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HEI, Inc. Announces Results for the Second Quarter Fiscal 2008
Date:4/10/2008

MINNEAPOLIS, April 10 /PRNewswire-FirstCall/ -- HEI, Inc. (Pink Sheets: HEII; http://www.heii.com) today announced its financial results for its second quarter of fiscal year 2008, which ended March 1, 2008.

Net sales for the second quarter were $9,968,000, compared to $9,906,000 for the second quarter of fiscal year 2007. The Company generated a net loss of ($45,000) for the second quarter of fiscal year 2008 compared to a net loss of ($1,571,000) for the same period of fiscal year 2007. Net sales for the first six months of fiscal year 2008 were $19,960,000, compared to $22,012,000 for the same prior year period. We generated a net income of $209,000 through the second quarter of the current fiscal year compared to a net loss of ($3,179,000) for the first six months of the prior fiscal year.

HEI CEO, Mark B. Thomas, commented: "We are on track with our internal objectives to strengthen operations and improve overall effectiveness. Our investments in personnel, equipment and commitment to operational excellence have allowed us to attract new customers and new products for each of our three operating divisions. In addition, our more stable operating results appear to be building confidence with current and new customers, such that we have entertained relationship opportunities not previously available. Our results are still not where we would like them to be, but the trend on a comparative basis shows that we have gotten our operations in line with our current revenues and we will continue to seek to improve gross margins and operating results. Our primary focus remains on the sales effort and to improve operations at all three of our operating divisions. Our balance sheet continues to improve and continued sales improvements should strengthen our balance sheet even further."

HEI, Inc. designs, develops and manufactures microelectronics, subsystems, systems, connectivity and software solutio
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