FEBRUARY 23--Axsys Technologies (Rocky Hill, CT, USA), a designer, manufacturer, and distributor of precision optical solutions, has announced financial results for the fourth quarter and year ended December 31, 2006. Record revenue of $40.6 million is a 13% increase over FY2005 fourth quarter. Record bookings were $55.8 million, resulting in a backlog of $130.4 million, which is a 16% increase relative to the prior year end.
There was successful integration of New England operations with minimal business interruption. Sales growth was largely due to increasing participation on a variety of force protection programs, perimeter and border security programs, and strategic missile programs. Inefficiency write-offs associated with the facility consolidation in New England resulted in a decrease in gross margin to 30.7% in the quarter versus 32.4% in the fourth quarter of 2005.
Operating income increased to $4.1 million in the fourth quarter of 2006, up from $4.0 million in the fourth quarter of 2005. Adjusting for the facility-relocation expense and the recognition of share-based compensation expense, pro forma operating income was $4.8 million in the fourth quarter of 2006, which was 20% higher than the operating income in the fourth quarter of 2005.
Net income increased to $2.6 million, or $0.24 per diluted share, up from $2.5 million, or $0.23 per diluted share, in the fourth quarter of 2005, despite a $0.06 per share impact from moving and lease termination expenses from the consolidation of facilities in New England, the recognition of share-based compensation expense, and a discontinued operations charge in the fourth quarter of 2006. The discontinued operations charge resulted from an accrual of $137,000, net of tax, or $0.01 per diluted share, for additional environmental remediation at a formerly occupied facility.
"We finished the year with another strong quarter, with sales of optical systems and distributed products both growing 13% relative to the fourth quarter of 2005," said Stephen W. Bershad, chairman and chief executive officer of Axsys. "Notably, the company successfully consolidated our New England operations under one roof while simultaneously setting new revenue, booking, and backlog records."
For the 2006 fiscal year, Axsys achieved record sales of $156.3 million, a 17% increase relative to FY2005. The 2005 fiscal year included eight months of revenues from DiOP, which was acquired on May 2, 2005. On a pro forma basis, the revenue growth would have been 11% if Axsys had owned the business for the full year.
"We continue to feel optimistic about the company's prospects," continued Bershad. "Our record $130 million backlog gives us excellent visibility into the coming year, and we are comfortable confirming our 2007 guidance of 8% to 10% revenue growth."
For more information, go to www.axsys.com.
