By a News Reporter-Staff News Editor at Electronics Newsweekly -- Tel-Instrument Electronics Corp ("TIC") (NYSE MKT:TIK) announced results for its fourth quarter and fiscal year ended March 31, 2014. The Company reported a 102% increase in annual revenues to $15,828,291 for the year ended March 31, 2014, and net income before taxes of $704,373. For the quarter ended March 31, 2014, the Company reported an increase in sales to $4,504,706 and net income before taxes of $956,709. For the year ended March 31, 2014, operating income increased to $1,363,902 and net income increased to $261,528.
This increase in FY 2014 sales is mostly attributed to the shipment of SETS and KITS for the TS-4530A program against a partial release from the U.S. Army, an increase in revenues for the Company's legacy products, as well as increase in revenues on the CRAFT program. The year and quarter were also favorably impacted by a contract modification for the ITATS program that entailed the sale of certain Intellectual Property ("IP") to the U.S. Navy, reimbursement of engineering expenses for product enhancements as well as the discharge of an $800k existing liability.
The Company also announced the receipt of full rate production approval for the U.S. Army TS-4530A KITS with deliveries of about $400k per month to begin in July 2014. The U.S. Army is still working to secure production approval for the complete SETS and this could take several additional months. The Company also plans to start shipping the first Navy ITATS production units starting next week with scheduled deliveries of about $250k per month. The Company continues to ship the AN/USM-708 CRAFT test sets and should complete the shipment of all of the Ship In Place units by August. The commencement of TS-4530A and ITATS volume shipments will augment the Company's liquidity position as the Company has a substantial amount of the material in-house to commence production.
The Company currently has approximately $10.0 million of existing orders on the CRAFT program, and an option to purchase up to $5.4 million of additional units. The backlog on the TS-4530A program is $19.7 million and $5.6 million on the ITATS program.
As previously announced, the Company is not currently in compliance with certain NYSE-MKT's (the "Exchange") listing standards. Based on the information provided by the Company, the Exchange has determined, based on the information provided, and the improved results that the Company had made a reasonable demonstration of its ability to regain compliance. As such, the Company listing is being continued pursuant to an extension and will continue to be monitored against this plan.
Jeff O'Hara, President and Chief Executive Officer of Tel stated, "We are pleased to have made solid progress this last year, with strong revenue growth, a return to modest profitability, and an improved balance sheet. Completing the CRAFT ship in place units this summer will allow us to increase CRAFT shipments including some of the higher priced new orders. While first quarter FY 15 revenues will approximate the year ago levels, we are anticipating further improvements in revenue and profitability for FY 2015 due to the two new programs coming on line next month." Investor Conference Call Today at 5 p.m The Company will host a conference call and webcast today, June 30, 2014 at 5:00 p.m. Eastern Time to discuss the Company's fiscal fourth quarter and year end 2014 results.
To participate in the call by phone, dial (877) 407-8035 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8035.
To access the live webcast, log onto the Tel-Instrument Electronics' website at https://www.telinstrument.com/learn-about-telinsturment/investor-relations.html.
A replay of the teleconference will be available until July 30, 2014 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13585727.
Keywords for this news article include: Tel-Instrument Electronics Corp.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC