EMS Technologies Announces Solid Profit Growth for 1st Quarter

First Quarter Includes Higher Profitability in Wireless Product Lines And

Also Benefits From New Accounting Standard



Apr 20, 2001, 01:00 ET from EMS Technologies, Inc.

    ATLANTA, April 20 /PRNewswire Interactive News Release/ --
 EMS Technologies, Inc. (Nasdaq:   ELMG) today announced substantially higher
 first quarter earnings of $1.8 million including accounting change, or $.20
 per share, on revenues of $67 million, as compared with first quarter 2000
 earnings of approximately $800,000, or $.09 per share, on revenues of
 $62 million.  The 2001 earnings reflected higher profitability in the wireless
 products segment, especially from the Company's products for logistics
 applications and SATCOM.  Another factor was the required implementation of a
 new accounting standard related to hedging activities, which had a total
 beneficial effect on the first quarter's results of approximately $600,000.
 Excluding the total effects of implementing the new accounting principle, the
 Company's 2001 earnings would have been $1.2 million, or $.14 per share.
     Al Hansen, president and chief executive officer, commented, "The roots of
 EMS's solid first quarter profit growth can be traced back to last year, when
 the Company invested heavily in R&D to develop new products and expand our
 capabilities.  The Company's reward has been that our new wireless products
 have been very well received in their markets, and our continually expanding
 space and technology expertise has attracted substantial new orders.  As a
 result of these developments, our consolidated backlog at the end of the first
 quarter reached a record $223 million.
     "New wireless products that benefited the first quarter included an
 entirely new line of wireless computers for logistics applications.  We
 believe that the performance of these products is unsurpassed in the industry,
 and new product sales helped this line's revenues increase by 25% compared
 with the first quarter of last year.
     "Our PCS/cellular antenna product sales were level with the first quarter
 of last year, but the Company continued to position itself for further growth
 by expanding the product line to include new low-profile antennas that help
 service providers satisfy ever more stringent zoning constraints.  We also
 added antenna-mounted amplifiers to this product line, and we expect to add
 repeaters later in the year, as we aim to become a one-stop shop to meet the
 needs of PCS/cellular service providers.
     "In SATCOM, sales of our industry-leading aeronautical antenna increased,
 and we neared completion of our latest aero-antenna and terminal that will
 deliver worldwide voice/data/Internet/intranet service to aircraft via the
 Inmarsat system.  We also improved the design of our new packet data terminal
 (PDT) for more efficient manufacturing, which will enhance our ability to
 offer economical SATCOM two-way messaging and location information for
 trucking and other applications.  And in the first quarter, we received new
 orders for our latest generation of search-and-rescue SATCOM systems, which
 were complemented by new software and systems capabilities that we gained in
 an acquisition at the end of 2000.
     "Our space and technology business generated almost $50 million of new
 orders in the first quarter, for a record $186 million backlog in this
 business area at March 31, 2001. Included were major orders related to
 international communications and defense.  We believe that these military
 orders reflect a renewed commitment by the U.S. government to upgrade its
 defense communications and other technology programs, and the future will
 bring more significant opportunities for EMS in this area.  We also continued
 to make progress on our broadband initiatives, delivering the first production
 units of our satellite interactive terminals that will operate with the SES
 Astra and Telesat systems for broadband services."
     Mr. Hansen added, "The first quarter results were the product of good
 performance throughout the organization.  No single business area was
 dominant.  We believe that kind of balanced performance is essential to
 achieve success in more turbulent economic conditions."
     In the first quarter of 2001, the Company adopted Statement of Financial
 Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
 and Hedge Activities."  The Company's hedging activities are limited to
 forward contracts that reduce exposure to foreign currency fluctuations for
 receivables recognized in the normal course of business.  Also considered to
 be derivatives under SFAS No. 133 are long-term contracts denominated in U.S.
 dollars and held by the Company's Canadian subsidiary.
     The Company recognized a transition loss of approximately $350,000 from
 the adoption of SFAS No. 133 at January 1, 2001, and realized gains of
 approximately $950,000 ($750,000 reported in sales and $200,000 reported in
 other income) during the first quarter from the changes in fair market value
 of derivatives.  Gains during the first quarter were mainly the result of the
 U.S. dollar strengthening against the Canadian dollar, but it is possible that
 effect could be negative in future quarters if the Canadian dollar recovers
 from its currently depressed levels against the U.S. dollar.
     EMS Technologies, Inc. is a leading provider of technology solutions to
 wireless and satellite markets.  The Company focuses on mobile information
 users, and increasingly on broadband applications. The Company is
 headquartered in Atlanta, employs 2,000 people worldwide, and has
 manufacturing facilities in Atlanta, Montreal, Ottawa and Brazil.
     The company's Space and Technology Group serves markets for satellite
 communications, radar and other specialized applications.
     The Wireless Products Group comprises several product lines, including
     *  wireless networks and system integration for logistics and other
        applications,
     *  base station antennas and related products for PCS/cellular
        telecommunications,
     *  and antennas and terminals for mobile communications via satellite
        (SATCOM).
 
     Statements contained in this press release regarding future revenues and
 financial results, the potential for various businesses and products, and the
 schedule for, and the operation and market potential of, various product and
 market initiatives are forward-looking statements.  Actual results could
 differ from those statements as a result of a wide variety of factors.  Such
 factors include, but are not limited to...
     *  the effects of general economic conditions on capital spending in the
        Company's principal markets;
     *  successful completion of technological development programs by the
        Company and the effects of technology that may be developed by
        competitors;
     *  successful transition of products from development stages to an
        efficient manufacturing environment;
     *  customer response to new products and services, and general conditions
        in our target markets (such as logistics, PCS/cellular telephony, and
        space-based communications);
     *  the availability of financing for satellite data communications systems
        and for expansion of terrestrial PCS/cellular phone systems;
     *  the extent to which competing terrestrial systems succeed in providing
        extensive broadband Internet access on a dependable and economical
        basis;
     *  the growth rate of demand for various mobile and high-speed data
        communications services;
     *  the outcome of efforts to participate with potential strategic partners
        in offering Ka-band high-speed data communications service via
        geostationary satellite;
     *  development of successful working relationships with local business
        people and governmental officials in connection with distribution and
        manufacture of products in  foreign countries;
     *  the Company's ability to attract and retain qualified personnel,
        particularly those with key technical skills; and
     *  the availability of sufficient additional credit or other financing, on
        acceptable terms, to support the Company's expected growth.
 
     Additional relevant factors and risks are identified in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.
 
                               EMS Technologies, Inc.
                        Consolidated Statements of Earnings
                       (In thousands, except per-share data)
 
                                                            Quarter Ended
                                                         Mar 31       Mar 31
                                                          2001         2000
 
     Net sales                                         $67,164        62,434
 
     Cost of sales                                      44,247        41,121
 
     Selling, general and administrative expenses       12,731        11,607
 
     Research and development expense                    6,466         7,986
 
       Operating income                                  3,720         1,720
 
     Non-operating income (expense), net                   (22)          182
 
     Foreign exchange gain on derivatives                  199           ---
 
     Interest expense                                   (1,261)         (898)
 
      Earnings before income taxes                       2,636         1,004
 
     Income tax expense                                   (479)         (220)
 
       Net earnings before accounting change             2,157           784
 
     Change in accounting principle                       (351)          ---
 
       Net earnings after accounting change             $1,806           784
 
     Net earnings per share:         2001                       2000
 
                              Basic       Diluted        Basic       Diluted
     Net earnings before
      accounting change        $.25           .24          .09           .09
 
     Change in accounting
      principle                (.04)         (.04)         ---           ---
 
     Net earnings after
      accounting change         .21           .20          .09           .09
 
     Weighted average
      number of shares:       8,813         8,919        8,729         8,932
 
 
     Supplemental Information -
     Revenue by Product Line:
 
      Space and Technology                             $29,669        29,365
 
      Wireless Products:
 
       Network Products and Systems Integration         20,952        18,197
 
       PCS/Cellular Antennas                            11,623        11,626
 
       SATCOM                                            4,920         3,246
 
        Total Wireless Products                         37,495        33,069
 
        Total Consolidated Revenues                    $67,164        62,434
 
 
                            Consolidated Balance Sheets
                                   (In thousands)
 
                                                        Mar 31        Dec 31
                                                         2001          2000
 
     Cash                                               $7,499         5,593
 
     Receivables                                        75,359        74,526
 
     Inventories                                        40,382        38,183
 
     Net property, plant and equipment                  48,827        49,602
 
     Goodwill                                           10,372        10,502
 
     Investment in Skybridge                            17,909        17,909
 
     Other assets                                       20,715        19,798
 
                                                      $221,063       216,113
 
 
     Bank debt and current installments,
      long-term debt                                   $21,066        22,048
 
     Other liabilities                                  45,014        43,019
 
     Long-term debt                                     43,686        39,617
 
     Stockholders' equity                              111,297       111,429
 
                                                      $221,063       216,113
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X69505773
 
 

SOURCE EMS Technologies, Inc.
    ATLANTA, April 20 /PRNewswire Interactive News Release/ --
 EMS Technologies, Inc. (Nasdaq:   ELMG) today announced substantially higher
 first quarter earnings of $1.8 million including accounting change, or $.20
 per share, on revenues of $67 million, as compared with first quarter 2000
 earnings of approximately $800,000, or $.09 per share, on revenues of
 $62 million.  The 2001 earnings reflected higher profitability in the wireless
 products segment, especially from the Company's products for logistics
 applications and SATCOM.  Another factor was the required implementation of a
 new accounting standard related to hedging activities, which had a total
 beneficial effect on the first quarter's results of approximately $600,000.
 Excluding the total effects of implementing the new accounting principle, the
 Company's 2001 earnings would have been $1.2 million, or $.14 per share.
     Al Hansen, president and chief executive officer, commented, "The roots of
 EMS's solid first quarter profit growth can be traced back to last year, when
 the Company invested heavily in R&D to develop new products and expand our
 capabilities.  The Company's reward has been that our new wireless products
 have been very well received in their markets, and our continually expanding
 space and technology expertise has attracted substantial new orders.  As a
 result of these developments, our consolidated backlog at the end of the first
 quarter reached a record $223 million.
     "New wireless products that benefited the first quarter included an
 entirely new line of wireless computers for logistics applications.  We
 believe that the performance of these products is unsurpassed in the industry,
 and new product sales helped this line's revenues increase by 25% compared
 with the first quarter of last year.
     "Our PCS/cellular antenna product sales were level with the first quarter
 of last year, but the Company continued to position itself for further growth
 by expanding the product line to include new low-profile antennas that help
 service providers satisfy ever more stringent zoning constraints.  We also
 added antenna-mounted amplifiers to this product line, and we expect to add
 repeaters later in the year, as we aim to become a one-stop shop to meet the
 needs of PCS/cellular service providers.
     "In SATCOM, sales of our industry-leading aeronautical antenna increased,
 and we neared completion of our latest aero-antenna and terminal that will
 deliver worldwide voice/data/Internet/intranet service to aircraft via the
 Inmarsat system.  We also improved the design of our new packet data terminal
 (PDT) for more efficient manufacturing, which will enhance our ability to
 offer economical SATCOM two-way messaging and location information for
 trucking and other applications.  And in the first quarter, we received new
 orders for our latest generation of search-and-rescue SATCOM systems, which
 were complemented by new software and systems capabilities that we gained in
 an acquisition at the end of 2000.
     "Our space and technology business generated almost $50 million of new
 orders in the first quarter, for a record $186 million backlog in this
 business area at March 31, 2001. Included were major orders related to
 international communications and defense.  We believe that these military
 orders reflect a renewed commitment by the U.S. government to upgrade its
 defense communications and other technology programs, and the future will
 bring more significant opportunities for EMS in this area.  We also continued
 to make progress on our broadband initiatives, delivering the first production
 units of our satellite interactive terminals that will operate with the SES
 Astra and Telesat systems for broadband services."
     Mr. Hansen added, "The first quarter results were the product of good
 performance throughout the organization.  No single business area was
 dominant.  We believe that kind of balanced performance is essential to
 achieve success in more turbulent economic conditions."
     In the first quarter of 2001, the Company adopted Statement of Financial
 Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
 and Hedge Activities."  The Company's hedging activities are limited to
 forward contracts that reduce exposure to foreign currency fluctuations for
 receivables recognized in the normal course of business.  Also considered to
 be derivatives under SFAS No. 133 are long-term contracts denominated in U.S.
 dollars and held by the Company's Canadian subsidiary.
     The Company recognized a transition loss of approximately $350,000 from
 the adoption of SFAS No. 133 at January 1, 2001, and realized gains of
 approximately $950,000 ($750,000 reported in sales and $200,000 reported in
 other income) during the first quarter from the changes in fair market value
 of derivatives.  Gains during the first quarter were mainly the result of the
 U.S. dollar strengthening against the Canadian dollar, but it is possible that
 effect could be negative in future quarters if the Canadian dollar recovers
 from its currently depressed levels against the U.S. dollar.
     EMS Technologies, Inc. is a leading provider of technology solutions to
 wireless and satellite markets.  The Company focuses on mobile information
 users, and increasingly on broadband applications. The Company is
 headquartered in Atlanta, employs 2,000 people worldwide, and has
 manufacturing facilities in Atlanta, Montreal, Ottawa and Brazil.
     The company's Space and Technology Group serves markets for satellite
 communications, radar and other specialized applications.
     The Wireless Products Group comprises several product lines, including
     *  wireless networks and system integration for logistics and other
        applications,
     *  base station antennas and related products for PCS/cellular
        telecommunications,
     *  and antennas and terminals for mobile communications via satellite
        (SATCOM).
 
     Statements contained in this press release regarding future revenues and
 financial results, the potential for various businesses and products, and the
 schedule for, and the operation and market potential of, various product and
 market initiatives are forward-looking statements.  Actual results could
 differ from those statements as a result of a wide variety of factors.  Such
 factors include, but are not limited to...
     *  the effects of general economic conditions on capital spending in the
        Company's principal markets;
     *  successful completion of technological development programs by the
        Company and the effects of technology that may be developed by
        competitors;
     *  successful transition of products from development stages to an
        efficient manufacturing environment;
     *  customer response to new products and services, and general conditions
        in our target markets (such as logistics, PCS/cellular telephony, and
        space-based communications);
     *  the availability of financing for satellite data communications systems
        and for expansion of terrestrial PCS/cellular phone systems;
     *  the extent to which competing terrestrial systems succeed in providing
        extensive broadband Internet access on a dependable and economical
        basis;
     *  the growth rate of demand for various mobile and high-speed data
        communications services;
     *  the outcome of efforts to participate with potential strategic partners
        in offering Ka-band high-speed data communications service via
        geostationary satellite;
     *  development of successful working relationships with local business
        people and governmental officials in connection with distribution and
        manufacture of products in  foreign countries;
     *  the Company's ability to attract and retain qualified personnel,
        particularly those with key technical skills; and
     *  the availability of sufficient additional credit or other financing, on
        acceptable terms, to support the Company's expected growth.
 
     Additional relevant factors and risks are identified in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000.
 
                               EMS Technologies, Inc.
                        Consolidated Statements of Earnings
                       (In thousands, except per-share data)
 
                                                            Quarter Ended
                                                         Mar 31       Mar 31
                                                          2001         2000
 
     Net sales                                         $67,164        62,434
 
     Cost of sales                                      44,247        41,121
 
     Selling, general and administrative expenses       12,731        11,607
 
     Research and development expense                    6,466         7,986
 
       Operating income                                  3,720         1,720
 
     Non-operating income (expense), net                   (22)          182
 
     Foreign exchange gain on derivatives                  199           ---
 
     Interest expense                                   (1,261)         (898)
 
      Earnings before income taxes                       2,636         1,004
 
     Income tax expense                                   (479)         (220)
 
       Net earnings before accounting change             2,157           784
 
     Change in accounting principle                       (351)          ---
 
       Net earnings after accounting change             $1,806           784
 
     Net earnings per share:         2001                       2000
 
                              Basic       Diluted        Basic       Diluted
     Net earnings before
      accounting change        $.25           .24          .09           .09
 
     Change in accounting
      principle                (.04)         (.04)         ---           ---
 
     Net earnings after
      accounting change         .21           .20          .09           .09
 
     Weighted average
      number of shares:       8,813         8,919        8,729         8,932
 
 
     Supplemental Information -
     Revenue by Product Line:
 
      Space and Technology                             $29,669        29,365
 
      Wireless Products:
 
       Network Products and Systems Integration         20,952        18,197
 
       PCS/Cellular Antennas                            11,623        11,626
 
       SATCOM                                            4,920         3,246
 
        Total Wireless Products                         37,495        33,069
 
        Total Consolidated Revenues                    $67,164        62,434
 
 
                            Consolidated Balance Sheets
                                   (In thousands)
 
                                                        Mar 31        Dec 31
                                                         2001          2000
 
     Cash                                               $7,499         5,593
 
     Receivables                                        75,359        74,526
 
     Inventories                                        40,382        38,183
 
     Net property, plant and equipment                  48,827        49,602
 
     Goodwill                                           10,372        10,502
 
     Investment in Skybridge                            17,909        17,909
 
     Other assets                                       20,715        19,798
 
                                                      $221,063       216,113
 
 
     Bank debt and current installments,
      long-term debt                                   $21,066        22,048
 
     Other liabilities                                  45,014        43,019
 
     Long-term debt                                     43,686        39,617
 
     Stockholders' equity                              111,297       111,429
 
                                                      $221,063       216,113
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X69505773
 
 SOURCE  EMS Technologies, Inc.