ORLANDO, Fla., March 29, 2010 (GLOBE NEWSWIRE) -- The LGL Group, Inc. (NYSE Amex:LGL) (the "Company"), today announced results for the quarter and year ended December 31, 2009. LGL is the holding company for MtronPTI, which specializes in the development and sale of highly engineered, custom made products for advanced frequency control applications. Primary markets include military, avionics, aerospace, telecommunications and test & measurement sectors.
Total revenues for Q4 2009 were $9,202,000, which was an increase of 25.7% over the Q3 2009 revenues of $7,321,000. Revenues for the comparable quarter in 2008 were $9,998,000. Revenues improved in the fourth quarter primarily due to stronger sales trends that first began in Q3 2009.
"We can report that as of December 31, 2009, our order backlog grew to $13,958,000 compared with a backlog of $8,182,000 at December 31, 2008 – a 70 percent increase owing primarily to increased orders from existing customers as well as orders received from new customers in our military personnel protection and homeland security target markets," according to LGL President and Chief Executive Officer, Greg Anderson.
The Company had Q4 2009 net income of $334,000, or $0.15 per share, which was an improvement over the net loss of ($113,000), or ($0.05) per share for the same period in 2008. The improvements were primarily driven by quarter over quarter improvement in gross margins due in part to the Company's restructuring and management's implementation of cost-reduction measures and productivity improvements during 2009.
Mr. Anderson noted, "The Company has made terrific strides in its efforts to improve financial and operational measures, as evidenced by LGL's first positive earnings since 2007. With a growing backlog that reached a new record for the Company as of December 31, 2009, the Company's revenue level appears to be sustainable in the near term."
Total revenues for the year ended December 31, 2009 were $31,301,000, a decrease of 22.1% from 2008, due primarily to a general economic slowdown and a corresponding decrease in demand for the electronic components in which our products are used. The decrease in sales was primarily in our foreign markets, with a decline of $6,935,000 in foreign sales, and a decrease of $1,943,000 in domestic sales compared with 2008.
Net loss for the year ended December 31, 2009 was $2,522,000 compared with net loss for the year ended December 31, 2008 of $1,282,000. The increased loss was primarily attributable to a 22.1% decline in revenues for 2009 as compared to 2008, compounded by a 2.2 percentage point decrease in gross margin. The reduction in gross margin is primarily attributable to higher fixed overhead as a percentage of sales driven by the overall economic slowdown and the related decrease in revenues, as well as, in part, to higher materials and supply costs.
The Company will host an investor conference call to discuss its results for Q4 2009 and its fiscal year ended December 31, 2009, and other recent Company announcements on Tuesday, March 30, 2010 at 10:00 a.m. Eastern Time. The LGL Group President and CEO, Greg Anderson, will host the audio event.
Participants are invited to "attend" the online meeting using Conferencing Center LIVE; or access the conference call at (800) 894-5910 for domestic callers and (785) 424-1052 for international callers. The participant code is LGLGROUP.
To attend the event, participants are asked to click on the following link: https://www.livemeeting.com/cc/conferencingevent/join?id=LGLGROUP&role=attend&pw=attend">Join the meeting. Participants may also copy and paste the following information into their web browser: http://www.livemeeting.com/cc/conferencingevent/join.
The meeting ID is: LGLGROUP; the entry code is: attend.
About The LGL Group, Inc.
The LGL Group, Inc., through its wholly-owned subsidiary MtronPTI, manufactures and markets highly engineered electronic components used to control the frequency or timing of signals in electronic circuits. These devices are used extensively in infrastructure equipment for the telecommunications and network equipment industries. They are also used in electronic systems for military applications, avionics, earth-orbiting satellites, medical devices, instrumentation, industrial devices and global positioning systems. The Company has operations in Orlando, Florida, Yankton, South Dakota and Noida, India. MtronPTI also has a sales office in Hong Kong, China.
For more information on the Company and its products and services, contact R. LaDuane Clifton at The LGL Group, Inc., 2525 Shader Rd., Orlando, Florida 32804, (407) 298-2000, or visit the Company's Web site: www.lglgroup.com.
Caution Concerning Forward Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in the Company's filings with the Securities and Exchange Commission.