Orbit International Corp. (ORBT, Financial) filed Quarterly Report for the period ended 2012-03-31.
Orbit Intl Corp has a market cap of $18 million; its shares were traded at around $3.75 with a P/E ratio of 7.3 and P/S ratio of 0.6.
At March 31, 2012, we had an alternative minimum tax credit of approximately $573,000 with no limitation on the carry-forward period and Federal and state net operating loss carry-forwards of approximately $9,000,000 and $7,000,000, respectively that expire through 2030. Approximately, $4,000,000 of Federal net operating loss carry-forwards expire in 2012. In addition, we receive a tax deduction when our employees exercise their non-qualified stock options thereby increasing our deferred tax asset. We record a valuation allowance to reduce our deferred tax asset when it is more likely than not that a portion of the amount may not be realized. We estimate our valuation allowance based on an estimated forecast of our future profitability. Any significant changes in future profitability resulting from variations in future revenues or expenses could affect the valuation allowance on our deferred tax asset and operating results could be affected, accordingly. Despite our net loss for the first quarter of 2012, if our strong profitability from 2011 continues during the remainder of 2012, we will evaluate the possible reduction of some or all of our valuation allowance relating to our deferred tax asset. The reduction of some or all of our valuation allowance would create a deferred tax benefit, resulting in an increase to net income in our consolidated statements of operations.
Consolidated net sales for the three month period ended March 31, 2012 decreased by 9.5% to $6,162,000 from $6,812,000 for the three month period ended March 31, 2011. The decrease was principally due to a 30.0% decrease in sales from our Electronics Group that was partially offset by a 14.8% increase in sales from our Power Group. The decrease in sales from our Electronics Group was primarily attributable to a $957,000 decrease in sales from our ICS subsidiary and to a lesser extent decreases in sales from both our Orbit Instrument Division and TDL subsidiary. The decrease in sales in the current period at our ICS subsidiary was principally due to fewer MK 437 sales and the absence of MK 119 sales, as a follow-on order for the MK 119 was not received for shipping in 2012. The increase in sales at our Power Group was principally due to an increase in shipments pursuant to customer delivery schedules at both its commercial and COTS division.
Selling, general and administrative expenses increased by 9.7% to $2,597,000 for the three month period ended March 31, 2012 from $2,368,000 for the three month period ended March 31, 2011 principally due to an increase in selling, general and administrative expenses from our Electronics Group and to a lesser extent, an increase of expenses from our Power Group and increased corporate costs. The increase in selling, general and administrative expense at our Electronics Group during the current year period was principally due to additional personnel at our Orbit Instrument Division. Selling, general and administrative expenses, as a percentage of sales, for the three month period ended March 31, 2012 increased to 42.1% from 34.8% for the three month period ended March 31, 2011 principally due to the decrease in sales and an increase in payroll costs.
Backlog at March 31, 2012 was $21.2 million compared to $15.5 million at December 31, 2011 and $21.2 million at March 31, 2011. An MK-119 order for ICS, valued at $2.4 million, had been included in last year s March 31, 2011 backlog; however, a new MK-119 order for foreign military sales is not expected to be awarded until 2012 or 2013. The increase in backlog at March 31, 2012 from December 31, 2011 was attributable to approximately $11.7 million in bookings in the first quarter of 2012.
Read the The complete Report
Orbit Intl Corp has a market cap of $18 million; its shares were traded at around $3.75 with a P/E ratio of 7.3 and P/S ratio of 0.6.
Highlight of Business Operations:
We recorded a decrease in revenue and profitability for the three months ended March 31, 2012 as compared to the same period in 2011. Our sales decrease was due to a decrease in sales from our Electronics Group which was partially offset by an increase in sales at our Power Group. The decrease in sales from our Electronics Group was primarily attributable to a decrease in sales from our ICS subsidiary and to a lesser extent a decrease in sales at both our Orbit Instrument Division and TDL subsidiary. The decrease in sales in the current period at our ICS subsidiary was principally due to fewer MK 437 sales and the absence of MK 119 sales, as a follow-on order for the MK 119 was not received for shipping in 2012. As a result of our decrease in sales, a decrease in gross profit, an increase in selling, general and administrative expenses and a $1,194,000 charge taken in connection with the non-renewal of our chief operating officer s contract, we recorded a net loss of $1,375,000 for the three months ended March 31, 2012 as compared to net income of $524,000 for the same period in the prior year. Exclusive of the charge taken in connection with the non-renewal of our chief operating officer s contract, the net loss for the current year quarter was $181,000.At March 31, 2012, we had an alternative minimum tax credit of approximately $573,000 with no limitation on the carry-forward period and Federal and state net operating loss carry-forwards of approximately $9,000,000 and $7,000,000, respectively that expire through 2030. Approximately, $4,000,000 of Federal net operating loss carry-forwards expire in 2012. In addition, we receive a tax deduction when our employees exercise their non-qualified stock options thereby increasing our deferred tax asset. We record a valuation allowance to reduce our deferred tax asset when it is more likely than not that a portion of the amount may not be realized. We estimate our valuation allowance based on an estimated forecast of our future profitability. Any significant changes in future profitability resulting from variations in future revenues or expenses could affect the valuation allowance on our deferred tax asset and operating results could be affected, accordingly. Despite our net loss for the first quarter of 2012, if our strong profitability from 2011 continues during the remainder of 2012, we will evaluate the possible reduction of some or all of our valuation allowance relating to our deferred tax asset. The reduction of some or all of our valuation allowance would create a deferred tax benefit, resulting in an increase to net income in our consolidated statements of operations.
Consolidated net sales for the three month period ended March 31, 2012 decreased by 9.5% to $6,162,000 from $6,812,000 for the three month period ended March 31, 2011. The decrease was principally due to a 30.0% decrease in sales from our Electronics Group that was partially offset by a 14.8% increase in sales from our Power Group. The decrease in sales from our Electronics Group was primarily attributable to a $957,000 decrease in sales from our ICS subsidiary and to a lesser extent decreases in sales from both our Orbit Instrument Division and TDL subsidiary. The decrease in sales in the current period at our ICS subsidiary was principally due to fewer MK 437 sales and the absence of MK 119 sales, as a follow-on order for the MK 119 was not received for shipping in 2012. The increase in sales at our Power Group was principally due to an increase in shipments pursuant to customer delivery schedules at both its commercial and COTS division.
Selling, general and administrative expenses increased by 9.7% to $2,597,000 for the three month period ended March 31, 2012 from $2,368,000 for the three month period ended March 31, 2011 principally due to an increase in selling, general and administrative expenses from our Electronics Group and to a lesser extent, an increase of expenses from our Power Group and increased corporate costs. The increase in selling, general and administrative expense at our Electronics Group during the current year period was principally due to additional personnel at our Orbit Instrument Division. Selling, general and administrative expenses, as a percentage of sales, for the three month period ended March 31, 2012 increased to 42.1% from 34.8% for the three month period ended March 31, 2011 principally due to the decrease in sales and an increase in payroll costs.
Backlog at March 31, 2012 was $21.2 million compared to $15.5 million at December 31, 2011 and $21.2 million at March 31, 2011. An MK-119 order for ICS, valued at $2.4 million, had been included in last year s March 31, 2011 backlog; however, a new MK-119 order for foreign military sales is not expected to be awarded until 2012 or 2013. The increase in backlog at March 31, 2012 from December 31, 2011 was attributable to approximately $11.7 million in bookings in the first quarter of 2012.
Read the The complete Report
