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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 2006
ALLIED MOTION TECHNOLOGIES INC.
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(Exact Name of Registrant as Specified in Its Charter)
Colorado 0-4041 84-0518115
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(State or other jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
23 Inverness Way East, Ste. 150, Englewood, CO 80112
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(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code 303-799-8520
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17CFT230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR240.14d-2(b)
|_| Pre-commencement communications pursuant to Rule 13e-4(C) under the
Exchange Act (17CFR240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On May 8, 2006, Allied Motion Technologies Inc. issued a press release
reporting its results of operations for the first quarter ended March 31, 2006.
A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99.1 Allied Motion Technologies Inc. Press Release dated
May 8, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALLIED MOTION TECHNOLOGIES INC.
Date: May 8, 2006 /s/ Richard D. Smith
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Richard D. Smith
Chief Executive Officer and
Chief Financial Officer
Exhibit 99.1
Allied Motion Sales and Net Income Increase
Significantly for the Quarter Ended March 31, 2006
DENVER--(BUSINESS WIRE)--May 8, 2006--Allied Motion Technologies
Inc. (Nasdaq:AMOT) today announced it achieved net income for the
quarter ended March 31, 2006 of $348,000 or $.05 per diluted share
compared to net income of $168,000 or $.02 per diluted share for the
same quarter last year, a 107%increase. Revenues for the quarter
increased 15% to $21,199,000 compared to $18,455,000 last year.
Backlog at March 31, 2006 was $29,494,000, or a 17% increase from the
end of last year and a 31% increase from March 31, 2005.
"We are pleased with the improvement in sales and profit we
achieved during the first quarter of 2006," commented Dick Smith, CEO
of Allied Motion. "We achieved significant improvement in sales and
margin from our industrial markets during the quarter. We also
continued with the ramp up of production at our Asian manufacturing
facility and we started to realize cost improvements in some of our
product lines. Our sales backlog continues to increase and we are
starting to realize new business from our new product introductions.
We will 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, "Our operations
provided substantial sales and earnings growth in the quarter despite
$249,000 of additional costs for our partially self insured medical
plan and for audit costs in the first quarter of 2006 compared to 2005
which reduced net earnings by $.02 per diluted share. While we remain
focused on continuous operating improvements including new customer
development, new product development, AST implementation and LCR ramp
up, we are also exploring ways to reduce our insurance and
administrative costs to improve the overall performance of the
company. Forward priced customer contracts and the increased raw
material price increases we have experienced are being dealt with in a
controlled and logical manner to ensure we realize margin improvements
in the future."
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,
2006 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 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 TECHOLOGIES INC. FINANCIAL SUMMARY
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
For the Three Months
Ended March 31,
HIGHLIGHTS OF OPERATING RESULTS 2006 2005
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Revenues $21,199 $18,455
Cost of products sold 16,459 14,367
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Gross Margin 4,740 4,088
Operating expenses and other 4,226 3,803
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Income before income taxes 514 285
Provision for income taxes (166) (117)
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Net Income $ 348 $ 168
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PER SHARE AMOUNTS:
Diluted income per share $ .05 $ .02
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Diluted weighted average common shares 6,587 7,139
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March December
31, 31,
CONDENSED BALANCE SHEETS 2006 2005
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Assets
Current Assets:
Cash and cash equivalents $ 912 $ 624
Trade receivables, net 11,595 10,087
Inventories, net 10,113 9,185
Other current assets 959 979
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Total Current Assets 23,579 20,875
Property, plant and equipment, net 12,629 12,939
Deferred income taxes 557 582
Goodwill and intangible assets, net 18,760 18,941
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Total Assets $55,525 $53,337
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $ 8,703 $ 7,335
Accounts payable and other current liabilities 11,012 10,084
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Total Current Liabilities 19,715 17,419
Long-term debt obligations 4,214 4,746
Other long-term liabilities 5,365 5,365
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Total Liabilities 29,294 27,530
Stockholders' Investment 26,231 25,807
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Total Liabilities and Stockholders' Investment $55,525 $53,337
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For the Three Months
ended March 31,
CONDENSED STATEMENTS OF CASH FLOWS 2006 2005
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Cash flows from operating activities:
Net income $ 348 $ 168
Depreciation and amortization 812 813
Changes in working capital balances and other (1,425) (2,483)
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Net cash used in operating activities (265) (1,502)
Cash flows from investing activities:
Purchase of property and equipment (253) (579)
Cash paid for acquisitions, net -- (158)
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Net cash used in investing activities (253) (737)
Net cash provided by financing activities 803 2,088
Effect of foreign exchange rate changes on cash 3 7
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Net increase (decrease) in cash and cash equivalents 288 (144)
Cash and cash equivalents at beginning of period 624 456
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Cash and cash equivalents at March 31 $ 912 $ 312
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CONTACT: Allied Motion Technologies Inc.
Richard Smith or Sue Chiarmonte, 303-799-8520