Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

News Feed Item

TechPrecision Corporation Reports Fiscal Second Quarter of 2013

Sequential Quarterly Improvement Continues with 13% Revenue Growth

CENTER VALLEY, Pa., Nov. 14, 2012 /PRNewswire/ -- TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the alternative energy, cleantech, medical, nuclear, defense, aerospace and other commercial industries, today reported financial results for the second quarter and six month period of fiscal year 2013, the periods ended September 30, 2012.

Second Quarter 2013 Highlights

  • Net sales increased 13% to $8.1 million compared to $7.1 million in the year-ago quarter and increased 13% sequentially compared to $7.1 million in the first fiscal quarter of 2013.
  • Gross profit was $1.9 million, or 24.0% gross profit margin compared to gross profit of $1.9 million or 26.8% gross profit margin in the year-ago quarter and compared sequentially to gross profit of $1.1 million or 15.5% gross profit margin for the quarter ended June 30, 2012.
  • Operating income was $14,000 for the second quarter compared to an operating loss of ($39,000) in the prior year second quarter and compared sequentially with an operating loss of ($895,000) for the quarter ended June 30, 2012.
  • Net loss in the second quarter was ($45,000) or ($0.00) per basic and fully diluted share compared to a net loss of ($88,000) or ($0.01) per basic and fully diluted share in the prior year quarter. This compares sequentially to a net loss of ($706,000) or ($0.04) per basic and fully diluted share for the quarter ended June 30, 2012.
  • TechPrecision's backlog at the end of the fiscal second quarter of 2013 was $26.1 million, including $1.9 million in backlog contributed from the China subsidiary, compared with a $29.9 million backlog at September 30, 2011. The prior year backlog included $3.4 million of solar furnace orders for which the customer delayed delivery until the third quarter.

"We have been transitioning our Ranor division from its historic reliance on the solar sector to a more diversified customer and product base, while also positioning the division for sustained stability and profitability," said Mr. James Molinaro, CEO of TechPrecision Corporation. "With much of that transition now successfully behind us, we expect continued sequential improvements to our top and bottom lines moving forward. We delivered sequential improvement with the second quarter, and expect further improvement in the future. We continue to make progress toward enhancing our operational processes, management personnel and establishing key performance indicators at our Ranor division. I am very pleased with this progress, and even more importantly, our strategic customers have indicated that they are pleased with the improvements the division president and new management team have implemented at our Ranor division. Our WCMC-China division shipped initial production volumes of sapphire chambers during Q2 of fiscal 2013 and we expect to continue to expand sapphire shipments. On a consolidated basis, our transition efforts resulted in a 13% increase in revenues and positive income from operations for fiscal Q2. Both of these metrics represent an improvement compared to our first fiscal quarter. We look forward to continuing the sequential improvements throughout the remainder of this fiscal year."

Business Outlook

"We expect our Q3 fiscal 2013 revenues and operating income to be better than Q2, continuing our sequential quarterly improvement," added Mr. Molinaro. "This confidence is based on planned production volume increases for the proton beam cancer treatment units we produce for Mevion Systems, and also the isotope transport casks which we produce for Alpha Omega Systems. We also expect to recognize remaining contract revenue and project margins on our new PolySi customer order when the first units ship in the next few months. Additional orders from our new PolySi customer should follow as shifting dynamics within the semiconductor field create demand for larger-scale PolySi furnaces like those we are currently producing. The PolySi orders will support both our WCMC and Ranor divisions. Our WCMC-China division will also continue to increase sapphire chamber production and other industrial products as we continue to ramp order volume in China. We are optimistic with the sapphire outlook as the first mobile phone manufacturers have adopted sapphire to cover the camera. Several mobile phone manufacturers are looking to replace the front-screen of the mobile phone with sapphire. One of our strategic sapphire customers recently announced that a single-digit market adoption of sapphire for mobile phone covers and touch screens would require over 3,000 sapphire growth furnaces. This bolsters our confidence in this market."

Second Quarter 2013 Results

For the three months ended September 30, 2012, sales increased 13% or $931,000 to $8.1 million from $7.1 million in the year-ago period and increased 13% sequentially from $7.1 million in the first fiscal quarter of 2013. Gross margin was 24.0%, or $1.9 million gross profit, in the second fiscal quarter of 2013 compared to a gross margin of 26.8%, or $1.9 million gross profit, in same period last year. This sequentially compares with a gross profit of $1.1 million and 15.5% gross margin for the quarter ended June 30, 2012. Gross margin in any reporting period is impacted by the mix of services we provide on projects completed within that period. Selling, general and administrative expenses for the quarter ended September 30, 2012 were $1.9 million as compared to $1.9 million for the quarter ended September 30, 2011. Sequentially, selling general and administrative costs were 3.8% or $76,000 lower than selling, general and administrative expense reported for the quarter ended June 30, 2012.

Net loss was ($45,000) or ($0.00) per basic and fully diluted share for the quarter ended September 30, 2012 as compared to a net loss of ($88,000) or ($0.01) per basic and fully diluted share for the quarter ended September 30, 2011.

Six Months Year-to-Date Financial Results

For the six months ended September 30, 2012, revenue decreased 6.7% to $15.2 million from $16.3 million for the same period last year. The Company's China subsidiary, WCMC, contributed $1.6 million in net sales to alternative energy customers during first half of fiscal 2013. Gross margin was 20.0%, or $3.0 million gross profit, for the year-to-date period compared to a gross margin of 26.6%, or $4.3 million gross profit, in the same period in 2011. Selling, general and administrative expenses for first half fiscal 2013 were $3.9 million as compared to $3.7 million for the same period in 2011, reflecting an increase of $238,000 or 6.5% over the previous year. The majority of the increase in selling, general and administrative expenses was due to $218,000 of non-recurring severance and executive search fee costs. Net loss was ($0.75) million or ($0.04) per share basic and fully diluted for the year-to-date period as compared to a net income of $293,000 or $0.02 per share basic and $0.01 per fully diluted share for the same six month period last year.

The Company completed the first half of fiscal 2013 with a backlog of $26.1 million. The comparable backlog at September 30, 2011 was $29.9 million, including $3.4 million of solar furnace orders for which the customer delayed delivery until the third quarter of last year. The Company's backlog as of October 31, 2012 was approximately $26.5 million, including $0.5 million of open purchase orders issued under a $9.5 million Purchase Agreement, announced in February 2012. Cumulatively, the Company has received $2.4 million of purchase orders under the Purchase Agreement with delivery dates extending through December 2012 and management expects to receive additional purchase orders under the $9.5 million Purchase Agreement in January 2013.

Balance Sheet

At September 30, 2012, TechPrecision had working capital of $9.4 million as compared with working capital of $10.2 million at March 31, 2012, a decrease of $0.8 million. Cash provided by operations was $78,000 for the six months ended September 30, 2012 as compared to cash used by operations of ($0.96) million for the six months ended September 30, 2011. As of September 30, 2012, the Company had $2.14 million in cash and cash equivalents, down $0.68 million compared to the balance at March 31, 2012. Stockholders' equity decreased 4.3% to $11.7 million compared to $12.2 million at March 31, 2012.

Teleconference Information

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Wednesday, November 14, 2012. To participate in the live conference call, please dial 1-877-941-4775 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-480-629-9761. When prompted by the operator, mention Conference Passcode 4575304. A replay will be available for one week starting on Wednesday, November 14, 2012, at 7:30 p.m. Eastern Time. To access the replay, dial 1-877-870-5176 or 1-858-384-5517. When prompted, enter Conference Passcode 4575304.

The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://public.viavid.com/index.php?id=102514.

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), cleantech, medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision's goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Company Contact:

Investor Relations Contact:

Mr. Richard F. Fitzgerald

Hayden IR

Chief Financial Officer

Brett Maas

TechPrecision Corporation

Phone: 1-646-536-7331

Tel: 1-484-693-1702

Email: [email protected]

Email: [email protected]

Website: www.haydenir.com

Website: www.techprecision.com


-- Financial tables follow --

 

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)








Three months ended


Six months ended



September 30,


September 30,



2012


2011


2012


2011










Net sales


$

8,078,552


$

7,147,167


$

15,224,291


$

16,323,607

Cost of sales



6,140,187



5,231,710



12,180,487



11,981,227














Gross profit



1,938,365



1,915,457



3,043,804



4,342,380

Selling, general and administrative expenses



1,924,079



1,953,978



3,924,599



3,686,649

Income (loss) from operations



14,286



(38,521)



(880,795)



655,731

Other income (expenses):













 Other income



2,558



--



2,511



--

 Interest expense



(74,394)



(78,531)



(154,485)



(137,221)

 Interest income



1,188



8,460



2,881



10,406

Total other expense, net



(70,648)



(70,071)



(149,093)



(126,815)














(Loss) income before income taxes



(56,362)



(108,592)



(1,029,888)



528,916














Income tax (benefit) expense



(11,342)



(20,494)



(278,599)



235,553














Net (loss) income


$

(45,020)


$

(88,098)


$

(751,289)


$

293,363














Net (loss) income per share of common stock (basic)


$

(0.00)


$

(0.01)


$

(0.04)


$

0.02

Net (loss) income per share (fully diluted)


$

(0.00)


$

(0.01)


$

(0.04)


$

0.01

Weighted average number of shares outstanding (basic)



18,696,846



16,546,279



18,614,112



16,049,144

Weighted average number of shares outstanding (fully diluted)



18,696,846



16,546,279



18,614,112



24,143,956

 

TECHPRECISION CORPORATION

CONSOLIDATED BALANCE SHEETS








(Unaudited)





September 30, 2012


March 31, 2012


Current assets





Cash and cash equivalents


$

2,138,756


$

2,823,485

Accounts receivable, less allowance for doubtful accounts of $25,010



4,684,370



4,901,791

Costs incurred on uncompleted contracts, in excess of progress billings



4,858,217



3,910,026

Inventories - raw materials



578,047



373,544

Income taxes receivable



1,198,099



1,751,169

Current deferred taxes



1,054,847



1,020,208

Other current assets



1,425,755



1,486,954

   Total current assets



15,938,091



16,267,177

Property, plant and equipment, net



7,125,796



7,395,445

Noncurrent deferred taxes



396,604



118,005

Other noncurrent assets



158,422



270,630

   Total assets


$

23,618,913


$

24,051,257








LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities:







Accounts payable


$

2,026,595


$

1,361,611

Accrued expenses



1,538,459



2,424,695

Accrued taxes payable



159,987



159,987

Deferred revenues



1,730,866



799,413

Current maturity of long-term debt



1,079,676



1,358,933

   Total current liabilities



6,535,583



6,104,639















Long-term debt



5,418,000



5,776,294








STOCKHOLDERS' EQUITY







Preferred stock- par value $.0001 per share, 10,000,000 shares authorized, of which 9,890,980 are designated as Series A Convertible Preferred Stock, with 6,337,998 and 7,035,982 shares issued and outstanding at September 30, 2012 and March 31, 2012, respectively (liquidation preference of $1,806,329 and $2,005,254 at September 30, 2012 and March 31, 2012, respectively)



1,485,696



1,637,857

Common stock -par value $.0001 per share, authorized, 90,000,000 shares, issued and outstanding, 18,904,577 shares at September 30, 2012 and 17,992,177 at March 31, 2012



1,890



1,799

Additional paid in capital



4,844,253



4,412,075

Accumulated other comprehensive (loss) income



(257,397)



(223,584)

Retained earnings



5,590,888



6,342,177

   Total stockholders' equity



11,665,330



12,170,324

   Total liabilities and stockholders' equity


$

23,618,913


$

24,051,257








 

TECHPRECISION CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)







Six Months Ended




September 30,




2012



2011


CASH FLOWS FROM OPERATING ACTIVITIES







Net (loss) income


$

(751,289)



$

293,363


Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:









Depreciation and amortization



415,429




237,237


Share based compensation



282,719




249,061


Deferred income taxes



(282,020)




41,355


Changes in operating assets and liabilities:









Accounts receivable



219,289)




2,516,457


Inventories – raw materials



(202,361)




319,823


Costs incurred on uncompleted contracts, in excess of progress billings



(948,192)




(5,620,879)


Taxes receivable



553,070




(579,887)


Other current assets



61,199




(102,803)


Other noncurrent assets



88,126




(277,500)


Accounts payable



664,632




549,512


Accrued expenses



(953,778)




98,757


Deferred revenues



931,453




1,311,233


  Net cash provided by (used in) operating activities



78,277




(964,271)











CASH FLOW FROM INVESTING ACTIVITIES









Purchases of property, plant and equipment



(121,487)




(2,337,533)


 Net cash used in investing activities



(121,487)




(2,337,533)











CASH FLOWS FROM FINANCING ACTIVITIES









Proceeds from exercised stock options



--




35,511


Tax expense from share based compensation



--




(1,030)


Borrowings of long-term debt



46,378




1,618,325


Repayment of long-term debt, including capital leases



(683,928)




(686,980)


 Net cash (used in) provided by financing activities



(637,550)




965,826


Effect of exchange rate on cash and cash equivalents



(3,969)




6,836


Net (decrease) in cash and cash equivalents



(684,729)




(2,329,142)


Cash and cash equivalents, beginning of period



2,823,485




7,541,000


Cash and cash equivalents, end of period


$

2,138,756



$

5,211,858




















 

SOURCE TechPrecision Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.