Tel-Instrument Electronics Corp (TIK) Announces Results for First Quarter of 2011 Fiscal Year
CARLSTADT, N.J.–(BUSINESS WIRE)– Tel Instrument Electronics Corp. (“Tel” or “Company”) announced today that it sustained a net loss of approximately $275,000 in the first quarter of fiscal year 2011.
Sales in the first quarter increased to $2,455,280, an increase of $113,081 (4.8%) over the same period in the prior fiscal year. Further sales increases for this quarter were held back by production delays and the timing of the receipt of export licenses. However, the units not shipped in the first quarter are expected to be shipped in the balance of this fiscal year in addition to the units originally scheduled for shipment later in the year.
As predicted, operating expenses in the first quarter declined by approximately $240,000, or 14%, over the same period in the prior year primarily as a result of lower engineering costs due to two of the three key Company products nearing the completion of development. Both of these key new products are currently undergoing evaluation by the U.S. Navy. The Company believes that both products will be successfully evaluated and that upon successful completion of the evaluation, the Navy will exercise the remaining production options for the CRAFT AN/USM-708, and will allow the Company to begin production of the order for 102 units of the ITATS AN/ARM-206 already received.
The Company has also received a total of $17 million of delivery orders from the U.S. Army for the TS-4530A program, and the Company expects to begin shipping the qualification units by the end of the calendar year, which the Army will use for testing and evaluation.
Also in July 2010, the Company received an additional order for 160 AN/USM-708 pilot production units with a contract value of $3.6 million. Shipment of these units is scheduled to begin in September 2010.
As a result of the foregoing, as well as projected sales of other products, the Company anticipates a substantial increase in revenues and solid profits in this fiscal year ending March 31, 2011.
At June 30, 2010 the Company’s backlog was approximately $25.4 million as compared to approximately $14.7 million at June 30, 2009. The backlog at June 30, 2010 includes only the amount of currently exercised delivery orders on open IDIQ contracts, and the Company’s backlog is expected to materially increase when the large volume production orders for the AN/USM-708 and AN/USM-719 units are received.
The Company’s working capital and cash flow have substantially declined. The Company had raised approximately $800,000 in additional equity and debt financing, in addition to its borrowings from the bank on its line of credit, in the last fiscal year to support its operations. However, the Company requires additional capital to support its aggressive growth plans. As a result, on June 24, 2010 the Company entered into a non-binding term sheet with a private lender, providing that the Company and the Lender finish negotiating an agreement for a five year loan to the Company for $2.5 million at an interest rate of 14% per year. The nonbinding term sheet provides for additional terms to be included in the agreement, customary to these kinds of agreements, including a provision for warrants to the lender to purchase common shares at an exercise price equal to the closing price of the common shares on the NYSE-Amex at the date of the closing of the loan agreement. In the event of certain major corporate events, the lender would have the right to require the Company to purchase the warrant or warrant shares at prices related to the market price of the shares or related to Company operating income. Any final agreement will have other provisions negotiated by the parties. Although no assurance can be given, the Company is reasonably confident that an acceptable agreement can be concluded by the end of August 2010.
This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.
The Company’s stock is traded in the American Stock Exchange under the symbol TIK.
TraderPower Featured Companies
- Annovis Bio Inc. (NYSE: ANVS)
- Astrotech Corp. (NASDAQ: ASTC)
- Cepton Inc. (NASDAQ: CPTN)
- Clene Inc. (NASDAQ: CLNN)
- CNS Pharmaceuticals Inc. (NASDAQ: CNSP)
- Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF)
- Fintech Ecosystem Development Corp. (NASDAQ: FEXD)
- Freight Technologies Inc. (NASDAQ: FRGT)
- InMed Pharmaceuticals Inc. (NASDAQ: INM)
- Lexaria Bioscience Corp. (NASDAQ: LEXX)
- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)
- Mullen Automotive Inc. (NASDAQ: MULN)
- Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI)
Top Small Cap Market News
- $ANVS Annovis Bio Inc. (NYSE: ANVS) CEO Discusses Findings of Buntanetap Phase 2/3 Alzheimer’s Study on the Bell2Bell Podcast
- $SCNI InvestorNewsBreaks – Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) Enters Into $2M Investment Commitment Agreement with Its Largest Existing Shareholder
- $INM InvestorNewsBreaks – InMed Pharmaceuticals Inc. (NASDAQ: INM) Announces Exciting INM-901 Data Providing ‘Attractive Therapeutic Approach’ in Alzheimer’s Treatment
- $SFWJ Hemp Industry Says Missouri Governor ‘Overreached’ When Banning Hemp Intoxicants
- $RFHRF InvestorNewsBreaks – Renforth Resources Inc. (CSE: RFR) (OTCQB: RFHRF) (FSE: 9RR) Shares Update on Completed, Upcoming Exploration Activities
- $MUX InvestorNewsBreaks – McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) Closes on Acquisition of Timberline Resources
- $ECGI InvestorNewsBreaks – ECGI Holdings Inc. (ECGI) Says Success of Allon Equestrian Apparel Line at AETA Is ‘Pivotal Moment’
Recent Posts
- $ECGI InvestorNewsBreaks – ECGI Holdings Inc. (ECGI) Says Success of Allon Equestrian Apparel Line at AETA Is ‘Pivotal Moment’
- $MUX InvestorNewsBreaks – McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) Closes on Acquisition of Timberline Resources
- $RFHRF InvestorNewsBreaks – Renforth Resources Inc. (CSE: RFR) (OTCQB: RFHRF) (FSE: 9RR) Shares Update on Completed, Upcoming Exploration Activities
- $SFWJ Hemp Industry Says Missouri Governor ‘Overreached’ When Banning Hemp Intoxicants
- $INM InvestorNewsBreaks – InMed Pharmaceuticals Inc. (NASDAQ: INM) Announces Exciting INM-901 Data Providing ‘Attractive Therapeutic Approach’ in Alzheimer’s Treatment
- $SCNI InvestorNewsBreaks – Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) Enters Into $2M Investment Commitment Agreement with Its Largest Existing Shareholder
- $ANVS Annovis Bio Inc. (NYSE: ANVS) CEO Discusses Findings of Buntanetap Phase 2/3 Alzheimer’s Study on the Bell2Bell Podcast
- $FLGC CannabisNewsBreaks – Flora Growth Corp. (NASDAQ: FLGC) Leveraging Colombia, US Facilities to Distinguish Itself Within Highly Competitive Space
Recent Comments
Archives
- August 2024
- January 2023
- June 2022
- December 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009