SOURCE: Sutron Corporation

Sutron Corporation

May 17, 2010 13:48 ET

Sutron Reports First Quarter Operating Results

STERLING, VA--(Marketwire - May 17, 2010) - Sutron Corporation (NASDAQ: STRN), a leading provider of hydrological, meteorological and oceanic monitoring products, systems and services, announced today its financial results for the three months ended March 31, 2010.

Financial Highlights

Net income for the first quarter ended March 31, 2010 was up 390% to $333,743 or $.07 per share as compared to net income of $68,154 or $.01 per share in the first quarter in 2009. Revenues for the first quarter ended March 31, 2010 were up 37% to $4,899,840 as compared to $3,575,031 in the first quarter of 2009. The backlog of customer orders at March 31, 2010 was up 76% to approximately $11,286,000 as compared to backlog of approximately $6,397,000 at March 31, 2009.

"We are pleased to report a strong start to fiscal year 2010 with revenues of $4,899,840 and earnings of $333,743 in the first quarter," said Raul McQuivey, Sutron's Chairman and Chief Executive Officer. "Our backlog of $11,286,000 is at a record level going into the second quarter and we believe that approximately 80% of our backlog will convert to revenue in 2010. We are also pleased to report cash of approximately $8,023,000 as of March 31, 2010. Our cash position has built up significantly since December 31, 2009 due to the completion and acceptance of several international projects. We continue to see many opportunities in our domestic business and to see funding of projects under the federal economic stimulus plan. We are tracking several large international projects that we anticipate will be awarded to us in the second quarter although we cannot provide any assurances due to the nature of our business."

About Sutron Corporation

Sutron Corporation, headquartered in Sterling, Virginia, provides a wide variety of hydrological, meteorological and oceanic real-time data collection, warning, and control products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities and hydropower companies. Over 50,000 Sutron stations worldwide using satellite, telephone, and/or cellular telemetry collect, store, transmit and/or host real-time data from remote sites. Sutron's data collection/alarm/control software allows users to collect, process, calculate, analyze and distribute data in real time via live web-cam, voice, text, email, pager, web page, and alerts. Sutron manufactures its dataloggers, satellite transmitters and sensors that are easily integrated into new or existing networks. Sutron's equipment and systems are designed to offer commonality of components and uniform interfaces in order to build modular, open, distributed system architecture that provides excellent performance regardless of the number of sensors, field stations or base stations that might be added. Sutron is a project driven business and our quarterly results may fluctuate substantially based upon large contract awards that are difficult to project in terms of timing and may be delayed due to the differing time frames in securing government approvals.

Safe Harbor Statement

The statements in this press release that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "should" and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings with the SEC, including the disclosure under the heading "Business" and "Management's Discussion and Analysis" in the Company's Annual Report on Form 10-K filed on April 15, 2010. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

                            FINANCIAL SUMMARY

                                                    For the Three Months
                                                      Ended March 31,
OPERATING RESULTS                                     2010         2009
                                                  ------------ -----------
Revenues                                          $  4,899,840 $ 3,575,031
Cost of sales                                        2,988,329   2,230,909
                                                  ------------ -----------
       Gross profit                                  1,911,511   1,344,122
                                                  ------------ -----------
Operating expenses:
     Selling, general and administrative expenses      989,957   1,036,372
     Research and product development expenses         415,796     359,089
                                                  ------------ -----------
       Total operating expenses                      1,405,753   1,395,461
                                                  ------------ -----------
       Operating income (loss)                         505,758     (51,339)
Interest and other income, net                          12,985     172,493
                                                  ------------ -----------
        Income before income taxes                     518,743     121,154
Income tax expense                                     185,000      53,000
                                                  ------------ -----------
Net income                                        $    333,743 $    68,154
                                                  ============ ===========

Net income per share:
       Basic income per share                     $        .07 $       .01
                                                  ============ ===========
       Diluted income per share                   $        .07 $       .01
                                                  ============ ===========

                              Balance Sheets

                                                (Unaudited)     (Audited)
                                                  March 31,   December 31,
                                                    2010          2009
                                                ------------  ------------
Current Assets:
   Cash and cash equivalents                    $  6,381,609  $  4,666,983
   Restricted cash and cash equivalents            1,641,806     1,032,517
   Accounts receivable, net                        5,520,973     7,468,327
   Inventory                                       3,236,240     3,088,782
   Prepaid items and other assets                    673,832       206,338
   Income taxes receivable                                 -        70,695
   Deferred income taxes                             435,000       412,000
                                                ------------  ------------
        Total Current Assets                      17,889,460    16,945,642

Property and Equipment, Net                        1,850,360     1,884,876
                                                ------------  ------------
Other Assets
   Goodwill                                          570,150       570,150
   Other Assets                                      119,523       127,529
                                                ------------  ------------
       Total Assets                             $ 20,429,493  $ 19,528,197
                                                ============  ============

Current Liabilities:
   Accounts payable                             $  1,234,683  $  1,064,425
   Accrued payroll                                   483,624       479,507
   Other accrued expenses                          1,464,169     1,470,477
   Billings in excess of costs and estimated
    earnings                                         392,591             -
                                                ------------  ------------
        Total Current Liabilities                  3,575,067     3,014,409
Long-Term Liabilities
   Deferred rent                                   1,300,405     1,335,176
   Deferred income taxes                             132,000       148,000
                                                ------------  ------------
        Total Long-term Liabilities                1,432,405     1,483,176
                                                ------------  ------------
        Total Liabilities                          5,007,472     4,497,585
                                                ------------  ------------
Stockholders' Equity
   Common stock                                       45,707        45,707
   Additional paid-in capital                      3,654,115     3,635,659
   Retained earnings                              11,756,228    11,422,485
   Accumulated other comprehensive loss              (34,029)      (73,239)
                                                ------------  ------------
       Total Stockholders' Equity                 15,422,021    15,030,612
                                                ------------  ------------
       Total Liabilities and Stockholders'
        Equity                                  $ 20,429,493  $ 19,528,197
                                                ============  ============

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