| SOUTHAMPTON, Pa., May 9, 2002 /PRNewswire-FirstCall via COMTEX/ -- Environmental Tectonics Corporation (ETC) today announced financial results for the fourth quarter and fiscal year ended February 22, 2002. For the fiscal year ended February 22, 2002, net income was $1,741,000, or $.23 per share (diluted), versus a net income of $2,021,000 or $.27 per share (diluted) for 2001. Sales were $32,527,000, an increase of $75,000 or 0.2% from the prior year. Sales increases were most notably evidenced domestically in Entertainment (which increased $7,459,000, 88.8%) and internationally in the Environmental and Hyperbaric product areas. The Environmental line benefited from increased work in China while the hyperbaric line went into full production of large chambers for a Southeast Asian Air Force. Offsetting these increases were reduced international Aircrew Training Systems (ATS) sales (which were down $6,793,000, 50.3%) including sales at the Company's Polish Subsidiary. Geographically, domestic sales were up $6,092,000, 40.3%, primarily reflecting the aforementioned Entertainment activity. Government sales were down $869,000, 42.1% on lower claims revenue. International sales, including those from the Company's foreign subsidiaries, were down $5,148,000, 33.7%. On a pro-forma basis, when adjusted for the impact of claims revenue, gross profit for the current year increased $452,000 or 4.2% from Fiscal 2001 as most of the business groups except ATS evidenced both increased gross profit and an improved gross margin rate as a percent of sales. For the current fiscal quarter, the Company had net income of $558,000 or $.07 per share (diluted), versus a net income of $794,000 or $.11 per share (diluted) for the fourth quarter of 2001. Sales for the quarter were $8,543,000, a decrease of $1,136,000 or 11.7% from the fourth quarter of 2001, as the production flow in the current year was more evenly spread out throughout the fiscal period. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
William F. Mitchell, ETC's President and Chairman, stated that "The results for fiscal 2002 reflect the general economic downturn and global disruption that affected the world last year. With the tightening of worldwide governmental spending and the political fallout from the September 11 tragedy, as an international supplier of aircrew training devices the Company saw a significant impairment in its ability to close many large international contracts, most of which have been under proposal for some time. This was coupled with a major economic disruption and currency devaluation in Turkey, where the Company's ETC-Information Systems performs contract software for local customers, and the inability of the Polish Government to approve a national budget, which delayed contract awards for our Polish Subsidiary. "Despite these developments, this past year the Company continued its commitment to `pushing the technology envelope' in its Dynamic Flight Simulator line of products. In July 2001 we introduced our General Aviation Trainer II (GAT II(R)), the first general aviation trainer that addresses Spatial Disorientation in flight. In February 2002 we began performance testing on our high-end rapid onset Sustained G Tactical Flight simulator, the G-FET II TFS. And in March 2002 we completed a successful factory acceptance of our new GYROLAB(R) GL-1500 Advanced Flight Simulator Spatial Disorientation Trainer. "Starting late last year, the Company began to see renewed interest in its virtual reality interactive disaster and terrorist management simulation products. Orders have been received from Minneapolis-ST. Paul International Airport, Serco's International Fire Training Center in Darlington, England, Florida State College, and the Netherlands Institute for Fire Services and Disaster Management, among others. This is an exciting technology and one that holds great potential for growth. "Total sales for our Industrial Group improved as the Sterilizer line saw bookings for two large industrial 100% Ethylene Oxide sterilizers and introduced a cost-saving `One-Step' Sterilizing/Drying Process for the Pharmaceutical industry. And our Environmental Group was awarded three climatic drive-in Chambers from the number 1 and 3 automobile manufacturers in China. "Looking forward, you can rest assured that ETC will continue to explore the world for aeromedical and industrial applications." ETC designs, develops, installs and maintains aircrew training systems, public entertainment systems, process simulation systems (sterilization and environmental), clinical hyperbaric systems, environmental testing and simulation systems, and related products for domestic and international customers. Certain matters in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. This includes, but is not to limited to, market acceptance of new products, competitive actions, economic conditions, and other risks indicated in filings from time to time with the Securities Exchange Commission. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
www.etcusa.com