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Gigatronics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 5, 2009 06:25AM
Gigatronics Inc. (GIGA) filed Quarterly Report for the period ended 2009-06-27. Giga-tronics designs manufactures and markets through its Giga-tronicsInstrument Division a broad line of test and measurement equipment used in the development test and maintenance of wireless communications products and systems flight navigational equipment electronic defense systems and automatic testing systems. These products are used primarily in the design production repair and maintenance of commercial telecommunications radar and electronic warfare. Gigatronics Inc. has a market cap of $8.6 million; its shares were traded at around $1.785 with and P/S ratio of 0.5.
Highlight of Business Operations:
Fiscal 2010 first quarter net sales were $4,469,000, a 28% increase from the $3,488,000 in the first quarter of fiscal 2009. Sales at Giga-tronics Division decreased 5% or $124,000 primarily due to a decrease in commercial shipments for its products. Sales at Microsource increased 134% or $1,105,000 during the first quarter of fiscal 2010 versus the first quarter of fiscal 2009 primarily due to an increase in military and commercial shipments.
Operating expenses decreased 8% or $145,000 in the first quarter of fiscal 2010 over fiscal 2009 due to a decrease of $175,000 in product development expense excluding non-recurring engineering (NRE) costs, offset by an increase of $30,000 in selling, general and administrative expense. The labor content of the NRE charged to cost of sales in the first quarter of fiscal 2010 was $112,000. In the first quarter of fiscal 2009, the engineering labor charged to cost of sales was not material. The increase in selling, general and administrative expense is a result of higher marketing of $61,000 and higher commission expense of $6,000 offset by lower administrative expenses of $37,000.
Giga-tronics recorded a net profit of $333,000 or $0.07 per fully diluted share for the first quarter of fiscal 2010 versus a net loss of $522,000 or $0.11 per fully diluted share in the same period last year. A $2,000 provision for income taxes was incurred in both the first quarter of fiscal 2010 and fiscal 2009.
Non-GAAP net income, which excludes share based compensation, for the three month period ended June 27, 2009 would have been $37,000 higher or $370,000. Non-GAAP basic and diluted earnings per share would have been $0.08 compared to $0.07 as reported. For the same period last year, the Company s non-GAAP net
loss would have been $64,000 lower or $458,000 and the basic and diluted share loss would have been $0.10 compared to $0.11 as reported. Management has included this information as this expense is a non-cash item with no net equity impact.
As of June 27, 2009, Giga-tronics had $1,551,000 in cash and cash-equivalents, compared to $1,518,000 as of March 28, 2009.
Stocks Discussed: GIGA,