Aeroflex 2Q earnings flat; contracts boost stock

Aeroflex chief executive Len Borow in 2001.

Aeroflex chief executive Len Borow in 2001. Photo Credit: Newsday / Jim Peppler

advertisement | advertise on newsday

Aeroflex Holding Corp. Friday posted second-quarter earnings and revenue that were roughly flat compared to the year-ago period.

The Plainview-based maker of microelectronic components for the space, defense and wireless industries reported net income of 1 cent per share for the quarter ended Dec. 31, matching the prior-year's quarter, and net sales of $151.1 million, nearly equal to the $151.9 million in the 2012 period.

Shares of the company, however, jumped 14.60 percent yesterday to close at $7.77 in the wake of a conference call in which chief executive Len Borow reported strong bookings, including two new contracts worth more than $20 million.

On Thursday, Aeroflex announced the acquisition of Shenick Network Systems, a provider of virtual testing services for computer network infrastructure.

In Friday's conference call, chief financial officer John Adamovich Jr. said that Aeroflex had paid $28.5 million for the company subject to adjustments.

Shenick, based in Dublin, had net sales of about $9.4 million, including roughly $2.7 million to Aeroflex, he said.

Aeroflex expects the acquisition to be neutral in fiscal 2014 and to add to earnings in fiscal 2015.

advertisement | advertise on newsday

The company issued third-quarter guidance, including the Shenick acquisition, for net sales of $155 million to $162 million and net income from continuing operations of $4 million to $8 million.

Aeroflex forecast that earnings from continuing operations would range from 4 cents to 7 cents per share.

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!

Comments now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: