BUFFALO, N.Y., July 25, 2000 (PRIMEZONE) -- Comptek Research, Inc. (AMEX:CTK) today reported a 33.5% net income increase for the first quarter of the Company's fiscal year 2001, which ended June 30, 2000. Net income rose to $1.38 million, or $0.20 per diluted share, compared with the $1.03 million, or $0.18 per diluted share, that was reported for the same period one year ago. Sales in the quarter were $34.5 million, down slightly from the $38.1 million that were recorded during the previous year's first quarter. The Company attributes this slight decrease in quarterly sales to the simple timing of certain high revenue yielding programs, and management expects to meet the Company's fiscal year 2001 sales goals, which are well in excess of the $145 million in revenues that were recorded last fiscal year.
The Company's backlog also grew to $175 million from the $160 million reported on March 31, 2000.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was $4.5 million, resulting in EBITDA for the trailing four quarters increasing to $18.3 million, up from the $17.5 million reported on March 31, 2000.
Operating profit also improved to 9.1% from 6.6% in last year's first quarter.
Net income percentage in the first quarter improved to 4.0% from 2.7% for the same period last year.
Comptek said the steady year-to-year improvement in profitability over the last four years reflects the Company's continuing emphasis on growing and cultivating the higher-margin segments of its business.
John Sciuto, chairman, president, and chief executive officer of Comptek Research, Inc., said, "Our sustained growth reflects the Company's successful strategy to establish Comptek as a premier supplier of highly specialized and high-profile defense electronics systems and technology. Over the last several years we have placed great emphasis on providing systems and products of unequalled quality. Although relatively small, Comptek has established itself as a global market leader or co-market leader in critical areas of military technology, and it is our intention to continue on this path for the benefit of our customers, our employees and our shareholders."
Other Company Highlights
In the quarter, Comptek announced the award of a five-year, $29.8 million contract from the U.S. Army to design and develop the Army's Threat Systems Program. Comptek will provide simulation and training expertise, as well as software engineering. In addition, the company was a granted a one-year, $11.4 million contract renewal from the U.S. Navy to provide systems engineering and combat systems technology.
Earlier this month, Comptek announced the following awards:
-- A $9.4 million contract from the Naval Air Systems Command to
provide aircraft mission planning support for the Tactical EA-6B
Mission Support System, or "TEAMS."
-- A $5 million contract from the Warner Robins Air Logistic Center
to provide electronic warfare radar frequency threat simulators.
In addition to an upswing in backlog, recent congressional activity on the government fiscal 2001 defense budget included authorization for over $18 million directed for the procurement of Comptek products. The budget for Department of Defense's fiscal year beginning October 1, 2000, currently includes:
-- $15 million to build two Mobile Remote Emitter Systems (MRES), a
transportable simulator system capable of illuminating aircraft
and ships for test and training purposes; and
-- $3.5 million for its Integrated Demonstrations and Applications
Laboratory (IDAL) used to evaluate sensor technologies before
installed in military hardware.
Comptek Research, Inc., with subsidiary locations in the U.S. and Canada, is a domestic and international supplier of technically advanced electronics and data communications systems to government and industry.
This news release contains forward-looking statements about Comptek's current expectations for future growth and business opportunities based on current business conditions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include Comptek's dependence on continued funding of U.S. Department of Defense programs and the likelihood that actual future revenues that are realized may differ from those inferred from existing backlog or orders. Other risks and uncertainties are described in Comptek's 2000 Form 10-K Annual Report filed with the Securities and Exchange Commission.
Note: Today's news release and Comptek's news releases for the past year are available on the Internet at http://www.cfonews.com under the heading "Company News, Comptek Research." Additional information about Comptek is also available at http://www.comptek.com.
COMPTEK RESEARCH, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, March 31,
2000 2000
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(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,367 $ 2,128
Receivables 43,052 37,866
Inventories 6,316 5,213
Other 3,596 5,373
--------- ---------
Total current assets 54,331 50,580
Equipment and leasehold improvements, net of 7,422 7,099
accumulated depreciation and amortization of
$11,313 at June 30, 2000, and $10,313 at
March 31, 2000
Goodwill 39,882 40,337
Other assets 5,229 5,146
--------- ---------
Total assets $ 106,864 $ 103,162
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Liabilities and Shareholders' Equity
Current liabilities:
Current installments on long-term debt $ 12,808 $ 12,959
Accounts payable 3,985 6,126
Accrued salaries and benefits 12,042 12,957
Other accrued expenses 3,195 4,029
Customer advances 8,421 8,278
Deferred income taxes 1,666 1,612
--------- ---------
Total current liabilities 42,117 45,961
--------- ---------
Deferred income taxes 1,187 1,149
Long-term debt, excluding current installments 31,761 26,058
Shareholders' equity:
Common stock 134 133
Additional paid-in capital 26,293 26,035
Stock related awards and loans (95) (153)
Retained earnings 9,190 7,808
--------- ---------
35,522 33,823
Less cost of treasury shares (3,723) (3,829)
--------- ---------
Total shareholders' equity 31,799 29,994
--------- ---------
Total liabilities and shareholders' equity $ 106,864 $ 103,162
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COMPTEK RESEARCH, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Thirteen Weeks Ended
June 30, July 2,
2000 1999 Variance
Net sales $34,453 $38,069 -9.5%
Operating costs and expenses:
Cost of sales 25,531 29,809 -14.4%
Selling, general
and administrative 5,054 4,989 1.3%
Research and development 747 768 -2.7%
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Operating profit 3,121 2,503 24.7%
Interest expense, net 818 930 -12.0%
------- -------
Income before income taxes 2,303 1,573 46.4%
Provision for income taxes 921 538 71.2%
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Net income $1,382 $1,035 33.5%
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Net income per share:
Basic $0.22 $0.20 10.0%
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Basic weighted average
shares outstanding 6,236 5,094
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Diluted $0.20 $0.18 11.1%
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Diluted weighted average
shares outstanding 7,182 6,837
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