line of credit agreement with a regional financial institution, we have access to up to $6,000,000, of which $1,950,000 is outstanding at April 30, 2011. Based on our calculated borrowing base of allowable accounts receivable and inventory as of April 30, 2011, there is an additional $2,761,000 of available funds for us to utilize on the line of credit. This line of credit expires in October 2012 and we plan to obtain additional one year extensions on the line of credit each year. We have discussed these proposed one year extensions on the line of credit with our lender on identical terms, but there can be no assurance that they will grant the extensions, and if they do, there can be no assurance that the terms of such extensions will not be on terms that are more burdensome and/or costly to us. To the extent that our lender fails to grant an extension of the line of credit or if the terms of any extension are more burdensome or costly, our operating results and financial condition could be materially adversely affected.
Stocks Discussed: ESYS,