Welcome!

Microsoft Cloud Authors: David H Deans, Pat Romanski, Janakiram MSV, Jnan Dash, Andreas Grabner

News Feed Item

HEI, Inc. Announces Third Quarter 2012 Results

HEI, Inc. (Pink Sheets: HEII) (http://www.heii.com) today announced its financial results for the third quarter of fiscal year 2012, which ended September 29, 2012.

Sales for the third quarter were $9,882,000, compared to $9,221,000 for the third quarter of 2011. The Company generated a net loss of ($503,000) for the third quarter of 2012 compared to net income of $162,000 for the same period in 2011. Sales for the first nine months of 2012 were $28,595,000, compared to $28,215,000 for the first nine months of 2011. The Company generated a year-to-date net loss of ($1,012,000) for 2012 compared to a net income of $686,000 for the first nine months of 2011.

Sales were up 7.2% year-over-year in the third quarter as a result of increases in our Victoria operation which was partially offset by decreased sales in our other two operating divisions. Gross margins were down on a consolidated basis with Victoria gross margins improving as a result of improved efficiencies associated with the increased sales volumes while the other two operating divisions’ gross margins declined as a result of product mix changes and the lower sales levels as compared to the prior year. The net loss for the third quarter of fiscal 2012 included an increase to our reserve for inventory obsolescence of $380,000, which had no cash impact during the quarter.

“Increasing sales continues to be our focus and product demand and customer backlogs are strong in our Victoria plant, and our Tempe and Boulder divisions are working to increase sales penetration,” commented HEI CEO, Mark B. Thomas.

Also during the third quarter, Thomas Leahy resigned from the board of directors for personal reasons, and Timothy Floeder was elected to the board of directors. Mr. Leahy continues to be a significant shareholder of HEI.

 
HEI, Inc. designs, develops and manufactures ultra-miniature microelectronics, substrates, systems, connectivity and software solutions for customers engaged in the medical, hearing, telecommunications, military, aerospace, and industrial markets. HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional and cost effective product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities.
 
Corporate & HEI –Victoria (Microelectronics Contract Manufacturing and ATE) 1495 Steiger Lake Lane, Victoria, MN 55386
HEI – Boulder (Design and Development, Box Build and ATE) 4801 North 63rd Street, Boulder, CO 80301
HEI – Tempe (Quick Turn and Production High Density Interconnect Flex and Rigid-Flex) 610 South Rockford Drive, Tempe, AZ 85281
 

FORWARD LOOKING INFORMATION
Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “estimate,” “continue,” and similar words. Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and estimated HEI revenue, cash flow and profits, are forward looking statements. All such forward-looking statements involve risks and uncertainties including, without limitation, adverse business and market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI’s suppliers, HEI’s ability to satisfy financial or other obligations or covenants set forth in its financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI’s ability to control fixed and variable operating expenses, and other risks detailed in previous HEI SEC filings. Since HEI is no longer reporting to the SEC, readers are cautioned to weigh the potential for additional risk factors based on ongoing business activities and the current economic conditions. The information set forth herein should be read in light of such risks. We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results.

 
 
HEI, INC.
BALANCE SHEETS
 

September 29, 2012

   

December 31, 2011

(In thousands, except share and per share data)

ASSETS

Current assets:
Cash and cash equivalents $ - $ -
Accounts receivable, net 5,459 5,489
Inventories, net 6,081 4,680
Deferred income taxes 447 447
Other current assets   814     253  
Total current assets   12,801     10,869  
 
Property and equipment:
Land 216 216
Building and improvements 4,337 4,337
Fixtures and equipment 28,329 26,676
Accumulated depreciation and amortization   (26,568 )   (25,788 )
Property and equipment, net 6,314 5,441
Security deposit 230 230
Other long-term assets   221     328  
Total assets $ 19,566   $ 16,868  
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable $ 4,177 $ 2,151
Accrued liabilities 1,290 701
Customer deposit liabilities 172 11
Current maturities of long-term liabilities   1,116     927  
Total current liabilities   6,755     3,790  
 
Long-term liabilities:
Deferred income taxes 447 447
Other long-term liabilities, less current maturities 2,547 2,443
Long-term debt, less current maturities   6,428     5,933  
Total long-term liabilities, less current maturities   9,422     8,823  
Total liabilities   16,177     12,613  
 
Commitments and contingencies
 
Shareholders’ equity:
Undesignated stock - -
Convertible preferred stock, $.05 par 2 2
Common stock, $.05 par 506 506
Additional paid-in capital 28,579 28,433
Accumulated deficit   (25,698 )   (24,686 )
Total shareholders’ equity   3,389     4,255  
Total liabilities and shareholders’ equity $ 19,566   $ 16,868  

Certain minor reclassifications have been made to our prior period financial information in order to conform to the current year presentation.

 
HEI, INC.
STATEMENTS OF OPERATIONS
 
   

Three Months Ended

   

Nine Months Ended

September 29, 2012

   

October 1, 2011

September 29, 2012

   

October 1, 2011

(In thousands, except share and per share data)

 
Net sales $ 9,882 $ 9,221 $ 28,595 $ 28,215
Cost of sales   8,846     7,712     25,008     23,596  
Gross profit 1,037 1,509 3,587 4,619
 
Operating expenses:
Selling, general and administrative 1,337 1,100 3,876 3,285
Research, development and engineering   92     174     448     423  
Operating income (loss) (392 ) 235 (737 ) 910
 
Interest expense, net (113 ) (90 ) (289 ) (245 )
Other income (expense), net   3     17     17     20  
Income (loss) before income taxes (501 ) 162 (1,009 ) 686
 
Income tax expense   2     -     3     -  
Net income (loss) $ (503 ) $ 162   $ (1,012 ) $ 686  
 

Income (loss) per common share:

Basic $ (0.05 ) $ 0.02 $ (0.10 ) $ 0.07
Diluted $ (0.05 ) $ 0.02 $ (0.10 ) $ 0.07
 

Weighted average common shares outstanding:

Basic 10,120,000 10,045,000 10,120,000 9,933,000
Diluted 10,120,000 10,045,000 10,120,000 9,933,000

Certain minor reclassifications have been made to our prior period financial information in order to conform to the current year presentation.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
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 Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...