BETHEL, Conn., May 4 /PRNewswire-FirstCall/ -- Memry Corporation reported today revenues of $13,993,000 for the third fiscal quarter ended March 31, 2006, up 10% from $12,674,000 in the comparable quarter a year earlier. Net income was up 107% to $1,521,000, or $0.05 per diluted share, compared with net income of $735,000, or $0.03 per diluted share in the comparable period last year.
For the first nine months of fiscal year 2006, revenues were $39,309,000, compared with revenues of $31,662,000 in the first nine months of fiscal 2005, an increase of $7,647,000 or 24%. Net income in the first nine months was $1,786,000, or $0.06 per diluted share, compared with net income of $1,845,000, or $0.07 per diluted share in the first nine months of fiscal year 2005.
Memry CEO Robert Belcher said, “A strong performance by our Putnam Polymer products segment drove the revenue increase during the quarter. Polymer revenues were $4,146,000, an increase of $1,074,000 or 35% over the same quarter a year earlier. This increase was led by shipments of catheter and guidewire products to a number of different customers. The Polymer products segment increased to 30% of total revenues compared with 24% of total revenues in the third fiscal quarter of 2005.
“Revenues from our Nitinol product segment were up 3% or $316,000 to $9,935,000 in the quarter. This reflected increased sales of super elastic tubing for existing customers as well as revenues from prototype development, R&D activities and several other product lines. Offsetting these increases were decreased shipments of arch wire, Nitinol tube-based stent components, and microcoil and guidewire products.
“Our consolidated gross profit increased from 40% in the third fiscal quarter a year ago to 42% in the third fiscal quarter of 2006. This reflected higher gross margins in both our Polymer and Nitinol segments. The Polymer segment’s gross margin, which increased to 44% of revenues, was higher than the margin in the Nitinol segment,” Belcher said.
Income tax expense was $737,000 for the third fiscal quarter of 2006, compared with $471,000 in the comparable period last year. Income tax expense for the third fiscal quarter of 2006 includes tax benefits of approximately $176,000 resulting from the tax effects of foreign sales in both fiscal 2005 and fiscal 2006, as well as the reversal of certain incentive stock option expenses.
“We are continuing to invest in manufacturing operations in our Polymer segment to support its growth,” Belcher said. “This includes staff, equipment and systems needed to grow the business. Our cash flow continued to be quite strong. Our net interest expense was $252,000, down from $407,000 a year ago. This was the result of the reduction in average outstanding debt.
“This was a particularly strong quarter for our company. Our healthy increase in revenue, improved gross margins and reduced operating expenses as a percentage of revenues contributed to an exceptional increase in operating income. Polymer product sales are strong and we are hopeful that new products in the Nitinol segment will help build future revenues.”
The company will host a conference call with Belcher and senior members of the management team on Friday, May 5 at 11 a.m. Eastern. The call will cover Memry’s 2006 fiscal third quarter earnings. Belcher will open the conference call, followed by a question-and-answer session. To participate in this call, dial (877) 407-8031 any time after 10:55 a.m. Eastern on May 5. International callers should dial (201) 689-8031.
A copy of the financial statements follows.
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.
An investment profile on Memry may be found at http://www.hawkassociates.com/memry/profile.htm .
For more information, contact CEO 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) March 31, June 30, 2006 2005 ASSETS Current Assets Cash and cash equivalents $5,319,000 $4,141,000 Accounts receivable, less allowance for doubtful accounts 8,294,000 5,846,000 Inventories 5,560,000 4,948,000 Deferred tax asset 1,391,000 1,391,000 Prepaid expenses and other current assets 510,000 288,000 Total current assets 21,074,000 16,614,000 Property, Plant, and Equipment 21,776,000 19,897,000 Less accumulated depreciation (13,100,000) (11,527,000) 8,676,000 8,370,000 Other Assets Intangible assets, less accumulated amortization 7,339,000 7,842,000 Goodwill 14,146,000 13,946,000 Cash collateral deposits -- 1,500,000 Deferred financing costs, less accumulated amortization 383,000 465,000 Investment 409,000 -- Note receivable -- 407,000 Deferred tax asset 2,417,000 3,508,000 Other assets 159,000 148,000 Total other assets 24,853,000 27,816,000 TOTAL ASSETS $54,603,000 $52,800,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable and accrued expenses $5,911,000 $5,453,000 Notes payable 2,134,000 2,615,000 Income tax payable 19,000 204,000 Total current liabilities 8,064,000 8,272,000 Notes payable, less current maturities 8,082,000 8,759,000 Other non-current liabilities 114,000 -- Stockholders’ Equity Common stock 289,000 286,000 Additional paid-in capital 54,678,000 53,893,000 Accumulated deficit (16,624,000) (18,410,000) Total stockholders’ equity 38,343,000 35,769,000 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $54,603,000 $52,800,000 Memry Corporation and Subsidiaries Condensed Consolidated Statements of Income For the Three Months Ended March 31, 2006 and 2005 (Unaudited) 2006 2005 Revenues $13,993,000 $12,674,000 Cost of revenues 8,116,000 7,602,000 Gross profit 5,877,000 5,072,000 Operating expenses Research and development 500,000 543,000 General, selling and administration 2,819,000 2,770,000 Amortization of intangible assets 126,000 146,000 3,445,000 3,459,000 Operating income 2,432,000 1,613,000 Other income 78,000 -- Interest Expense (289,000) (437,000) Income 37,000 30,000 (252,000) (407,000) Income before income taxes 2,258,000 1,206,000 Provision for income taxes 737,000 471,000 Net income $1,521,000 $735,000 Basic earnings per share $0.05 $0.03 Diluted earnings per share $0.05 $0.03 Memry Corporation and Subsidiaries Condensed Consolidated Statements of Income For the Nine Months Ended March 31, 2006 and 2005 (Unaudited) 2006 2005 Revenues $39,309,000 $31,662,000 Cost of revenues 23,728,000 19,265,000 Gross profit 15,581,000 12,397,000 Operating expenses Research and development 1,758,000 1,536,000 General, selling and administration, including separation charges of $1,130,000 in 2006 9,848,000 6,938,000 Amortization of intangible assets 378,000 254,000 11,984,000 8,728,000 Operating income 3,597,000 3,669,000 Other income 78,000 -- Interest Expense (941,000) (753,000) Income 135,000 109,000 (806,000) (644,000) Income before income taxes 2,869,000 3,025,000 Provision for income taxes 1,083,000 1,180,000 Net income $1,786,000 $1,845,000 Basic earnings per share $0.06 $0.07 Diluted earnings per share $0.06 $0.07
Memry Corporation
CONTACT: Robert P. Belcher, CEO, Memry Corporation, +1-203-739-1100, orRobert_Belcher@memry.com, or Frank Hawkins or Julie Marshall, both of HawkAssociates, +1-305-451-1888, info@hawkassociates.com, for Memry Corporation
