BETHEL, Conn., Nov. 14 /PRNewswire-FirstCall/ -- Memry Corporation reported today that revenue for the first fiscal quarter ended September 30, 2005 rose 39% to $12,667,000, compared with $9,112,000 reported in the comparable quarter a year ago. Net income was $501,000, or $0.02 per diluted share, compared with net income of $703,000, or $0.03 per diluted share in the comparable quarter a year ago. Operating income was $1,177,000 versus $1,127,000 in the comparable quarter a year ago, an increase of approximately 4%.
James G. Binch, CEO of Memry, said, “Our revenue growth was attributable primarily to the acquisition of Putnam Plastics, which we acquired last November. Revenue from Nitinol products grew approximately 1%. We had strong performance in Nitinol components used in general surgical applications, tube- based stent components and prototype development products. Offsetting these increases, however, were decreased shipments of wire-based stent components to our largest customer due primarily to shortages in acceptable raw material from one of our Nitinol suppliers, and a decrease in sales of super-elastic tube due to customer inventory adjustments, price discounts and a customer loss of market share. Sales of arch wire products also decreased.”
Chief Financial Officer Robert P. Belcher said, “Our gross profit percent in the first fiscal quarter of 2006 was 37.5% compared with 38.4% a year ago. The reduction in gross profit was primarily attributable to a shift in product mix on the Nitinol side toward general surgical applications and prototype development and away from higher margin super-elastic tube. We experienced price pressure on several product lines as well as additional expenses associated with the launch of a new guidewire product. Operating expenses, as a percentage of revenue, increased from 26% to 28%, reflecting higher amortization expenses of intangible assets acquired in the Putnam acquisition and increased expenses for legal and accounting activities. First quarter 2006 operating expenses also included $141,000 for stock-based compensation associated with the adoption of SFAS No. 123(R). Net interest expense for the quarter was $278,000 compared to net interest income of $26,000 a year ago, primarily reflecting increased borrowings associated with the Putnam acquisition.
Binch said, “We expect our Nitinol business to remain at the current levels until early in the second half, at which point the commercial launch of several new programs should provide positive year-over-year growth. Stent component revenue for the year is likely to decline slightly from 2005, offset by growth from new applications and procedures and an upturn in super-elastic tubing volumes. Our polymer extrusion operations are enjoying very solid growth in nearly all areas and are expected to benefit from several client product launches in calendar 2006. We are benefiting from a broadened customer base and the addition of the polymer capabilities, which have helped insulate us from individual product variations from quarter to quarter. We are looking forward to a strong second half with significant momentum building into the fiscal year beyond.”
About Memry Corporation
Memry Corporation provides design, engineering, development and manufacturing services to the medical device and other industries using the company’s proprietary shape memory alloy and polymer extrusion technologies. Medical device products include stent components, catheter components, guidewires, laparoscopic surgical sub-assemblies and orthopedic instruments as well as complex, multi-lumen, multi-layer polymer extrusions used for guidewires, catheters, delivery systems and various other high-end interventional medical devices.
A copy of the financial statements follows.
The company will host a conference call to discuss first quarter results today, November 14, at 11 a.m. Eastern. To participate in this call, dial (877) 844-6057 any time after 10:55 a.m. International and local callers should dial (678) 460-1860.
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, at (305) 451-1888, e-mail: info@hawkassociates.com. Detailed information about Memry Corporation can be found at 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 at http://www.hawkassociates.com and http://www.americanmicrocaps.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 and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) September 30, June 30, 2005 2005 ASSETS Current Assets Cash and cash equivalents $ 3,634,000 $ 4,141,000 Accounts receivable, less allowance for doubtful accounts 6,131,000 5,846,000 Inventories 4,954,000 4,948,000 Deferred tax asset 1,391,000 1,391,000 Prepaid expenses and other current assets 461,000 288,000 Total current assets 16,571,000 16,614,000 Property, Plant, and Equipment 21,140,000 19,897,000 Less accumulated depreciation (12,025,000) (11,527,000) 9,115,000 8,370,000 Other Assets Intangible assets, less accumulated amortization 7,674,000 7,842,000 Goodwill 13,946,000 13,946,000 Cash collateral deposit 1,500,000 1,500,000 Deferred financing costs, less accumulated amortization 438,000 465,000 Deferred tax asset 3,153,000 3,508,000 Note receivable 409,000 407,000 Other assets 148,000 148,000 Total other assets 27,268,000 27,816,000 TOTAL ASSETS $ 52,954,000 $52,800,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable and accrued expenses $ 4,924,000 $ 5,453,000 Notes payable 2,648,000 2,615,000 Income tax payable 217,000 204,000 Total current liabilities 7,789,000 8,272,000 Notes Payable, less current maturities 8,506,000 8,759,000 Stockholders’ Equity Common stock 288,000 286,000 Additional paid-in capital 54,280,000 53,893,000 Accumulated deficit (17,909,000) (18,410,000) Total stockholders’ equity 36,659,000 35,769,000 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 52,954,000 $52,800,000 Memry Corporation and Subsidiaries Condensed Consolidated Statements of Income For the Three Months Ended September 30, 2005 and 2004 (Unaudited) 2005 2004 Revenues $ 12,667,000 $ 9,112,000 Cost of revenues 7,918,000 5,612,000 Gross profit 4,749,000 3,500,000 Operating Expenses Research and development 653,000 479,000 General, selling and administration 2,793,000 1,861,000 Amortization of intangible assets 126,000 33,000 3,572,000 2,373,000 Operating income 1,177,000 1,127,000 Interest Expense (321,000) (14,000) Income 43,000 40,000 (278,000) 26,000 Income before income taxes 899,000 1,153,000 Provision for income taxes 398,000 450,000 Net income $ 501,000 $ 703,000 Basic Earnings Per Share $ 0.02 $ 0.03 Diluted Earnings Per Share $ 0.02 $ 0.03
Memry Corporation
CONTACT: Memry Chief Financial Officer Robert P. Belcher, +1-203-739-1100,Robert_Belcher@memry.com, or Frank Hawkins or Julie Marshall, HawkAssociates, +1-305-451-1888, info@hawkassociates.com
Web site: http://www.memry.com//