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Allied Motion Achieves Record Profit for the Quarter Ended March 31, 2007
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DENVER--(BUSINESS WIRE)--May 8, 2007--Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced it achieved net income for the quarter ended March 31, 2007 of $715,000 or $.10 per diluted share compared to net income of $348,000 or $.05 per diluted share for the same quarter last year, a 105% increase. Revenues for the quarter increased 4% to $21,986,000 compared to $21,199,000 last year. Backlog at March 31, 2007 was $28,285,000. "The profit achieved this quarter is the highest quarterly profit we have achieved since the Company was restructured in July 2002," commented Dick Smith, CEO of Allied Motion. "In addition, revenues are the second highest quarterly total since the restructuring. The 4% increase in revenues achieved this quarter reflects a decrease of approximately $1.5 million in revenues from two customers that were generating little or no gross profit. Excluding the revenues from these two customers, revenues for the balance of the business increased 12% over last year. We continue to execute our strategy and are realizing growth in sales and improved profit margins. Margins this quarter improved to 24% this year from 22% last year. We continue to execute our strategy that is building the foundation necessary to achieve our long-term goals for growth in sales and profitability, as well as to facilitate our continued expansion into the motion control industry." Dick Warzala, President of Allied Motion, added, "Consistent with our strategy, our operations remain focused on supporting our customers through continuous improvements in Quality, Delivery, Innovation and Cost. Allied Systematic Tools (AST) implementation, Low Cost Region (LCR) ramp up, Innovative New Product Development and our Six Sigma initiatives are the key elements of the continuous improvement initiatives within our company. It is truly exciting to witness the continuously expanding commitment of the 'Allied Team' to utilize AST and fully engage to ensure we provide our customers with 'Motion Solutions That Raise The Bar.'" Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world. The statements in this press release and in the Company's May 8, 2007 conference call that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements that may predict, forecast, indicate, or imply future results, performance, or achievements. Forward-looking statements involve known and unknown risks and uncertainties, including the risks and uncertainties detailed from time to time in the Company's SEC filings, that may cause actual results of the Company to differ materially from the forward-looking statements. The risks and uncertainties include international, national and local general business and economic conditions in the Company's motion markets, introduction of new technologies, products and competitors, the ability to protect the Company's intellectual property, the ability of the Company to sustain, manage or forecast its growth and product acceptance, success of new corporation strategies and implementation of defined critical issues designed for growth and improvement in profits, the continued success of the Company's customers to allow the Company to realize revenues from its order backlog and to support the Company's expected delivery schedules, the continued viability of the Company's customers and their ability to adapt to changing technology and product demand, the ability of the Company to meet the technical specifications of its customers, the continued availability of parts and components, increased competition and changes in competitor responses to the Company's products and services, changes in government regulations, availability of financing, the ability of the Company's lenders and financial institutions to provide additional funds if needed for operations or for making future acquisitions or the ability of the Company to obtain alternate financing if present sources of financing are terminated, the ability to attract and retain qualified personnel who can design new applications and products for the motion industry, the ability of the Company to identify and consummate favorable acquisitions to support external growth and new technology, and the ability of the Company to control costs for the purpose of improving profitability. The Company's ability to compete in this market depends upon its capacity to anticipate the need for new products, and to continue to design and market those products to meet customers' needs in a competitive world. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements as a prediction of actual results. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.
ALLIED MOTION TECHNOLOGIES INC. FINANCIAL SUMMARY (IN THOUSANDS,
EXCEPT PER SHARE DATA) (UNAUDITED)
For the Three Months Ended
March 31,
HIGHLIGHTS OF OPERATING RESULTS 2007 2006
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Revenues $21,986 $21,199
Cost of products sold 16,625 16,459
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Gross Margin 5,361 4,740
Operating expenses and other 4,281 4,226
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Income before income taxes 1,080 514
Provision for income taxes (365) (166)
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Net Income $715 $348
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PER SHARE AMOUNTS:
Diluted income per share $.10 $.05
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Diluted weighted average common shares 7,057 6,587
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March 31, December 31,
CONDENSED BALANCE SHEETS 2007 2006
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Assets
Current Assets:
Cash and cash equivalents $801 $669
Trade receivables, net 11,686 10,225
Inventories, net 11,538 10,807
Other current assets 1,290 1,397
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Total Current Assets 25,315 23,098
Property, plant and equipment, net 12,013 12,173
Goodwill and intangible assets, net 17,122 17,341
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Total Assets $54,450 $52,612
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $9,754 $9,066
Accounts payable and other current
liabilities 10,485 10,231
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Total Current Liabilities 20,239 19,297
Long-term debt obligations 655 763
Other long-term liabilities 3,028 3,030
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Total Liabilities 23,922 23,090
Stockholders' Investment 30,528 29,522
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Total Liabilities and Stockholders'
Investment $54,450 $52,612
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For the Three Months ended
March 31,
CONDENSED STATEMENTS OF CASH FLOWS 2007 2006
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Cash flows from operating activities:
Net income $715 $348
Depreciation and amortization 845 812
Changes in working capital balances and
other (1,787) (1,425)
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Net cash used in operating activities (227) (265)
Cash flows from investing activities:
Purchase of property and equipment (419) (253)
Cash paid for acquisitions, net -- --
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Net cash used in investing activities (419) (253)
Net cash provided by financing activities 774 803
Effect of foreign exchange rate changes on
cash 4 3
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Net increase in cash and cash equivalents 132 288
Cash and cash equivalents at beginning of
period 669 624
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Cash and cash equivalents at March 31 $801 $912
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CONTACT: Allied Motion Technologies Inc.
Richard Smith, 303-799-8520
or
Sue Chiarmonte, 303-799-8520
Fax: 303-799-8521
SOURCE: Allied Motion Technologies Inc.
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