Merrimac Industries Inc (MRM, Financial) filed Quarterly Report for the period ended 2009-10-03.
Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix micro-multifunction modules, for the worldwide Defense, Satellite Communications, Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions with Multi-Mix Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix MMFM provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module applicable to High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries Inc has a market cap of $29.3 million; its shares were traded at around $9.82 with a P/E ratio of 982 and P/S ratio of 1.
We anticipate that depreciation and amortization expenses will exceed capital expenditures in fiscal year 2009 by approximately $2,000,000. We intend to issue commitments to purchase approximately $110,000 of capital equipment from various vendors for the remainder of 2009 and we anticipate that such equipment will be purchased and become operational during the remainder of 2009. Our planned equipment purchases and other commitments are expected to be funded through cash resources and cash flows expected to be generated from operations, and supplemented by our $5,000,000 revolving credit facility with Wells Fargo.
On December 28, 2007, we sold substantially all of the assets of FMI to Firan Technology Group Corporation, a manufacturer of high technology/high reliability printed circuit boards that has operations in Toronto, Ontario, Canada and Chatsworth, California. The transaction was effected pursuant to an asset purchase agreement entered into between Merrimac, FMI and FTG. The total consideration payable by FTG was $1,482,000 (Canadian $1,450,000) plus the assumption of certain liabilities of approximately $368,000 (Canadian $360,000). FTG paid $818,000 (Canadian $800,000) of the purchase price at the closing on December 28, 2007 and the balance was paid on February 21, 2008 following the conclusion of a transitional period.
Net sales in the third quarter of 2009 were relatively flat compared to the third quarter of 2008. Net sales decreased $57,000 or 0.7% to $8,271,000, from the third quarter of 2008 net sales of $8,328,000. Net sales for the first nine months of 2009 increased $2,391,000 or 11.1% to $23,967,000 compared to $21,576,000 for the first nine months of 2008. The increase in net sales for the first nine months of 2009 is primarily due to our focused strategy concentrating on aerospace and defense markets. This strategy has resulted in more orders from our key aerospace and defense customers including increased sales of Multi-Mix® products to defense industry related customers.
Orders of $27,789,000 were received during the first nine months of 2009, an increase of $3,101,000 or 12.6% compared to $24,688,000 in orders received during the first nine months of 2008. Backlog increased by $3,686,000 or 17.5% to $24,789,000 at the end of the first nine months of 2009 compared to $21,103,000 at the end of the first nine months of 2008. The book-to-bill ratio as of the end of the first nine months of 2009 was 1.16 to 1 compared to 1.14 to 1 for the first nine months of 2008. We continue to receive a consistently high level of orders that are in line with our projections and we expect our book- to-bill ratio to exceed 1.0 to 1 for 2009.
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Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix micro-multifunction modules, for the worldwide Defense, Satellite Communications, Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions with Multi-Mix Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix MMFM provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, etched resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module applicable to High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries Inc has a market cap of $29.3 million; its shares were traded at around $9.82 with a P/E ratio of 982 and P/S ratio of 1.
Highlight of Business Operations:
We are a versatile technology company specializing in radio frequency and microwave applications solutions. We specialize in Multi-Mix®, stripline, microstrip, discreet element, bonded stripline and thick metal-backed Teflon® and mixed dielectric multilayer circuit technologies for defense, aerospace and commercial applications. Of special significance has been the combination of two or more of these technologies into single components and integrated multifunction subassemblies to achieve a unique and proprietary solution offering superior performance and reliability while minimizing package size and weight. Our components and integrated assemblies are found in applications as diverse as satellites, military and commercial aircraft, radar, radio systems, medical diagnostic instruments communications systems and wireless connectivity. We maintain ISO 9001:2000 and AS 9100 registered quality assurance programs. Our components range in price from $0.50 to more than $10,000 and our subsystems range from $500 to more than $1,500,000.We anticipate that depreciation and amortization expenses will exceed capital expenditures in fiscal year 2009 by approximately $2,000,000. We intend to issue commitments to purchase approximately $110,000 of capital equipment from various vendors for the remainder of 2009 and we anticipate that such equipment will be purchased and become operational during the remainder of 2009. Our planned equipment purchases and other commitments are expected to be funded through cash resources and cash flows expected to be generated from operations, and supplemented by our $5,000,000 revolving credit facility with Wells Fargo.
On December 28, 2007, we sold substantially all of the assets of FMI to Firan Technology Group Corporation, a manufacturer of high technology/high reliability printed circuit boards that has operations in Toronto, Ontario, Canada and Chatsworth, California. The transaction was effected pursuant to an asset purchase agreement entered into between Merrimac, FMI and FTG. The total consideration payable by FTG was $1,482,000 (Canadian $1,450,000) plus the assumption of certain liabilities of approximately $368,000 (Canadian $360,000). FTG paid $818,000 (Canadian $800,000) of the purchase price at the closing on December 28, 2007 and the balance was paid on February 21, 2008 following the conclusion of a transitional period.
Net sales in the third quarter of 2009 were relatively flat compared to the third quarter of 2008. Net sales decreased $57,000 or 0.7% to $8,271,000, from the third quarter of 2008 net sales of $8,328,000. Net sales for the first nine months of 2009 increased $2,391,000 or 11.1% to $23,967,000 compared to $21,576,000 for the first nine months of 2008. The increase in net sales for the first nine months of 2009 is primarily due to our focused strategy concentrating on aerospace and defense markets. This strategy has resulted in more orders from our key aerospace and defense customers including increased sales of Multi-Mix® products to defense industry related customers.
Orders of $27,789,000 were received during the first nine months of 2009, an increase of $3,101,000 or 12.6% compared to $24,688,000 in orders received during the first nine months of 2008. Backlog increased by $3,686,000 or 17.5% to $24,789,000 at the end of the first nine months of 2009 compared to $21,103,000 at the end of the first nine months of 2008. The book-to-bill ratio as of the end of the first nine months of 2009 was 1.16 to 1 compared to 1.14 to 1 for the first nine months of 2008. We continue to receive a consistently high level of orders that are in line with our projections and we expect our book- to-bill ratio to exceed 1.0 to 1 for 2009.
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