Micronetics Inc. (NOIZ, Financial) filed Quarterly Report for the period ended 2009-06-27.
Micronetics operating through its Defense Electronics Group manufactures microwave and radio frequency components and integrated subassemblies used in a variety of defense aerospace and commercial applications. Operating through its Test Solutions Noise Products and VCO Products Groups Micronetics manufactures and designs test equipment and components that are utilized in or test the strength durability and integrity of communication signals in communications equipment. Micronetics Inc. has a market cap of $15 million; its shares were traded at around $3.29 with and P/S ratio of 0.5. Micronetics Inc. had an annual average earning growth of 9.8% over the past 5 years.
We finance our operating and investment requirements primarily through operating cash flows and borrowings. Cash equivalents and marketable securities was $388,370 and $620,259, respectively, at June 27, 2009 and March 31, 2009. Working capital defined as accounts receivable, inventory, prepaid expenses, other current assets net of accounts payable and accrued expenses was $12,486,354 and $11,549,933 at June 27, 2009 and March 31, 2009, respectively. Borrowings under our revolving line of credit were $4,179,878 and $3,502,620 at June 27, 2009 and March 31, 2009, respectively.
Net cash used in operating activities was $265,439 in Q1 FY 10 compared to cash provided by operating activities of $377,358 during Q1 FY 09. In Q1 FY 10, cash provided by net loss after adjusting for non-cash items including depreciation, amortization, stock-based compensation, changes in working capital reserves and an unrealized gain on interest rate swap was approximately $548,000. Approximately $814,000 was used to fund working capital needs, principally receivables of approximately $.6 million and inventory of approximately $.2 million.
In Q1 FY 09, cash provided by net income after adjusting for non-cash items including depreciation, amortization, stock-based compensation, changes in working capital reserves and an unrealized gain on interest rate swap was approximately $765,000. Approximately $388,000 was used to fund working capital needs. Of this amount, approximately $1 million was provided by the collection of receivables offset by approximately $.9 million used to fund increases in inventory. Approximately $0.4 million was used to fund prepaid expenses and approximately $.1 million was used to fund accounts payable and accrued expenses.
Net cash used in investing activities was $238,103 during Q1 FY 10 as compared to cash provided by investing activities of $249,824 in Q1 FY 09. Q1 FY 10 investing activities was solely comprised of purchased equipment. In Q1 FY 09, we sold investments of $.4 million offset by purchased equipment of $.2 million.
In summary, during Q1 FY 10 we used cash of approximately $.2 million and drew on our revolving line of credit for an additional approximately $.7 million for a total use of approximately $.9 million. We generated cash of approximately $.6 million from net income after adjusting for non-cash items. We used approximately $.8 million to fund accounts receivable and inventory, approximately $.4 million to repay debt and approximately $.2 million for capital expenditures.
Read the The complete Report
Micronetics operating through its Defense Electronics Group manufactures microwave and radio frequency components and integrated subassemblies used in a variety of defense aerospace and commercial applications. Operating through its Test Solutions Noise Products and VCO Products Groups Micronetics manufactures and designs test equipment and components that are utilized in or test the strength durability and integrity of communication signals in communications equipment. Micronetics Inc. has a market cap of $15 million; its shares were traded at around $3.29 with and P/S ratio of 0.5. Micronetics Inc. had an annual average earning growth of 9.8% over the past 5 years.
Highlight of Business Operations:
Amortization expense attributable to our intangible assets related to the acquisitions of Stealth, MICA and RFID was $87,023 in Q1 FY 10 as compared to $177,106 in Q1 FY 09 or a decrease of $90,083. Approximately $110,000 of the decrease was due to an intangible asset impairment charge, which we recorded in the third quarter of Fiscal 2009, which was offset in part by an increase of approximately $20,000 associated with the acquisition of our RFID product line.We finance our operating and investment requirements primarily through operating cash flows and borrowings. Cash equivalents and marketable securities was $388,370 and $620,259, respectively, at June 27, 2009 and March 31, 2009. Working capital defined as accounts receivable, inventory, prepaid expenses, other current assets net of accounts payable and accrued expenses was $12,486,354 and $11,549,933 at June 27, 2009 and March 31, 2009, respectively. Borrowings under our revolving line of credit were $4,179,878 and $3,502,620 at June 27, 2009 and March 31, 2009, respectively.
Net cash used in operating activities was $265,439 in Q1 FY 10 compared to cash provided by operating activities of $377,358 during Q1 FY 09. In Q1 FY 10, cash provided by net loss after adjusting for non-cash items including depreciation, amortization, stock-based compensation, changes in working capital reserves and an unrealized gain on interest rate swap was approximately $548,000. Approximately $814,000 was used to fund working capital needs, principally receivables of approximately $.6 million and inventory of approximately $.2 million.
In Q1 FY 09, cash provided by net income after adjusting for non-cash items including depreciation, amortization, stock-based compensation, changes in working capital reserves and an unrealized gain on interest rate swap was approximately $765,000. Approximately $388,000 was used to fund working capital needs. Of this amount, approximately $1 million was provided by the collection of receivables offset by approximately $.9 million used to fund increases in inventory. Approximately $0.4 million was used to fund prepaid expenses and approximately $.1 million was used to fund accounts payable and accrued expenses.
Net cash used in investing activities was $238,103 during Q1 FY 10 as compared to cash provided by investing activities of $249,824 in Q1 FY 09. Q1 FY 10 investing activities was solely comprised of purchased equipment. In Q1 FY 09, we sold investments of $.4 million offset by purchased equipment of $.2 million.
In summary, during Q1 FY 10 we used cash of approximately $.2 million and drew on our revolving line of credit for an additional approximately $.7 million for a total use of approximately $.9 million. We generated cash of approximately $.6 million from net income after adjusting for non-cash items. We used approximately $.8 million to fund accounts receivable and inventory, approximately $.4 million to repay debt and approximately $.2 million for capital expenditures.
Read the The complete Report
