Welcome!

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

News Feed Item

PHAZAR CORP Reports Second Quarter Fiscal 2013 Financial Results

PHAZAR CORP (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the unaudited results of operations for the three and six month periods ended December 31, 2012.

Second Quarter Fiscal Year 2013

PHAZAR CORP’s consolidated sales from operations were $1,495,130 for the quarter ended December 31, 2012 compared to sales of $2,092,367 for the quarter ended December 31, 2011. The Company’s decline in revenues of $597,237, or -29%, is attributed to a $1,116,454 non-recurring antenna shipment to EID-Portugal in the second quarter in fiscal year 2012 offset by an upturn in shipboard and safety climb product lines during the second quarter in fiscal year 2013.

Cost of sales and contracts from operations were $931,556 for the quarter ended December 31, 2012, compared to $1,273,062 for the quarter ended December 31, 2011, down $341,506, or -27%. Gross profit margin for the quarter, at 38% is down one basis point from the 39% gross profit margin reported in the comparable period last year.

Selling, general and administration expenses were up 193% for the quarter ended December 31, 2012, to $2,109,890 from $719,588 in the prior year, reflecting a $1,516,338 charge for an impairment on the Tracciare, Inc. note receivable offset by a $126,036 decline in recurring expenses quarter over quarter. The decline in selling, general and administration expense is related to an increase in plant utilization overhead charged to cost of goods sold. Discretionary product development spending for the quarter ended December 31, 2012 was $184,876, or 12% of sales, compared to $127,398, or 6% of sales for the comparable period last year.

During the second quarter of the year ended December 31, 2012, PHAZAR CORP reported large operating losses and projected cash flow shortfalls in the near future. Based on those facts, it is unlikely the remaining net deferred tax assets will be realized. Therefore, an additional valuation allowance of $513,430 has been recorded as a deferred tax expense.

The Company recorded a net loss of $2,234,115, or $(0.96) per share for the three month period ended December 31, 2012 compared to net income of $4,471 or $0.00 per share for the comparable period in the prior year.

Six Month Period Ending December 31, 2012

Consolidated sales from operations for PHAZAR CORP were $2,654,966 for the six months ended December 31, 2012 compared to $3,507,585 for the six months ended December 31, 2011. The Company’s sales decreased by $852,619, or 24% attributable to a $1,116,440 non-recurring shipment in fiscal year 2012 to EID-Portugal offset by an upturn in our shipboard antenna product line.

Costs of sales and contracts from operations were $2,250,962 for the six months ended December 31, 2012 compared to $2,052,381 for the six months ended December 3, 2011, up $198,581, or 10% due to the $600,000 slow moving inventory reserve recorded in the first quarter offset by the decline revenues for the first two quarters of fiscal year 2013. The gross profit margin for the six month period ended December 31, 2012, at 15% was down twenty six basis points compared to the gross profit margin of 41% for the same period in the prior year. The significant decline in gross profit margin is largely attributed to the $600,000 reserve for slow moving inventory that was recorded in the first quarter of fiscal year 2013.

Selling, general and administration expenses of $2,647,886 are up $1,182,928, or 81% for the six months ended December 31, 2012 compared to $1,464,958 for the six month period ended December 31, 2011. The increase in sales and administration expense reflects a $1,516,338 impairment charge on the Tracciare, Inc. note receivable offset by a $333,410 decline related to an increase in plant utilization overhead charged to cost of goods sold for the six month period ended December 31, 2012. Discretionary product development spending for the six month period ended December 31, 2012 was $358,972, or 14% of sales, compared to $226,860, or 7% of sales for the comparable period last year. Year over year there is an increase of $132,112 in discretionary product development spending. The increase represents continued product development for the commercial wireless product line.

During the second quarter of the year ended December 31, 2012, PHAZAR CORP reported large operating losses and projected cash flow shortfalls in the near future. Based on those facts, it is unlikely the remaining net deferred tax assets will be realized. Therefore, an additional valuation allowance of $513,430 has been recorded as a deferred tax expense.

The Company recorded a net loss of $3,019,487, or $(1.30) per share for the six month period ended December 31, 2012 compared to a net loss of $115,784, or $(0.05) per share for the comparable period in the prior year.

Backlog of Orders

The Company’s backlog of orders on December 31, 2012, totaled $2,473,662, up 71% compared to backlog of $1,442,802 at December 31, 2011 and up 66% from June 30, 2012. Incoming orders for the six month period ended December 31, 2012 totaled $3,657,481 versus $2,693,051 for the six month period ended December 31, 2011, an increase of 36% year over year.

More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the second quarter ended December 31, 2012, estimated to be filed with the Securities and Exchange Commission on or about February 14, 2013.

The Form 10-Q will also be available at the SEC’s website at www.sec.gov and PHAZAR CORP’s website at www.phazarcorp.com.

Product information is available at www.antennaproducts.com and www.phazar.com.

The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.

 
 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
   
    December 31, 2012

(Unaudited)

  June 30, 2012
CURRENT ASSETS
Cash and cash equivalents $ 639,548 $ 528,876
Accounts receivable:
Trade, net of allowance for doubtful accounts of $0
as of December 31, 2012 and June 30, 2012 429,117 880,342
Inventories (net of slow moving reserve) 2,041,634 2,376,427
Note receivable (net of impairment reserve) - 1,477,161
Prepaid expenses and other assets 76,063 95,231
Income taxes receivable 29,321 29,321
Deferred income taxes     -       211,674  
Total current assets 3,215,683 5,599,032
 
Property and equipment, net 931,819 997,426
Long-term deferred income tax     -       301,547  
TOTAL ASSETS   $ 4,147,502     $ 6,898,005  
 
CURRENT LIABILITIES
Accounts payable $ 348,345 $ 274,628
Accrued liabilities 391,211 300,637
Deferred revenues 68,226 19,619
Liabilities held for discontinued operations     114,571       114,571  
Total current liabilities $ 922,353 $ 709,455
 
TOTAL LIABILITIES   $ 922,353     $ 709,455  
 
COMMITMENTS AND CONTINGENCIES
 
SHAREHOLDERS’ EQUITY
Preferred Stock, $1 par, 2,000,000 shares authorized, none issued
or outstanding, attributes to be determined when issued - -
 
Common stock, $0.01 par, 6,000,000 shares authorized

2,323,537 issued and outstanding on December 31, 2012 and 2,391,628

issued June 30, 2012 23,236 23,917
 

Additional paid in capital

4,576,649 4,735,800

Treasury stock, at cost, 0 and 74,691 shares on December 31, 2012

and June 30, 2012, respectively - (215,918 )
Retained earnings (deficit)     (1,374,736 )     1,644,751  
Total shareholders’ equity     3,225,149       6,188,550  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 4,147,502     $ 6,898,005  
 
 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
Three Months Ended

 

Six Months Ended

December 31,

 

December 31,

2012   2011 2012   2011
    (Unaudited)   (Unaudited)
Sales and contract revenues $ 1,495,130 $ 2,092,367 $ 2,654,966 $ 3,507,585
Cost of sales and contracts     931,556       1,273,062       2,250,962       2,052,381  
Gross profit 563,574 819,305 404,004 1,455,204
 
Selling, general and administration expenses 593,552 719,588 1,131,548 1,464,958
Impairment of note receivable 1,516,338 - 1,516,338 -
Research and development costs     184,876       127,398       358,972       226,860  
Total operating expenses 2,294,766 846,986 3,006,858 1,691,818
 
Operating loss (1,731,192 ) (27,681 ) (2,602,854 ) (236,614 )
 
Other income
Interest income 34,448 29,585 51,767 67,877
Other income (expense)     (23,941 )     4,871       45,030       11,351  
Total other income 10,507 34,456 96,797 79,228
 
Income (loss) from operations before income taxes (1,720,685 ) 6,775 (2,506,057 ) (157,386 )
 
Income tax expense (benefit)     513,430       2,304       513,430       (53,511 )
 
Net income (loss) before discontinued operations (2,234,115 ) 4,471 (3,019,487 ) (103,875 )
 
Loss from discontinued operations - - - (18,044 )
Income tax benefit from discontinued operations     -       -       -       6,135  
Net loss from discontinued operations - - - (11,909 )
 

Net income (loss)

  $ (2,234,115 )   $ 4,471     $ (3,019,487 )   $ (115,784 )
 
Basic loss per common share
Continuing operations $ ( 0.96 ) $ - $ (1.30 ) $ (0.04 )
Discontinued operations     -       -       -       (0.01 )
Net loss $ (0.96 ) $ - $ (1.30 ) $ (0.05 )
 
Diluted loss per common share
Continuing operations $ (0.96 ) $ - $ (1.30 ) $ (0.04 )
Discontinued operations     -       -       -       (0.01 )
Net loss $ (0.96 ) $ - $ (1.30 ) $ (0.05 )
 
Basic weighted average of common shares outstanding 2,322,578 2,313,569 2,320,319 2,312,346
Diluted weighted average of common shares outstanding 2,322,578 2,313,569 2,320,319 2,312,346
 
 
PHAZAR CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Six Months Ended
December 31, 2012   December 31, 2011
    (Unaudited)   (Unaudited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,019,487 ) $ (115,784 )
Adjustments to reconcile net loss to net cash

provided by operating activities:

Depreciation 65,607 64,692
Provision for slow moving inventory 600,000 -
Impairment of note receivable 1,516,338 -
Loss from discontinued operations - 11,909
Stock based compensation 56,086 27,114
Deferred federal income tax 513,221 (33,512 )
Changes in operating assets and liabilities:
Accounts receivable 451,225 338,158
Inventories (265,207 ) 84,928
Income taxes receivable - (24,955 )
Prepaid expenses and other assets 19,168 62,996
Accounts payable 73,717 22,498
Accrued liabilities 90,574 170,493
Deferred revenues 48,607 19,618
Net cash used in discontinued operations     -       (75,398 )
Net cash provided by operating activities 149,849 552,757
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Funding of note receivable (39,177 ) (256,235 )
Purchase of property and equipment     -       (37,250 )
Net cash used in investing activities (39,177 ) (293,485 )
 
Net increase in cash and cash equivalents 110,672 259,272
CASH AND CASH EQUIVALENTS, beginning of period     528,876       1,169,318  
CASH AND CASH EQUIVALENTS, end of period   $ 639,548     $ 1,428,590  

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
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss 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 DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
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...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
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.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
SYS-CON Events announced today that IoT Now has been named “Media 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. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at 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. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
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...