Applied Signal Technology Reports Strong Fiscal 1994 Earnings Despite Net Income Decline

Strategic Insights -

Applied Signal Technology Inc., a leading provider of signal processing equipment, announced its fiscal 1994 earnings, showing significant revenue growth and increased net income in the fourth quarter. Despite a slight decline in net income for the year, the company reported strong results, driven by new contract awards and increased marketing efforts. The company's commitment to research and development has enabled it to provide advanced technology solutions to its customers, particularly in the foreign signal reconnaissance market.

Key Takeaways:

  • Revenues for fiscal 1994 reached $64.341 million, representing an 11% increase over fiscal year 1993 revenues of $57.954 million.
  • Net income declined 4% to $3.140 million, or 40 cents per share, for the year ended 1994 from $3.263 million, or 47 cents per share, for the same period of 1993.
  • Revenues for the fourth quarter of fiscal 1994 were $22.387 million, up 26% from $17.791 million for the fourth quarter of fiscal 1993.
  • Net income for the fourth quarter of fiscal 1994 was $1.635 million, or 22 cents per share, up 191% compared to net income of $562,000, or 7 cents per share, for the same period of 1993.
  • The company attributes the strong quarter-to-quarter net income growth to the award of several new contracts at the end of the government's fiscal year.
  • The decline in net income is due to an increase in general and administrative spending resulting from an increased emphasis on marketing and a higher effective tax rate from 34% to 39%.

Statistics:

  • Revenues for fiscal 1994: $64.341 million
  • Revenues for fiscal 1993: $57.954 million
  • Increase in revenues: 11%
  • Net income for fiscal 1994: $3.140 million
  • Net income for fiscal 1993: $3.263 million
  • Decline in net income: 4%
  • Revenues for the fourth quarter of fiscal 1994: $22.387 million
  • Revenues for the fourth quarter of fiscal 1993: $17.791 million
  • Increase in revenues for the fourth quarter: 26%
  • Net income for the fourth quarter of fiscal 1994: $1.635 million
  • Net income for the fourth quarter of fiscal 1993: $562,000

Sources:

  • Business Wire (1994)
  • Applied Signal Technology Inc. (press release)