Winland Electronics Inc (WEX, Financial) filed Quarterly Report for the period ended 2010-06-30.
Winland Electronics Inc has a market cap of $2.5 million; its shares were traded at around $0.693 with and P/S ratio of 0.1. WEX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The Company reported an operating loss of $794,000 and $565,000 for the three months ended June 30, 2010 and 2009, respectively. Gross margins decreased from 8.5% to 3.8% for the three months ended June 30, 2010 compared to the same period in 2009. The Company s EMS segment reported an operating loss of $205,000 for the three months ended June 30, 2010 compared to operating income of $22,000 reported for the same period a year ago. EMS gross margins were -2.0% for the three months ended June 30, 2010 down from 3.2% in 2009 due to under utilization of fixed overhead expenses, higher production costs related to qualification builds, increased warranty expenses of $55,000 and increased obsolescence expenses of $147,000 which were partially offset by reduced indirect wages and benefits of $206,000. Operating expenses were also reduced $24,000 compared to last year primarily due to reductions in wages and benefits. The Company s Proprietary Products segment operating income was $35,000 for the three months ended June 30, 2010 compared to operating income of $43,000 last year. Proprietary Products gross margins were 38.2% down from 45.1% due to under utilization of fixed overhead expenses. Reductions of wages and benefits of $25,000 partially offset the increased manufacturing costs.
The Company reported an operating loss of $1,319,000 and $631,000 for the six months ended June 30, 2010 and 2009, respectively. Gross margins decreased from 12.1% to 6.3% for the six months ended June 30, 2010 compared to the same period in 2009. The Company s EMS segment reported an operating loss of $248,000 for the six months ended June 30, 2010 compared to operating income of $628,000 reported a year ago. EMS gross margins were down from 7.6% a year ago to 0.0% for the six months ended June 30, 2010 due to under utilization of fixed overhead expenses, higher production costs related to qualification builds, increased warranty expenses of $40,000 and increased obsolescence expenses of $160,000 which were partially offset by reduced indirect wages and benefits of $520,000. The Company s Proprietary Products segment operating income was $118,000 for the six months ended June 30, 2010 compared to operating income of $162,000 last year. Proprietary Products gross margins were 39.7% down from 47.9% due to under utilization of fixed overhead expenses.
General and Administrative expenses were $510,000 for the three months ended June 30, 2010 compared to $543,000 for the same period a year ago, the result of reduced wages and benefits of $55,000, reduced telephone expenses of $19,000 partially offset by increased consulting fees of $64,000. General and Administrative expenses were $970,000 for the six months ended June 30, 2010 compared to $1,169,000 for the same period a year ago, the result of reduced wages and benefits of $118,000, reduced professional fees of $75,000 and reduced telephone expenses of $39,000 partially offset by increased consulting expenses of $68,000.
Research and Development expenses were $114,000 for the three months ended June 30, 2010 compared to $87,000 for the same period a year ago, the result of reduced labor and overhead expenses transferred to Engineering Cost of Goods Sold of $35,000 partially offset by reduced wages and benefits of $13,000. Research and Development expenses were $219,000 for the six months ended June 30, 2010 compared to $252,000 for the same period a year ago, the result of reduced wages and benefits of $109,000, reduced new product development expense of $11,000 partially offset by reduced labor and overhead expenses transferred to Engineering Cost of Goods Sold of $98,000.
Operating activities used cash of $650,000 and $299,000 for the six months ended June 30, 2010 and 2009, respectively. For the six months ended June 30, 2010, the net loss of $1,362,000 was partially offset by depreciation expense of $397,000 and net changes in working capital of $249,000. For the six months ended June 30, 2009, the $839,000 net loss was partially offset by depreciation expense of $412,000 and net changes in working capital of $61,000. Cash used in investing activities was used to acquire capital equipment of $13,000 and $59,000 for the six months ended June 30, 2010 and 2009, respectively. Cash used in financing activities for the payment of long-term debt was $187,000 for the six months ended June 30, 2010 compared to $213,000 for the same period in 2009. For the six months ended June 30, 2010 and 2009 cash was provided by borrowing against the revolving line of credit in the amount of $881,000 and $386,000, respectively.
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Winland Electronics Inc has a market cap of $2.5 million; its shares were traded at around $0.693 with and P/S ratio of 0.1. WEX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales for the six months ended June 30, 2010 were $9,675,000, down $3,211,000 from the same period in 2009. EMS net sales of $8,094,000 were down $3,354,000 compared to the same period last year, a 29% decrease. Sales to Customer A, B and C were down $1,460,000, $535,000 and $388,000, respectively, compared to same period a year ago. Sales to new customers, acquired within the past twelve months, were $1,192,000. Net sales of Proprietary Products increased $143,000 or 10% to $1,581,000.The Company reported an operating loss of $794,000 and $565,000 for the three months ended June 30, 2010 and 2009, respectively. Gross margins decreased from 8.5% to 3.8% for the three months ended June 30, 2010 compared to the same period in 2009. The Company s EMS segment reported an operating loss of $205,000 for the three months ended June 30, 2010 compared to operating income of $22,000 reported for the same period a year ago. EMS gross margins were -2.0% for the three months ended June 30, 2010 down from 3.2% in 2009 due to under utilization of fixed overhead expenses, higher production costs related to qualification builds, increased warranty expenses of $55,000 and increased obsolescence expenses of $147,000 which were partially offset by reduced indirect wages and benefits of $206,000. Operating expenses were also reduced $24,000 compared to last year primarily due to reductions in wages and benefits. The Company s Proprietary Products segment operating income was $35,000 for the three months ended June 30, 2010 compared to operating income of $43,000 last year. Proprietary Products gross margins were 38.2% down from 45.1% due to under utilization of fixed overhead expenses. Reductions of wages and benefits of $25,000 partially offset the increased manufacturing costs.
The Company reported an operating loss of $1,319,000 and $631,000 for the six months ended June 30, 2010 and 2009, respectively. Gross margins decreased from 12.1% to 6.3% for the six months ended June 30, 2010 compared to the same period in 2009. The Company s EMS segment reported an operating loss of $248,000 for the six months ended June 30, 2010 compared to operating income of $628,000 reported a year ago. EMS gross margins were down from 7.6% a year ago to 0.0% for the six months ended June 30, 2010 due to under utilization of fixed overhead expenses, higher production costs related to qualification builds, increased warranty expenses of $40,000 and increased obsolescence expenses of $160,000 which were partially offset by reduced indirect wages and benefits of $520,000. The Company s Proprietary Products segment operating income was $118,000 for the six months ended June 30, 2010 compared to operating income of $162,000 last year. Proprietary Products gross margins were 39.7% down from 47.9% due to under utilization of fixed overhead expenses.
General and Administrative expenses were $510,000 for the three months ended June 30, 2010 compared to $543,000 for the same period a year ago, the result of reduced wages and benefits of $55,000, reduced telephone expenses of $19,000 partially offset by increased consulting fees of $64,000. General and Administrative expenses were $970,000 for the six months ended June 30, 2010 compared to $1,169,000 for the same period a year ago, the result of reduced wages and benefits of $118,000, reduced professional fees of $75,000 and reduced telephone expenses of $39,000 partially offset by increased consulting expenses of $68,000.
Research and Development expenses were $114,000 for the three months ended June 30, 2010 compared to $87,000 for the same period a year ago, the result of reduced labor and overhead expenses transferred to Engineering Cost of Goods Sold of $35,000 partially offset by reduced wages and benefits of $13,000. Research and Development expenses were $219,000 for the six months ended June 30, 2010 compared to $252,000 for the same period a year ago, the result of reduced wages and benefits of $109,000, reduced new product development expense of $11,000 partially offset by reduced labor and overhead expenses transferred to Engineering Cost of Goods Sold of $98,000.
Operating activities used cash of $650,000 and $299,000 for the six months ended June 30, 2010 and 2009, respectively. For the six months ended June 30, 2010, the net loss of $1,362,000 was partially offset by depreciation expense of $397,000 and net changes in working capital of $249,000. For the six months ended June 30, 2009, the $839,000 net loss was partially offset by depreciation expense of $412,000 and net changes in working capital of $61,000. Cash used in investing activities was used to acquire capital equipment of $13,000 and $59,000 for the six months ended June 30, 2010 and 2009, respectively. Cash used in financing activities for the payment of long-term debt was $187,000 for the six months ended June 30, 2010 compared to $213,000 for the same period in 2009. For the six months ended June 30, 2010 and 2009 cash was provided by borrowing against the revolving line of credit in the amount of $881,000 and $386,000, respectively.
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