New
Jersey
|
|
22-2378738
|
(STATE
OR OTHER JURISDICTION OF
INCORPORATION
OR ORGANIZATION)
|
|
(I.R.S.
EMPLOYER
IDENTIFICATION
NO.)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
FINANCIAL
INFORMATION
|
3
|
|
|
|
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
3
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
3
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
4
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(UNAUDITED)
|
6
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
7
|
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
|
8
|
|
|
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
17
|
|
|
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
25
|
|
|
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
26
|
|
|
|
PART
II.
|
OTHER
INFORMATION
|
27
|
|
|
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
27
|
|
|
|
ITEM
1A.
|
RISK
FACTORS
|
27
|
|
|
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
27
|
ITEM
5.
|
OTHER
INFORMATION
|
27
|
|
|
|
EXHIBITS
|
27
|
|
|
|
|
28
|
Three
months ended
September
30,
|
Six
months ended
September
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
(Amounts
in thousands, except per share amounts)
|
|||||||||||||
Net
sales
|
$
|
56,462
|
$
|
50,111
|
$
|
109,613
|
$
|
96,102
|
|||||
Cost
of goods sold
|
33,101
|
28,815
|
63,368
|
54,244
|
|||||||||
Gross
profit
|
23,361
|
21,296
|
46,245
|
41,858
|
|||||||||
Total
operating expenses
|
16,086
|
15,238
|
32,677
|
30,790
|
|||||||||
Operating
income
|
7,275
|
6,058
|
13,568
|
11,068
|
|||||||||
Interest
expense, net
|
1,207
|
1,455
|
2,393
|
3,231
|
|||||||||
Foreign
currency exchange and other expense
|
271
|
261
|
409
|
429
|
|||||||||
Income
from continuing operations before minority interest and income
taxes
|
5,797
|
4,342
|
10,766
|
7,408
|
|||||||||
Minority
interest, net of income taxes
|
78
|
155
|
161
|
230
|
|||||||||
Income
tax expense from continuing operations
|
2,370
|
808
|
3,543
|
1,370
|
|||||||||
Income
from continuing operations
|
3,349
|
3,379
|
7,062
|
5,808
|
|||||||||
Discontinued
operations:
|
|||||||||||||
Income
(loss) from discontinued operations before income taxes
|
20
|
(61
|
)
|
56
|
(32
|
)
|
|||||||
Income
tax expense (benefit) from discontinued operations
|
-
|
(12
|
)
|
6
|
(6
|
)
|
|||||||
Income
(loss) from discontinued operations
|
20
|
(49
|
)
|
50
|
(26
|
)
|
|||||||
Net
income
|
$
|
3,369
|
$
|
3,330
|
$
|
7,112
|
$
|
5,782
|
|||||
Net
income per common share - Basic:
|
|||||||||||||
Income
from continuing operations
|
$
|
0.24
|
$
|
0.24
|
$
|
0.50
|
$
|
0.41
|
|||||
Income
from discontinued operations
|
-
|
-
|
-
|
-
|
|||||||||
Net
income per common share - Basic
|
$
|
0.24
|
$
|
0.24
|
$
|
0.50
|
$
|
0.41
|
|||||
Net
income per common share - Diluted:
|
|||||||||||||
Income
from continuing operations
|
$
|
0.23
|
$
|
0.24
|
$
|
0.49
|
$
|
0.40
|
|||||
Income
(loss) from discontinued operations
|
-
|
(0.01
|
)
|
-
|
-
|
||||||||
Net
income per common share - Diluted
|
$
|
0.23
|
$
|
0.23
|
$
|
0.49
|
$
|
0.40
|
|||||
Weighted
average shares outstanding - Basic
|
14,318
|
14,096
|
14,303
|
14,075
|
|||||||||
Weighted
average shares outstanding - Diluted
|
14,502
|
14,345
|
14,481
|
14,403
|
|
September
30,
|
March
31,
|
|||||
2007
|
2007
|
||||||
(Amounts
in thousands)
|
|
|
|||||
ASSETS
|
|
|
|||||
|
|
|
|||||
Current
assets:
|
|
|
|||||
Cash
and cash equivalents
|
$
|
9,673
|
$
|
7,709
|
|||
Accounts
receivable, trade, net of allowance for
|
|||||||
doubtful
accounts of $624 and $516, respectively
|
36,236
|
34,774
|
|||||
Inventories,
net
|
39,494
|
37,231
|
|||||
Deferred
income taxes, net
|
3,642
|
4,718
|
|||||
Prepaid
expenses and other current assets
|
3,644
|
3,057
|
|||||
Other
receivables
|
775
|
420
|
|||||
Due
from joint venture partner
|
1,438
|
1,456
|
|||||
Current
portion of promissory note receivable
|
1,541
|
2,465
|
|||||
Total
current assets
|
96,443
|
91,830
|
|||||
|
|||||||
Property,
plant and equipment, net
|
30,692
|
27,559
|
|||||
Goodwill
|
78,567
|
77,397
|
|||||
Acquired
intangible assets, net
|
15,796
|
17,006
|
|||||
Deferred
income taxes, net
|
8,177
|
8,360
|
|||||
Promissory
note receivable, net of current portion
|
283
|
851
|
|||||
Other
assets
|
1,621
|
1,688
|
|||||
Total
Assets
|
$
|
231,579
|
$
|
224,691
|
September
30,
|
|
March
31,
|
|
||||
|
|
2007
|
|
2007
|
|||
(Amounts
in thousands)
|
|||||||
LIABILITIES,
MINORITY INTEREST AND SHAREHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Current
portion of promissory notes payable
|
$
|
-
|
$
|
100
|
|||
Current
portion of deferred acquisition obligation
|
2,353
|
1,973
|
|||||
Current
portion of long-term debt
|
2,843
|
2,753
|
|||||
Current
portion of capital lease obligation
|
809
|
811
|
|||||
Accounts
payable
|
20,570
|
17,742
|
|||||
Accrued
expenses
|
3,940
|
2,447
|
|||||
Accrued
compensation
|
5,891
|
6,616
|
|||||
Income
taxes payable
|
2,624
|
3,089
|
|||||
Other
current liabilities
|
2,670
|
4,089
|
|||||
Accrued
litigation settlement expenses
|
-
|
1,275
|
|||||
Total
current liabilities
|
41,700
|
40,895
|
|||||
Revolver
|
35,760
|
42,010
|
|||||
Long-term
debt, net of current portion
|
16,706
|
17,561
|
|||||
Capital
lease obligation, net of current portion
|
1,062
|
1,354
|
|||||
Other
liabilities
|
541
|
606
|
|||||
Total
liabilities
|
95,769
|
102,426
|
|||||
Minority
Interest
|
1,693
|
1,628
|
|||||
Shareholders'
equity:
|
|||||||
Serial
preferred stock; 221,756 shares authorized; none
outstanding
|
-
|
-
|
|||||
Common
stock, no par; 25,000,000 shares authorized; 14,375,546
|
|||||||
and
14,280,364 shares issued and outstanding, respectively
|
-
|
-
|
|||||
Additional
paid-in capital
|
76,050
|
73,399
|
|||||
Retained
earnings
|
52,609
|
45,497
|
|||||
Accumulated
other comprehensive income
|
5,458
|
1,741
|
|||||
Total
shareholders' equity
|
134,117
|
120,637
|
|||||
Total
liabilities, minority interest and shareholders' equity
|
$
|
231,579
|
$
|
224,691
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|||||||
|
|
Additional
|
|
|
|
Other
|
|
|
|
|
|
|||||
|
|
paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|
Comprehensive
|
|
|||||
|
|
capital
|
|
Earnings
|
|
Income
(Loss)
|
|
Total
|
|
Income
|
||||||
(Amounts
in thousands)
|
||||||||||||||||
Balance,
March 31, 2006
|
$
|
66,371
|
$
|
31,263
|
$
|
(2,137
|
)
|
$
|
95,497
|
|||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
-
|
5,782
|
-
|
5,782
|
$
|
5,782
|
||||||||||
Currency
translation adjustment
|
-
|
-
|
2,039
|
2,039
|
2,039
|
|||||||||||
Comprehensive
income
|
-
|
-
|
-
|
$
|
7,821
|
|||||||||||
Non-cash
equity based compensation (SFAS 123R)
|
1,203
|
-
|
-
|
1,203
|
||||||||||||
Issuance
of common stock for acquisition of BetaTherm
|
1,000
|
-
|
-
|
1,000
|
||||||||||||
Proceeds
from exercise of stock options
|
985
|
-
|
-
|
985
|
||||||||||||
Balance,
September 30, 2006
|
$
|
69,559
|
$
|
37,045
|
$
|
(98
|
)
|
$
|
106,506
|
|||||||
Balance,
March 31, 2007
|
$
|
73,399
|
$
|
45,497
|
$
|
1,741
|
$
|
120,637
|
||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
-
|
7,112
|
-
|
7,112
|
$
|
7,112
|
||||||||||
Currency
translation adjustment
|
-
|
-
|
3,717
|
3,717
|
3,717
|
|||||||||||
Comprehensive
income
|
-
|
-
|
-
|
$
|
10,829
|
|||||||||||
Non-cash
equity based compensation (SFAS 123R)
|
1,633
|
-
|
-
|
1,633
|
||||||||||||
Proceeds
from exercise of stock options
|
1,018
|
-
|
-
|
1,018
|
||||||||||||
Balance,
September 30, 2007
|
$
|
76,050
|
$
|
52,609
|
$
|
5,458
|
$
|
134,117
|
Six
months ended
|
|||||||
September
30,
|
|||||||
2007
|
2006
|
||||||
(Amounts
in thousands)
|
|
|
|||||
Cash
flows from operating activities:
|
|
|
|||||
Net
income
|
$
|
7,112
|
$
|
5,782
|
|||
Less:
Income (loss) from discontinued operations - Consumer
|
50
|
(26
|
)
|
||||
Income
from continuing operations
|
7,062
|
5,808
|
|||||
|
|||||||
Adjustments
to reconcile net income to net cash
|
|||||||
provided
by operating activities from continuing operations:
|
|||||||
Depreciation
and amortization
|
4,447
|
4,692
|
|||||
Loss
(gain) on sale of assets
|
44
|
(4
|
)
|
||||
Provision
for doubtful accounts
|
106
|
74
|
|||||
Provision
for inventory reserve
|
479
|
980
|
|||||
Provision
for warranty
|
355
|
220
|
|||||
Minority
interest
|
161
|
230
|
|||||
Non-cash
equity based compensation (SFAS 123R)
|
1,633
|
1,203
|
|||||
Deferred
income taxes
|
673
|
(10
|
)
|
||||
Net
change in operating assets and liabilities:
|
|||||||
Accounts
receivable, trade
|
(807
|
)
|
(4,074
|
)
|
|||
Inventories
|
(1,737
|
)
|
(5,283
|
)
|
|||
Prepaid
expenses and other current assets and receivables
|
(504
|
)
|
73
|
||||
Other
assets
|
(183
|
)
|
90
|
||||
Accounts
payable
|
2,472
|
3,082
|
|||||
Accrued
expenses and other liabilities
|
(1,317
|
)
|
(734
|
)
|
|||
Accrued
litigation settlement expenses
|
(1,275
|
)
|
-
|
||||
Income
taxes payable
|
297
|
(439
|
)
|
||||
Net
cash provided by operating activities from continuing
operations
|
11,906
|
5,908
|
|||||
Cash
flows used in investing activities from continuing
operations:
|
|||||||
Purchases
of property and equipment
|
(4,934
|
)
|
(3,415
|
)
|
|||
Proceeds
from sale of assets
|
25
|
77
|
|||||
Acquisition
of business, net of cash acquired
|
-
|
(46,325
|
)
|
||||
Net
cash used in investing activities from continuing
operations
|
(4,909
|
)
|
(49,663
|
)
|
|||
Cash
flows from financing activities from continuing
operations:
|
|||||||
Borrowing
of long-term debt
|
-
|
21,885
|
|||||
Repayments
of long-term debt
|
(1,340
|
)
|
(18,764
|
)
|
|||
Borrowings
of short-term debt, revolver and notes payable
|
4,159
|
47,646
|
|||||
Payments
of short-term debt, revolver, leases and notes payable
|
(10,526
|
)
|
(5,762
|
)
|
|||
Payments
under deferred acquisition payments
|
-
|
(2,074
|
)
|
||||
Minority
interest payments
|
(243
|
)
|
(112
|
)
|
|||
Proceeds
from exercise of options
|
1,018
|
985
|
|||||
Net
cash provided by (used in) in financing activities from continuing
operations
|
(6,932
|
)
|
43,804
|
||||
Net
cash provided by operating activities of discontinued
operations
|
126
|
252
|
|||||
Net
cash provided by investing activities of discontinued
operations
|
1,492
|
945
|
|||||
Net
cash provided by discontinued operations
|
1,618
|
1,197
|
|||||
Net
change in cash and cash equivalents
|
1,683
|
1,246
|
|||||
Effect
of exchange rate changes on cash
|
281
|
61
|
|||||
Cash,
beginning of year
|
7,709
|
9,166
|
|||||
Cash,
end of year
|
$
|
9,673
|
$
|
10,473
|
|||
|
|||||||
Supplemental
Cash Flow Information:
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
2,344
|
$
|
3,399
|
|||
Income
taxes
|
2,390
|
693
|
|||||
Non-cash
investing and financing transactions:
|
|||||||
Deferred
acquisition obligation
|
-
|
1,787
|
|||||
Issuance
of stock in connection with acquisition of BetaTherm
|
-
|
1,000
|
Acquired
Company
|
|
Effective
Date of Acquisition
|
Country
|
|
Elekon
Industries U.S.A., Inc. (‘Elekon’)
|
|
June
24, 2004
|
U.S.A.
|
|
Entran
Devices, Inc. and Entran SA (‘Entran’)
|
|
July
16, 2004
|
U.S.A.
and France
|
|
Encoder
Devices, LLC (‘Encoder’)
|
|
July
16, 2004
|
U.S.A.
|
|
Humirel,
SA (‘Humirel’)
|
|
December
1, 2004
|
France
|
|
MWS
Sensorik GmbH (‘MWS’)
|
|
January
1, 2005
|
Germany
|
|
Polaron
Components Ltd (‘Polaron’)
|
|
February
1, 2005
|
United
Kingdom
|
|
HL
Planartechnik GmbH (‘HLP’)
|
|
November
30, 2005
|
Germany
|
|
Assistance
Technique Experimentale (‘ATEX’)
|
|
January
19, 2006
|
France
|
|
YSIS
Incorporated (‘YSI Temperature’)
|
|
April
1, 2006
|
U.S.A.
and Japan
|
|
BetaTherm
Group Ltd. (‘BetaTherm’)
|
|
April
1, 2006
|
Ireland
and U.S.A.
|
U.
S. Federal
|
2001
|
U.S.
State:
|
|
Virginia
|
2001
|
California
|
2001
|
Ohio
|
2007
|
Massachusetts
|
2004
|
China
|
1996
|
Hong
Kong
|
2001
|
Ireland
|
2000
|
France
|
2004
|
Germany
|
2004
|
Three
months ended
September
30,
2007
|
Six
months ended
September
30,
2007
|
||||||
Dividend
yield
|
-
|
-
|
|||||
Expected
Volality
|
38.7
|
%
|
38.9
|
%
|
|||
Risk-Free
Interest Rate
|
4.9
|
%
|
4.6
|
%
|
|||
Expected
term from vest date (in years)
|
2.0
|
2.0
|
|||||
Weighted-average
grant-date fair value
|
$
|
9.64
|
$
|
9.31
|
Net
income (Numerator)
|
Weighted
Average Shares in thousands (Denominator)
|
Per-Share
Amount
|
||||||||
Three
months ended September 30, 2007:
|
||||||||||
Basic
per share information
|
$
|
3,369
|
14,318
|
$
|
0.24
|
|||||
Effect
of dilutive securities
|
-
|
184
|
(0.01
|
)
|
||||||
Diluted
per-share information
|
$
|
3,369
|
14,502
|
$
|
0.23
|
|||||
Three
months ended September 30, 2006:
|
||||||||||
Basic
per share information
|
$
|
3,330
|
14,096
|
$
|
0.24
|
|||||
Effect
of dilutive securities
|
-
|
249
|
(0.01
|
)
|
||||||
Diluted
per-share information
|
$
|
3,330
|
14,345
|
$
|
0.23
|
|||||
Six
months ended September 30, 2007:
|
||||||||||
Basic
per share information
|
$
|
7,112
|
14,303
|
$
|
0.50
|
|||||
Effect
of dilutive securities
|
-
|
178
|
(0.01
|
)
|
||||||
Diluted
per-share information
|
$
|
7,112
|
14,481
|
$
|
0.49
|
|||||
Six
months ended September 30, 2006:
|
||||||||||
Basic
per share information
|
$
|
5,782
|
14,075
|
$
|
0.41
|
|||||
Effect
of dilutive securities
|
-
|
328
|
(0.01
|
)
|
||||||
Diluted
per-share information
|
$
|
5,782
|
14,403
|
$
|
0.40
|
|
September
30,
2007
|
March
31,
2007
|
|||||
Raw
Materials
|
$
|
18,528
|
$
|
18,328
|
|||
Work-in-Process
|
9,908
|
5,099
|
|||||
Finished
Goods
|
11,058
|
13,804
|
|||||
|
$
|
39,494
|
$
|
37,231
|
|||
Inventory
Reserves:
|
$
|
2,402
|
$
|
3,158
|
September
30, 2007
|
|
March
31, 2007
|
|
Useful
Life
|
||||||
Production
equipment & tooling
|
$
|
35,533
|
$
|
32,435
|
3-10
years
|
|||||
Building
and leasehold improvements
|
8,101
|
7,524
|
39
years or lesser of useful life or remaining term of lease
|
|||||||
Furniture
and equipment
|
10,043
|
9,103
|
3-10
years
|
|||||||
Construction-in-progress
|
4,830
|
2,603
|
|
|||||||
Total
|
58,507
|
51,665
|
|
|||||||
Less:
accumulated depreciation and amortization
|
(27,815
|
)
|
(24,106
|
)
|
|
|||||
$
|
30,692
|
$
|
27,559
|
|
Assets:
|
|
|||
Cash
|
$
|
440
|
||
Accounts
receivable
|
3,109
|
|||
Inventory
|
1,672
|
|||
Prepaid
assets and other
|
714
|
|||
Property
and equipment
|
1,134
|
|||
Acquired
intangible assets
|
2,142
|
|||
Goodwill
|
7,588
|
|||
Other
|
303
|
|||
|
17,102
|
|||
Liabilities:
|
||||
Accounts
payable
|
(884
|
)
|
||
Accrued
compensation
|
(780
|
)
|
||
Deferred
income taxes
|
(65
|
)
|
||
Minority
interest
|
(1,121
|
)
|
||
(2,850
|
)
|
|||
Total
Purchase Price
|
$
|
14,252
|
Assets:
|
|
|||
Cash
|
$
|
2,388
|
||
Accounts
receivable
|
3,180
|
|||
Inventory
|
2,521
|
|||
Property
and equipment
|
3,551
|
|||
Acquired
intangible assets
|
8,609
|
|||
Goodwill
|
25,803
|
|||
Other
|
228
|
|||
|
46,280
|
|||
Liabilities:
|
||||
Accounts
payable
|
(1,733
|
)
|
||
Accrued
expenses
|
(695
|
)
|
||
Taxes
payable
|
(805
|
)
|
||
Debt
|
(3,737
|
)
|
||
Deferred
income taxes
|
(2,062
|
)
|
||
|
(9,032
|
)
|
||
$
|
37,248
|
|
|
September
30, 2007
|
|
March
31, 2007
|
|
|||||||||||||||||
|
|
Life
in years
|
|
Gross
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
|||||||
Amortizable
intangible assets:
|
||||||||||||||||||||||
Customer
relationships
|
5-15
|
$
|
15,821
|
$
|
(4,385
|
)
|
$
|
11,436
|
$
|
15,474
|
$
|
(3,194
|
)
|
$
|
12,280
|
|||||||
Patents
|
5-19.5
|
2,624
|
(557
|
)
|
|
2,067
|
2,514
|
(445
|
)
|
2,069
|
||||||||||||
Tradenames
|
1.5-3
|
1,060
|
(732
|
)
|
|
328
|
1,031
|
(520
|
)
|
511
|
||||||||||||
Backlog
|
1
|
1,814
|
(1,814
|
)
|
|
-
|
1,780
|
(1,780
|
)
|
-
|
||||||||||||
Covenants-not-to-compete
|
3
|
903
|
(903
|
)
|
|
-
|
903
|
(824
|
)
|
79
|
||||||||||||
Proprietary
technology
|
5-15
|
2,457
|
(492
|
)
|
|
1,965
|
2,447
|
(380
|
)
|
2,067
|
||||||||||||
$
|
24,679
|
$
|
(8,883
|
)
|
$
|
15,796
|
$
|
24,149
|
$
|
(7,143
|
)
|
$
|
17,006
|
|
Amortization
|
|||
Fiscal
Year
|
Expense
|
|||
2008
|
$
|
2,962
|
||
2009
|
2,752
|
|||
2010
|
2,537
|
|||
2011
|
2,484
|
|||
2012
|
2,049
|
|||
Thereafter
|
4,222
|
|||
$
|
17,006
|
September
30,
|
|
March
31,
|
|
||||
|
|
2007
|
|
2007
|
|||
Prime
or LIBOR plus 2.75% or 1% five-year term loan
|
|||||||
with
a final installment due on April 3, 2011
|
$
|
17,000
|
$
|
18,000
|
|||
Governmental
loans from French agencies at no interest
|
|||||||
and
payable based on R&D expenditures.
|
824
|
744
|
|||||
Term
credit facility with six banks at an interest rate of
|
|||||||
4%
payable through 2010.
|
1,161
|
1,009
|
|||||
Bonds
issued at an interest rate of 3% payable through
|
|||||||
2009.
|
499
|
467
|
|||||
Term
credit facility with two banks at interest rates of
|
|||||||
3.9%-4.0%
payable through 2009.
|
65
|
94
|
|||||
$
|
19,549
|
$
|
20,314
|
||||
Less
current portion of long-term debt
|
2,843
|
2,753
|
|||||
$
|
16,706
|
$
|
17,561
|
||||
6%
promissory notes payable in six quarterly
|
|||||||
installments
through July 1, 2007
|
$
|
-
|
$
|
100
|
|||
Less
current portion of promissory notes payable
|
-
|
100
|
|||||
$
|
- |
$
|
-
|
Year
|
Term
|
Other
|
Subtotal
|
Revolver
|
Total
|
|||||||||||
Year
1
|
$
|
2,000
|
$
|
843
|
$
|
2,843
|
-
|
$
|
2,843
|
|||||||
Year
2
|
2,000
|
1,214
|
3,214
|
-
|
3,214
|
|||||||||||
Year
3
|
2,000
|
332
|
2,332
|
-
|
2,332
|
|||||||||||
Year
4
|
11,000
|
133
|
11,133
|
35,760
|
46,893
|
|||||||||||
Year
5
|
-
|
18
|
18
|
-
|
18
|
|||||||||||
Thereafter
|
-
|
9
|
9
|
-
|
9
|
|||||||||||
Total
|
$
|
17,000
|
$
|
2,549
|
$
|
19,549
|
$
|
35,760
|
$
|
55,309
|
Three
months ended
September
30
|
|
|
Six
months ended
September
30,
|
|||||||||
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|||
Net
Sales:
|
||||||||||||
United
States
|
$
|
28,030
|
$
|
27,359
|
$
|
55,337
|
$
|
52,621
|
||||
Europe
and other
|
14,909
|
11,413
|
28,555
|
22,663
|
||||||||
China
|
13,523
|
11,339
|
25,721
|
20,818
|
||||||||
Total:
|
$
|
56,462
|
$
|
50,111
|
$
|
109,613
|
$
|
96,102
|
|
September
30,
2007
|
|
March
31,
2007
|
||||
Long
lived assets:
|
|
|
|||||
United
States
|
$
|
5,977
|
$
|
5,969
|
|||
Europe
and other
|
11,595
|
10,609
|
|||||
Asia
|
13,120
|
10,981
|
|||||
Total:
|
$
|
30,692
|
$
|
27,559
|
·
|
Conditions
in the general economy and in the markets served by us;
|
|
|
·
|
Competitive
factors, such as price pressures and the potential emergence of rival
technologies;
|
|
|
·
|
Interruptions
of suppliers’ operations or the refusal of our suppliers to provide us
with component materials;
|
|
|
·
|
Timely
development, market acceptance and warranty performance of new
products;
|
|
|
·
|
Changes
in product mix, costs and yields and fluctuations in foreign currency
exchange rates and tax rates;
|
|
|
·
|
Uncertainties
related to doing business in Europe, Hong Kong and China;
and
|
|
|
·
|
The
risk factors listed from time to time in our SEC
reports.
|
Three
months ended
|
|||||||||||||
September
30,
|
|
|
|
Percent
|
|
||||||||
|
2007
|
|
2006
|
|
Change
|
|
Change
|
||||||
(Amounts
in thousands)
|
|||||||||||||
Net
sales
|
$
|
56,462
|
$
|
50,111
|
$
|
6,351
|
12.7
|
%
|
|||||
Cost
of goods sold
|
33,101
|
28,815
|
4,286
|
14.9
|
%
|
||||||||
Gross
profit
|
23,361
|
21,296
|
2,065
|
9.7
|
%
|
||||||||
Operating
expenses:
|
|||||||||||||
Selling,
general, and administrative
|
14,526
|
13,482
|
1,044
|
7.7
|
%
|
||||||||
Non-cash
equity based compensation (SFAS 123R)
|
820
|
624
|
196
|
31.4
|
%
|
||||||||
Amortization
of acquired intangibles
|
740
|
1,132
|
(392
|
)
|
-34.6
|
%
|
|||||||
Total
operating expenses
|
16,086
|
15,238
|
848
|
5.6
|
%
|
||||||||
Operating
income
|
7,275
|
6,058
|
1,217
|
20.1
|
%
|
||||||||
Interest
expense, net
|
1,207
|
1,455
|
(248
|
)
|
-17.0
|
%
|
|||||||
Other
expense (income)
|
271
|
261
|
10
|
3.8
|
%
|
||||||||
Income
from continuing operations before minority interest and income
taxes
|
5,797
|
4,342
|
1,455
|
33.5
|
%
|
||||||||
Minority
interest, net of income taxes
|
78
|
155
|
(77
|
)
|
-49.7
|
%
|
|||||||
Income
from continuing operations before income taxes
|
5,719
|
4,187
|
1,532
|
36.6
|
%
|
||||||||
Income
tax expense from discrete adjustment due to tax law change
|
997
|
-
|
997
|
100.0
|
%
|
||||||||
Other
income tax expense from continuing operations
|
1,373
|
808
|
565
|
69.9
|
%
|
||||||||
Income
tax expense from continuing operations
|
2,370
|
808
|
1,562
|
193.4
|
%
|
||||||||
Income
from continuing operations
|
$
|
3,349
|
$
|
3,379
|
($30
|
)
|
-0.9
|
%
|
Six
months ended
|
|||||||||||||
September
30,
|
Percent
|
||||||||||||
2007
|
2006
|
Change
|
Change
|
||||||||||
(Amounts
in thousands)
|
|||||||||||||
Net
sales
|
$
|
109,613
|
$
|
96,102
|
$
|
13,511
|
14.1
|
%
|
|||||
Cost
of goods sold
|
63,368
|
54,244
|
9,124
|
16.8
|
%
|
||||||||
Gross
profit
|
46,245
|
41,858
|
4,387
|
10.5
|
%
|
||||||||
Operating
expenses:
|
|||||||||||||
Selling,
general, and administrative
|
29,497
|
27,437
|
2,060
|
7.5
|
%
|
||||||||
Non-cash
equity based compensation (SFAS 123R)
|
1,633
|
1,203
|
430
|
35.7
|
%
|
||||||||
Amortization
of acquired intangibles
|
1,547
|
2,150
|
(603
|
)
|
-28.0
|
%
|
|||||||
Total
operating expenses
|
32,677
|
30,790
|
1,887
|
6.1
|
%
|
||||||||
Operating
income
|
13,568
|
11,068
|
2,500
|
22.6
|
%
|
||||||||
Interest
expense, net
|
2,393
|
3,231
|
(838
|
)
|
-25.9
|
%
|
|||||||
Other
expense (income)
|
409
|
429
|
(20
|
)
|
-4.7
|
%
|
|||||||
Income
from continuing operations before minority interest and income
taxes
|
10,766
|
7,408
|
3,358
|
45.3
|
%
|
||||||||
Minority
interest, net of income taxes
|
161
|
230
|
(69
|
)
|
-30.0
|
%
|
|||||||
Income
from continuing operations before income taxes
|
10,605
|
7,178
|
3,427
|
47.8
|
%
|
||||||||
Income
tax expense from discrete adjustment due to tax law change
|
997
|
-
|
997
|
100.0
|
%
|
||||||||
Other
income tax expense from continuing operations
|
2,546
|
1,370
|
1,176
|
85.8
|
%
|
||||||||
Income
tax expense from continuing operations
|
3,543
|
1,370
|
2,173
|
158.7
|
%
|
||||||||
Income
from continuing operations
|
$
|
7,062
|
$
|
5,808
|
$
|
1,254
|
21.6
|
%
|
Payment
due by period
|
||||||||||||||||||||||
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
Thereafter
|
|
Total
|
|||||||||
Long-term
debt obligations
|
$
|
2,843
|
$
|
3,214
|
$
|
2,332
|
$
|
46,893
|
$
|
18
|
$
|
9
|
$
|
55,309
|
||||||||
Interest
obligation on long-term debt
|
4,978
|
4,722
|
4,433
|
4,223
|
2
|
1
|
18,359
|
|||||||||||||||
Capital
lease obligations
|
809
|
720
|
331
|
11
|
-
|
-
|
1,871
|
|||||||||||||||
Operating
lease obligations *
|
4,093
|
3,592
|
2,431
|
1,674
|
832
|
2,953
|
15,575
|
|||||||||||||||
Deferred
acquisition payments
|
2,353
|
-
|
-
|
-
|
-
|
-
|
2,353
|
|||||||||||||||
Capital
additions (China facility)
|
7,000
|
-
|
-
|
-
|
-
|
-
|
7,000
|
|||||||||||||||
Total
|
$
|
22,076
|
$
|
12,248
|
$
|
9,527
|
$
|
52,801
|
$
|
852
|
$
|
2,963
|
$
|
100,467
|
(a) |
The
annual meeting of Shareholders of Measurement Specialties, Inc. was
held
on September 10, 2007.
|
(b) |
All
director nominees were elected.
|
(c) |
The
following matters were voted upon at the meeting of shareholders
and the
votes cast with respect to such matters were as
follows:
|
Votes
Received For
|
|
Votes
Withheld
|
|||||
Election
of Directors:
|
|||||||
John
D. Arnold
|
11,911,977
|
354,096
|
|||||
Frank
D. Guidone
|
11,913,770
|
352,303
|
|||||
Kenneth
E. Thompson
|
11,748,472
|
517,601
|
Votes
Received For
|
|
Votes
Against
|
|
Votes
Withheld
|
|
Broker
Non-Votes
|
|||||||
Approval
of an amendment to the Second Restated Certificate of Incorporation
of the
Company to increase shares the total number of authorized shares
of common
stock from 20,000,000 to 25,000,000.
|
12,114,529
|
144,558
|
6,986
|
-
|
|||||||||
Approval
of an amendment to the Second Restated Certificate of Incorporation
of the
Company to provide indemnification of directors, officers and employees
of
the Company.
|
12,141,463
|
106,522
|
18,088
|
-
|
|||||||||
Ratification
of appointment of independent public accountants, KPMG LLP
|
12,217,084
|
40,740
|
8,250
|
-
|
Measurement
Specialties, Inc.
(Registrant)
|
||
|
|
|
Date: November
7, 2007
|
By: | |
Frank
D. Guidone
|
||
President,
Chief Executive Officer
(Principal
Executive Officer)
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Date: November
7, 2007
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By: |
/s/
Mark Thomson
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Mark
Thomson
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Chief
Financial Officer
(Principal
Financial Officer)
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EXHIBIT
NUMBER
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DESCRIPTION
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3.1
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Second
Restated Certificate of Incorporation of Measurement Specialties,
Inc.
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31.1
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Certification
of Frank D. Guidone required by Rule 13a-14(a) or Rule
15d-14(a)
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31.2
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Certification
of Mark Thomson required by Rule 13a-14(a) or Rule
15d-14(a)
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32.1
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Certification
of Frank D. Guidone and Mark Thomson required by Rule 13a-14(b) or
Rule
15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.
Section 1350
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