Bolt Technology Corp. (BOLT, Financial) filed Quarterly Report for the period ended 2009-09-30.
Bolt Technology Corporation is a leading worldwide developer and manufacturer of seismic energy sources and underwater connectors used in the offshore seismic exploration for oil and gas. Bolt also designs and sells precision miniature industrial clutches brakes and electric motors. Bolt Technology Corp. has a market cap of $85.1 million; its shares were traded at around $9.8 with a P/E ratio of 8.9 and P/S ratio of 1.7.
For the three month period ended September 30, 2009, cash flow from investing activities was $1,022,000 due to proceeds received from matured short-term investments of $1,041,000 and capital expenditures of $19,000 for new and replacement equipment.
At September 30, 2008, the Company had $20,337,000 in cash and cash equivalents. This amount was $1,200,000 or 6% higher than the amount of cash and cash equivalents at June 30, 2008.
Consolidated sales for the three month period ended September 30, 2009 totaled $7,033,000, a decrease of $4,230,000 or 38% from the three month period ended September 30, 2008. Sales in all three reportable segments decreased: sales of seismic energy source systems decreased by $1,210,000 (26%), sales of underwater cables and connectors decreased by $2,466,000 (48%), and sales of seismic energy source controllers decreased by $554,000 (36%). The above sales decreases are due to lower marine seismic exploration activity caused by the global economic slowdown.
Selling, general and administrative expenses decreased by $255,000 or 12% in the three month period ended September 30, 2009 from the three month period ended September 30, 2008, primarily due to expense reductions in the following areas: advertising and trade show ($68,000); freight out ($54,000); compensation costs ($52,000); and professional fees ($38,000).
Management establishes the inventory valuation reserve by reviewing the inventory for items that should be reserved in full based on a lack of usage for a specified period of time and for which future demand is not forecasted and establishes an additional reserve for slow moving inventory based on varying percentages of the cost of the items. The reserve for inventory valuation at September 30, 2009 and June 30, 2009 was $677,000 and $651,000, respectively. At September 30, 2009 and June 30, 2009, approximately $1,995,000 and $1,777,000, respectively, of the raw materials and sub-assemblies inventory were considered slow moving and subject to a reserve provision equal to all or a portion of the cost, less an estimate for scrap value. In certain instances, this inventory has been unsold for more than five years from date of manufacture or purchase, and in other instances the Company has more than a five-year supply of inventory on hand based on recent sales volume. At September 30, 2009, the cost of inventory for which the Company has more than a five-year supply on hand and the cost of inventory for which the Company has had no sales during the last five years amounted to approximately $1,155,000. Management believes that this inventory is properly valued and appropriately reserved. Even if management s estimate were incorrect, that would not result in a cash outlay since the cash required to manufacture or purchase the older inventory was expended in prior years.
Read the The complete Report
Bolt Technology Corporation is a leading worldwide developer and manufacturer of seismic energy sources and underwater connectors used in the offshore seismic exploration for oil and gas. Bolt also designs and sells precision miniature industrial clutches brakes and electric motors. Bolt Technology Corp. has a market cap of $85.1 million; its shares were traded at around $9.8 with a P/E ratio of 8.9 and P/S ratio of 1.7.
Highlight of Business Operations:
The Company s balance sheet continued to strengthen during the three month period ended September 30, 2009. Cash, cash equivalents and short-term investments increased from $27,737,000 at June 30, 2009 to $33,752,000 at September 30, 2009, and working capital increased from $49,935,000 at June 30, 2009 to $51,340,000 at September 30, 2009. The Company remained debt free at September 30, 2009.For the three month period ended September 30, 2009, cash flow from investing activities was $1,022,000 due to proceeds received from matured short-term investments of $1,041,000 and capital expenditures of $19,000 for new and replacement equipment.
At September 30, 2008, the Company had $20,337,000 in cash and cash equivalents. This amount was $1,200,000 or 6% higher than the amount of cash and cash equivalents at June 30, 2008.
Consolidated sales for the three month period ended September 30, 2009 totaled $7,033,000, a decrease of $4,230,000 or 38% from the three month period ended September 30, 2008. Sales in all three reportable segments decreased: sales of seismic energy source systems decreased by $1,210,000 (26%), sales of underwater cables and connectors decreased by $2,466,000 (48%), and sales of seismic energy source controllers decreased by $554,000 (36%). The above sales decreases are due to lower marine seismic exploration activity caused by the global economic slowdown.
Selling, general and administrative expenses decreased by $255,000 or 12% in the three month period ended September 30, 2009 from the three month period ended September 30, 2008, primarily due to expense reductions in the following areas: advertising and trade show ($68,000); freight out ($54,000); compensation costs ($52,000); and professional fees ($38,000).
Management establishes the inventory valuation reserve by reviewing the inventory for items that should be reserved in full based on a lack of usage for a specified period of time and for which future demand is not forecasted and establishes an additional reserve for slow moving inventory based on varying percentages of the cost of the items. The reserve for inventory valuation at September 30, 2009 and June 30, 2009 was $677,000 and $651,000, respectively. At September 30, 2009 and June 30, 2009, approximately $1,995,000 and $1,777,000, respectively, of the raw materials and sub-assemblies inventory were considered slow moving and subject to a reserve provision equal to all or a portion of the cost, less an estimate for scrap value. In certain instances, this inventory has been unsold for more than five years from date of manufacture or purchase, and in other instances the Company has more than a five-year supply of inventory on hand based on recent sales volume. At September 30, 2009, the cost of inventory for which the Company has more than a five-year supply on hand and the cost of inventory for which the Company has had no sales during the last five years amounted to approximately $1,155,000. Management believes that this inventory is properly valued and appropriately reserved. Even if management s estimate were incorrect, that would not result in a cash outlay since the cash required to manufacture or purchase the older inventory was expended in prior years.
Read the The complete Report
