8/13/2003 - Measurement Specialties, Inc. (AMEX: MSS), a designer and manufacturer of sensors and sensor-based consumer products, reported financial results for its first fiscal period ended June 30, 2003. For the three months ended June 30, 2003, the Company reported record quarter net income of $3.8 million or $0.30 per share (diluted).
For the three months ended June 30, 2003, net sales increased 9.8% to $26 million, as compared to $23.7 million for the three months ended June 30, 2002. For the three months ended June 30, 2003, net sales in the Sensor division increased 18% to $14.8 million, as compared to $12.5 million for the three months ended June 30, 2002, while net sales in the Consumer Products division increased 0.5% to $11.3 million for the current fiscal quarter, as compared to $11.2 million for the three months ended June 30, 2002. For the fiscal quarter ended June 30, 2003, the Company reported net income from continuing operations of $3.7 million, or $0.29 per share (diluted), as compared to a net loss of $2.2 million, or loss of $0.18 per share for the same period last year.
For the three months ended June 30, 2003, gross profit increased $4.7 million to $12.6 million from $7.9 million for the three months ended June 30, 2002. For the three months ended June 30, 2003, the Company reported consolidated gross margin of 48.3%, as compared to 33.4% for the same period last year. The improvement in gross margin was largely due to the restructuring efforts and productivity gains. Additionally, for the current fiscal quarter, decreased raw material costs, including pricing credits associated with the wafer supply agreement (negotiated as part of the July, 2002 wafer fab sale transaction), contributed to the improved margin.
Operating expenses were $8.5 million for the three months ended June 30, 2003, as compared to $9.4 million for the three months ended June 30, 2002. Included in the operating expense for the three months ended June 30, 2002 is a $0.6 million charge for severance and lease termination costs. For the current fiscal quarter, the Company estimates approximately half of the $1 million incurred for professional fees were associated with the process improvement efforts and certain legal proceedings. Additionally, for the three months ended June 30, 2003, the Company recorded an increase in the accrual associated with the employee profit sharing plan as a result of the improved financial performance.
Frank Guidone, CEO stated “the first quarter results clearly mark the continued success of the Company’s restructuring program. Gross margin was particularly strong this quarter, with some favorable raw material pricing providing added strength. Consulting and legal fees decreased sharply from the last fiscal quarter (ended March 2003), and should continue to decline into Q2. Included in the results are expenses associated with several performance-based employee benefit plans, including reinstatement of the 401k matching and profit sharing programs. To have a record net income coming off a restructuring of this magnitude is a real testament of the effort put forth by the team.” Guidone continued, “I am disappointed we have nothing new to report with respect to the class action litigation. AIG remains in settlement discussions with the plaintiffs as we continue to focus on resolving this matter.”
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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