Measurement Specialties Revenues Increase to $23.4 Million

6/12/2003 - Measurement Specialties, Inc. (AMEX: MSS), a designer and manufacturer of sensors and sensor-based consumer products, reported financial results for its fourth fiscal quarter and twelve- month period ended March 31, 2003. Results (unless otherwise specified) exclude Terraillon Holdings Limited and Schaevitz/UK, that are classified as discontinued operations.

Fourth Quarter Results
For the three months ended March 31, 2003, net sales increased 13% to $23.4 million, as compared to $20.7 million for the three months ended March 31, 2002. For the three months ended March 31, 2003, net sales in the Consumer Products division increased 16.7% to $11.2 million, as compared to $9.6 million for the three months ended March 31, 2002, while net sales in the Sensor division increased 9.9% to $12.2 million for the current fiscal quarter, as compared to $11.1 million for the three months ended March 31, 2002. For the fiscal quarter ended March 31, 2003, the Company reported a net loss from continuing operations of $4.2 million, or $0.35 per share, as compared to a net loss of $15.4 million, or $1.30 per share, for the same period last year.

For the three months ended March 31, 2003, gross profit increased $4.6 million to $8.8 million (37.6% of net sales) from $4.2 million (20.3% of net sales) for the three months ended March 31, 2002. For the current fiscal quarter, the Company recorded a charge of $0.6 million, or 2.6 gross margin points, associated with the write-off of inventory in connection with a customer specific sensor program that management deemed unrecoverable.

Operating expenses were $12.6 million for the three months ended March 31, 2003, as compared to $11.9 million for the three months ended March 31, 2002. Included in the current quarter’s operating expense is an accrual of $3.6 million associated with certain legal matters. Additionally, the Company estimates approximately $1.3 million of the $1.9 million incurred for professional fees was associated with the restructuring program and certain legal proceedings.

Fiscal 2003 Results
Net sales for the twelve months ended March 31, 2003 increased 11.5% to $107.9 million, as compared to $96.8 million for the same period last year. For the twelve months ended March 31, 2003, net sales in the Consumer Products division increased 16.3% to $55.7 million, as compared to $47.9 million for the twelve months ended March 31, 2002, while net sales in the Sensor division increased 6.8% to $52.2 million for the current fiscal year, as compared to $48.9 million for the twelve months ended March 31, 2002. For the fiscal year ended March 31, 2003, the Company reported a net loss from continuing operations of $6.3 million, or $0.53 per share, as compared to a net loss from continuing operations of $24.2 million, or $2.30 per share, for the same period last year. Including the loss from discontinued operations of $2.8 million, the Company reported a consolidated net loss for the twelve months ended March 31, 2003 of $9.1 million, or $0.76 per share.

Frank Guidone, CEO stated “discounting the impact of the litigation accruals and certain restructuring and legal professional fees, the performance for the quarter was solid, and in- line with management’s expectations. Gross margins continued to improve, partially due to the mix of higher sensor sales, as compared to consumer sales for the quarter, as well as continued progress in our cost reduction efforts.” He continued, “additionally, as a result of the negotiated renewal of our directors and officers insurance policy, AIG, our primary insurance carrier, agreed to provide coverage - up to the primary policy limits of $5 million - for the ongoing class action lawsuit. AIG is in active discussions with the plaintiffs in this matter. As we have previously stated, resolving the class action lawsuit remains a primary objective for the Company.”

Measurement Specialties is a designer and manufacturer of sensors, and sensor-based consumer products. Measurement Specialties produces a wide variety of sensors that use advanced technologies to measure precise ranges of physical characteristics, including pressure, motion, force, displacement, angle, flow, and distance. Measurement Specialties uses multiple advanced technologies, including piezoresistive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and strain gages to allow their sensors to operate precisely and cost effectively.

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