SARATOGA SPRINGS, NY--(Marketwired - November 14, 2016) - Espey Mfg. & Electronics Corp. (NYSE MKT: ESP) announces results for its first three months of fiscal year 2017.
Net sales for the first quarter of fiscal 2017, July 1 to September 30, 2016, were $6,068,684, as compared to last year's first quarter net sales of $6,279,436. Net income for the quarter decreased to $420,825, $0.18 per diluted share, as compared to net income of $878,530, $0.38 per diluted share for the same quarter last year.
The sales order backlog for the Company was $34.2 million on September 30, 2016, an increase of $0.6 million from last year's sales order backlog of $33.6 million on September 30, 2015. New orders in the first quarter of fiscal 2017 were $1.2 million, as compared to $3.4 million in the first quarter of fiscal 2016.
Mr. Patrick Enright, President and CEO, commented,
"Our first quarter results demonstrate continued stability in both net sales and backlog as compared to same quarter FY16. New orders were depressed over the same period primarily due to timing of final contract negotiations for a $3MM order for development, qualification and production of an aviation power supply for a new customer. The order will close in Q2 of FY17. Additionally, pressure in the US transportation sector continues the negative trend of FY16. We expect this market to remain negative in FY17.
The drop in net income over flat sales is a reflection of our investment in talent, facilities and product development. We expect our earnings per share to recover as we begin to realize the return on our current investments."
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.
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.