BETHEL, Conn., Feb. 3 /PRNewswire-FirstCall/ -- Memry Corporation reported today revenue of $8,104,000 in the second fiscal quarter ended December 31, 2003, a decrease of 14% from $9,395,000 in the comparable quarter a year ago. Net income was $228,000 or $0.01 per basic and diluted share compared with net income of $7,717,000 or $0.30 per basic and diluted share in the comparable period last year. The results of the second quarter of fiscal 2003 included the reversal of a deferred tax asset valuation allowance of $7,569,000.
For the six months of the fiscal year that ends June 30, 2004, revenue was $16,263,000 compared with revenue of $18,291,000 in the first half of fiscal 2003. Net income was $725,000 or $0.03 per basic and diluted share compared with net income of $8,515,000 or $0.34 basic earnings per share and $0.33 diluted earnings per share in the first half of fiscal year 2003.
James G. Binch, chairman and CEO of Memry said, “Revenue during the second fiscal quarter reflected anticipated decreases in shipments of wire-based and tube-based medical stent components caused by inventory adjustments and delays in a product launch by a large medical device customer. The company also experienced decreases in shipments for products used in minimally invasive surgery and guidewire applications, as well as revenue from superelastic tube reflecting increasing competitive pressures in the tubing marketplace. Sales of other products, including high pressure sealing plugs and antenna wire, increased during the quarter.”
Memry’s Chief Financial Officer Robert P. Belcher said, “We continued to show gains in manufacturing efficiency during the quarter with final yields in established product lines approaching record levels. Gross profit from product sales during the quarter increased to 36% from 35% in the same quarter a year ago. Manufacturing costs during the quarter decreased in line with the decrease in revenue. Our ability to maintain or improve this level of gross profit will depend on our success in absorbing plant overhead and sustaining manufacturing yields at acceptable levels. We have chosen to maintain our level of expenditures in areas where we feel it will benefit the long term growth of the company, such as sales and marketing and selected areas of technology. The redesigned and improved company website at http://www.memry.com/, which we believe will generate additional customer contacts, is a good example of this effort. In addition, the company increased research and development expense to support the development of future products.”
Binch said, “Based on current orders, we anticipate modest increases of shipments of stent components, our largest product segment, over third and fourth quarter levels of 2003. Competitive issues will continue to put pressure on superelastic tube pricing for the remainder of the fiscal year.”
Memry Corporation provides design, engineering, development and manufacturing services to the medical device and other industries using the company’s proprietary shape memory alloy technologies. Medical device products include stent components, catheter components, guidewires, laparoscopic surgical sub-assemblies and orthopedic instruments. The company’s commercial and industrial businesses produce semi-finished materials and components.
A copy of the financial statements follows.
The company will host a conference call to discuss second quarter results on February 6 at 11:00 a.m. Eastern. To participate in the call, dial (800) 348-6338 any time after 10:55 a.m. on February 6th. International callers should dial (706) 634-1215.
An investment profile on Memry may be found at http://www.hawkassociates.com/memry/profile.htm
For more information contact Memry Chief Financial Officer Robert P. Belcher at (203) 739-1100. E-mail: Robert_Belcher@memry.com or Frank Hawkins or Julie Marshall, Hawk Associates, Inc. at (305) 852-2383. Email: info@hawkassociates.com. Detailed information about Memry Corporation can be found on the website http://www.memry.com/. Copies of Memry Corporation press releases, SEC filings, current price quotes, stock charts and other valuable information for investors may be found on the website: http://www.hawkassociates.com/ and http://www.hawkmicrocaps.com/.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company’s control which may cause actual results, performance or achievements of the company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company’s periodic filings with the Securities and Exchange Commission.
Memry Corporation & Subsidiaries Consolidated Statements of Income For the Three Months Ended December 31, 2003 and 2002 (Unaudited) 2003 2002 Revenues: Product sales $7,901,000 $9,212,000 Research and development 203,000 183,000 8,104,000 9,395,000 Cost of Revenues: Manufacturing 5,055,000 6,034,000 Research and development 117,000 88,000 5,172,000 6,122,000 Gross profit 2,932,000 3,273,000 Operating Expenses: Research and development 675,000 599,000 General, selling and administrative 1,880,000 1,907,000 2,555,000 2,506,000 Operating income 377,000 767,000 Other income (expense): Interest expense (26,000) (33,000) Interest income 22,000 15,000 (4,000) (18,000) Income before income taxes 373,000 749,000 Provision (benefit) for income taxes 145,000 (6,968,000) Net income $228,000 $7,717,000 Basic Earnings Per Share $0.01 $0.30 Diluted Earnings Per Share $0.01 $0.30 Memry Corporation & Subsidiaries Consolidated Statements of Income For the Six Months Ended December 31, 2003 and 2002 (Unaudited) 2003 2002 Revenues: Product sales $15,854,000 $17,906,000 Research and development 409,000 385,000 16,263,000 18,291,000 Cost of Revenues: Manufacturing 9,695,000 11,675,000 Research and development 177,000 204,000 9,872,000 11,879,000 Gross profit 6,391,000 6,412,000 Operating Expenses (Income): Research and development 1,488,000 1,216,000 General, selling and administrative 3,702,000 3,563,000 Gain on disposal of assets -- (12,000) 5,190,000 4,767,000 Operating income 1,201,000 1,645,000 Other income (expense): Interest expense (55,000) (67,000) Interest income 42,000 29,000 (13,000) (38,000) Income before income taxes 1,188,000 1,607,000 Provision (benefit) for income taxes 463,000 (6,908,000) Net income $725,000 $8,515,000 Basic Earnings Per Share $0.03 $0.34 Diluted Earnings Per Share $0.03 $0.33 Memry Corporation & Subsidiaries Consolidated Balance Sheets December 31, June 30, 2003 2003 (Unaudited) ASSETS Current Assets Cash and cash equivalents $9,012,000 $7,509,000 Accounts receivable, less allowance for doubtful accounts 3,813,000 3,809,000 Inventories, net 2,940,000 3,353,000 Prepaid expenses and other current assets 209,000 74,000 Income tax refund receivable 84,000 109,000 Total current assets 16,058,000 14,854,000 Property, Plant, and Equipment 14,236,000 13,913,000 Less accumulated depreciation (8,700,000) (7,873,000) 5,536,000 6,040,000 Other Assets Patents and patent rights, less accumulated amortization 1,000,000 1,067,000 Goodwill 1,038,000 1,038,000 Note receivable 110,000 110,000 Deferred tax asset 6,402,000 6,806,000 Other assets 185,000 212,000 8,735,000 9,233,000 $30,329,000 $30,127,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $602,000 $611,000 Accrued expenses 1,650,000 1,976,000 Notes payable 341,000 912,000 Total current liabilities 2,593,000 3,499,000 Notes Payable, less current maturities 1,265,000 980,000 Stockholders’ Equity Common stock 256,000 255,000 Additional paid-in capital 49,003,000 48,906,000 Accumulated deficit (22,788,000) (23,513,000) Total stockholders’ equity 26,471,000 25,648,000 $30,329,000 $30,127,000
Memry Corporation
CONTACT: Robert P. Belcher, Chief Financial Officer, Memry,+1-203-739-1100, or Robert_Belcher@memry.com; or Frank Hawkins or JulieMarshall, Hawk Associates, Inc., +1-305-852-2383, or info@hawkassociates.com,for Memry
Web site: http://www.memry.com/
