Merrimac Reports Third Quarter 2008 Results

    --  Third quarter income from continuing operations of $193,000 or $.06 per
        diluted share.
    --  Orders booked for the third quarter of 2008 were $9.3 million. Orders
        booked were $24.7 million for the first nine months of 2008.
    --  Continuing solid third quarter-end backlog of $21.1 million.
    --  Book-to-bill ratio of 1.14 to 1 for the first nine months of 2008.
    --  Working capital of $11.6 million and current ratio of 3.4 to 1."

Investors are invited to participate in the financial results conference call on Tuesday, November 18, 2008 at 4:15 p.m. (Eastern) by dialing 1-800-723-6751(for International callers: 1-785-830-7980) five minutes prior to the scheduled start time, and reference the Merrimac Industries third quarter 2008 conference call. For those unable to participate, a replay will be available for seven days by dialing 1-888-203-1112, or 1-719-457-0820 for international callers, passcode number 5746902.

This conference call will also be broadcast live over the Internet by logging on to the web at this address: http://www.videonewswire.com/event.asp?id=53548

Should you be unable to participate during the live webcast, a link to the archived webcast will be posted on the Merrimac Industries, Inc. website http://www.merrimacind.com/

About Merrimac

Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix(R) micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions(R) with Multi-Mix(R) Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix(R) MMFM(R) provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module used in High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries facilities are registered under ISO 9001:2000, an internationally developed set of quality criteria for manufacturing operations.

Merrimac Industries, Inc. has facilities located in West Caldwell, NJ and San Jose, Costa Rica and has approximately 210 co-workers dedicated to the design and manufacture of signal processing components, gold plating of high-frequency microstrip and bonded stripline Teflon (PTFE) circuits and subsystems providing Total Integrated Packaging Solutions(R) for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Multi-Mix(R), Multi-Mix PICO(R), MMFM(R), System In A Package(R), SIP(R) and Total Integrated Packaging Solutions(R) are registered trademarks of Merrimac Industries, Inc. For more information about Merrimac Industries, Inc. please visit our website http://www.merrimacind.com .

This press release contains statements relating to future results of the Company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: risks associated with demand for and market acceptance of existing and newly developed products as to which the Company has made significant investments, particularly its Multi-Mix(R) products; the possibilities of impairment charges to the carrying value of our Multi-Mix(R) assets, thereby resulting in charges to our earnings; risks associated with adequate capacity to obtain raw materials and reduced control over delivery schedules and costs due to reliance on sole source or limited suppliers; slower than anticipated penetration into the satellite communications, defense and wireless markets; failure of our Original Equipment Manufacturer or OEM customers to successfully incorporate our products into their systems; changes in product mix resulting in unexpected engineering and research and development costs; delays and increased costs in product development, engineering and production; reliance on a small number of significant customers; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of our or our OEM customers' new or enhanced products; general economic and industry conditions; the ability to protect proprietary information and technology; competitive products and pricing pressures; our ability and the ability of our OEM customers to keep pace with the rapid technological changes and short product life cycles in our industry and gain market acceptance for new products and technologies; risks relating to governmental regulatory actions in communications and defense programs; and inventory risks due to technological innovation and product obsolescence, as well as other risks and uncertainties as are detailed from time to time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.



                              Merrimac Industries, Inc.
               Summary of Condensed Consolidated Statements of Operations
                                    (Unaudited)

                                                 Quarters Ended
                                          September 27,   September 29,
                                             2008 (a)        2007 (a)
    Net sales                              $8,328,000      $6,612,000
    Gross profit                            2,749,000       2,816,000
    Selling, general and administrative
     expenses                               2,423,000       2,099,000
    Research and development                  106,000         400,000
    Operating income                          220,000         317,000
    Interest and other (expense), net         (17,000)        (72,000)

    Provision for income taxes                 10,000               -
    Income from continuing operations         193,000         245,000

    Loss from discontinued operations,
     after taxes in 2007                      (11,000)     (2,058,000)

    Net income (loss)                        $182,000     $(1,813,000)

    Net income (loss) per common share:
    Income from  continuing  Operations  -
          basic                                                                              $.06                        $.08
        (Loss)  from  discontinued  operations  -
          basic                                                                                  $-                      $(.70)
        Net  income  (loss)  per  common  share  -
          basic                                                                              $.06                      $(.62)

        Income  from  continuing  operations  -
          diluted                                                                          $.06                        $.08
        (Loss)  from  discontinued  operations  -
          diluted                                                                              $-                      $(.69)
        Net  income  (loss)  per  common  share  -
          diluted                                                                          $.06                      $(.61)

        Weighted  average  number  of  shares
          outstanding  -  basic                                        2,948,000              2,917,000
        Weighted  average  number  of  shares
          outstanding  -  diluted                                    2,966,000              2,960,000


        (a)  In  accordance  with  the  provisions  of  SFAS  No.  144,  "Accounting  for
        the  Impairment  or  Disposal  of  Long-Lived  Assets,"  the  operating  results
        of  Filtran  Microcircuits  Inc.  for  the  current  and  prior  period  have
        been  reported  as  discontinued  operations.



                                                            Merrimac  Industries,  Inc.
                              Summary  of  Condensed  Consolidated  Statements  of  Operations
                                                                          (Unaudited)

                                                                                                            Nine  Months  Ended
                                                                                                  September  27,    September  29,
                                                                                                        2008  (a)              2007  (a)

        Net  sales                                                                          $21,576,000      $16,495,000
        Gross  profit                                                                        8,448,000          6,880,000
        Selling,  general  and  administrative  expenses        7,021,000          6,293,000
        Research  and  development                                                    853,000          1,219,000
        Operating  income  (loss)                                                      574,000            (632,000)
        Interest  and  other  (expense)  income,  net                  (127,000)            (56,000)

        Income  (loss)  from  continuing  operations                    447,000            (688,000)
        Provision  for  income  taxes                                                  10,000                          -

        Loss  from  discontinued  operations                                  (66,000)      (5,858,000)

        Net  income  (loss)                                                                $371,000      $(6,546,000)

        Net  income  (loss)  per  common  share:
        Income  from  continuing  operations  -  basic                        $.15                  $(.23)
        (Loss)  from  discontinued  operations  -  basic                  $(.02)              $(1.97)
        Net  income  (loss)  per  common  share  -  basic                      $.13                $(2.20)

        Income  from  continuing  operations  -  diluted                    $.15                  $(.23)
        (Loss)  from  discontinued  operations  -  diluted              $(.02)              $(1.97)
        Net  income  (loss)  per  common  share  -  diluted                  $.13                $(2.20)

        Weighted  average  number  of  shares
          outstanding  -  basic                                                        2,940,000          2,975,000
        Weighted  average  number  of  shares
          outstanding  -  diluted                                                    2,965,000          2,975,000


        (a)  In  accordance  with  the  provisions  of  SFAS  No.  144,  "Accounting  for
        the  Impairment  or  Disposal  of  Long-Lived  Assets,"  the  operating  results
        of  Filtran  Microcircuits  Inc.  for  the  current  and  prior  period  have  been
        reported  as  discontinued  operations.



                                                          Merrimac  Industries,  Inc.
                                              Condensed  Consolidated  Balance  Sheets

                                                                                    June  28,  2008          December  29,  2007
                                                                                      (Unaudited)                  (Unaudited)
        ASSETS
        Current  assets:
            Cash  and  cash  equivalents                        $1,923,000                    $2,004,000
            Accounts  receivable,  net                            6,893,000                      5,300,000
            Inventories                                                      5,886,000                      5,040,000
            Other  current  assets                                        620,000                          774,000
            Revenue  in  excess  of  billing                    1,186,000                                      -
            Due  from  assets  sale  contract                                  -                          664,000
            Total  current  assets                                  16,508,000                    13,782,000
        Property,  plant  and  equipment,  net            9,720,000                    10,956,000
        Restricted  cash                                                                  -                          250,000
        Other  assets                                                            510,000                          532,000
        Deferred  tax  assets                                                52,000                            52,000
        Total  Assets                                                    $26,790,000                  $25,572,000

        LIABILITIES  AND  STOCKHOLDERS'  EQUITY
        Liabilities:
            Current  liabilities:
                Current  portion  of  long-term
                  debt                                                            $1,550,000                        $550,000
                Accounts  payable                                            905,000                          944,000
                Other  current  liabilities                      2,354,000                      2,328,000
                Deferred  tax  liabilities                              52,000                            52,000
                Income  taxes  payable                                      10,000                                      -
                Total  current  liabilities                      4,871,000                      3,874,000
            Long-term  debt,  net  of  current
              portion                                                            3,146,000                      3,763,000

            Deferred  liabilities                                          64,000                            61,000
            Total  liabilities                                          8,081,000                      7,698,000

        Stockholders'  equity:
            Common  stock                                                          33,000                            33,000
            Additional  paid-in  capital                      20,253,000                    19,790,000
            Retained  earnings                                          1,545,000                      1,173,000
            Treasury  stock                                              (3,122,000)                  (3,122,000)
        Stockholders'  equity                                      18,709,000                    17,874,000
        Total  Liabilities  and  Stockholders'
          Equity                                                              $26,790,000                  $25,572,000



                                                        Merrimac  Industries,  Inc.
                                  Condensed  Consolidated  Statements  of  Cash  Flows
                                                                      (Unaudited)

                                                                                                      Nine  Months  Ended
                                                                                            September  27,    September  29,
                                                                                                  2008  (a)              2007  (a)

        Cash  flows  from  operating  activities:
                Net  income  (loss)                                              $371,000        $(6,546,000)
                Less,  loss  from  discontinued
                  operations                                                            (66,000)        (5,858,000)
                Income  (loss)  from  continuing
                  operations                                                            437,000              (688,000)
                Adjustments  to  reconcile  loss  from
                  continuing  operations  to  net  cash
                  provided  by  (used  in)  operating
                  activities:
                    Depreciation  and  amortization                1,908,000            1,757,000
                    Amortization  of  deferred  financing
                      costs                                                                    24,000                  23,000
                    Share-based  compensation                              376,000                223,000
                    Changes  in  operating  assets  and
                      liabilities:
                        Accounts  receivable                              (1,593,000)        (1,385,000)
                        Inventories                                                  (846,000)            (742,000)
                        Revenue  in  excess  of  billing            (1,186,000)                          -
                        Other  current  assets                                    49,000                  57,000
                        Other  assets                                                    69,000                (30,000)
                        Other  current  liabilities                          31,000                245,000
                        Deferred  liabilities                                      2,000                  18,000
        Net  cash  used  by  operating  activities  -
          continuing  operations                                            (729,000)            (522,000)
        Net  cash  used  by  operating  activities  -
          discontinued  operations                                          (66,000)            (363,000)
        Net  cash  used  by  operating  activities              (795,000)            (885,000)
        Cash  flows  from  investing  activities:
            Purchases  of  capital  assets                              (672,000)        (1,071,000)
            Proceeds  from  sale  of  discontinued
              operations                                                                665,000                            -
        Net  cash  used  in  investing  activities  -
          continuing  operations                                                (7,000)        (1,071,000)
        Net  cash  used  in  investing  activities  -
          discontinued  operations                                                      -              (180,000)
        Net  cash  provided  by  (used  in)  investing
          activities                                                                      (7,000)        (1,251,000)
        Cash  flows  from  financing  activities:
            Repurchase  of  common  stock  for  the
              treasury                                                                                -          (2,148,000)
            Borrowings  under  revolving  credit
              facility                                                                1,000,000                            -
            Repayment  of  long-term  debt                              (617,000)            (413,000)
            Restricted  cash  returned  (deposited)              250,000              (250,000)
            Proceeds  from  the  exercise  of  stock
              options                                                                        29,000                  74,000
            Proceeds  from  Stock  Purchase  Plan  sales          59,000                  79,000
        Net  cash  provided  by  (used  in)  financing
          Activities  -  continuing  operations                    721,000          (2,658,000)
        Net  cash  used  in  financing  activities  -
          discontinued  operations                                                      -                (52,000)
        Net  cash  provided  by  (used  in)  financing
          activities                                                                    721,000          (2,710,000)
        Effect  of  exchange  rate  changes                                        -                  33,000
        Net  decrease  in  cash  and  cash  equivalents        (81,000)        (4,813,000)
        Cash  and  cash  equivalents  at  beginning  of
          period,  including  $562,000  reported
          under  assets  held  for  sale  in  2007                2,004,000            5,961,000
        Cash  and  cash  equivalents  at  end  of
          period,  including  $43,000  reported
          under  assets  held  for  sale  in  2007              $1,923,000          $1,148,000


        (a)  In  accordance  with  the  provisions  of  SFAS  No.  144,  "Accounting  for
        the  Impairment  or  Disposal  of  Long-Lived  Assets,"  the  operating  results
        of  Filtran  Microcircuits  Inc.  for  the  current  and  prior  period  have  been
        reported  as  discontinued  operations.
 





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