Tel-Instrument Electronics Corp. announces net income of $1.3 million for fiscal 2022

EAST RUTHERFORD, New Jersey, June 17, 2022–(BUSINESS WIRE)–Tel-Instrument Electronics Corp. (“Tel-Instrument”, “TIC” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today announced net earnings of $1,309,738 or $0.30 per share basic and $0.26 per diluted share on revenue of $12.9 million for fiscal 2022 ended March 31, 2022.

Highlights include:

• Revenue for the year ended March 31, 2022 increased $1.4 million, or 12%, from the prior year.

• Gross margins for fiscal 2022 were 44.6%, an improvement of 3.3 percentage points over the prior year.

• Operating expenses increased by $120,000 year-over-year, with the increase primarily due to accruals for profit sharing.

• Operating profit increased to $937,000 from $73,000 in the prior year.

• Net income improved to $1.3 million ($0.30 per basic share) from $600,000 in the prior year.

• Cash balances improved to $7 million from $5.5 million at the start of the year.

• Working capital at year end improved to $3.7 million from $3.2 million in the prior year.

• Net worth improved to $6.2 million from $5.2 million at the start of the year.

Mr. Jeffrey O’Hara, President and CEO of Tel-Instrument, said, “Despite continued supply chain disruptions, TIC has been able to improve its revenues and profitably and substantially strengthen its balance sheet over the of the last fiscal year. The fourth quarter was affected by parts shortages due to the doubling and tripling of lead times from suppliers in some cases. decline in the second quarter of the current fiscal year. The good news is that we are in a strong financial position to deal with these supply chain issues. We are also excited by the initial positive reception we have seen with customers during the SDR/OMNI test. We have scheduled product demonstrations with Boeing and Airbus and our international distributors are beginning to place orders for demonstration units. Production deliveries of /OMNI are expected to begin in the second quarter of this fiscal year. We believe it will be a strong contender in the commercial and military avionics and communications test set markets. The Lockheed Martin F-35 MADL development program passed a successful Test Readiness Review (“TRR”) in May and the product is currently undergoing environmental and EMI/EMC qualification testing. This contract will generate non-recurring engineering (“NRE”) revenue over the next few quarters and is expected to generate ongoing production revenue in the order of $600,000. We are in final negotiations with the US Navy on a “mid-life” update to our CRAFT test sets. This should result in NRE revenue over the next two years and significant production revenue from 24 months after contract award.

Regarding the Aeroflex litigation, the status of the appeal has not changed even though the employees have returned to the Kansas Judicial Center. Aeroflex filed a motion earlier this year with the Court of Appeals to significantly increase the bail amount from the existing $2 million. We have filed a strong opposition to this motion and expect it to be denied. Despite planning conference requests, no information was received from the court. Interest accrued on the judgment amount continues to weigh on our financial results, but we continue to believe that we have a strong case that warrants continuing the appeals process.”

About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, aerospace and government/military defense markets. Tel-Instrument provides instruments to test, measure, calibrate and repair a wide range of airborne navigation and communication equipment. For more information, visit our website at www.telinstrument.com.

This press release contains statements that are not historical in nature and qualify as “forward-looking statements,” including those relating to future financial and operating results, benefits and synergies of the combined companies, statements regarding the outlook for the Company, pricing trends, and strengths within the industry, completion dates for capital projects, anticipated sales growth, cost reduction strategies and their results, long-term goals and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions regarding matters that are not historical facts. All predictions of future results contain a measure of uncertainty and, therefore, actual results could differ materially. Factors that could cause a difference include: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transport, environmental issues; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the United States Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

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contacts

Pauline Romeo
Tel-Instrument Electronics Corp.
(201) 933-1600 (ext. 309)