Hi-Shear Announces First Quarter Results Revenues Increase 7%

  
    
  
  
    
      Hi-Shear Technology Corporation, Torrance, CA (NYSE Alternext US: HSR) 
      today announced results for its first quarter of fiscal 2009 ending 
      August 31, 2008. Revenues recognized during the first quarter were 
      $6,044,000 compared to the revenues of $5,659,000 for the same period 
      last year. The 7% revenue growth was attributed to the increased 
      military aircraft product line activity during the quarter. Net income 
      for the quarter ended August 31, 2008 was $1,166,000, or $0.17 per 
      share, compared to net income of $1,130,000, or $0.17 per share, for the 
      quarter ended August 31, 2007. On October 9, 2008 the Company approved 
      the distribution of a cash dividend of $0.50 per share, or approximately 
      $3,410,000, payable on October 27, 2008, to shareholders of record as of 
      the close of business October 24, 2008.
    
    
      Hi-Shear Technology Corporation provides pyrotechnic, mechanical, and 
      electronic products to the aerospace and defense market in applications 
      where safety, performance and high reliability are essential. It 
      develops and produces advanced systems and products that are primarily 
      used worldwide in space satellites, launch vehicles, national defense, 
      and government programs.
    
    
      This release, as it relates to product announcements and other Company 
      matters, contains forward-looking statements, which are made pursuant to 
      the safe harbor provisions of the Private Securities Litigation Reform 
      Act of 1995. Investors are cautioned that all forward-looking statements 
      involve risks and uncertainties including, without limitation, risks 
      related to market acceptance of and demand for the Company’s 
      new products, dependence on the uncertainty of government budgetary 
      issues, primary government contracts, and intellectual property rights.
    
    
      The Company’s Form 10-QSB will be filed with 
      the Securities and Exchange Commission on or about October 15, 2008. The 
      10-QSB will be available for download at www.hstc.com. 
      For more information regarding this release or general information about 
      the company contact Ms. Linda A. Nespole, [phone].
    
    
      
        
          FINANCIAL INFORMATION
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
          FINANCIAL STATEMENTS
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          BALANCE SHEETS
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          August 31,
        
        
        
        
        
        
          May 31,
        
      
      
        
        
        
        
        
          2008
        
        
        
        
        
        
          2008
        
      
      
        
        
        
        
        
          (Unaudited)
        
        
        
        
        
        
           
        
      
      
        
          ASSETS:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current Assets:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
          $
        
        
          6,858,000
        
        
        
        
          $
        
        
          1,655,000
        
      
      
        
          Accounts receivable, net
        
        
        
        
          9,769,000
        
        
        
        
        
        
          14,474,000
        
      
      
        
          Inventories, net
        
        
        
        
          2,094,000
        
        
        
        
        
        
          1,345,000
        
      
      
        
          Deferred income taxes
        
        
        
        
          2,251,000
        
        
        
        
        
        
          2,430,000
        
      
      
        
          Prepaid expenses and other current assets
        
        
        
        
          318,000
        
        
        
        
        
        
          182,000
        
      
      
        
          Total current assets
        
        
          $
        
        
          21,290,000
        
        
        
        
          $
        
        
          20,086,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Land
        
        
        
        
          846,000
        
        
        
        
        
        
          846,000
        
      
      
        
          Equipment, net
        
        
        
        
          1,973,000
        
        
        
        
        
        
          2,003,000
        
      
      
        
          Total assets
        
        
          $
        
        
          24,109,000
        
        
        
        
          $
        
        
          22,935,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LIABILITIES AND STOCKHOLDERS' EQUITY:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current Liabilities:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Bank line of credit/note payable
        
        
          $
        
        
          0
        
        
        
        
          $
        
        
          0
        
      
      
        
          Trade accounts payable
        
        
        
        
          678,000
        
        
        
        
        
        
          740,000
        
      
      
        
          Accrued liabilities
        
        
        
        
          6,182,000
        
        
        
        
        
        
          5,872,000
        
      
      
        
          Deferred revenue
        
        
        
        
          930,000
        
        
        
        
        
        
          1,204,000
        
      
      
        
          Current portion of obligations under capital leases
        
        
        
        
          40,000
        
        
        
        
        
        
          40,000
        
      
      
        
          Total current liabilities
        
        
          $
        
        
          7,830,000
        
        
        
        
          $
        
        
          7,856,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deferred income taxes
        
        
        
        
          302,000
        
        
        
        
        
        
          315,000
        
      
      
        
          Obligation under capital leases (less current portion)
        
        
        
        
          24,000
        
        
        
        
        
        
          34,000
        
      
      
        
          Total liabilities
        
        
          $
        
        
          8,156,000
        
        
        
        
          $
        
        
          8,205,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' Equity
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Preferred stock, $1.00 par value; 500,000 shares
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          authorized; no shares issued
        
        
        
        
          0
        
        
        
        
        
        
          0
        
      
      
        
          Common stock, $.001 par value - 25,000,000 shares
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          authorized; 6,819,291 and 6,817,541 shares issued
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          and outstanding at August 31, 2008 and May 31, 2008
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          respectively
        
        
        
        
          7,000
        
        
        
        
        
        
          7,000
        
      
      
        
          Additional paid-in capital
        
        
        
        
          7,880,000
        
        
        
        
        
        
          7,823,000
        
      
      
        
          Retained earnings
        
        
        
        
          8,066,000
        
        
        
        
        
        
          6,900,000
        
      
      
        
          Total stockholders' equity
        
        
          $
        
        
          15,953,000
        
        
        
        
          $
        
        
          14,730,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total liabilities and stockholders' equity
        
        
          $
        
        
          24,109,000
        
        
        
        
          $
        
        
          22,935,000
        
      
    
    
      
        
          HI-SHEAR TECHNOLOGY CORPORATION
        
        
           
        
        
        
        
        
      
      
        
          STATEMENTS OF OPERATIONS (UNAUDITED)
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three-Month Period Ended
        
      
      
        
        
        
          August 31,
        
      
      
        
        
        
        
        
          2008
        
        
        
        
        
        
          2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
          $
        
        
          6,044,000
        
        
        
        
          $
        
        
          5,659,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of Revenues
        
        
        
        
          3,073,000
        
        
        
        
        
        
          2,837,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gross Margin
        
        
        
        
          2,971,000
        
        
        
        
        
        
          2,822,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selling, General and Administrative Expenses
        
        
        
        
          1,019,000
        
        
        
        
        
        
          958,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating Income
        
        
        
        
          1,952,000
        
        
        
        
        
        
          1,864,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest Income, Net
        
        
        
        
          11,000
        
        
        
        
        
        
          12,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before Income Tax Expense
        
        
        
        
          1,963,000
        
        
        
        
        
        
          1,876,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income Tax Expense
        
        
        
        
          797,000
        
        
        
        
        
        
          746,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Income
        
        
          $
        
        
          1,166,000
        
        
        
        
          $
        
        
          1,130,000
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per Common Share - Basic
        
        
          $
        
        
          0.17
        
        
        
        
          $
        
        
          0.17
        
      
      
        
          Earnings per Common Share - Diluted
        
        
          $
        
        
          0.17
        
        
        
        
          $
        
        
          0.17
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted # Common Shares Outstanding:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          6,818,000
        
        
        
        
        
        
          6,790,000
        
      
      
        
          Diluted
        
        
        
        
          6,833,000
        
        
        
        
        
        
          6,806,000