Tel Instrument Electronics Corp (TIK, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $12.4 million; its shares were traded at around $5.0425 with a P/E ratio of 84 and P/S ratio of 0.9.
quarter ended June 30, 2009 as compared to net income of $43,011 for the quarter
ended June 30, 2008.
At June 30, 2009, the Company had working capital of $2,925,598 as compared to
$3,284,115 at March 31, 2009. For the three months ended June 30, 2009, the
Company used $274,228 in cash for operations as compared to generating $218,457
in cash from operations the three months ended June 30, 2008. This decrease in
cash from operations is primarily attributed to the loss for the period and the
decrease in accrued expenses partially offset by an increase in accounts
payable.
Net cash used in investing activities was $11,313 for the three months ended
June 30, 2009 from $39,276 for the three months ended June 30, 2008 due to the
decrease in purchases of equipment.
Net cash provided by financing activities decreased to $150,000 for the three
months ended June 30, 2009 from $225,330 for the three months ended June 30,
2008 due to the lower borrowings from the line of credit and a decrease in
proceeds from the exercise of stock options.
At June 30, 2009 the Company\'s backlog stood at approximately $14.7 million, as
compared to approximately $11.4 million at June 30, 2008. The backlog at June
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. The
Company has received approximately $8.83 million in orders related to the
TS-4530A program, and this amount is included in the backlog at June 30, 2009.
In addition, in July 2009 the Company received an additional $6 million delivery
order from the Army, bringing the total amount of orders received to
approximately $15 million.
Given the weak first quarter results, Tel increased it borrowing on its credit
facility by $150,000 in the quarter to $600,000 and had approximately $485,000
of available borrowing capacity as of June 30, 2009. This credit line is on a
year-to-year basis with a September 30, 2009 renewal date. Given first quarter
loss and the expected loss in the second quarter as well as the sharp expansion
in projected business starting this fall, the Company is planning to raise a
minimum of $500,000 of equity funding in the next few months through a
combination of Director stock option exercises and new share purchases. At this
time, the Company has received informal commitments from several Directors to
purchase between 90,000 and 100,000 shares of newly issued company stock at a
price to be determined by a Special Committee of Directors who would not
purchase shares. Other shareholders will be provided the opportunity to
participate on the same terms and conditions subject to a minimum share
purchase. Further information about the financing program will be provided when
the details are finalized.
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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 $12.4 million; its shares were traded at around $5.0425 with a P/E ratio of 84 and P/S ratio of 0.9.
Highlight of Business Operations:
As a result of the above, the Company recorded a net loss of $408,731 for thequarter ended June 30, 2009 as compared to net income of $43,011 for the quarter
ended June 30, 2008.
At June 30, 2009, the Company had working capital of $2,925,598 as compared to
$3,284,115 at March 31, 2009. For the three months ended June 30, 2009, the
Company used $274,228 in cash for operations as compared to generating $218,457
in cash from operations the three months ended June 30, 2008. This decrease in
cash from operations is primarily attributed to the loss for the period and the
decrease in accrued expenses partially offset by an increase in accounts
payable.
Net cash used in investing activities was $11,313 for the three months ended
June 30, 2009 from $39,276 for the three months ended June 30, 2008 due to the
decrease in purchases of equipment.
Net cash provided by financing activities decreased to $150,000 for the three
months ended June 30, 2009 from $225,330 for the three months ended June 30,
2008 due to the lower borrowings from the line of credit and a decrease in
proceeds from the exercise of stock options.
At June 30, 2009 the Company\'s backlog stood at approximately $14.7 million, as
compared to approximately $11.4 million at June 30, 2008. The backlog at June
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. The
Company has received approximately $8.83 million in orders related to the
TS-4530A program, and this amount is included in the backlog at June 30, 2009.
In addition, in July 2009 the Company received an additional $6 million delivery
order from the Army, bringing the total amount of orders received to
approximately $15 million.
Given the weak first quarter results, Tel increased it borrowing on its credit
facility by $150,000 in the quarter to $600,000 and had approximately $485,000
of available borrowing capacity as of June 30, 2009. This credit line is on a
year-to-year basis with a September 30, 2009 renewal date. Given first quarter
loss and the expected loss in the second quarter as well as the sharp expansion
in projected business starting this fall, the Company is planning to raise a
minimum of $500,000 of equity funding in the next few months through a
combination of Director stock option exercises and new share purchases. At this
time, the Company has received informal commitments from several Directors to
purchase between 90,000 and 100,000 shares of newly issued company stock at a
price to be determined by a Special Committee of Directors who would not
purchase shares. Other shareholders will be provided the opportunity to
participate on the same terms and conditions subject to a minimum share
purchase. Further information about the financing program will be provided when
the details are finalized.
Read the The complete Report
