Memry Corporation FY '05 Revenue $45.0M; Net Income $2.7M or $0.10 Per Diluted Share
Q4 Revenue Up 38% to $13.3M; Net Income $881,000 or $0.03 Per Diluted Share
BETHEL, Conn., Aug. 31 /PRNewswire-FirstCall/ -- Memry Corporation (AMEX:MRY) reported today that revenue in the fiscal year ended June 30, 2005 rose 30% to a record $45,008,000, compared with $34,492,000 reported in the previous fiscal year. Net income was $2,725,000, or $0.10 per diluted share, compared with net income of $2,378,000, or $0.09 per diluted share, in the previous year. Pretax income for FY '05 was $4,408,000, compared with pretax income of $3,217,000 in FY '04.
For the fourth fiscal quarter ended June 30, 2005, revenue increased 38% to a record $13,345,000, compared with $9,658,000 in the fourth fiscal quarter of 2004. Fourth quarter net income was $881,000, or $0.03 per diluted share, compared with net income of $1,288,000, or $0.05 per diluted share, in the comparable period of 2004. Both the full-year and fourth quarter net income for fiscal 2004 included a $350,000 research and development tax credit.
James G. Binch, CEO of Memry, said, "Fiscal year 2005 was a superb year for Memry Corporation highlighted by the November acquisition of Putnam Plastics Corporation, one of the leading specialty polymer extrusion companies serving the medical device industry. Putnam added to our revenue stream with $8,033,000 in shipments of polymer extrusion components during the last eight months of the fiscal year. Putnam sales are expected to contribute 25% or more of total revenue going forward. Already Putnam is helping to smooth the growth of our revenue stream and will contribute to higher gross margins. In addition to new product lines that are enhancing revenue, the acquisition immediately provided us with incremental customers, new marketing avenues and important new materials capabilities that fit extremely well with our shape memory alloy business.
"Fiscal year 2005 was also a year of solid improvement for our core shape memory alloy business, which is primarily focused on the medical device component markets. Nitinol-related revenues were up 7% from the previous fiscal year to $36,975,000. We experienced growth in both nitinol wire-based and tube-based stent components as well as arch wire and guidewire products. These gains were offset by a decrease in revenue from super elastic tube, reflecting inventory adjustments and loss of market share by certain customers.
"We benefited from shipments of new medical device prototypes that we anticipate will lead to increased future shipments of commercial products. The Putnam addition has generated new inquiries from customers and enhanced our capabilities for engineering and delivering highly complex bundled components. We are providing customized nitinol components that we can integrate into completed access or delivery systems fabricated with sophisticated co- extrusion polymer systems from Putnam. Examples include nitinol or stainless steel reinforced catheters, delivery sheaths, complete guidewire systems and numerous other applications. By combining the talents of both organizations, we are able to solve complex and unique new design requirements, thus enabling us to meet a broader range of needs than was previously possible."
Chief Financial Officer Robert P. Belcher said, "For the year ended June 30, 2005, operating expenses rose 16%, including amortization of intangible assets associated with the acquisition of Putnam. As a percentage of revenue, operating expenses decreased from 31% to 27%. Cost of revenues rose 31% to $27,095,000, primarily reflecting the acquisition of Putnam. In addition, there was a shift in focus of staff engineers at Memry's nitinol operations from new process development to manufacturing support.
"On June 30, 2005, the company prepaid $2,500,000 of its subordinated debt in order to eliminate a portion of the 17% interest expense associated with this part of the Putnam acquisition financing. We are pleased that we have been able to pay down this debt while ending the fiscal year with over $4,000,000 in cash on our balance sheet," said Belcher.
Binch said, "Looking forward, we have said previously that the company is targeting an annualized revenue run rate of $100,000,000 in three years, based on a combination of internal growth and the accomplishment of another synergistic acquisition. The Putnam acquisition has reinforced Memry's position as a strategic supplier of enabling technologies, products and services to the medical device industry. We expect to make progress in the coming year on our objective to become the leading supplier of components and sub-assemblies to the medical device industry. We are specifically focused on providing high value-added solutions to assist in the diagnosis and treatment of diseases using less invasive technologies and procedures. In doing so, we also are continuing our efforts to diversify and expand our revenue base by offering new products and services. We expect this to be reflected in solid revenue growth and improvement in the bottom line in fiscal year 2006."
About Memry Corporation
Memry Corporation provides design, engineering, development and manufacturing services to the medical device and other industries using the company's proprietary shape memory alloy and polymer extrusion technologies. Medical device products include stent components, catheter components, guidewires, laparoscopic surgical sub-assemblies and orthopedic instruments as well as complex, multi-lumen, multi-layer polymer extrusions used for guidewires, catheters, delivery systems and various other high-end interventional medical devices.
A copy of the financial statements follows.
The company will host a conference call to discuss year-end results on Thursday, Sept. 1 at 11 a.m. Eastern. To participate in this call, dial (866) 548-2696 any time after 10:55 a.m. on Sept. 1. International callers should dial (678) 460-1868.
An investment profile on Memry may be found at http://www.hawkassociates.com/memry/profile.htm .
For more information, contact Memry Chief Financial Officer Robert P. Belcher at (203) 739-1100, e-mail: Robert_Belcher@memry.com , or Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . Detailed information about Memry Corporation can be found at http://www.memry.com/ . Copies of Memry Corporation press releases, SEC filings, current price quotes, stock charts and other valuable information for investors may be found on the websites http://www.hawkassociates.com/ and http://www.americanmicrocaps.com/ .
This release contains certain forward-looking statements that involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
Memry Corporation and Subsidiaries
Consolidated Balance Sheets
June 30, 2005 and 2004
(Unaudited)
2005 2004
ASSETS
Current Assets
Cash and cash equivalents $4,141,000 $12,404,000
Accounts receivable, net 5,846,000 4,132,000
Inventories 4,948,000 2,956,000
Deferred tax asset 1,391,000 975,000
Prepaid expenses and other current
assets 288,000 41,000
Total current assets 16,614,000 20,508,000
Property, Plant and Equipment, net 8,370,000 5,090,000
Other Assets
Intangible assets, net 7,842,000 933,000
Goodwill 13,946,000 1,038,000
Cash collateral deposits 1,500,000 --
Deferred financing costs, net 465,000 51,000
Deferred tax asset 3,508,000 5,175,000
Note receivable 407,000 --
Deposits and other assets 148,000 193,000
Total other assets 27,816,000 7,390,000
TOTAL ASSETS $52,800,000 $32,988,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $5,453,000 $3,213,000
Notes payable 2,601,000 320,000
Capital leases -- 29,000
Income tax payable 204,000 43,000
Total current liabilities 8,258,000 3,605,000
Notes Payable, less current maturities 8,773,000 1,159,000
Stockholders' Equity
Common stock, $.01 par value,
40,000,000 shares authorized;
28,580,591 shares issued and
outstanding in 2005 and 25,570,419
shares issued and outstanding in
2004 286,000 256,000
Additional paid-in capital 53,893,000 49,103,000
Accumulated deficit (18,410,000) (21,135,000)
Total stockholders' equity 35,769,000 28,224,000
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $52,800,000 $32,988,000
Memry Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Year Three Month Period
Ended June 30, Ended June 30,
2005 2004 2005 2004
Revenues $45,008,000 $34,492,000 $13,345,000 $9,658,000
Cost of Revenues 27,095,000 20,682,000 7,830,000 5,650,000
Gross
profit 17,913,000 13,810,000 5,515,000 4,008,000
Operating Expenses
Research and
development 2,401,000 2,878,000 866,000 632,000
General,
selling and
administration 9,571,000 7,600,000 2,632,000 1,941,000
Amortization of
intangible
assets 379,000 133,000 125,000 33,000
12,351,000 10,611,000 3,623,000 2,606,000
Operating income 5,562,000 3,199,000 1,892,000 1,402,000
Loss on
extinguishment of
debt (182,000) -- (182,000) --
Other income 60,000 -- 60,000 --
Interest
Expense (1,189,000) (74,000) (435,000) (1,000)
Income 157,000 92,000 48,000 29,000
(1,032,000) 18,000 (387,000) 28,000
Income before
income taxes 4,408,000 3,217,000 1,383,000 1,430,000
Provision for income
taxes 1,683,000 839,000 502,000 142,000
Net income $2,725,000 $2,378,000 $881,000 $1,288,000
Basic earnings per
share: $0.10 $0.09 $0.03 $0.05
Diluted earnings per
share: $0.10 $0.09 $0.03 $0.05
Source: Memry Corporation
CONTACT: Robert P. Belcher, Chief Financial Officer, Memry Corporation,
+1-203-739-1100, or Robert_Belcher@memry.com; or Frank Hawkins or Julie
Marshall, both of Hawk Associates, +1-305-451-1888, or
info@hawkassociates.com, for Memry
Web site: http://www.memry.com/
http://www.hawkassociates.com/memry/profile.htm
http://www.hawkassociates.com/
http://www.americanmicrocaps.com/
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