Video display sees double-digit earnings growth for current fiscal year

Tag : EL Display
Video Display Corporation (NASDAQ:VIDE) today released results forthe first quarter ended May 31, 2008, as well as earnings guidancefor its current fiscal year ending February 28, 2009.

First quarter net earnings were $580,000 or $0.06 per share, inline with Company expectations, compared to $853,000 or $0.09 pershare for the first fiscal quarter of 2008. The primary basis forthe reduction was attributed to lower profits from operation of theClinton Displays' monochrome CRT division and the VDC CRT facilityin Tucker, GA.

In announcing guidance, the Company forecast expectations for theentire year of fiscal 2009 to include fully taxed earnings in therange of $2.8 million to $3.2 million or approximately $0.30 to$0.34 per share on an average of 9.5 million shares outstanding.

"Results for the first quarter were within Company targets and thegoal of increasing net earnings and earnings per share in the rangeof 15% over fiscal 2008 appears to be achievable based upon currentexpectations for 2009 revenues," stated CEO, Ron Ordway. He furthercommented, "Video Display Corporation continues to expand itsR&D efforts to generate internal growth through enhancement ofits existing product base and development of new product offeringsin order to ensure that its growth continues, not only in 2009, butfor years thereafter."

Video Display Corporation designs, develops and manufactures uniquesolutions for display requirements for military, medical andindustrial use with emphasis on high end training and simulationapplications. Its product offerings include ruggedized AMLCD andCRT displays as well as complete projection systems utilizing VDC'sMarquee(TM) line of projectors. Video Display Corporation operates8 display design and manufacturing plants plus additional salesfacilities throughout the United States and Europe.

This document contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended,and Section 21E of the Securities Exchange Act of 1934, as amended.In addition, from time to time, Video Display Corporation or itsrepresentatives have made or may make forward-looking statements,orally or in writing. Such forward-looking statements may beincluded in, but are not limited to, various filings made by theCompany with the Securities and Exchange Commission, press releasesor oral statements made with the approval of an authorizedexecutive officer of the Company. Actual results could differmaterially from those projected or suggested in any forward-lookingstatements as a result of a wide variety of factors and conditions,including items discussed in the Company's Form 10-K for the yearended February 28, 2008, filed with the Securities and ExchangeCommission. The Company undertakes no duty to publicly updateforward-looking statements, whether as a result of new information,future events or otherwise. -0- *T Three Months Ended May 31,----------------- 2008 2007 -------- -------- Net sales $19,505$21,465 Cost of goods sold 12,313 13,925 -------- -------- Grossprofit 7,192 7,540 -------- -------- Operating expenses Selling anddelivery 1,941 1,922 General and administrative 4,180 3,885-------- -------- 6,121 5,807 -------- -------- Operating profit1,071 1,733 -------- -------- Other income (expense) Interestexpense (286) (471) Other, net 112 65 -------- -------- (174) (406)-------- -------- Income before income taxes 897 1,327 Income taxexpense 317 474 -------- -------- Net income $ 580 $ 853 ================ Basic earnings per share of common stock $ .06 $ .09======== ======== Diluted earnings per share of common stock $ .06$ .09 ======== ======== Basic weighted average shares outstanding9,446 9,655 ======== ======== Diluted weighted average sharesoutstanding 9,554 9,716 ======== ======== *T