LANCASTER, Pa., June 12 Herley Industries, Inc.(Nasdaq: HRLY) today reported financial results for the third quarter endedMay 4, 2008. Herley reported net sales for the third quarter of $38.5million, down $5.9 million or 13% from the third quarter of the prior fiscalyear.
Herley reported a basic and diluted loss of $0.27 per share including theimpact of a litigation settlement agreement with the United States Departmentof Justice, as compared with basic and diluted earnings per share of $0.28 and$0.27, respectively, for the thirteen weeks ended April 29, 2007.
Excluding the impact of the litigation settlement costs in fiscal 2008,basic and diluted earnings per common share in the third quarter would havebeen $ 0.15 for the thirteen weeks ended May 4, 2008 as compared to basic anddiluted earnings per common share of $0.28 and $0.27, respectively, for thethirteen weeks ended April 29, 2007. On a year-to-date basis, excluding theimpact of both the litigation settlement costs in fiscal 2008 and theemployment contract settlement costs in fiscal 2007, basic and dilutedearnings per common share in 2008 would have been $ 0.07 for the forty weeksended May 4, 2008 as compared to basic and diluted earnings per common shareof $0.46 and $0.44, respectively, for the thirty-nine weeks ended April 29,2007. A non-recurring income tax benefit of $2.7 million is included in theresults for both the thirteen weeks ended May 4, 2008 and the forty weeksended May 4, 2008. A reconciliation of the Non-GAAP earnings per common sharecalculation is as follows:
* The non-GAAP disclosure of net income and basic and diluted earnings percommon share is not preferable to GAAP net income and earnings per commonshare but is shown as a supplement to such disclosure for comparability to theprior year's results. Management believes that this information is importantto investors for a meaningful analysis of our financial performance.
Myron Levy, Herley Chairman and CEO commented, "It is no surprise that theCompany's third quarter and fiscal year results were affected by very unusualand significant events. The good news is that these events are finallybehind us and we are looking to the future. Management is in the process ofreviewing our fiscal 2009 budgets. For the first time in several years, Ibelieve that legal expense will not be a dominant factor. During thebudgeting process we carefully review the military and commercial programsthat are important to Herley's success. By evaluating our past successes, wecan more successfully plan for FY 2009 and beyond. We believe that ourstrong past performance on well-funded, long-term U.S. military programs suchas Trident D-5, EA-18G, AN/ARA-63 Tactical Instrument Landing System, andAMRAAM, will contribute significantly to our continued success for the longterm. The Company's bookings continue to be strong; we have a record-levelbacklog; and we continue to extend our reach into the international market.We are also continuing to take the steps necessary to achieve more efficientoperations, so that we can better meet the requirements of current and futurecustomers."
Mr. Levy will host a conference call on June 13, 2008 at 9:00 a.m. Easterntime to discuss financial results for the third quarter ended May 4, 2008. Tojoin the conference call dial 1 (888) 425-4188, referencing Conference ID50633300.
A taped replay of the call will be available on June 13, 2008 at 11:00a.m. through June 20, 2008 at 11:59 p.m. Eastern time. To listen to thereplay dial: 1 (800) 642-1687 (U.S.) or 1 (706) 645-9291 (International), andConference ID 50633300.
In addition, the conference call will be broadcast live over the Internetand can be accessed through the following URL:http://www.videonewswire.com/event.asp?id=49000. To listen to the live callon the Internet, go to the web site at least 15 minutes early to r