|
MINNETONKA, Minn., March 31 PRNewswire-FirstCall/ -- Communications Systems, Inc. (AMEX: JCS) today reported net income was $1,452,000 or $.17 per diluted share for its fourth quarter ended December 31, 2007. Net income from the comparable period of 2006 was $853,000 or $.10 per diluted share. Sales in the 2007 fourth quarter rose 9% to $28,451,000 from $26,037,000 in 2006. Operating income increased to $1,703,000 in the fourth quarter of 2007 compared to $780,000 in 2006.
Net income was $7,511,000 or $.85 per diluted share for the twelve months ended December 31, 2007 compared to $4,495,000 or $.51 per diluted share in the same period of 2006. Sales in 2007 increased 5% to $121,243,000 from $115,440,000 in 2006. For the year ending December 31, 2007 operating income increased 104% to $10,263,000 compared to $5,025,000 for 2006. Further information regarding the Company's 2007 results is provided in the Company's Form 10-K Report that is being filed today with the Securities and Exchange Commission.
Jeffrey Berg, President and CEO, commented, "I am pleased with the progress CSI and our business units made in 2007 as we transitioned to a new management team and business location. CSI met the challenge and increased both sales and operating income."
"Communications Systems continues to generate cash closing the year at $29,430,000 in spite of using approximately $6.1 million cash in 2007 to repurchase our stock, as well as for a portion of the funds used to purchase and build out our new building in Minnetonka. The current ratio continues at a lofty 7 to 1."
The Company today also reported on recent developments affecting its JDL Technologies, Inc. ("JDL") subsidiary. In January 2008 JDL was notified by the Virgin Islands Department of Education ("VIDE"), a JDL customer since 1998, that VIDE had selected another vendor to provide network services to VIDE for the contract year beginning July 1, 2008, rather than JDL. While JDL has been pursuing all available measures since then to reverse VIDE's decision and obtain the network services contract with VIDE for another year, this event may impair the value of network infrastructure assets JDL has installed and maintained on the Virgin Islands to support contracts with VIDE since 2002, as well as related goodwill. The Company is currently assessing the value of its Virgin Island's network infrastructure and related goodwill (respectively $2,624,000 and $704,000 at December 31, 2007) for impairment in accordance with applicable accounting principles, as well as exploring options for maximizing the value of the network infrastructure. Further information regarding this recent development is provided in the Company's Form 10-K Report that is being filed today.
Cautionary Statement
From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, the Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words "believes," "expects," "anticipates," "intends" or similar expressions. For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the SEC, which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.
About Communications Systems
Communications Systems, Inc. provides physical connectivity infrastructure and services for cost-effective broadband solutions and is a leading supplier of voice-grade connecting devices and wiring systems. CSI serves the broadband network market as the world's leading supplier of media conversion technology, that permits networks to deploy fiber optic technology while retaining the copper-based infrastructure already embedded in the network. In addition, CSI supplies copper wire and fiber optic structured wiring systems for broadband networks, as well as line filters for digital subscriber line service. CSI also provides network design, training and management services.
CSI CONSOLIDATED SUMMARY OF EARNINGS
Selected Income Statement Data
Three Months Ended Twelve Months Ended
December 31 December 31
2007 2006 2007 2006
Sales $28,450,812 $26,037,457 $121,243,248 $115,439,570
Gross margin 9,525,130 8,754,146 42,885,710 38,587,145
Operating income 1,703,476 779,574 10,262,568 5,025,384
Income before
income taxes 2,773,253 966,528 12,022,766 5,723,080
Income taxes 1,321,000 113,000 4,512,000 1,228,000
Net income $1,452,253 $853,528 $7,510,766 $4,495,080
Basic net income
per share $.18 $.10 $.86 $.52
Diluted net income
per share $.17 $.10 $.85 $.51
Cash dividends per
share $.12 $.09 $.42 $.34
Average basic
shares outstanding 8,577,358 8,726,807 8,761,300 8,722,172
Average dilutive
shares outstanding 8,642,379 8,785,013 8,830,713 8,807,377
Selected Balance Sheet Data
December 31 December 31
2007 2006
Total assets $100,760,313 $92,722,839
Cash 29,427,879 28,751,172
Property, plant and equipment, net 13,944,597 8,579,932
Long-term liabilities 4,044,905 723,800
Stockholders' equity 84,930,582 82,545,088
#
# #
|
