Axsys Technologies announces first quarter results

APRIL 23, 2009--The imaging and motion control technology designer/developer has recorded 18% growth in sales and 37% growth in net income in 1Q09.

Apr 23rd, 2009

APRIL 23, 2009--Axsys Technologies (Rocky Hill, CT, USA; www.axsys.com), a designer and developer of high-performance surveillance cameras, imaging systems, and related motion-control technologies, has announced financial results for the first quarter ended Mar. 28, 2009.

During the first quarter of 2009, Axsys generated sales of $66.6 million, compared to $56.4 million in 1Q08. Net income was $7.0 million or $0.61 per diluted share, up from $5.1 million or $0.45 per diluted share in 1Q08.

Period comparisons vs. the first quarter of 2008:

  • Sales increased 18% to $66.6 million
  • Gross margin was 33.1% compared to 34.0%
  • Operating margin improved to 16.4% from 14.2%
  • Net income increased 37% to $7.0 million
  • Backlog increased 3% year over year to $162.1 million

Broad-based demand within both business segments drove sales growth in 1Q09. Gross margin was impacted by the increased overhead associated with the new Nashua, NH facility and startup costs associated with a large infrared lens order. Improved leverage on the company's operating expenses resulted in higher operating margins in both business segments.

Segment sales (US$millions)
Three Months Ended Mar. 28, 2009/Mar. 29, 2008
Surveillance Systems Group: 20.9/17.9
Imaging Systems Group: 45.7/38.5

The Surveillance Systems Group's sales increased by 17% compared to the same period of the prior year due to continued demand for a variety of camera systems, with the strongest demand in the areas of land-based perimeter security and airborne surveillance. The Imaging Systems Group's sales grew 19% year over year driven mainly by an increasing demand for infrared lenses and military-grade motion control products.

"Our quarterly financial results continue to demonstrate the strength of our business and the growing demand for leading-edge intelligence, surveillance, reconnaissance, and targeting (ISRT) technologies," says Stephen W. Bershad, chairman and CEO of Axsys Technologies. "The recently proposed defense budget, as outlined by Secretary of Defense Robert Gates, confirms our view that these technologies will play an increasingly prominent role in the years to come. The company's strong market position, backlog, and first quarter performance give us confidence that we will achieve our financial projections for 2009."

-- Posted by Vision Systems Design, www.vision-systems.com

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