Tel Instrument Electronics Corp (TIK, Financial) filed Quarterly Report for the period ended 2012-09-30.
Tel Instrument Electronics Corporation has a market cap of $9.5 million; its shares were traded at around $3.5 with and P/S ratio of 0.6.
Avionics Government sales decreased $1,313,746 (41.6%) and $3,909,374 (62.0%), respectively, to $1,847,545 and $2,397,509 for the three and six months September 30, 2012, as compared to $3,161,291 and $6,306,883 for the same periods last year. This decrease in Avionics Government sales is due mainly to a temporary hold in CRAFT 708 production shipments to correct issues discovered in prior CRAFT 719 deliveries and incorporate the final AIMS approved software configuration which includes several product enhancements. TIC also continues to experience delays in securing a production release on the TS-4530A program from the Army. The Company continues to work closely with the Navy and the Army to secure production releases on the CRAFT and TS-4530A programs and is optimistic that this will occur in the near term.
Commercial sales increased $34,342 (6.7%) to $547,405 for the three months ended September 30, 2012 as compared to $513,063 for the three months ended September 30, 2012. This increase is mostly due to the timing of the deliveries and is not considered to be a trend. Commercial sales decreased $182,953 (13.5%) to $1,174,729 for the six months ended September 30, 2012, as compared to $1,357,682 in the same period in the prior year. This decrease is due to lower sales of the TR-220 and from overhaul and repairs. This decrease is due to economic conditions in the commercial market which remains depressed.
Gross margin decreased $880,804 (59.4%) and $2,458,741 (73.5%), respectively to $602,423 and $886,117 for the three and six months ended September 30, 2012 as compared to $1,483,227 and $3,344,858 for the same periods in the prior fiscal year. Gross profit was materially affected by the lower sales volume due to the temporary hold in CRAFT 708 production shipments and the delay in securing a production release on the TS-4530A program. The gross margin percentage for the three months ended September 30, 2012 was 25.2%, as compared to 40.4%, for the three months ended September 30, 2011. The gross margin percentage for the six months ended September 30, 2012 was 24.8%, as compared to 43.6%, for the six months ended September 30, 2011.
At September 30, 2012, the Company had net working capital of $2,869,259, as compared to $4,522,111 at March 31, 2012. This change is primarily the result of the reduction in accounts receivable as a result of the lower sales.
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Tel Instrument Electronics Corporation has a market cap of $9.5 million; its shares were traded at around $3.5 with and P/S ratio of 0.6.
Highlight of Business Operations:
For the three and six months ended September 30, 2012, sales decreased $1,279,404 (34.8%) and $4,092,237 (53.4%), respectively, to $2,394,950 and $3,572,238 for the three and six months ended September 30, 2012 as compared to $3,674,354 and $7,664,565 for the same periods in the prior year.Avionics Government sales decreased $1,313,746 (41.6%) and $3,909,374 (62.0%), respectively, to $1,847,545 and $2,397,509 for the three and six months September 30, 2012, as compared to $3,161,291 and $6,306,883 for the same periods last year. This decrease in Avionics Government sales is due mainly to a temporary hold in CRAFT 708 production shipments to correct issues discovered in prior CRAFT 719 deliveries and incorporate the final AIMS approved software configuration which includes several product enhancements. TIC also continues to experience delays in securing a production release on the TS-4530A program from the Army. The Company continues to work closely with the Navy and the Army to secure production releases on the CRAFT and TS-4530A programs and is optimistic that this will occur in the near term.
Commercial sales increased $34,342 (6.7%) to $547,405 for the three months ended September 30, 2012 as compared to $513,063 for the three months ended September 30, 2012. This increase is mostly due to the timing of the deliveries and is not considered to be a trend. Commercial sales decreased $182,953 (13.5%) to $1,174,729 for the six months ended September 30, 2012, as compared to $1,357,682 in the same period in the prior year. This decrease is due to lower sales of the TR-220 and from overhaul and repairs. This decrease is due to economic conditions in the commercial market which remains depressed.
Gross margin decreased $880,804 (59.4%) and $2,458,741 (73.5%), respectively to $602,423 and $886,117 for the three and six months ended September 30, 2012 as compared to $1,483,227 and $3,344,858 for the same periods in the prior fiscal year. Gross profit was materially affected by the lower sales volume due to the temporary hold in CRAFT 708 production shipments and the delay in securing a production release on the TS-4530A program. The gross margin percentage for the three months ended September 30, 2012 was 25.2%, as compared to 40.4%, for the three months ended September 30, 2011. The gross margin percentage for the six months ended September 30, 2012 was 24.8%, as compared to 43.6%, for the six months ended September 30, 2011.
At September 30, 2012, the Company had net working capital of $2,869,259, as compared to $4,522,111 at March 31, 2012. This change is primarily the result of the reduction in accounts receivable as a result of the lower sales.
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