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EMRISE CORPORATION ANNOUNCES FIRST QUARTER 2007 RESULTS RANCHO CUCAMONGA, CALIFORNIA, May 15, 2007 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced its first quarter 2007 financial results. For the three months ended March 31, 2007, EMRISE recorded record net sales of $11.9 million, an increase of $1.2 million, or 11%, over the $10.7 million reported for the first quarter of 2006. The increase mainly resulted from a $1.7 million, or 39%, increase in net sales of power supplies, primarily for military applications, and a $464,000, or 24%, increase in net sales of network access equipment. These increases were partially offset by a $570,000, or 43%, decrease in net sales of radio frequency (“RF”) devices, primarily due to delays in receipt of expected orders, which have subsequently been received and are planned to ship in the second quarter of 2007. Finally, the Company’s Digitran division experienced a $260,000, or 14%, decrease in net sales of switches due to delayed receipt of expected year-end 2006 orders from two of the Division’s largest customers. Some of these orders for Digitran have been received. The balance of orders is anticipated to be received in the second quarter for shipment in the second and third quarters of 2007. Gross profit decreased by $540,000, or 12%, to $3.9 million for the first three months of 2007 from $4.4 million in the prior year period. Within the Company’s electronic devices segment, gross profit decreased by $440,000, mainly due to reductions in gross profit of $340,000, or 35%, for Digitran switches due to the delayed shipments of certain high margin product as discussed above. In addition, the Company’s RO Associates Incorporated (“RO”) subsidiary’s gross profit on power supply products decreased $260,000, or 67%, due to temporary supply chain disruption issues associated with RO’s move to the Company’s CXR Larus facility in San Jose, California, and also due to the inclusion of $100,000 of one-time royalty income in the prior year period, which royalty income had unusually high gross profit. These decreases were partially offset by $140,000 of increased gross profit at the Company’s U.K.-based power supply operations. Gross profit for the communications equipment segment decreased by $100,000, or 7%, to $1.2 million as compared to $1.3 million in the first quarter of 2006 due to a $350,000 decrease in gross profit due to lower sales of high margin, end-of-life test equipment, partially offset by a $250,000 increase in gross profit for the Company’s France-based network access products due to higher margin military sales. Selling, general and administrative (“SG&A”) expenses remained relatively unchanged at $3.7 million during the first quarter of 2007 compared to the first quarter of 2006, but declined as a percentage of net sales from 35% for the first quarter of 2006 to 31% for the first quarter of 2007. However, included within SG&A for the first quarter of 2007 is approximately $240,000 of additional audit fees, compared to the first quarter of 2006, due to cost overruns associated with the 2006 audit and the 2006 quarterly auditor reviews being performed in the first quarter of 2007 due to the reaudit of our 2003, 2004 and 2005 financials. Legal fees also increased during the same period by approximately $50,000, also primarily due to financial reaudit related matters. EMRISE recorded a net loss of $792,000 for the first quarter of 2007, as compared to a net loss of $322,000 for the first quarter of 2006. Basic and diluted loss per share for the first quarter of 2007 was $0.02 based upon 38.1 million basic and diluted shares outstanding. For the same period in 2006, basic and diluted earnings per share showed a loss of $0.01 based on 37.7 million basic and diluted shares outstanding. EMRISE’s backlog increased 11%, to $23.4 million as of March 31, 2007 from $22.1 million as of March 31, 2006. EMRISE’s cash position was $3.3 million as of March 31, 2007 compared to $3.8 million and $2.7 million at December 31, 2006 and March 31, 2006, respectively. EMRISE’s Chairman, President and CEO, Carmine T. Oliva, said, “We are pleased to have achieved record sales of $11.9 million in the first quarter of 2007. We achieved this organic growth primarily from increased sales of electronic power supplies for our historical core military market. We were able to achieve top line growth even though our sales were negatively affected by delayed shipments of switch products to two of our largest switch customers. Some delayed orders ultimately were received, but not in time to ship during the first quarter of 2007. We anticipate receiving the remaining orders later in the second quarter for shipment during the second and third quarters of this year. Our first quarter 2007 backlog exceeded our first quarter 2006 backlog, and we expect this growth trend to continue throughout the remainder of this year.” Mr. Oliva added, “It is unfortunate that our results for the first quarter of 2007 were negatively affected by the costs of the reaudit, but we are pleased that the reaudit process was ultimately completed during the first quarter of 2007. Regarding gross profit and earnings, Mr. Oliva commented, “The decline in our gross profit partially reflects a planned shift in product mix from higher margin lower growth military products to lower margin higher growth commercial products. We believe this shift to commercial products will allow us to more rapidly grow our top line organically and ultimately should result in higher gross profit and improved profitability.” About EMRISE CORPORATION EMRISE Corporation is a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment. EMRISE’s electronic devices group, which consists of EMRISE Electronics Corporation and its international subsidiaries, provides power conversion, RF and microwave devices, and digital and rotary switches to the North American, European and Asian electronic markets. EMRISE’s communications equipment group, consisting of CXR Larus Corporation and its subsidiary, CXR Anderson Jacobson, provides network access and communication timing and synchronization products to the North American, European and Asian communications industry. Founded in 1983, EMRISE operates out of facilities in the United States, England, France and Japan. As of March 31, 2007, EMRISE had a total of 298 employees in its various subsidiaries and divisions. Website: www.emrise.com. Listed on NYSE Arca under the ticker symbol: ERI. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 With the exception of historical information, the matters discussed in this press release, including without limitation, forecasts regarding orders, sales, shipments, revenues, margins and profitability, are forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to: EMRISE’s ability to meet its working capital needs, fund existing and anticipated product development efforts, identify and successfully negotiate, fund and integrate past and future acquisitions and improve operating efficiency and realize anticipated synergies, lower costs and increased profitability due to the integration and growth of acquired or potentially acquirable businesses, the receipt and timing of contracts, orders and payments from existing and potential customers for EMRISE’s products and services, EMRISE’s ability to produce and fulfill delayed and backlog orders, the receipt of production materials and resale products in a timely fashion, market and economic conditions, EMRISE’s level of success in positioning itself in the market for in-flight entertainment products, changes in technology, governmental regulations and policies and customer requirements, competitive products and services, unforeseen technical issues, unexpected changes in typical seasonal sales trends and those factors contained in the “Risk Factors” Section of EMRISE's latest Form 10-K and Form 10-Q and other public filings. 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