HEI, Inc. Announces the Second Quarter 2011 Results

MINNEAPOLIS, July 25, 2011 /PRNewswire/ -- HEI, Inc. (Pink Sheets: HEII; http://www.heii.com) today announced its financial results for its second quarter of fiscal year 2011, which ended July 2, 2011.

Sales for the second quarter were $9,271,000, compared to $9,350,000 for the second quarter of 2010.  The Company generated a net income of $339,000 for the second quarter of 2011 compared to a net income of $79,000 for the same period of 2010.  Sales for the first six months of 2011 were $18,994,000, compared to $18,870,000 for the first six months of 2010.  The Company generated a year-to-date net income of $524,000 for 2011 compared to a net income of $371,000 for the first six months of 2010.

"You can see by the results that year over year sales are flat with slightly improved profitability achieved through continued cost and operational improvements.  What is not reflected in the numbers is our success with new product introductions and prototypes that are expected to be the basis for future sales expansion.  We have hired new sales and marketing management and we plan to continue to expand our sales pipelines and marketing efforts to support our growth objectives.  We are poised for a stronger second half of 2011 compared to the second half of 2010, both in terms of sales and profitability.  Our sales objective to expand further into high reliability telecommunications, military/aerospace, medical and now clean energy markets is gaining traction and momentum with an expanding prospect and customer base.    

"We are working to grow our reputation in our markets for our engineering and design expertise in support of our customers' new product introductions.  In addition to the success in this area in our Arizona and Minnesota facilities, this has resulted in new development programs in our Colorado operation, using our innovative HEI Sprint Development Process that accelerates the introduction of new products to market.  

"In addition to new sales and marketing management, we have attracted and hired some additional resources in the areas of engineering, project management, supply chain and logistics, and corporate finance that we believe will be instrumental in helping us build the HEI of the future that is based on speed and responsiveness and delivering exceptional value to our customers to help them succeed as market leaders and innovators," commented HEI CEO, Mark B. Thomas.

HEI, Inc. designs, develops and manufactures ultra-miniature microelectronics, substrates, systems, connectivity and software solutions for customers engaged in the medical, hearing, telecommunications, military, aerospace, and industrial markets.  HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional and cost effective product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities.

FORWARD LOOKING INFORMATION

Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue," and similar words.  Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and estimated HEI revenue, cash flow and profits, are forward looking statements.  All such forward-looking statements involve risks and uncertainties including, without limitation, adverse business and  market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, HEI's ability to satisfy financial or other obligations or covenants set forth in its financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI's ability to control fixed and variable operating expenses, and other risks detailed in previous HEI SEC filings. Since HEI is no longer reporting to the SEC, readers are cautioned to weigh the potential for additional risk factors based on ongoing business activities and the current economic conditions.  The information set forth herein should be read in light of such risks.  We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results.

SOURCE HEI, Inc.