Sparton releases Q4 results

Sparton Corporation (NYSE:SPA) announced financial results for the fourth quarter and fiscal year ended June 30, 2004.

BDO Seidman, auditors for Sparton Corporation, have substantially completed their audit for the fiscal year ended June 30, 2004, and we are furnishing the following results.

Sales for the fourth quarter of fiscal 2004 were $47.8 million versus $49.0 million last year. The decrease in sales primarily reflected a lowered demand for homeland security products, with some offset in the aerospace markets. For fiscal year 2004, the Company reported net sales of $161.0 million, compared to $169.9 last year. For the year, governmental sales declined 11% to $44.8 million, industrial/other sales decreased 29% to $39.9 million, and medical/scientific instrumentation sales decreased 4% to $17.9 million. The decrease in government sales was generally attributable to a decline in foreign demand, including one delayed foreign sonobuoy sale of $4.7 million, which, due to unforeseen shipping complications did not occur until July. The decrease in industrial/other sales was due to reduced demand for chemical trace detection equipment in both the U.S. and Canadian airports. These sales approximated $2.9 million in fiscal 2004 compared to $25.5 million last year. Aerospace sales increased during fiscal 2004 by 30% to $58.4 million, primarily due to increased demand from one existing customer.

Net income for the fourth quarter of fiscal 2004 was $1.5 million ($.18 per share, basic and diluted) compared to $2.6 million ($.31 per share basic, $.30 diluted) last year. For the full fiscal year, the Company's net loss was $2.0 million ($.24 per share, basic and diluted) compared to a profit of $9.0 million ($1.08 per share basic, $1.07 diluted) last year. Fiscal 2003's net income includes the $5.5 million favorable settlement, ($3.6 million net of tax), with the U.S. Department of Energy and others that was recorded in September 2002.

At June 30, 2004, total shareowners' equity was $88.9 million. The Company had no outstanding long or short-term debt, and cash and cash equivalents and investment securities totaled $29.5 million.

The Board of Directors has scheduled Wednesday, November 10, 2004, as the date for the Sparton Annual Shareowners' Meeting. The annual meeting will be held in Jackson, Michigan. Sparton expects to mail the annual report to shareowners in early October.