x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
New
Jersey
|
22-2378738
|
|
(STATE
OR OTHER JURISDICTION OF
INCORPORATION
OR ORGANIZATION)
|
(I.R.S.
EMPLOYER
IDENTIFICATION
NO.)
|
|
Accelerated
filer x
|
|
Non-accelerated
filer o
|
|
Smaller
reporting company o
|
|
|
|
(Do
not check if a smaller reporting
company)
|
|
PART
I.
|
FINANCIAL
INFORMATION
|
3
|
|
|
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
3
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
3
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
4
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(UNAUDITED)
|
6
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
7
|
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
|
8
|
|
|
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
16
|
|
|
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
23
|
|
|
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
24
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|
|
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PART
II.
|
OTHER
INFORMATION
|
24
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|
|
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
24
|
|
|
|
ITEM
1A.
|
RISK
FACTORS
|
25
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|
|
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ITEM
6.
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EXHIBITS
|
25
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|
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SIGNATURES
|
25
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|
Three Months Ended June 30,
|
||||||
(Amounts
in thousands, except per share amounts)
|
2008
|
2007
|
|||||
Net
sales
|
$
|
58,998
|
$
|
53,151
|
|||
Cost
of goods sold
|
33,757
|
30,267
|
|||||
Gross
profit
|
25,241
|
22,884
|
|||||
Total
operating expenses
|
19,587
|
16,590
|
|||||
Operating
income
|
5,654
|
6,294
|
|||||
Interest
expense, net
|
706
|
1,186
|
|||||
Foreign
currency exchange loss (gain)
|
(63
|
)
|
36
|
||||
Other
expense (income)
|
(421
|
)
|
102
|
||||
Income
from continuing operations before minority interest and income
taxes
|
5,432
|
4,970
|
|||||
Minority
interest, net of income taxes
|
77
|
82
|
|||||
Income
tax expense from continuing operations
|
1,500
|
1,173
|
|||||
Income
from continuing operations
|
3,855
|
3,715
|
|||||
Discontinued
operations:
|
|||||||
Income
from discontinued operations before income taxes
|
-
|
36
|
|||||
Income
tax expense from discontinued operations
|
-
|
6
|
|||||
Income
from discontinued operations
|
-
|
30
|
|||||
Net
income
|
$
|
3,855
|
$
|
3,745
|
|||
|
|||||||
Net
income per common share - Basic:
|
|||||||
Income
from continuing operations
|
$
|
0.27
|
$
|
0.26
|
|||
Income
from discontinued operations
|
-
|
-
|
|||||
Net
income per common share - Basic
|
$
|
0.27
|
$
|
0.26
|
|||
|
|||||||
Net
income per common share - Diluted:
|
|||||||
Income
from continuing operations
|
$
|
0.27
|
$
|
0.26
|
|||
Income
from discontinued operations
|
-
|
-
|
|||||
Net
income per common share - Diluted
|
$
|
0.27
|
$
|
0.26
|
|||
|
|||||||
Weighted
average shares outstanding - Basic
|
14,448
|
14,287
|
|||||
Weighted
average shares outstanding - Diluted
|
14,529
|
14,461
|
(Amounts
in thousands)
|
June 30, 2008
|
March 31, 2008
|
|||||
|
|
|
|||||
ASSETS
|
|||||||
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
26,782
|
$
|
21,565
|
|||
Accounts
receivable, trade, net of allowance for doubtful accounts of $750
and
$696, respectively
|
35,900
|
39,919
|
|||||
Inventories,
net
|
43,048
|
40,286
|
|||||
Deferred
income taxes, net
|
4,447
|
4,299
|
|||||
Prepaid
expenses and other current assets
|
4,250
|
3,760
|
|||||
Other
receivables
|
925
|
1,270
|
|||||
Due
from joint venture partner
|
1,979
|
2,155
|
|||||
Current
portion of promissory note receivable
|
540
|
809
|
|||||
Total
current assets
|
117,871
|
114,063
|
|||||
|
|||||||
Property,
plant and equipment, net
|
42,152
|
40,715
|
|||||
Goodwill
|
94,518
|
95,710
|
|||||
Acquired
intangible assets, net
|
30,040
|
31,766
|
|||||
Deferred
income taxes, net
|
1,795
|
1,769
|
|||||
Other
assets
|
1,556
|
1,592
|
|||||
Total
Assets
|
$
|
287,932
|
$
|
285,615
|
(Amounts
in thousands, except share amounts)
|
June 30, 2008
|
March 31, 2008
|
|||||
|
|
|
|||||
LIABILITIES,
MINORITY INTEREST AND SHAREHOLDERS' EQUITY
|
|||||||
|
|||||||
Current
liabilities:
|
|||||||
Current
portion of promissory notes payable
|
$
|
2,453
|
$
|
2,511
|
|||
Current
portion of long-term debt
|
2,867
|
3,157
|
|||||
Current
portion of capital lease obligation
|
797
|
822
|
|||||
Accounts
payable
|
22,423
|
23,523
|
|||||
Accrued
expenses
|
3,837
|
3,634
|
|||||
Accrued
compensation
|
6,704
|
7,067
|
|||||
Income
taxes payable
|
1,595
|
751
|
|||||
Other
current liabilities
|
3,319
|
3,510
|
|||||
Total
current liabilities
|
43,995
|
44,975
|
|||||
|
|||||||
Revolver
|
58,206
|
58,206
|
|||||
Promissory
notes payable, net of current portion
|
7,360
|
7,535
|
|||||
Long-term
debt, net of current portion
|
14,718
|
15,309
|
|||||
Capital
lease obligation, net of current portion
|
581
|
781
|
|||||
Other
liabilities
|
1,055
|
1,067
|
|||||
Total
liabilities
|
125,915
|
127,873
|
|||||
|
|||||||
Minority
interest
|
1,849
|
1,953
|
|||||
|
|||||||
Shareholders'
equity:
|
|||||||
Serial
preferred stock; 221,756 shares authorized; none
outstanding
|
-
|
-
|
|||||
Common
stock, no par; 25,000,000 shares authorized; 14,457,100 and 14,440,848
shares issued and outstanding, respectively
|
-
|
-
|
|||||
Additional
paid-in capital
|
79,677
|
78,720
|
|||||
Retained
earnings
|
65,794
|
61,939
|
|||||
Accumulated
other comprehensive income
|
14,697
|
15,130
|
|||||
Total
shareholders' equity
|
160,168
|
155,789
|
|||||
Total
liabilities, minority interest and shareholders' equity
|
$
|
287,932
|
$
|
285,615
|
|
Accumulated
|
||||||||||||||||||
|
Additional
|
Other
|
|||||||||||||||||
|
Shares of Common
|
paid-in
|
Retained
|
Comprehensive
|
Comprehensive
|
||||||||||||||
(Dollars
in thousands)
|
Stock
|
capital
|
Earnings
|
Income
(Loss)
|
Total
|
Income
|
|||||||||||||
Balance,
March 31, 2007
|
14,280,364
|
$
|
73,399
|
$
|
45,497
|
$
|
1,741
|
$
|
120,637
|
||||||||||
Comprehensive
income:
|
|||||||||||||||||||
Net
income
|
-
|
3,745
|
-
|
3,745
|
$
|
3,745
|
|||||||||||||
Currency
translation adjustment
|
-
|
-
|
340
|
340
|
340
|
||||||||||||||
Comprehensive
income
|
-
|
-
|
-
|
$
|
4,085
|
||||||||||||||
Non-cash
equity based compensation (SFAS 123R)
|
813
|
-
|
-
|
813
|
|||||||||||||||
Amounts
from exercise of stock options
|
5,937
|
17
|
-
|
-
|
17
|
||||||||||||||
Balance,
June 30, 2007
|
14,286,301
|
$
|
74,229
|
$
|
49,242
|
$
|
2,081
|
$
|
125,552
|
||||||||||
|
|||||||||||||||||||
Balance,
March 31, 2008
|
14,440,848
|
$
|
78,720
|
$
|
61,939
|
$
|
15,130
|
$
|
155,789
|
||||||||||
Comprehensive
income:
|
|||||||||||||||||||
Net
income
|
-
|
3,855
|
-
|
3,855
|
$
|
3,855
|
|||||||||||||
Currency
translation adjustment
|
-
|
-
|
(433
|
)
|
(433
|
)
|
(433
|
)
|
|||||||||||
Comprehensive
income
|
-
|
-
|
-
|
-
|
$
|
3,422
|
|||||||||||||
Non-cash
equity based compensation (SFAS 123R)
|
798
|
-
|
-
|
798
|
|||||||||||||||
Amounts
from exercise of stock options
|
16,252
|
159
|
-
|
-
|
159
|
||||||||||||||
Balance,
June 30, 2008
|
14,457,100
|
$
|
79,677
|
$
|
65,794
|
$
|
14,697
|
$
|
160,168
|
|
Three months ended June 30,
|
||||||
(Amounts
in thousands)
|
2008
|
2007
|
|||||
|
|
|
|||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
3,855
|
$
|
3,745
|
|||
Less:
Income from discontinued operations - Consumer
|
-
|
30
|
|||||
Income
from continuing operations
|
3,855
|
3,715
|
|||||
|
|||||||
Adjustments
to reconcile net income to net cash provided by operating activities
from
continuing operations:
|
|||||||
Depreciation
and amortization
|
3,337
|
2,280
|
|||||
Loss
on sale of assets
|
19
|
8
|
|||||
Provision
for doubtful accounts
|
23
|
17
|
|||||
Provision
for inventory reserve
|
56
|
439
|
|||||
Provision
for warranty
|
65
|
30
|
|||||
Minority
interest
|
77
|
82
|
|||||
Non-cash
equity based compensation (SFAS 123R)
|
798
|
813
|
|||||
Deferred
income taxes
|
(67
|
)
|
(158
|
)
|
|||
Net
change in operating assets and liabilities:
|
|||||||
Accounts
receivable, trade
|
4,066
|
2,206
|
|||||
Inventories
|
(2,645
|
)
|
(1,328
|
)
|
|||
Prepaid
expenses, other current assets and other receivables
|
(104
|
)
|
421
|
||||
Other
assets
|
220
|
398
|
|||||
Accounts
payable
|
(901
|
)
|
2,201
|
||||
Accrued
expenses, accrued compensation, other current and other
liabilities
|
(304
|
)
|
(929
|
)
|
|||
Accrued
litigation settlement expenses
|
-
|
(1,275
|
)
|
||||
Income
taxes payable
|
827
|
468
|
|||||
Net
cash provided by operating activities from continuing
operations
|
9,322
|
9,388
|
|||||
Cash
flows used in investing activities from continuing
operations:
|
|||||||
Purchases
of property and equipment
|
(3,318
|
)
|
(2,341
|
)
|
|||
Proceeds
from sale of assets
|
4
|
34
|
|||||
Net
cash used in investing activities from continuing
operations
|
(3,314
|
)
|
(2,307
|
)
|
|||
Cash
flows from financing activities from continuing
operations:
|
|||||||
Repayments
of long-term debt
|
(876
|
)
|
(606
|
)
|
|||
Borrowings
of short-term debt, revolver and notes payable
|
-
|
1,135
|
|||||
Payments
of short-term debt, revolver, leases and notes payable
|
-
|
(3,050
|
)
|
||||
Payments
of capital leases
|
(223
|
)
|
(215
|
)
|
|||
Minority
interest payments
|
-
|
(243
|
)
|
||||
Proceeds
from exercise of options
|
159
|
17
|
|||||
Net
cash used in financing activities from continuing
operations
|
(940
|
)
|
(2,962
|
)
|
|||
Net
cash provided by operating activities of discontinued
operations
|
-
|
36
|
|||||
Net
cash provided by investing activities of discontinued
operations
|
271
|
802
|
|||||
Net
cash provided by discontinued operations
|
271
|
838
|
|||||
|
|||||||
Net
change in cash and cash equivalents
|
5,339
|
4,957
|
|||||
Effect
of exchange rate changes on cash
|
(122
|
)
|
88
|
||||
Cash,
beginning of year
|
21,565
|
7,709
|
|||||
Cash,
end of period
|
$
|
26,782
|
$
|
12,754
|
|||
|
|||||||
Supplemental
Cash Flow Information:
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
904
|
$
|
1,196
|
|||
Income
taxes
|
656
|
682
|
Three months ended
June 30, 2008
|
Three months ended
June 30, 2007
|
||||||
Dividend
yield
|
-
|
-
|
|||||
Expected
Volatility
|
39.1
|
%
|
39.0
|
%
|
|||
Risk-Free
Interest Rate
|
2.1
|
%
|
4.6
|
%
|
|||
Expected
term (in years)
|
2.0
|
2.0
|
|||||
Weighted-average
grant-date fair value
|
$
|
5.68
|
$
|
9.17
|
Net income
(Numerator)
|
Weighted
Average Shares
in thousands
(Denominator)
|
Per-Share
Amount
|
||||||||
Three months
ended June 30, 2008
|
||||||||||
Basic
per share information
|
$
|
3,855
|
14,448
|
$
|
0.27
|
|||||
Effect
of dilutive securities
|
-
|
81
|
-
|
|||||||
Diluted
per-share information
|
$
|
3,855
|
14,529
|
$
|
0.27
|
|||||
Three
months ended June 30, 2007
|
||||||||||
Basic
per share information
|
$
|
3,745
|
14,287
|
$
|
0.26
|
|||||
Effect
of dilutive securities
|
-
|
174
|
-
|
|||||||
Diluted
per-share information
|
$
|
3,745
|
14,461
|
$
|
0.26
|
|
June 30, 2008
|
March 31, 2008
|
|||||
Raw
Materials
|
$
|
18,908
|
$
|
17,474
|
|||
Work-in-Process
|
5,994
|
6,140
|
|||||
Finished
Goods
|
21,844
|
20,082
|
|||||
|
46,746
|
43,696
|
|||||
Inventory
Reserves
|
(3,698
|
)
|
(3,410
|
)
|
|||
|
$
|
43,048
|
$
|
40,286
|
June 30, 2008
|
March 31, 2008
|
Useful
Life
|
||||||||
Production
equipment & tooling
|
$
|
45,190
|
$
|
43,893
|
3-10 years | |||||
Building
and leasehold improvements
|
9,982
|
9,737
|
39 years or lesser of useful life or remaining term of lease | |||||||
Furniture
and equipment
|
12,496
|
12,000
|
3-10 years | |||||||
Construction-in-progress
|
9,983
|
8,584
|
||||||||
Total
|
77,651
|
74,214
|
||||||||
Less:
accumulated depreciation and amortization
|
(35,499
|
)
|
(33,499
|
)
|
||||||
$
|
42,152
|
$
|
40,715
|
Assets:
|
||||
Cash
|
$
|
440
|
||
Accounts
receivable
|
3,109
|
|||
Inventory
|
1,672
|
|||
Prepaid
assets and other
|
714
|
|||
Property
and equipment
|
1,134
|
|||
Acquired
intangible assets
|
2,142
|
|||
Goodwill
|
7,588
|
|||
Other
|
303
|
|||
|
17,102
|
|||
Liabilities:
|
||||
Accounts
payable
|
(884
|
)
|
||
Accrued
compensation
|
(780
|
)
|
||
Deferred
income taxes
|
(65
|
)
|
||
Minority
interest
|
(1,121
|
)
|
||
|
(2,850
|
)
|
||
Total
Purchase Price
|
$
|
14,252
|
Assets:
|
||||
Cash
|
$
|
2,388
|
||
Accounts
receivable
|
3,180
|
|||
Inventory
|
2,521
|
|||
Property
and equipment
|
3,551
|
|||
Acquired
intangible assets
|
8,609
|
|||
Goodwill
|
25,803
|
|||
Other
|
228
|
|||
|
46,280
|
|||
Liabilities:
|
||||
Accounts
payable
|
(1,733
|
)
|
||
Accrued
expenses
|
(695
|
)
|
||
Taxes
payable
|
(805
|
)
|
||
Debt
|
(3,737
|
)
|
||
Deferred
income taxes
|
(2,062
|
)
|
||
|
(9,032
|
)
|
||
Total
Purchase Price
|
$
|
37,248
|
Assets:
|
||||
Accounts
receivable
|
$
|
12
|
||
Inventory
|
10
|
|||
Acquired
intangible assets
|
1,528
|
|||
Goodwill
|
74
|
|||
Total
Purchase Price
|
$
|
1,624
|
||
|
||||
Cash
paid
|
$
|
1,400
|
||
Deferred
payment
|
|
100
|
||
Costs
|
124
|
|||
Total
Purchase Price
|
$
|
1,624
|
Assets:
|
||||
Cash
|
$
|
10,542
|
||
Accounts
receivable
|
1,162
|
|||
Inventory
|
3,770
|
|||
Other
assets
|
619
|
|||
Property
and equipment
|
1,811
|
|||
Acquired
intangible assets
|
13,773
|
|||
Goodwill
|
14,144
|
|||
|
45,821
|
|||
|
||||
Liabilities:
|
||||
Accounts
payable
|
(832
|
)
|
||
Accrued
compensation
|
(1,412
|
)
|
||
Deferred
income taxes
|
(3,417
|
)
|
||
|
(5,661
|
)
|
||
Total
Purchase Price
|
$
|
40,160
|
June
30, 2008
|
March
31, 2008
|
|||||||||||||||||||||||
Weighted-
Average Life
in years
|
Gross Amount
|
Accumulated
Amortization
|
Net
|
Gross Amount
|
Accumulated
Amortization
|
Net
|
||||||||||||||||||
Amortizable
intangible assets:
|
||||||||||||||||||||||||
Customer
relationships
|
9
|
$
|
28,108
|
$
|
(6,801
|
)
|
$
|
21,307
|
$
|
28,387
|
$
|
(5,950
|
)
|
$
|
22,437
|
|||||||||
Patents
|
15
|
4,421
|
(816
|
)
|
3,605
|
4,391
|
(714
|
)
|
3,677
|
|||||||||||||||
Tradenames
|
3
|
1,876
|
(1,148
|
)
|
728
|
1,895
|
(998
|
)
|
897
|
|||||||||||||||
Backlog
|
1
|
2,635
|
(2,253
|
)
|
382
|
2,653
|
(2,067
|
)
|
586
|
|||||||||||||||
Covenants-not-to-compete
|
3
|
970
|
(916
|
)
|
54
|
970
|
(910
|
)
|
60
|
|||||||||||||||
Proprietary
technology
|
14
|
4,703
|
(739
|
)
|
3,964
|
4,756
|
(647
|
)
|
4,109
|
|||||||||||||||
$
|
42,713
|
$
|
(12,673
|
)
|
$
|
30,040
|
$
|
43,052
|
$
|
(11,286
|
)
|
$
|
31,766
|
Fiscal
|
Amortization
|
|
||
Year
|
|
Expense
|
|
|
2009
|
$
|
4,982
|
||
2010
|
4,179
|
|||
2011
|
3,867
|
|||
2012
|
3,419
|
|||
2013
|
2,843
|
|||
Thereafter
|
10,750
|
|||
$
|
30,040
|
|
Three months
ended June 30,
|
|||
2007
|
||||
Net
sales
|
$
|
56,995
|
||
Income
from continuing operations
|
$
|
3,388
|
||
Income
from continuing operations per common share:
|
||||
Basic
|
$
|
0.24
|
||
Diluted
|
$
|
0.23
|
June 30,
|
March 31,
|
||||||
2008
|
2008
|
||||||
Prime
or LIBOR plus 2.00% or 0.25% five-year term loan with a final installment
due on April 3, 2011
|
$
|
15,500
|
$
|
16,000
|
|||
Governmental
loans from French agencies at no interest and payable based on R&D
expenditures.
|
794
|
794
|
|||||
Term
credit facility with six banks at an interest rate of 4% payable
through
2010.
|
992
|
1,079
|
|||||
Bonds
issued at an interest rate of 3% payable through 2009.
|
276
|
553
|
|||||
Term
credit facility with two banks at interest rates of 3.9%-4.0% payable
through 2009.
|
23
|
40
|
|||||
17,585
|
18,466
|
||||||
Less
current portion of long-term debt
|
2,867
|
3,157
|
|||||
$
|
14,718
|
$
|
15,309
|
||||
4.5%
promissory note payable in four equal annual installments through
December
28, 2011
|
$
|
9,813
|
$
|
10,046
|
|||
Less
current portion of promissory notes payable
|
2,453
|
2,511
|
|||||
$
|
7,360
|
$
|
7,535
|
Year
|
Term
|
|
Other
|
|
Subtotal
|
|
Notes
|
|
Revolver
|
|
Total
|
||||||||
2009
|
$
|
2,000
|
$
|
867
|
$
|
2,867
|
$
|
2,453
|
-
|
$
|
5,320
|
||||||||
2010
|
2,000
|
859
|
2,859
|
2,453
|
-
|
5,312
|
|||||||||||||
2011
|
11,500
|
288
|
11,788
|
2,453
|
-
|
14,241
|
|||||||||||||
2012
|
-
|
51
|
51
|
2,454
|
58,206
|
60,711
|
|||||||||||||
2013
|
-
|
20
|
20
|
-
|
-
|
20
|
|||||||||||||
Thereafter
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
|
$
|
15,500
|
$
|
2,085
|
$
|
17,585
|
$
|
9,813
|
$
|
58,206
|
$
|
85,604
|
For the three months ended June 30,
|
|||||||
2008
|
2007
|
||||||
Net
Sales:
|
|||||||
United
States
|
$
|
25,000
|
$
|
27,307
|
|||
France
|
7,808
|
6,250
|
|||||
Germany
|
4,842
|
4,250
|
|||||
Ireland
|
3,522
|
3,147
|
|||||
Switzerland
|
4,148
|
-
|
|||||
China
|
13,678
|
12,197
|
|||||
Total:
|
$
|
58,998
|
$
|
53,151
|
|||
|
June 30, 2008
|
March 31, 2008
|
|||||
Long
Lived Assets:
|
|||||||
United
States
|
$
|
6,769
|
$
|
6,624
|
|||
France
|
6,828
|
6,808
|
|||||
Germany
|
2,910
|
2,817
|
|||||
Ireland
|
4,250
|
4,263
|
|||||
Switzerland
|
2,272
|
2,418
|
|||||
China
|
19,123
|
17,785
|
|||||
Total:
|
$
|
42,152
|
$
|
40,715
|
·
|
Conditions
in the general economy and in the markets served by
us;
|
·
|
Competitive
factors, such as price pressures and the potential emergence of rival
technologies;
|
·
|
Interruptions
of suppliers’ operations or the refusal of our suppliers to provide us
with component materials;
|
·
|
Timely
development, market acceptance and warranty performance of new
products;
|
·
|
Changes
in product mix, costs and yields and fluctuations in foreign currency
exchange rates;
|
·
|
Uncertainties
related to doing business in Europe and
China;
|
·
|
Legislative
initiatives, including tax legislation and other changes in the Company’s
tax position;
|
·
|
Legal
proceedings, and
|
·
|
The
risk factors listed from time to time in the reports we file with
the SEC,
including those described below under “Item 1A. Risk Factors” in our
Annual Report on Form 10-K for the year ended March 31,
2008.
|
`
|
Three months ended June 30 ,
|
Percent
|
|||||||||||
|
2008
|
2007
|
Change
|
Change
|
|||||||||
Net
sales
|
$
|
58,998
|
$
|
53,151
|
$
|
5,847
|
11.0
|
|
|||||
Cost
of goods sold
|
33,757
|
30,267
|
3,490
|
11.5
|
|||||||||
Gross
profit
|
25,241
|
22,884
|
2,357
|
10.3
|
|||||||||
Operating
expenses:
|
|||||||||||||
Selling,
general, and administrative
|
17,425
|
14,970
|
2,455
|
16.4
|
|||||||||
Non-cash
equity based compensation (SFAS 123R)
|
798
|
813
|
(15
|
)
|
(1.8
|
)
|
|||||||
Amortization
of acquired intangibles
|
1,364
|
807
|
557
|
69.0
|
|||||||||
Total
operating expenses
|
19,587
|
16,590
|
2,997
|
18.1
|
|||||||||
Operating
income
|
5,654
|
6,294
|
(640
|
)
|
(10.2
|
)
|
|||||||
Interest
expense, net
|
706
|
1,186
|
(480
|
)
|
(40.5
|
)
|
|||||||
Foreign
currency exchange loss (gain)
|
(63
|
)
|
36
|
(99
|
)
|
(275.0
|
)
|
||||||
Other
expense (income)
|
(421
|
)
|
102
|
(523
|
)
|
(512.7
|
)
|
||||||
Income
from continuing operations before minority interest and income
taxes
|
5,432
|
4,970
|
462
|
9.3
|
|||||||||
Minority
interest, net of income taxes
|
77
|
82
|
(5
|
)
|
(6.1
|
)
|
|||||||
Income
from continuing operations before income taxes
|
5,355
|
4,888
|
467
|
9.6
|
|||||||||
Income
tax expense from continuing operations
|
1,500
|
1,173
|
327
|
27.9
|
|||||||||
Income
from continuing operations
|
$
|
3,855
|
$
|
3,715
|
$
|
140
|
3.8
|
Contractual
Obligations:
|
Payment due by period
|
|||||||||||||||
Total
|
1
year
|
2-3
years
|
4-5
years
|
>
5years
|
||||||||||||
Long-term
debt obligations
|
$
|
85,604
|
$
|
5,320
|
$
|
19,553
|
$
|
60,731
|
$
|
-
|
||||||
Interest
obligation on long-term debt
|
14,951
|
4,109
|
7,448
|
3,394
|
-
|
|||||||||||
Capital
lease obligations
|
1,378
|
797
|
581
|
-
|
-
|
|||||||||||
Operating
lease obligations *
|
14,996
|
4,787
|
5,558
|
2,087
|
2,564
|
|||||||||||
Other
long-term obligations**
|
824
|
624
|
200
|
-
|
-
|
|||||||||||
Capital
additions (China facility)
|
1,175
|
1,175
|
-
|
-
|
-
|
|||||||||||
Total
|
$
|
118,928
|
$
|
16,812
|
$
|
33,340
|
$
|
66,212
|
$
|
2,564
|
For the three months ended June 30,
|
|||||||
2008
|
2007
|
||||||
Net
Sales:
|
|||||||
United
States
|
$
|
25,000
|
$
|
27,307
|
|||
France
|
7,808
|
6,250
|
|||||
Germany
|
4,842
|
4,250
|
|||||
Ireland
|
3,522
|
3,147
|
|||||
Switzerland
|
4,148
|
-
|
|||||
China
|
13,678
|
12,197
|
|||||
Total:
|
$
|
58,998
|
$
|
53,151
|
|||
|
June 30, 2008
|
March 31, 2008
|
|||||
Long
Lived Assets:
|
|||||||
United
States
|
$
|
6,769
|
$
|
6,624
|
|||
France
|
6,828
|
6,808
|
|||||
Germany
|
2,910
|
2,817
|
|||||
Ireland
|
4,250
|
4,263
|
|||||
Switzerland
|
2,272
|
2,418
|
|||||
China
|
19,123
|
17,785
|
|||||
Total:
|
$
|
42,152
|
$
|
40,715
|
|
Measurement
Specialties, Inc.
|
|
|
(Registrant)
|
|
Date: August
6, 2008
|
By:
|
/s/
Frank D. Guidone
|
Frank
D. Guidone
|
||
President,
Chief Executive Officer
|
||
(Principal
Executive Officer)
|
||
Date: August
6, 2008
|
By:
|
/s/
Mark Thomson
|
Mark
Thomson
|
||
Chief
Financial Officer
|
||
(Principal
Financial Officer)
|
EXHIBIT
NUMBER
|
|
DESCRIPTION
|
10.17
|
Executive
Employment Agreement dated December 7, 2005 by and between Measurement
Specialties, Inc. and Steve Smith
|
|
10.18
|
Executive
Employment Agreement dated February 15, 2008 by and between Measurement
Specialties, Inc. and Glen MacGibbon
|
|
|
|
|
31.1
|
|
Certification
of Frank D. Guidone required by Rule 13a-14(a) or Rule
15d-14(a)
|
|
|
|
31.2
|
|
Certification
of Mark Thomson required by Rule 13a-14(a) or Rule
15d-14(a)
|
|
|
|
32.1
|
|
Certification
of Frank D. Guidone and Mark Thomson required by Rule 13a-14(b) or
Rule
15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.
Section 1350
|