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Measurement Specialties Announces Revised Guidance for FY05
HAMPTON, Va., May 17 /PRNewswire-FirstCall/ -- Measurement Specialties, Inc.
(AMEX:MSS), a designer and manufacturer of sensors and sensor-based consumer
products, announced today it has revised previously disclosed guidance for
fiscal 2005 earnings per share to approximately $1, from $1.05. The reduction
is primarily due to higher than expected non-cash charges associated with the
final accounting for the recent acquisitions and related amortization of
intangible assets, and lower sensor gross margin, as compared to previous
estimates.
Frank Guidone, Company CEO, commented "The final appraisal of certain
acquisitions assigned a greater portion of the goodwill to intangible assets
subject to amortization than we had previously estimated, resulting in a larger
than expected non-cash amortization expense. For the fourth quarter, this
charge was approximately $0.56 million. We estimate total amortization will
increase to approximately $1.6 million for FY06, versus our previous estimate
of $0.6 million. Furthermore, while preliminary results suggest net sales for
the fourth quarter and fiscal year are in line with previous guidance, sensor
division gross margin is approximately 1 point below our expectation due to
lower than expected margin from recent acquisitions, higher commodity costs,
and product mix/pricing in our core sensor lines."
Guidone continued, "We remain extremely bullish on the Company and our
prospects moving forward. Sales grew approximately 25% in FY05 as compared to
FY04 driven by over 50% growth in the sensor division. We expect similar
overall growth in fiscal 2006. This increase in sales, coupled with
integration synergies from acquisitions, should accelerate year on year
earnings growth from approximately 20% in FY05, to over 30% in FY06."
The information contained herein is preliminary and unaudited. Accordingly,
actual results may differ materially from the results predicted and reported
results should not be considered as an indication of future performance. The
Company plans to report its audited FY05 full-year results on or about June
10th. The Company will discuss the FY05 results, as well as the FY06 outlook,
in the upcoming FY05-Q4 analyst conference call. Specific call information
will be disclosed in an upcoming release.
About MSI. Measurement Specialties, Inc. designs and manufactures sensors and
sensor-based consumer products. The Sensor division, also known as MSI
Sensors, produces a wide variety of sensors and transducers to measure precise
ranges of physical characteristics such as pressure, force, vibration,
position, tilt, flow and humidity. MSI Sensors uses multiple advanced
technologies -- including piezoresistive, electro-optic, electro-magnetic,
capacitive, application specific integrated circuits (ASICs),
micro-electromechanical systems (MEMS), piezoelectric polymers and strain
gauges -- to engineer sensors that operate precisely and cost effectively. The
Consumer division produces OEM bathroom scales, Accutire(R) brand tire pressure
gauges and other products.
Company Contact: Frank Guidone, CEO, (757) 766-4400
Investor Contact: Aimee Boutcher or Daniel Boutcher, (973) 239-2878
This release includes forward looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended. Forward looking statements
may be identified by such words or phases "should", "intends", " is subject
to", "expects", "will", "continue", "anticipate", "estimated", "projected",
"may", "we believe", "future prospects", or similar expressions. The forward-
looking statements above involve a number of risks and uncertainties. Factors
that might cause actual results to differ include, but are not limited to,
success of any reorganization; ability to raise additional funds; conditions in
the general economy and in the markets served by the Company; competitive
factors, such as price pressures and the potential emergence of rival
technologies; interruptions of suppliers' operations affecting availability of
component materials at reasonable prices; timely development and market
acceptance, and warranty performance of new products; success in integrating
prior acquisitions; changes in product mix, costs and yields, fluctuations in
foreign currency exchange rates; uncertainties related to doing business in
Hong Kong and China; and the risk factors listed from time to time in the
Company's SEC reports. The Company from time-to-time considers acquiring or
disposing of business or product lines. Forward-looking statements do not
include the impact of acquisitions or dispositions of assets, which could
affect results in the near term. Actual results may differ materially. The
Company assumes no obligation to update the information in this issue.
DATASOURCE: Measurement Specialties, Inc.
CONTACT: Frank Guidone, CEO of Measurement Specialties, Inc.,
+1-757-766-4400; or Investors - Aimee Boutcher or Daniel Boutcher,
+1-973-239-2878, for Measurement Specialties, Inc.
Web site: http://www.msiusa.com/