PHAZAR CORP Announces First Quarter 2009 Financial Results

• Press Release
• Source: PHAZAR CORP
• On 5:03 pm EDT, Tuesday September 15, 2009

MINERAL WELLS, Texas--(BUSINESS WIRE)--PHAZAR CORP, (Nasdaq: ANTP - News) announced today the unaudited results of operations for the quarter ended August 31, 2009.

Related Quotes

Symbol	Price	Change
ANTP	3.23	-0.06

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First Quarter Fiscal Year 2010

The Company recognized a net loss of $107,948 or $.05 per share for the first quarter, compared to net income of $93,792 or $.04 per share, in last year’s fiscal first quarter.

Revenues are down $112,860 or 5.6% from $2,009,712 for the first quarter in fiscal year 2009 to $1,896,852 for the same quarter in fiscal year 2010.

On a positive note, gross profit margins increased by 6%, from 38% for the three month period ended August 31, 2008 up to 44% for the three month period ended August 31, 2009. The increase in gross profit margins is attributable to lower raw material costs and an improved product mix. Taking advantage of the lower raw material costs and recognizing the historically low interest rates earned on idle cash balances, we modestly increased finished goods inventory as well.

Sales and administrative expenses are up $295,040, or 38% which included a $217,000 increase in research and development costs quarter over quarter associated with further development of our mesh radio wireless networking product line. Other income is down $73,112, or 59% as the Company no longer has tax-exempt investments in auction-rate securities with high yields.

Commenting on the quarter, Garland P. Asher, Chairman and CEO, said “Given the long lead times in production of much of our product line, 90 to 120 days on average, the lower sales reported in the first quarter reflected the soft bookings we experienced in the February through May period. As bookings have shown modest improvement in the first quarter, revenues should also show similar improvement in the current quarter. Notwithstanding, we continue to aggressively monitor our controllable expenses and husband our cash. Cash balances at quarter end were approximately $2.9 million despite the aforementioned increase in inventory. Also, encouragingly, as discussed below, our backlog increased for the first time in three quarters.”

Backlog of Orders

The Company’s backlog of orders on August 31, 2009, totaled $2,135,560 compared to $1,970,266 at August 31, 2008, an increase of 8.4%. Backlog at our May 31, 2009 year-end was $1,741,746. Incoming orders for the three month period totaled $2,309,869 versus $1,492,888 for the comparable period last year. The Company’s book to ship ratio was 121% for the three month period ended August 31, 2009 compared to 74% for the comparable three month period last 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 first quarter ended August 31, 2009, estimated to be filed with the Securities and Exchange Commission on or around October 15, 2009.

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, www.truemeshnetworks.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.

Antenna Products Corporation
Kathy Kindle, 940-325-3301
Fax: 940-325-0716
kindle@phazarcorp.com