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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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, 2007
ALLIED MOTION TECHNOLOGIES INC.
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(Exact Name of Registrant as Specified in its Charter)
Colorado 0-04041 84-0518115
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
23 Inverness Way East, Suite. 150, Englewood, CO, 80112
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(Address of Principal Executive Offices, including zip code)
303-799-8520
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(Registrant's telephone number, including area code)
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 (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Page 1 of 2
Item 2.02. Results of Operations and Financial Condition.
On August 7, 2007, Allied Motion Technologies Inc. (the "Company") issued a
press release reporting its results of operations for the second quarter ended
June 30, 2007. 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. Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On August 2, 2007, S.R. (Rollie) Heath was appointed as a director of the
Company's Board of Directors to fill an existing vacancy. Mr. Heath was also
appointed to the Corporate Governance and Nominating Committee of the Board. Mr.
Heath shall serve until the 2008 Annual Meeting of Shareholders or until his
successor has been duly elected and qualified.
There are no arrangements or understandings between Mr. Heath and any other
persons pursuant to which Mr. Heath was appointed a director of the Company.
There are no transactions in which Mr. Heath has an interest requiring
disclosure under Item 404(a) of Regulation S-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1 Allied Motion Technologies Inc. Press Release dated
August 7, 2007.
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.
Date: August 7, 2007
ALLIED MOTION TECHNOLOGIES INC.
By: /s/ Richard D. Smith
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Richard D. Smith
Chief Executive Officer
and Chief Financial Officer
Page 2 of 2
Exhibit 99.1
Allied Motion Reports Profits for the Second Quarter
DENVER--(BUSINESS WIRE)--Aug. 7, 2007--Allied Motion Technologies
Inc. (NASDAQ:AMOT) today announced it achieved net income for the
second quarter ended June 30, 2007 of $347,000 or $.05 per diluted
share compared to $578,000 or $.08 per diluted share for the same
period last year. Revenues for the second quarter were $20,405,000
compared to $22,155,000 last year. Backlog at June 30, 2007 was
$28,613,000.
During the six months ended June 30, 2007, the Company achieved
net income of $1,062,000 or $.15 per diluted share compared to net
income of $926,000 or $.14 per diluted share for the same six months
last year. Revenues for the first six months this year were
$42,391,000 compared to $43,354,000 for the same period last year.
"The financial results we achieved in the second quarter were
disappointing in that sales and net profit were down from the prior
year," commented Dick Smith, CEO of Allied Motion. "The decrease in
profit this quarter was primarily the result of the $1,750,000
decrease in sales as compared to last years record sales. This
decrease in sales was primarily the result of a decline in sales to
our customers in the medical mobility, industrial and vehicle markets.
The primary reasons for the decrease in sales to customers in the
medical mobility market were caused by program changes by one of our
large customers and also the reduction in Medicare's payment for such
products. The decline in sales to the industrial market was primarily
related to customers providing product to the construction industry.
Despite the decrease in orders from our customers in these markets,
our backlog did increase 1% from both the end of last quarter and from
the beginning of the year. Primarily as a result of the sales decline,
our gross profit margin did decline from 24% to 22%. In response, we
did reduce our costs throughout the quarter which will help stabilize
our margins and position us to improve margins as sales increase in
the future. We do have new customer programs that will be going into
production later in the year including programs resulting from some of
our new products. We believe this downturn in our business is
short-term and we are very optimistic that we will continue to grow
our business in the future."
Dick Warzala, President of Allied Motion, added, "The sales and
subsequent earnings drop in the second quarter of 2007 compared with
the second quarter of 2006 were the result of an expected decline in
revenue from a small number of customers in the medical and vehicle
market segments and a broader, general decline in our industrial
market segment. With regard to our growth activities, our new product
development efforts continue and we have a steady stream of new cost
effective and higher performance products coming to market now and
well into the foreseeable future. A direct result of our new product
releases is increased prototype and project activities, a critical and
necessary element in the organic growth of our company. Our Asian
production ramp-up continues to make progress as an additional product
line has been implemented and will double our output in the facility
by the fourth quarter of 2007. Consistent with our strategy, we manage
our company for continuous improvement over the long term and our
employees are rewarded financially through our EVA bonus program only
when we experience growth on a year over year basis. While we are not
satisfied with the results this quarter, during the time since we
implemented our strategy in 2002 and until the end of the second
quarter of 2007, our company has experienced a CAGR of 44% in Sales,
109% in Net Income, 37% in our Stock Price and 51% in Market Cap. We
believe our strategy and our incentive programs are linked together to
reward and promote growth within our companies and we are confident
that we will continue to do so 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 August
7, 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 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 Months For the Six Months
Ended June 30, Ended June 30,
HIGHLIGHTS OF OPERATING
RESULTS 2007 2006 2007 2006
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Revenues $ 20,405 $ 22,155 $ 42,391 $ 43,354
Cost of products sold 15,907 16,893 32,532 33,352
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Gross Margin 4,498 5,262 9,859 10,002
Operating expenses and other 3,981 4,345 8,262 8,571
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Income before income taxes 517 917 1,597 1,431
Provision for income taxes (170) (339) (535) (505)
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Net Income $ 347 $ 578 $ 1,062 $ 926
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PER SHARE AMOUNTS:
Diluted income per share $ .05 $ .08 $ .15 $ .14
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Diluted weighted average
common shares 7,127 6,847 7,103 6,791
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CONDENSED BALANCE SHEETS June 30, December 31,
2007 2006
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Assets
Current Assets:
Cash and cash equivalents $ 1,398 $ 669
Trade receivables, net 11,141 10,225
Inventories, net 10,824 10,807
Other current assets 1,531 1,397
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Total Current Assets 24,894 23,098
Property, plant and equipment, net 11,831 12,173
Goodwill and intangible assets 16,904 17,341
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Total Assets $ 53,629 $ 52,612
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $ 845 $ 9,066
Accounts payable and other current
liabilities 9,916 10,231
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Total Current Liabilities 10,761 19,297
Long-term debt obligations 8,865 763
Other long-term liabilities 3,010 3,030
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Total Liabilities 22,636 23,090
Stockholders' Investment 30,993 29,522
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Total Liabilities and Stockholders'
Investment $ 53,629 $ 52,612
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For the Six Months Ended
June 30,
CONDENSED STATEMENTS OF CASH FLOWS 2007 2006
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Cash flows from operating activities:
Net income $ 1,062 $ 926
Depreciation and amortization 1,708 1,619
Changes in working capital balances and
other (1,424) (1,051)
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Net cash provided by operating activities 1,346 1,494
Cash flows from investing activities:
Purchase of property and equipment (828) (623)
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Net cash used in investing activities (828) (623)
Net cash provided by (used in) financing
activities 206 (848)
Effect of foreign exchange rate changes on
cash 5 3
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Net increase in cash and cash equivalents 729 26
Cash and cash equivalents at beginning of
period 669 624
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Cash and cash equivalents at June 30, $ 1,398 $ 650
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CONTACT: Allied Motion Technologies Inc.
Richard Smith or Sue Chiarmonte, 303-799-8520
Fax: 303-799-8521