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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): November 1, 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))
Item 2.02. Results of Operations and Financial Condition.
On November 1, 2007, Allied Motion Technologies Inc. (the "Company") issued a
press release reporting its results of operations for the third quarter ended
September 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 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1 Allied Motion Technologies Inc. Press Release dated
November 1, 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: November 1, 2007
ALLIED MOTION TECHNOLOGIES INC.
By: /s/ Richard D. Smith
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Richard D. Smith
Chief Executive Officer
and Chief Financial Officer
Exhibit 99.1
Allied Motion Reports Improved
Profits for the Third Quarter
DENVER--(BUSINESS WIRE)--Nov. 1, 2007--Allied Motion Technologies
Inc. (NASDAQ: AMOT) today announced it achieved net income for the
third quarter of $686,000 or $.10 per diluted share compared to
$617,000 or $.09 per diluted share for the same period last year.
Revenues for the quarter ended September 30, 2007 were $20,901,000
compared to $20,308,000 last year. Backlog at September 30, 2007 was
$29,878,000, a 15% increase from September 30, 2006.
During the nine months ended September 30, 2007, the Company
achieved net income of $1,748,000 or $.24 per diluted share compared
to net income of $1,543,000 or $.22 per diluted share for the same
nine months last year. Revenues for the nine months this year were
$63,292,000 compared to $63,662,000 for the same period last year.
"We are pleased with the improvement in sales and profits we
achieved during our third quarter," commented Dick Smith, CEO of
Allied Motion. "We continue to achieve improvement in sales from our
industrial, electronics and aerospace and defense market segments
partially offset by a downturn in vehicle and medical market segments.
Our gross margins for the quarter improved slightly from last year
reflecting an improved mix of higher margin sales as well as cost
improvements we are realizing. We continue to realize cost savings
from our increased production and sourcing of product from our
contract manufacturing facility in China that is required to maintain
or improve our lower margin business in some of our vehicle and
industrial applications. Offsetting the improvement in gross profit
margins was an increase in selling and engineering expenses that were
incurred to strengthen our sales and engineering capabilities. Also
contributing to our profit improvement was lower interest costs
reflecting a reduction in outstanding debt and lower borrowing costs.
Our year-to-date performance reflects the continued execution of our
strategy which continues to build 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, "Increased sales
and earnings reflects our focus on continuous operating improvements
including new customer development, new product development, AST
(Allied Systematic Tools) implementation and LCR (Low Cost Region)
ramp up. Consistent with our long term strategy, our emphasis is on
designing new products that "Raise the Bar" of performance and add
significant value for our customers. Additionally, our technical
expertise and know-how is an important differentiating factor that we
will continue to leverage to support and enhance our growth in the
future. The growth potential provided by the many new product
developments currently in our pipeline and our ability to utilize
higher level value-added solutions to meet application specific
requirements through design and manufacture of engineered product
solutions to meet the exact needs of our customers provides the road
map for our continued growth 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 November
1, 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 Nine Months
Ended September 30, Ended September 30,
HIGHLIGHTS OF OPERATING
RESULTS 2007 2006 2007 2006
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Revenues $ 20,901 $ 20,308 $ 63,292 $63,662
Cost of products sold 15,613 15,244 48,145 48,596
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Gross Margin 5,288 5,064 15,147 15,066
Operating expenses and other 4,233 4,070 12,495 12,641
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Income before income taxes 1,055 994 2,652 2,425
Provision for income taxes (369) (377) (904) (882)
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Net Income $ 686 $ 617 $ 1,748 $ 1,543
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PER SHARE AMOUNTS:
Diluted income per share $ .10 $ .09 $ .24 $ .22
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Diluted weighted average
common shares 7,099 6,977 7,147 6,920
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September 30, December 31,
CONDENSED BALANCE SHEETS 2007 2006
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Assets
Current Assets:
Cash and cash equivalents $ 504 $ 669
Trade receivables, net 12,221 10,225
Inventories, net 11,853 10,807
Other current assets 1,731 1,397
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Total Current Assets 26,309 23,098
Property, plant and equipment, net 11,419 12,173
Goodwill and intangible assets 16,862 17,341
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Total Assets $ 54,590 $ 52,612
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $ 840 $ 9,066
Accounts payable and other current
liabilities 11,453 10,231
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Total Current Liabilities 12,293 19,297
Long-term debt obligations 7,319 763
Other long-term liabilities 2,886 3,030
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Total Liabilities 22,498 23,090
Stockholders' Investment 32,092 29,522
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Total Liabilities and Stockholders'
Investment $ 54,590 $ 52,612
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For the Nine Months Ended
September 30,
CONDENSED STATEMENTS OF CASH FLOWS 2007 2006
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Cash flows from operating activities:
Net income $ 1,748 $ 1,543
Depreciation and amortization 2,607 2,440
Changes in working capital balances and
other (1,887) (1,640)
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Net cash provided by operating activities 2,468 2,343
Cash flows from investing activities:
Purchase of property and equipment (977) (1,005)
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Net cash used in investing activities (977) (1,005)
Net cash (used in) provided by financing
activities (1,684) (1,266)
Effect of foreign exchange rate changes on
cash 28 6
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Net increase in cash and cash equivalents (165) 78
Cash and cash equivalents at beginning of
period 669 624
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Cash and cash equivalents at September 30 $ 504 $ 702
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CONTACT: Allied Motion Technologies Inc.
Richard Smith / Sue Chiarmonte, 303-799-8520
Fax: 303-799-8521