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TECHNOLOGY RESEARCH CORPORATION
ANNOUNCES STRONG FIRST FISCAL QUARTER RESULTS
CLEARWATER, FLORIDA, July 24, 2003 --Robert
S. Wiggins, Chairman and Chief Executive Officer of Technology
Research Corporation (TRC), (NASDAQ-TRCI) announced today
that the Company's operating revenues for the first quarter
ended June 30, 2003 were $5,659,915, compared to $3,855,318
reported in the same quarter last year, an increase of approximately
47%. Revenues for the first quarter were positively impacted
by an order from a major sprayer/washer manufacturer, which
resulted in shipments of $450,000. Net income for the current
quarter was $584,100, compared to $129,455, for the same
quarter last year, an increase of approximately 351%. Basic
earnings for the current period were $.11 per share and
diluted earnings were $.10 per share compared to basic and
diluted earnings of $.02 per share for the same quarter
last year.
Mr. Wiggins commented, “The Company had an
excellent start to its 2004 fiscal year by completing its
sixth straight quarter of increased earnings, which were
generated primarily by higher revenues. The Company’s manufacturing
facilities are also operating efficiently, and the Company
continues to remain debt-free, ending the quarter with $3,169,365
in cash.”
The Company’s commercial revenues for the
quarter ended June 30, 2003, compared to the prior year’s
quarter, increased by $848,112, military revenues increased
by $962,763 and royalty income was down $6,278. The increase
in commercial revenues was partially attributed to shipments
of product to a major sprayer/washer manufacturer, as noted
above, and the placement of approximately $145,000 of the
Company’s GFCI products in Home Depot and Fire Shield® Surge
Strips in Wal-Mart. New accounts in the Recreational Vehicle,
Brand Label and Commercial Distribution markets contributed
to the remainder of the growth. The outlook for commercial
revenues for the remainder of the fiscal year is positive.
Military revenues increased as the result of stronger direct
military shipments of support parts for existing systems
and control devices related to the Tactical Quiet Generator
(TQG) programs. The Company expects military revenues to
remain strong throughout the fiscal year.
The Company expects to make significant progress
this year in marketing its Fire Shield® products. Currently,
the Company is shipping Fire Shield® Power Surge Strips
to approximately 620 Wal-Mart Stores, Inc., and the Company
is pursuing opportunities to place like product in other
major retailers. Also, the Company expects Fire Shield
licensed technology to generate royalties of approximately
$50,000 for the year. In addition, the Company is well-positioned
to participate in the estimated $60 million annual market
created by the 2002 National Electrical Code (NEC) and the
Underwriters Laboratories (UL) requirement for cord fire
protection on portable room air conditioners manufactured
after August 1, 2004. The Company’s Fire Shield® LCDI power
cords for this application have successfully completed the
UL testing requirements for the new 1699 standard and are
available for production. The Company’s patented Fire Shield®
technology has numerous applications and represents the
Company’s most significant opportunity for growth.
The first quarter dividend of $.015 per share
will be paid on July 25, 2003 to shareholders of record
on June 30, 2003. The Company’s annual dividend is $.06
per share.
TRC is an internationally recognized leader
in electrical safety products that prevent electrocution
and electrical fires and protect against serious injury
from electrical shock. Based on its core technology in
ground fault sensing, products are designed to meet the
needs of the consumer, commercial and industrial markets
worldwide. The Company also supplies power monitors and
control equipment to the United States Military and its
prime contractors.
“Safe Harbor” Statement under the Private
Securities Litigation Reform Act of 1995: Some of the statements
in this report constitute forward-looking statements, within
the meaning of the Private Securities Litigation Reform
Act of 1995 and the Securities Exchange Act of 1934. These
statements are related to future events, other future financial
performance or business strategies, and may be identified
by terminology such as "may," "will,"
"should," "expects," "scheduled,"
"plans," "intends," "anticipates,"
"believes," "estimates," "potential,"
or "continue," or the negative of such terms,
or other comparable terminology. These statements are only
predictions. Actual events as well as results may differ
materially. In evaluating these statements, you should
specifically consider the factors described throughout this
report. We cannot be assured that future results, levels
of activity, performance or goals will be achieved.
Comparative Operating Results
Unaudited
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