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Tel Instrument Electronics Corp Reports Operating Results (10-Q)

November 16, 2009 | About:
10qk

10qk

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Tel Instrument Electronics Corp (TIK) filed Quarterly Report for the period ended 2009-09-30.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. Tel Instrument Electronics Corp has a market cap of $12.27 million; its shares were traded at around $4.9499 with a P/E ratio of 82.5 and P/S ratio of 0.94.

Highlight of Business Operations:

Income tax benefits in the amounts $125,074 and $396,387 were recorded for the

three and six months ended September 30, 2009 as compared to income tax

provisions in the amounts of $304,365 and $318,065 for the three and six months

ended September 30, 2008. The change is due to the losses before taxes for the

three and six months ended September 30, 2009 as compared to income before taxes

for the three and six months ended September 30, 2008. These amounts represent

the effective federal and state tax rate of approximately 40% on the Company's

net income or loss before taxes.



As a result of the above, the Company recorded net losses from continuing

operations, net of taxes of $188,001 and $595,822 for the three and six months

ended September 30, 2009 as compared to net income from continuing operations,

net of taxes of $345,832 and $366,423 for the three and six months ended

September 30, 2008.



For the three and six months ended September 30, 2009, the Company recorded

income from discontinued operations, net of taxes, of $6,583 and $5,673,

respectively, as compared to income from discontinued operations, net of taxes,

of $44,819 and $67,239, respectively, for the three and six months ended

September 30, 2008, primarily as a result of the lower sales volume. See Note 10

to the Financial Statements.



As a result of the above, the Company recorded net losses of $181,418 and

$590,149 for the three and six months ended September 30, 2009 as compared to

recording net income of $390,651 and $443,662 for the three and six months ended

September 30, 2008.



At September 30, 2009, the Company had working capital of $2,935,415 as compared

to $3,284,115 at March 31, 2009. For the six months ended September 30, 2009,

the Company used $808,001 in cash for operations as compared to $146,861 for the

six months ended September 30, 2008. This increase in cash used in operations is

primarily attributed to the operating loss for the period and the decrease in

accrued expenses partially offset by the decrease in inventories.



At September 30, 2009 the Company's backlog stood at approximately $18.3 million

as compared to approximately $10.0 million at September 30 2008. The backlog at

September 30, 2009 includes only the amount of currently exercised delivery

orders on open IDIQ (indefinite delivery/indefinite quantity) contracts, and is

expected to materially increase when the volume production orders for the two

large Navy contracts are received. Historically, the Company obtains a

substantial volume of orders which are required to be filled in less than twelve

months, and, therefore, these anticipated orders are not reflected in the

backlog. Approximately $14.3 million in orders is related to the TS-4530A

program, and this amount is included in the backlog at September 30, 2009.



Read the The complete Report

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