Navigation Links
Herley Reports 4th Quarter and Year-End Results
Date:10/11/2007

- Net Income for the Fourth Quarter was $ 0.28 per share

- Revenues Down Slightly For the Year

- Backlog Up at Year End

LANCASTER, Pa., Oct. 11 /PRNewswire-FirstCall/ -- Herley Industries, Inc. (Nasdaq: HRLY) today reported its financial results for the fourth quarter and fiscal year ended July 29, 2007.

Net income during the fourth quarter of 2007 was $3.8 million or $.28 per share, as compared to $713,000 or $.05 per share in the fourth quarter of 2006.

Net sales for the fourth quarter ended July 29, 2007 were $40.6 million, down 5.1% when compared to $42.8 million for the fourth quarter of fiscal year 2006.

Net sales for the fifty-two weeks ended July 29, 2007 were approximately $163.1 million compared to $176.3 million for fiscal 2006, a decrease of $13.2 million or 7.5%.

Net income for the fifty-two weeks ended July 29, 2007 was approximately $3.1 million compared to $10.3 million in for fiscal year 2006.

Myron Levy, Herley's Chairman and CEO, said, "This has been a tough year. Our first quarter saw the departure of our founder and Chairman. In addition, the Company was suspended for almost the entire first quarter. The suspension permitted us to continue shipping from our backlog, but made it difficult to book new business. As we were recovering after the suspension was lifted, and getting our operations back on track, we were hit with a second suspension of about six weeks, or almost half of the fourth quarter. It is difficult to focus our energies on the Company's profitability in these times. Much of the efforts of our management team, much of my efforts and those of our board of directors, were focused on getting our icense (179) (1,256) (2,300)

Proceeds from sale of securities - - 165

Proceeds from sale of fixed assets 204 - 17

Partial distribution from limited

partnership - 111 109

Capital expenditures (4,972) (6,227) (5,404)

-------- -------- --------

Net cash used in investing

activities (4,947) (7,372) (58,820)

-------- -------- --------

Cash flows from financing activities:

Borrowings under bank line of credit 17,900 16,500 -

Borrowings - other 1,746 - -

Proceeds from exercise of stock

options 1,219 3,171 3,534

Excess tax benefit from exercises

of stock options 256 703 -

Payments of long-term debt (1,038) (805) (804)

Payments under bank line of credit (17,900) (16,500) -

Purchase of treasury stock (26) (9,044) (2,728)

-------- -------- --------

Net cash provided by (used in)

financing activities 2,157 (5,975) 2

-------- -------- --------

Effect of exchange rate changes on

cash (7) (9) 10

-------- -------- --------

Net increase (decrease) in

cash and cash equivalents 12,878 1,972 (45,850)

Cash and cash equivalents at

beginning of period 22,303 20,331 66,181

-------- -------- --------

Cash and cash equivalents at end of

period $35,181 $22,303 $20,331

======== ======== ========

Supplemental cash flow information:

Financing of computer software

and maintenance $1,627

========

Retirement of 800,231 shares of

treasury stock $9,070

--------

suspension lifted and corrective actions implemented. Fortunately, our customers, including all of the U. S. Defense agencies, stayed with us and have remained good customers during this very difficult period.

'While we are not satisfied with the results for the fourth quarter and fiscal year, it is important to note that despite the effects of the suspensions and the costs associated with implementation of the Administrative Agreement, the company was able to report a profit for its fourth quarter and its fiscal year.

'Hopefully, we are past the rough times, and can now fully implement our growth strategies and focus our attention to the bottom line. Our new management team, headed up by Jeff Markel is taking hold, and we expect to see the results of the new operating plans reflected as higher earnings as we go through fiscal 2008. We begin the new fiscal year with a strong backlog of $137 million, up from $125 million at the end of last year, and bookings have been strong in the first quarter. As we look into the future, we continue to work toward our goal of increased international business and are targeting new long-term programs both domestically and internationally."

A Conference Call has been scheduled for 9:00 a.m. Eastern Time on Friday, October 12, 2007. Interested parties may join the conference by dialing: 888-425-4188 referencing Conference ID# 19657632.

Replay of the conference call is scheduled to begin on October 12, 2007 at 10:00 a.m. and end on October 19, 2007 at 11:59 p.m. Eastern Time. To listen to the replay dial: 1 (800) 642 1687 (U.S.) or 1 (706) 645-9291 (International), and Conference ID# 19657632.

This conference call will be broadcast live over the Internet and can be accessed by interested parties through URL:

http://www.videonewswire.com/event.asp?id=42933

To listen to the live call, please go to the Web site at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the site.

Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA, Herley has eight manufacturing locations and approximately 975 employees. Additional information about the company can be found on the Internet at http://www.herley.com.

Safe Harbor Statement - Except for the historical information contained herein, this release may contain forward-looking statements. Such statements are inherently subject to risks and uncertainties. When used in this report, words such as "anticipated," "believes," "could," "estimates," "expects," "may," "plans," "potential" and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the belief of the Company's management, as well as assumptions made by and information currently available to the Company's management. The Company's results could differ materially based on various factors, including, but not limited to, cancellation or deferral of customer orders, difficulties in the timely development of new products, difficulties in manufacturing, increased competitive pressures, the effects of the previously announced indictment of the Company and general economic conditions. The Company undertakes no obligation to update forward- looking statements as a result of future events or developments.

For information at Herley contact: http://www.herley.com

Peg Guzzetti Tel: (717) 735-8117

HERLEY INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

July 29, July 30,

2007 2006

-------- ---------

ASSETS

Current Assets:

Cash and cash equivalents $35,181 $22,303

Trade accounts receivable, net 28,058 30,600

Income Taxes Receivable 819 -

Costs incurred and income recognized

in excess of billings on uncompleted

contracts and claims 14,448 13,926

Other receivables 2,816 769

Inventories, net 51,815 52,909

Deferred income taxes 4,254 3,745

Other current assets 1,069 1,187

-------- ---------

Total Current Assets 138,460 125,439

Property, Plant and Equipment, net 29,996 30,478

Goodwill 74,044 73,612

Intangibles, net of accumulated amortization

of $5,256 in 2007 and $3,468 in 2006 18,431 19,989

Other Assets 1,662 1,932

-------- ---------

Total Assets $262,593 $251,450

======== =========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Current portion of long-term debt $1,346 $630

Current portion of employment settlement

agreement - (net of imputed interest) 1,113 -

Accounts payable and accrued expenses 19,049 21,503

Billings in excess of costs incurred and

income recognized on uncompleted

contracts 99 555

Income taxes payable 3,518 3,395

Accrual for contract losses 1,564 2,959

Accrual for warranty costs 1,106 986

Advance payments on contracts 7,163 3,323

Total Current Liabilities 34,958 33,351

-------- ---------

Long-term Debt 5,951 5,948

Long-term Portion of Employment

Settlement Agreement -

(net of imputed interest of $580) 4,117 -

Other Long-term Liabilities 1,311 1,265

Deferred Income Taxes 6,615 7,416

-------- ---------

Total Liabilities 52,952 47,980

======== =========

Commitments and Contingencies

Shareholders' Equity:

Common stock, $.10 par value; authorized

20,000,000 shares; issued and

outstanding 13,977,115 in 2007, and

issued 14,660,716 and outstanding

13,862,149 in 2006 1,398 1,466

Additional paid-in capital 107,094 113,418

Retained earnings 99,404 96,286

Treasury stock, 798,567 common shares,

at cost - (9,044)

Accumulated other comprehensive income 1,745 1,344

-------- ---------

Total Shareholders' Equity 209,641 203,470

-------- ---------

Total Liabilities and

Shareholders' Equity $262,593 $251,450

-------- ---------

HERLEY INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

Thirteen weeks Fifty-two weeks

ended ended

-------------- ---------------

July 29, July 30, July 29, July 30,

2007 2006 2007 2006

-------- -------- -------- --------

Net sales $40,626 $42,802 $163,140 $176,268

-------- -------- -------- --------

Cost and expenses:

Cost of products sold 29,306 33,021 118,834 127,921

Selling and administrative

expenses 8,875 9,181 34,190 34,966

Employment contract settlement

costs - - 8,914 -

-------- -------- -------- --------

38,181 42,202 161,938 162,887

-------- -------- -------- --------

Operating Income 2,445 600 1,202 13,381

-------- -------- -------- --------

Other income (expense), net:

Investment income 332 262 1,186 840

Interest expense (212) (77) (790) (319)

Foreign exchange gain (loss) 23 158 501 431

-------- -------- -------- --------

143 343 897 952

-------- -------- -------- --------

Income before income taxes 2,588 943 2,099 14,333

Provision for income taxes (1,256) 230 (1,019) 3,979

-------- -------- -------- --------

Net income $3,844 $713 $3,118 $10,354

======== ======== ========= ========

Earnings per common share - Basic $.28 $.05 $.22 $.72

======== ======== ========= ========

Basic weighted average shares 13,977 14,363 13,927 14,463

======== ======== ========= ========

Earnings per common share - Diluted $.27 $.05 $.22 $.69

======== ======== ========= ========

Diluted weighted average shares 14,480 14,828 14,395 15,097

======== ======== ========= ========

HERLEY INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Fifty-two weeks ended

---------------------

July 29, July 30, July 31,

2007 2006 2005

-------- -------- --------

Cash flows from operating

activities:

Net Income $3,118 $10,354 $10,781

-------- -------- --------

Adjustments to reconcile net

income to net cash provided by

operating activities:

Depreciation and amortization 7,177 7,096 5,683

Stock-based compensation costs 1,007 453 -

Excess tax benefit from exercises

of stock options (256) (703) -

Employment contract settlement

costs (includes $196 of stock

option modification costs) 8,914 - -

Imputed interest related to

employment settlement liability 283 - -

Foreign exchange transaction

(gains) losses (501) (431) 291

Inventory valuation reserve

charges 1,283 1,475 804

Reduction in accrual for contract

losses (1,144) - -

Warranty reserve charges 1,304 726 965

Gain on sale of fixed assets (105) - (8)

Equity in income of limited

partnership - (52) (54)

Deferred tax provision (1,310) 218 1,099

Changes in operating assets

and liabilities:

Trade accounts receivable 2,542 (3,342) 2,590

Income Taxes Receivable (819) - -

Costs incurred and income

recognized in excess of

billings on uncompleted

contracts and claims (522) 2,132 (1,626)

Other receivables (2,047) 645 (576)

Inventories, net (189) (2,794) (2,515)

Other current assets 118 157 (430)

Accounts payable and

accrued expenses (3,246) (2,357) 350

Billings in excess of costs

incurred and income recognized

on uncompleted contracts (456) 17 (1,596)

Income taxes payable 379 338 2,306

Accrual for contract losses (251) (175) (500)

Employment settlement

agreement (3,771) - -

Advance payments on contracts 3,840 1,435 (4,827)

Other, net 327 136 221

-------- -------- --------

Total adjustments 12,557 4,974 2,177

-------- -------- --------

Net cash provided by operating

activities 15,675 15,328 12,958

-------- -------- --------

Cash flows from investing activities:

Acquisition of businesses, net of

cash acquired - - (51,407)

Acquisition of technology l
'/>"/>

SOURCE Herley Industries, Inc.
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. Autopsy reports could be valuable and informative
2. China reports declining number of SARS Cases
3. Russia Reports First SARS Case
4. Research reports that c-section deliveries are rising
5. Jharkhand reports 13,000 Malaria cases
6. Uganda Reports Failure To Contain Sleeping Sickness
7. WHO reports 36 million deaths world wide due to chronic diseases
8. Reports of Hantavirus infection in India raise concerns
9. Controversy Surrounding The HIV Positive Reports Of One-Year Girl In Kerala
10. China Reports Yet Another Bird Flu Case
11. China reports seventh bird flu victim
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... ... ... Florida Hospital presents Heart Health Awareness night on Sunday February 14th, as ... The puck drops at 6:00pm, but fans will have the opportunity to experience the ... The MEGA Heart will be located on Ford Thunder Alley and provide fans with ...
(Date:2/11/2016)... ... February 11, 2016 , ... The president released a FY 2017 ... but would shift more of the cost burden to military beneficiaries. , MOAA’s ... in the defense budget as including limited quantifiable benefit fixes mixed with numerous beneficiary ...
(Date:2/11/2016)... ... February 11, 2016 , ... ... discuss how to improve care by making data on heart procedures public and ... Summit on Transparency and Public Reporting of Pediatric and Congenital Heart Disease Outcomes ...
(Date:2/11/2016)... ... February 11, 2016 , ... Atlantic Information Services, ... Benefit Model: A Case Study for Plans and Purchasers.” Executives from Intel Corp. ... with Intel on value-based health benefits program Connected Care, will discuss the challenges ...
(Date:2/11/2016)... ... 11, 2016 , ... "What holds you back from ... a question as a challenge for his readers to examine the full scale ... (published by Partridge Singapore), Clarke explores the subject with more depth, revealing time-honored ...
Breaking Medicine News(10 mins):
(Date:2/11/2016)... Feb. 11, 2016  Walgreens has committed to provide ... and Washington, D.C. as part of ... was commended by shareholder advocacy organization As You Sow. ... Sow. "Many people hold on to unneeded drugs because they ... tragic consequences." --> Conrad MacKerron , Senior ...
(Date:2/11/2016)... , Feb. 11, 2016   Health 2.0 ... of new health technologies, announced today " 10 Year ... in health tech over the past ten years.   ... nearly a decade, Health 2.0 has served as the ... and connected with thousands of technologies, companies, innovators, and ...
(Date:2/11/2016)... Calif. , Feb. 11, 2016  NOIT™ Research ... a special "Gift of Change" campaign to assist needy ... For every such unit sold between February 10, 2016 ... unit to a needy family. The NOIT is an ... non/limited-verbal autistic individuals develop language skills. ...
Breaking Medicine Technology: