updated 2/9/2011 5:17:27 PM ET 2011-02-09T22:17:27

CLEARWATER, Fla., Feb. 9, 2011 (GLOBE NEWSWIRE) -- Technology Research Corporation ("TRC"), (Nasdaq:TRCI), today announced revenue and earnings for its third fiscal quarter ended December 31, 2010.

Revenue was $6.9 million for the fiscal quarter ended December 31, 2010, a decrease of $0.7 million from revenue of $7.6 million for the fiscal quarter ended December 31, 2009. The net loss for the quarter ended December 31, 2010 was $0.3 million, or $(0.05) per diluted share compared with net income of $0.5 million, or $0.08 per diluted share for the same period one year earlier. Operating cash flow, which we define as earnings before interest, taxes, depreciation and amortization, was $ 0.0 million for the current quarter, as compared to $ 0.9 million in the third fiscal quarter of last year.

Orders for the quarter just ended were $9.1 million, an increase of $3.3 million from the same fiscal quarter last year. Military orders were $6.0 million, an increase of $4.5 million from the third quarter of the previous year and commercial orders were $3.1 million, a decrease of $1.2 million from the third quarter of the prior year.

Owen Farren, President and CEO, said, "As we indicated last quarter, our third quarter results continued to be affected by delays in certain orders and programs in our military business. While results are below expectations, our bookings going into the last quarter of the fiscal year have picked up in both TRC's traditional military business and the newly acquired Patco intelligent battery systems business. As a result, we are confident of stronger results for the quarter currently underway.

"Looking ahead, we expect to continue repositioning the Company by moving into higher margin products. TRC has made substantial investments in new product development, and over the next six months we expect several of these initiatives to begin making contributions to both revenue and profitability. We are confident in the organization's ability to complete these planned objectives, and believe that our new direction will lead to greater shareholder value in the future."

Cash and cash equivalents were $8.7 million at December 31, 2010, an increase of $0.5 million from March 31, 2010 even after funding the $1.1 million Shoreline Reels acquisition. We continue to have no borrowings outstanding under our line of credit.

The third quarter dividend of $0.02 per share was paid on January 14, 2011 to shareholders of record as of December 31, 2010.

About TRC

TRC is a recognized leader in providing cost effective engineered solutions for applications involving power management and control, intelligent battery systems technology and electrical safety products based on our proven ground fault sensing and Fire Shield(R) technology. These products are designed, manufactured and distributed to the consumer, commercial and industrial markets worldwide. The Company also supplies power monitors and control equipment to the United States Military and its prime contractors. More information is available at www.trci.net .

The Technology Research Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6266

Caution Concerning Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Some of the statements in this report constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These statements are related to future events, other future financial performance or business strategies ,and may be identified by terminology such as "may", "will", "should", "expects", "scheduled", "plans", "intends", "anticipates", "believes", "estimates", "potential", or "continues", or the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events as well as results may differ materially. Important factors that could cause the differences are discussed in TRC's reports on Forms 10-Q and 10-K that it periodically files with the Securities and Exchange Commission. TRC does not undertake to update any forward-looking statements in this press release. Copies of TRC's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q, may be obtained by contacting its investor relations department at 727-535-0572 or at the Investor Relations section of its website at www.trci.net

Non-GAAP Financial Measures

This report sometimes refers to financial measures that are not presented according to generally accepted accounting principles (GAAP). Certain of these measures are considered "non-GAAP financial measures" under the Securities and Exchange Commission (SEC) regulations; those rules require the supplemental explanations and reconciliations that are in our Form 8-K (Quarterly Earnings Release) filed with the SEC.

TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARIES 
Condensed Consolidated Statements of Income 
(Unaudited) 
(In thousands, except share and per share data)
         
  Three Months Ended December 31, Nine Months Ended December 31,
  2010 2009 2010 2009
         
Revenue:        
Commercial  $ 3,608 $ 3,525 $ 12,100 $ 10,569
Military  3,152 3,978 14,042 16,087
Royalty  184 85 411 258
Total revenue  6,944 7,588 26,553 26,914
Cost of sales  4,843 4,832 16,891 16,202
         
Gross profit  2,101 2,756 9,662 10,712
Operating expenses:        
Selling and marketing  442 582 1,693 1,862
General and administrative  1,289 919 4,645 2,917
Research and development  738 565 2,484 1,896
Acquisition related transaction costs  90 -- 90 -- 
Total operating expenses  2,559 2,066 8,912 6,675
(Loss) income from operations  (458) 690 750 4,037
         
Other income, net  --  --  1 5
         
(Loss) income before income taxes  (458) 690 751 4,042
Income tax (benefit) expense  (116) 208 186 1,128
Net (loss) income  $ (342) $ 482 $ 565 $ 2,914
         
(Loss) earnings per share - basic  $ (0.05) $ 0.08  $ 0.09 $ 0.49
         
(Loss) earnings per share - diluted  $ (0.05) $ 0.08 $ 0.08  $ 0.48
         
Shares outstanding - basic  6,625,913 5,896,728 6,610,528 5,892,903
         
Shares outstanding - diluted  6,625,913 6,022,855 6,833,035 5,975,212
 
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARIES 
Condensed Consolidated Balance Sheets 
     
(In thousands, except share data) 
  December 31, 2010 March 31, 2010
        (Unaudited)
ASSETS    
Current assets:    
Cash and cash equivalents  $ 8,662 $ 8,216
Trade and other accounts receivable, net of allowance for doubtful accounts of $30 at December 31, 2010 and $38 at March 31, 2010  3,649 4,400
Income taxes receivable  72 29
Inventories  7,915 7,315
Deferred income taxes  378 729
Prepaid expenses and other current assets  304 299
Total current assets  20,980 20,988
Property, plant and equipment, net of accumulated depreciation of $11,176 at December 31, 2010 and $10,532 at March 31, 2010  3,211 3,123
Intangible assets, net of accumulated amortization of $1,660 at December 31, 2010 and $238 at March 31, 2010  3,230 3,929
Goodwill  4,453 4,402
Other assets  33 33
Total assets  $ 31,907 $ 32,475
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Trade accounts payable  $ 1,618 $ 1,423
Accrued expenses  920 1,720
Accrued dividends  135 134
Total current liabilities  2,673 3,277
     
Income taxes payable  512 303
Deferred income taxes  662 1,397
Patco earn-out  738 738
Total liabilities  4,585 5,715
     
Stockholders' equity:    
Common stock $0.51 par value; 10,000,000 shares authorized, 6,671,834 shares issued and 6,640,484 shares outstanding at December 31, 2010 and 6,629,405 shares issued and 6,603,620 shares outstanding at March 31, 2010  3,403 3,379
Additional paid-in capital  12,967 12,570
Retained earnings  11,029 10,867
Common stock held in treasury at cost, 31,350 shares at December 31, 2010 and 25,785 shares at March 31, 2010  (77) (56)
Total stockholders' equity  27,322 26,760
Total liabilities and stockholders' equity  $ 31,907 $ 32,475
 
TECHNOLOGY RESEARCH CORPORATION AND SUBSIDIARIES
Supplemental Information
Reconciliation of Operating Cash Flow to Income from Operations
(Unaudited)
(In thousands)
         
  Three months ended December 31, Nine months ended December 31,
  2010 2009 2010 2009
         
(Loss) Income from Operations  $ (458) $ 690 $ 750 $ 4,037
         
Depreciation Expense  261 209 776 732
Amortization Expense  238 15 1,421 44
         
Operating Cash Flow  $ 41 $ 914 $ 2,947 $ 4,813
CONTACT: TECHNOLOGY RESEARCH CORPORATION
         5250 140th Avenue North
         Clearwater, Florida 33760
         Owen Farren, President and CEO
         Web Page: www.trci.net
         
         Robert D. Woltil
         Chief Financial Officer
         Tel: (727) 812-0659
         Fax: (727) 535-9691

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 1.97%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.70%
13.70%
Cash Back Cards 17.66%
17.91%
Rewards Cards 17.05%
17.17%
Source: Bankrate.com