EMS Technologies reports robust Q3 performance
Oct 31, 2007
Operating income up 91% and the company increases 2007 earnings guidance
EMS Technologies, Inc. (NasdaqGS:ELMG) announced outstanding financial results for the third quarter of 2007, with growth in both revenues and operating income. Revenues were $73.1 million and operating income was $5.2 million in the third quarter of 2007, as compared with revenues of $64.7 million and operating income of $2.7 million for third quarter 2006.
The Company's third-quarter earnings from continuing operations were $5.6 million, or $.36 per share, compared with $5.5 million, or $.36 per share, for the same period of 2006. The 2006 period included an $.18 per share non-recurring benefit for an increase in the estimated research and development tax credits available to the Company in the U.S. The results for 2007 were also affected by a favorable income tax-related adjustment, but by a much smaller amount. The 2007 period included $.04 per share benefit from lowering the year-to-date consolidated effective income tax rate; this revised effective rate resulted mainly from the increasing portion of 2007 consolidated profits that are expected to be earned in Canada, where the Company has accumulated significant research-related tax benefits. Excluding the effects of these income tax benefits for both periods, pro forma earnings for the third quarter would have been $.32 per share in 2007 compared with $.18 per share in 2006.
"EMS delivered another strong quarter with solid execution in key areas of our Company, resulting in gross margin growth across all our businesses," said Paul Domorski, president and CEO, EMS Technologies. "Demand for our technology and products in the aeronautical, defense and commercial space markets remains high.