Performance Techs Posts Q2
Revenue in the second quarter 2005 amounted to $10.8 million, compared to $13.3 million in the corresponding quarter a year earlier. Revenue for the six months ended June 30, 2005 amounted to $24.0 million, compared to $28.8 million during the respective period in 2004.
Net income for the second quarter 2005 amounted to $.2 million, or $.02 per diluted share including restructuring charges amounting to $.1 million, or $.00 per diluted share related to cost improvement efforts, based on 13.0 million shares outstanding. Net income for the second quarter 2004 amounted to $1.0 million, or $.08 per diluted share based on 13.4 million shares outstanding.
Net income for the six months ended June 30, 2005 amounted to $1.3 million, or $.10 per diluted share including restructuring charges related to cost improvement efforts amounting to $.2 million, or $.01 per diluted share, based on 13.1 million shares outstanding. Net income for the six months ended June 30, 2004 amounted to $2.6 million, or $.19 per diluted share based on 13.5 million shares outstanding.
"We are very disappointed with the lower than anticipated earnings and revenue in the second quarter," said Donald Turrell, president and chief executive officer. "Despite weakness in a number of end markets for our products during the quarter, shipments of Advanced Managed Platforms accelerated during this period and we expect to see increased shipment volumes as more customers move their new products into production. Furthermore, we expect that ongoing competitive pressures on the North American wireless carriers will result in deployment of the previously announced network and data service upgrades during the later part of 2005 and into 2006. The Company's financial performance is expected to improve as the pace of these deployments increases."
Management expects diluted earnings per share in the third quarter to be in the range of $.04 to $.07, before any restructuring charges. Based upon the current business mix, the current backlog and review of sales forecasts, revenue is forecasted to be in the range of $11.5 million to $12.5 million in the third quarter 2005. Gross margin is expected to be approximately 45.5% to 47.5% and the effective income tax rate for the third quarter is expected to be 29%.
Performance Technologies Inc.