Saratoga Springs, NY, November 16, 2020 – Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for its first three months of fiscal year 2021.
Net sales for the first quarter of fiscal year 2021, July 1 to September 30, 2020, were $7,265,515, compared with last year’s first quarter net sales of $5,923,819. Net income for the quarter increased to $189,824, $0.08 per diluted share, as compared to net income of $81,776, $0.03 per diluted share for the same quarter last year.
The backlog for the Company was $62 million at September 30, 2020, compared with last year’s backlog of $46.6 million at September 30, 2019. New orders in the first three months of fiscal year 2021 were $14.3 million, compared with new orders in the first three months of fiscal year 2020 of approximately $7.0 million.
Mr. Patrick Enright, President and CEO, commented,
Earnings for the quarter are up as we started to see the initial impact of targeted cost reductions which we put in place to offset the anticipated impact from necessary investments in new programs. An increase in sales, bolstered by strong build to print shipments and robust new sales order bookings, rounded out the quarter.
While the future of defense spending budgets remain uncertain due to both the administration transition in Washington D.C., and the likely re-assessment of Federal budget appropriations resulting from the effects of the continuing global pandemic, we remain cautiously optimistic that any impact to our anticipated new order bookings for the current fiscal year will be minimal. The growth strategy we have put in place by investing in new programs and diversifying our customer base, along with introducing targeted cost reductions, should put us in a good position as we navigate through these uncertain times. In the meantime, our primary focus continues to be on improving liquidity by the turning of inventory into sales.
Espey’s primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the Internet at www.espey.com.
For further information, contact Mr. David O’Neil (518)245-4400.
This press release may contain certain statements that are “forward-looking statements” and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.