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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): August 2, 2006
ALLIED MOTION TECHNOLOGIES INC.
(Exact Name of Registrant as Specified in Its Charter)
Colorado 0-04041 84-0518115
- ---------------------------- -------------------------- ---------------------
(State or other jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
23 Inverness Way East, Ste. 150, Englewood, CO 80112
(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code 303-799-8520
NOT APPLICABLE
(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:
[_] 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 August 8, 2006, Allied Motion Technologies Inc. issued a press release
reporting its results of operations for the second quarter ended June 30, 2006.
A copy of the press release is attached hereto as Exhibit 99.1.
The information set forth in Items 2.02 and 9.01 of this Form 8-K shall not
be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act
of 1934, as amended, and is not incorporated by reference into any filings of
Allied Motion Technologies Inc., whether made before or after the date hereof,
regardless of any general incorporation language in such filings.
Item 5.02. Election of Director.
On August 2, 2006, the Board of Directors of Allied Motion Technologies
Inc. appointed Richard S. Warzala to serve as director. The Board of Directors
had previously increased the size of the board from six to seven members.
Mr. Warzala has served as President and Chief Operating Officer of the
Company since May 2002. He will serve as a director until the next annual
meeting of shareholders or until a successor shall have been elected and
qualified.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99.1 Allied Motion Technologies Inc.
Press Release dated August 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: August 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 Reports Second Consecutive
Quarter of Significant Sales and Net Income Increase
and Appointment of New Director
DENVER--(BUSINESS WIRE)--Aug. 8, 2006--Allied Motion Technologies
Inc. (NASDAQ: AMOT) today announced it achieved a 57% increase in net
income and a 17% increase in sales for its second quarter ended June
30, 2006, over the same period last year. Allied achieved net income
for the second quarter of $578,000 or $.08 per diluted share compared
to $368,000 or $.05 per diluted share for the same period last year.
Revenues for the quarter ended June 30, 2006, were $22,155,000
compared to $18,913,000 last year. Backlog at June 30, 2006, was
$27,952,000, an 11% increase from the end of last year and a 28%
increase from June 30, 2005.
During the six months ended June 30, 2006, the Company achieved
net income of $926,000 or $.14 per diluted share compared to net
income of $536,000 or $.08 per diluted share for the same six months
last year. Revenues for the first six months this year increased 16%
to $43,354,000, compared to $37,368,000 for the same period last year.
"We are quite pleased with the improvement in sales and profits we
have achieved during the second quarter and for the first six months
of this year," commented Dick Smith, CEO of Allied Motion. "We
continue to achieve significant improvement in sales and margins from
our industrial market solutions business and are encouraged by the
cost improvements we are beginning to realize on some of our
commercial motion products being produced in China. We are excited by
this year-to-date performance and 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 first six
months, reflecting our focus on continuous operating improvements
including new customer development, new product development, AST
implementation and LCR ramp-up. Sales continue to increase as we are
successful in winning new business in both existing and new
applications of our products. Especially exciting are the design wins
occurring through the selective application of our new
high-performance products that 'raise the bar' and meet the goals of
our strategy. Additionally, 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."
On August 2, 2006, the Board of Directors of Allied Motion
Technologies appointed Richard S. Warzala to serve as a director. The
Board of Directors had previously increased the size of the board from
six to seven members. Warzala has served as President and Chief
Operating Officer of the Company since May 2002. He will serve as a
director until the next annual meeting of shareholders or until a
successor shall have been elected and qualified.
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 August
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 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 For the Six
Months Ended Months Ended
June 30, June 30,
HIGHLIGHTS OF OPERATING RESULTS 2006 2005 2006 2005
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Revenues $22,155 $18,913 $43,354 $37,368
Cost of products sold 16,893 14,689 33,352 29,056
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Gross Margin 5,262 4,224 10,002 8,312
Operating expenses and other 4,345 3,651 8,571 7,454
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Income before income taxes 917 573 1,431 858
Provision for income taxes (339) (205) (505) (322)
------------------------------------
Net Income $578 $368 $926 $536
====================================
PER SHARE AMOUNTS:
Diluted income per share $.08 $.05 $.14 $.08
====================================
Diluted weighted average common
shares 6,847 6,784 6,791 7,007
====================================
CONDENSED BALANCE SHEETS June 30, December 31,
2006 2005
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Assets
Current Assets:
Cash and cash equivalents $650 $624
Trade receivables, net 11,747 10,087
Inventories, net 10,315 9,185
Other current assets 1,157 979
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Total Current Assets 23,869 20,875
Property, plant and equipment, net 12,468 12,939
Deferred income taxes 388 582
Goodwill and intangible assets 18,649 18,941
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Total Assets $55,374 $53,337
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $10,309 $7,335
Accounts payable and other current
liabilities 11,647 10,084
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Total Current Liabilities 21,956 17,419
Long-term debt obligations 949 4,746
Other long-term liabilities 5,441 5,365
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Total Liabilities 28,346 27,530
Stockholders' Investment 27,028 25,807
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Total Liabilities and Stockholders'
Investment $55,374 $53,337
========================
For the Six Months Ended
June 30,
CONDENSED STATEMENTS OF CASH FLOWS 2006 2005
- ----------------------------------------------------------------------
Cash flows from operating activities:
Net income $926 $536
Depreciation and amortization 1,619 1,609
Changes in working capital balances
and other (1,051) (2,827)
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Net cash provided by (used in) operating
activities 1,494 (682)
Cash flows from investing activities:
Purchase of property and equipment (623) (1,247)
Cash paid for acquisitions, net -- (208)
------------------------
Net cash used in investing activities (623) (1,455)
Net cash (used in) provided by financing
activities (848) 2,181
Effect of foreign exchange rate changes
on cash 3 (5)
------------------------
Net increase in cash and cash equivalents 26 39
Cash and cash equivalents at beginning of
period 624 456
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Cash and cash equivalents at June 30 $650 $495
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CONTACT: Allied Motion Technologies Inc.
Richard Smith or Sue Chiarmonte, 303-799-8520
Fax: 303-799-8521