M2M equipment maker Elecsys saw its sales for the quarter ending 31 January 2011 rise 29% to US$6.1m.
Elecsys develops and makes machine-to-machine (M2M) data acquisition, telemetry, analysis systems and custom electronic assemblies for critical industries.
Sales for the third quarter were $6,109,000, an increase of 29%, or $1,368,000, from $4,741,000 in the third quarter of fiscal 2010. Total sales year-to-date increased 36%, or $4,409,000, to $16,770,000.
The increases were the result of continued growth in bookings in custom electronic assemblies and an overall increase in sales of proprietary products and services as compared to the previous year.
Profit before taxes for the quarter were $356,000, compared with $2000 for the same quarter in the previous year. For the first nine months of fiscal 2011, profit before taxes grew to $697,000 from a loss before taxes of $1,157,000 in the first nine months of fiscal 2010.
The company expects sales growth to continue over the next few quarters as compared with the most recently completed fiscal quarter.
“We are pleased with our performance during the third quarter which demonstrated significant bottom-line improvement and substantial growth in revenues,” said Karl Gemperli, chief executive officer. “Sales increased over 29% from the third quarter of last year and strong margins and efficient operations doubled our earnings compared to the prior quarter.”
He said that demand for the company’s proprietary industrial M2M products continued to grow.
“We were encouraged by the strong market demand for our latest remote monitoring product, the Watchdog VIP, introduced in December,” said Gemperli. “In addition, Elecsys continued to reliably deliver innovative and dependable products to select original equipment manufacturers in diverse industrial markets and we believe that our specialised expertise in electronic design and manufacturing services, coupled with the growing trend towards domestic outsourcing, will accelerate the growth in this segment of our business.
“Our technical capabilities are a vital component of our long-term growth and Elecsys continued to make substantial investments to develop new technology and expand our suite of proprietary M2M communications solutions.”
During the quarter, the Elecsys portfolio of intellectual property expanded further with the grant of an additional US patent while the company continued to pursue new patentable technology.
“In conjunction with new product and technology development, our current sales and marketing initiatives are focussed on both expanding the applications of our existing products into new industry segments as exemplified by our recently announced remote monitoring system order for the US Department of Defense and increasing our business in developing international markets with attractive new business potential,” said Gemperli. “Although the pace and sustainability of the economic recovery remain uncertain, we remain committed to expanding both the breadth of our product offerings and our market penetration and anticipate that the positive trends in revenues and earnings will continue during the coming quarters.”