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TECHNOLOGY
RESEARCH CORPORATION
ANNOUNCES STRONG THIRD FISCAL
QUARTER RESULTS
AND RECORD PERFORMANCE FOR
THE NINE-MONTH PERIOD
CLEARWATER, FLORIDA, January 20, 2004 --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 third quarter ended
December 31, 2003 were $5,805,556, compared to $4,582,284 reported
in the same quarter last year, an increase of 27% with military
revenues increasing by $958,773, commercial revenues by $255,834
and royalty income by $8,665. Net income for the current quarter
was $680,388, compared to $311,963, for the same quarter last
year, an increase of 118%. Basic earnings were $.12 per share
and diluted earnings were $.11 per share for the current quarter
compared to basic and diluted earnings of $.06 per share for
the same quarter last year. The Company recorded expenses of
$137,923 in the quarter for new account setup and the promotion
of its Fire Shield® products in retail stores. In addition,
the Company recorded a non-recurring expense of approximately
$75,000 due to a change in its severance policy at its Honduran
subsidiary during the quarter.
The Company's operating revenues for the nine-month
period ended December 31, 2003 were $17,678,125, compared to
$12,406,418 reported in the same period of the prior year, an
increase of 42%. Net income for the nine-month period was $2,058,348,
compared to $647,549, for the same period in the prior year,
an increase of 218%. Basic earnings were $.37 per share and
diluted earnings were $.36 per share for the nine-month period
compared to basic and diluted earnings of $.12 per share for
the same period of the prior year.
Mr. Wiggins commented, “The Company achieved
its best performance ever with record high revenues and net
income through nine months. Our manufacturing facilities continue
to operate efficiently, and the Company ended the quarter with
$5,195,426 in cash and remained debt-free.” Mr. Wiggins added,
“The outlook for the remainder of the fiscal year continues
to be positive.”
For the nine-month period ended December 31,
2003, commercial revenues increased by $1,933,095, military
revenues improved by $3,358,171 and royalty income was down
by $19,559 compared to the same period of the prior year. The
increase in commercial revenues was primarily attributed to
product sales of $1,008,831 into retail stores and $450,000
to a major sprayer/washer manufacturer. New accounts in the
Recreational Vehicle, Brand Label and Commercial Distribution
markets contributed to the remainder of the growth. Military
revenues continue to be strong due to direct military shipments
of support parts for existing systems and control devices related
to the Tactical Quiet Generator (TQG) programs. The increase
in direct military shipments is primarily the result of current
U.S. military activity.
The Company continues to make progress in establishing
its Fire Shield® brand name. Fire Shield® product sales were
$750,957, or 8.3% of commercial sales, for the nine-month period.
In addition, the Company recorded royalty income of $67,536
for the nine-month period from Applica Inc., a licensee that
incorporates a Fire Shield® cord set on its line of Black &
Decker® portable heaters. The Company’s patented Fire Shield®
technology has numerous applications and represents a significant
opportunity for growth. One example is that 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) currently scheduled requirement
for cord fire protection on portable room air conditioners which
are manufactured after August 1, 2004. The Company’s products
are currently under evaluation by a number of room air conditioner
manufacturers.
The third quarter dividend of $.015 per share
will be paid on January 23, 2004 to shareholders of record on
December 31, 2003. The Company’s annual dividend is expected
to be $.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 |
