Contact:	Mark Murphy, Chief Executive Officer
	(949) 769-3200
	Jeff Stanlis, Investor Relations
	Hayden Communications, Inc.
	(602) 476-1821

 

 

		March 31, 2008(unaudited)			June 30,2007 (audited)
ASSETS
Current assets:
Cash and cash equivalents		$	529,000		$	403,000
Accounts receivable, net of allowance for doubtful accounts of $140,000 at March 31, 2008 and $153,000 at June 30, 2007			3,497,000			3,436,000
Inventories, net			4,713,000			4,622,000
Prepaid expenses			452,000			205,000
Deferred income taxes			1,049,000			1,091,000
Total current assets			10,240,000			9,757,000
Property, plant, equipment and leasehold improvements, net			5,286,000			3,778,000
Other assets:
Goodwill			2,997,000			2,997,000
Intangibles - Patents, net			1,246,000			1,321,000
Deferred income taxes			229,000			229,000
Other			34,000			25,000
Total other assets			4,506,000			4,572,000
Total assets		$	20,032,000		$	18,107,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Credit Line		$	500,000		$	300,000
Accounts payable			1,952,000			1,110,000
Accrued expenses			1,703,000			1,183,000
Income taxes payable			114,000			158,000
Current portion of term note			250,000			250,000
Current portion of real estate loan			30,000			26,000
Current portion of "patent" deferred payable			-			82,000
Total current liabilities			4,549,000			3,109,000
Long-term liabilities
Term note			208,000			396,000
Real estate loan			1,568,000			1,593,000
Patent deferred payable			45,000			158,000
Total long-term liabilities			1,821,000			2,147,000
Total liabilities			6,370,000			5,256,000
Commitments and contingencies
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 9,718,366 shares issued and outstanding March 31, 2008, 9,718,366 shares issued and outstanding June 30, 2007,			16,497,000			16,340,000
Accumulated deficit			(2,835,000	)		(3,489,000	)
Total shareholders’ equity			13,662,000			12,851,000
Total liabilities and shareholders’ equity		$	20,032,000		$	18,107,000

		2008			2007
Net sales		$	7,614,000		$	5,916,000
Cost of sales			5,388,000			3,760,000
Gross profit			2,226,000			2,156,000
Operating expenses:
Selling			397,000			361,000
General and administrative expenses			892,000			780,000
Research and development costs			729,000			664,000
Total operating expenses			2,018,000			1,805,000
Income from operations			208,000			351,000
Other income (expense):
Other expense, net			(45,000	)		(4,000	)
Royalty income			5,000			5,000
Interest expense			(37,000	)		(66,000	)
Total			(77,000	)		(65,000	)
Income before provision for income taxes			131,000			286,000
Provision for income taxes			32,000			70,000
Net income		$	99,000		$	216,000
Net income per share:
Basic		$	0.01		$	0.02
Diluted		$	0.01		$	0.02
Weighted average shares outstanding - basic			9,718,366			9,556,272
Weighted average shares outstanding - diluted			9,935,358			9,765,033

		2008			2007
Net sales		$	19,728,000		$	15,780,000
Cost of sales			12,996,000			10,274,000
Gross profit			6,732,000			5,506,000
Operating expenses:
Selling			1,072,000			1,039,000
General and administrative expenses			2,492,000			2,106,000
Research and development costs			1,939,000			1,890,000
Total operating expenses			5,503,000			5,035,000
Income from operations			1,229,000			471,000
Other income (expense):
Other income, net			3,000			7,000
Royalty income			25,000			30,000
Interest expense, net			(119,000	)		(179,000	)
Total			(91,000	)		(142,000	)
Income before provision for income taxes			1,138,000			329,000
Provision for income taxes			409,000			10,000
Net income		$	729,000		$	319,000
Net Income per share:
Basic		$	0.08		$	0.03
Diluted		$	0.07		$	0.03
Weighted average shares outstanding - basic			9,718,366			9,549,211
Weighted average shares outstanding - diluted			9,928,128			9,768,277