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Medical equipment industry

Hytek Microsystems Reports Fiscal 2005 First Quarter Financial Results

Strategic Insights

— 2 min read

Hytek Microsystems, Inc., a leader in hybrid microelectronic circuits, today announced its fiscal 2005 first quarter financial results, which saw a net loss of $2,000, or $0.00 per diluted share, compared to net income of $60,000, or $0.02 per diluted share, for the first quarter of 2004. The company's net revenues for the first quarter ended April 2, 2005 increased approximately 26% to $3,111,000 from $2,466,000 for the first quarter ended April 3, 2004.

Key Takeaways:

  • Hytek Microsystems reported a net loss of $2,000, or $0.00 per diluted share, for the fiscal 2005 first quarter, compared to net income of $60,000, or $0.02 per diluted share, for the first quarter of 2004.
  • The company's net revenues for the first quarter ended April 2, 2005 increased approximately 26% to $3,111,000 from $2,466,000 for the first quarter ended April 3, 2004, primarily due to increased sales of medical products to Medtronic, Inc. and other custom hybrids.
  • The net loss for the first quarter of 2005 was due to costs relating to the pending merger with Natel Engineering of approximately $160,000, which depressed net income despite a 26% increase in net revenues.
  • Medtronic had discontinued purchasing products from Hytek, citing its intention to develop an internal source of supply for one of the Company's products, but confirmed that the discontinuation was not based on dissatisfaction with the quality of the products manufactured by Hytek.
  • The company expects to close the merger transaction with Natel Engineering during the second quarter of 2005, subject to obtaining requisite approval from Hytek's shareholders and other customary closing conditions.
  • The report of independent auditors on Hytek's financial statements for the fiscal year ended January 1, 2005 includes an explanatory paragraph indicating there is substantial doubt about Hytek's ability to continue as a going concern.

Statistics:

  • Net loss for the fiscal 2005 first quarter: $2,000
  • Net income for the first quarter of 2004: $60,000
  • Net revenues for the first quarter of 2005: $3,111,000
  • Net revenues for the first quarter of 2004: $2,466,000
  • Increase in net revenues for the fiscal 2005 first quarter: 26%
  • Number of Medtronic purchase orders discontinued: Unknown
  • Date of Medtronic's notice to Hytek: January 24, 2005
  • Date of Hytek's announcement of the merger agreement with Natel Engineering: February 14, 2005
  • Expected closing date of the merger transaction: Second quarter of 2005

Sources:

  • Hytek Microsystems, Inc. (2005). PRNewswire-FirstCall. Retrieved from http://www.financialrelationsboard.com/
  • Securities and Exchange Commission (2005). Form 8-K. Retrieved from http://www.sec.gov/
  • Hytek Microsystems, Inc. (2005). Proxy Statement for the 2005 Annual Meeting of Shareholders. Retrieved from http://www.sec.gov/

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