Astronics (ATRO) Q4 2003 earnings summary

Executive summary

• 2003 remained profitable despite lower aircraft demand and the completion of the F-16 night-vision retrofit program; core sales excluding F-16 were relatively flat.

• Strategy centered on expanding from lighting components to integrated aircraft lighting systems, increasing technical capability and revenue content per aircraft.

Financial highlights

• Net sales were $33.2 million, down 22.6% YoY; excluding F-16 sales, revenue was $32.5 million versus $32.8 million in 2002.

• Income from continuing operations was $782,000 versus $4.047 million; net income was $1.113 million versus $4.553 million.

• Diluted EPS from continuing operations was $0.10 versus $0.49; diluted net EPS was $0.14 versus $0.55.

• Cost of sales rose to 79.7% of revenue from 71.5%; R&D expense increased to $3.6 million from $2.7 million.

Outlook and guidance

• 2004 results were expected to resemble 2003, with a potentially slightly higher top line offset by increased development spending.

• 2004 priorities included technology development and qualification for contracts won in 2002–03, with added technical staff and R&D spending at or slightly above 2003 levels.

• Production from many awarded programs was not expected to materially affect revenue until 2005 and beyond; 2005 was forecast to deliver double-digit growth.