Sierra Monitor Announces Financial Results for the Fourth Quarter and 12 Months Ended December 31, 2006
Posted by: Sierra Monitor Corporation | Posted on: Thursday, December 1, 2016
Sales Up 23% Year-Over-Year
Reports Sixth Consecutive Quarter of Profitability
Milpitas, California – March 15, 2007 – Sierra Monitor Corporation (OTC: SRMC.OB), a leading designer and manufacturer of product solutions that enhance safety, efficiency and communications capabilities in both process control and building automation industries, today announced financial results for the fourth quarter and 12 months ended December 31, 2006.
- Increased 2006 sales by 23% year-over-year to $10.8 million
- Achieved 2006 operating income of $779,647 and GAAP earnings per share of $0.04
- Generated positive cash flow from operations for the full year and fourth quarter of 2006
- Fourth quarter revenues were $ 3.0 million, an increase of 25% year-over-year
- Fourth quarter operating income increased 75% to $200,192, compared to $114,512 in the prior year
- Achieved sixth consecutive quarter of profitability
2006 Business Highlights
- Significant sales increase of ProtoCessor, OEM products that enable network connectivity within building automation systems
- Received independent third party certifications from Factory Mutual on two new, innovative gas detection instruments. Certifications are essential for sales to plants insured by Factory Mutual.
- Began deployment of web server based multi-point gas monitoring systems
- Introduced SlotServer ControlLogix interface module that allows data transfer between building automation systems and Allen Bradley industrial networks
Fourth Quarter and Full Year 2006 Financial Results
Total sales for the quarter ended December 31, 2006 were $3.0 million, an increase of 25% from the $2.4 million reported for the same period of 2005. For the full year ended December 31, 2006, sales increased 23% to $10.8 million, compared to $8.8 million for the same period of 2005.
Sierra Monitor posted GAAP net income of $128,229, or $0.01 per share (basic and diluted), for the quarter ended December 31, 2006, compared to GAAP net income of $47,479, or $0.00 per share (basic and diluted) for the same period of 2005. Sierra Monitor posted GAAP net income of $468,448, or $0.04 per share (basic and diluted), for the year ended December 31, 2006, compared to GAAP net loss of $230,679, or $(0.02) per share (basic and diluted) for the same period of 2005.
Sierra Monitor posted non-GAAP net income of $162,506, or $0.01 per share (basic and diluted), for the quarter ended December 31, 2006, compared to non-GAAP net income of $81,085, or $0.01 per share (basic and diluted) for the same period of 2005. Sierra Monitor posted non-GAAP net income of $646,088 or $0.06 per share (basic), or $0.05 per share (diluted), for the year ended December 31, 2006, compared to non-GAAP net loss of $(30,394), or $0.00 per share (basic and diluted) for the same period of 2005.
"I am delighted with the progress and the financial results the Sierra Monitor team achieved during the past year," said Gordon Arnold, Chairman and Chief Executive Officer. "Six consecutive profitable quarters have resulted in the elimination of our short term debt and we broadened and strengthen our product lines. Our team remains focused on further profitable growth and building our business for the long term."
Sierra Monitor had $446,000 in cash at December 31, 2006. Receivables at December 31, 2006 were $1.6 million. The Company's Days Sales Outstanding in Accounts Receivable (DSO's) was 51 days. Sierra Monitor eliminated its bank borrowings during the year.
About Sierra Monitor Corporation
Sierra Monitor Corporation is a leading designer and manufacturer of product solutions that enhance safety, efficiency and communications capabilities in both process control and building automation industries. The four primary product groups are:
- Hazardous Gas Detection Systems - used in a wide variety of industries, including chemical/petrochemical, waste water treatment, transportation and oil and gas industries. Sierra Monitor is widely known as a technological leader in gas detection systems.
- Telecom Site Management Products - used by telecommunications companies to monitor, manage and control HVAC, safety and security in remote environmental enclosures.
- FieldServer - protocol translator/gateways providing the interoperability desired in the process control and building automation industries.
- ProtoCessor - protocol coprocessor from FieldServer Technologies is an OEM solution for product designers to incorporate an embedded solution to provide output to widely accepted protocols. With over 25 years of industry experience and more than 15,000 installations worldwide, Sierra Monitor is an industry leader.
Safe Harbor Statement
This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements on this website are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," "guidance," "projects" and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Sierra Monitor to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening of economic conditions on customers' and prospective customers' spending on Sierra Monitor products and services; quarterly fluctuations in Sierra Monitor's revenues or other operating results; periodic fluctuations in product mix resulting in significant variation of profit margins, failure by Sierra Monitor to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks related to market acceptance of Sierra Monitor's products; customization and deployment delays or errors associated with Sierra Monitor's products; impact of long sales and implementation cycles for certain products; activities by Sierra Monitor and others regarding protection of intellectual property; and competitors' release of competitive products and other actions. Further information on potential factors that could affect the financial results of Sierra Monitor are included in risks detailed from time to time in Sierra Monitor's Securities and Exchange Commission filings, including without limitation Sierra Monitor's Annual Report on Form 10-KSB and Quarterly Report on Form 10-QSB. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Sierra Monitor does not undertake an obligation to update forward-looking or other statements in this release.
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