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EF Johnson Technologies, Inc. Announces First Quarter 2009 Financial Results
Date:5/6/2009

IRVING, Texas, May 6 /PRNewswire-FirstCall/ -- EF Johnson Technologies, Inc. (Nasdaq: EFJI) today announced its results for the quarter ended March 31, 2009. Our revenues decreased $11.5 million, or 34%, to $22.4 million for the three months ended March 31, 2009 from $33.9 million for the same period in 2008. This anticipated quarterly decline was attributable to lower federal orders coupled with a decline in revenues associated with the FCC re-banding effort.

"While our state and local as well as government broadband solutions markets produced solid growth quarter over quarter, we continue to see delays and push outs in the federal market," said Michael E. Jalbert, chairman and chief executive officer. "Because of the lower first quarter revenues and our current projections continue to see weakness in the federal market, we have implemented additional cost reductions in the second quarter, including reductions in workforce and executive salary cuts, to provide a positive impact to our financials and cash flows in the second half of the year."

The Company announced today that it has reduced its workforce by 7% effective immediately, and intends to reduce its workforce by an additional 9% at the end of the second quarter. The Company expects these actions, coupled with its other cost reduction measures, to result in cost savings of $4.0 million to $5.0 million on an annualized basis.

Our gross profit of $7.7 million in the three months ended March 31, 2009 compares to $11.4 million for the same period in 2008. Gross profit as a percentage of revenues ("Gross Margin") improved to 34.3% for the three months ended March 31, 2009 compared to 33.6% for the same period a year ago. We attribute this increase in gross margin to improved cost, quality, and productivity.

The net loss was $1.3 million,
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SOURCE EF Johnson Technologies, Inc.
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