GlobeNewswire Inc | Feb 16, 2021 04:05PM EST

February 16, 2021

SARATOGA SPRINGS, N.Y., Feb. 16, 2021 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP)announces results for the first six months of fiscal year 2021.

Net sales for the second quarter of fiscal year 2021, October 1 to December 31, 2020, were $6,962,065, compared with last year's second quarter net sales of $7,286,674. Net loss for the quarter was $(181,006), $(0.08) per diluted share, as compared to net income of $228,964, $0.10 per diluted share for the same quarter last year.

For the first six months of fiscal year 2021, July 1 to December 31, 2020, net sales were $14.2 million, compared with $13.2 million for the first six months of fiscal year 2020. Net income for the period was $8,817, $0.00 per diluted share, compared with net income of $310,740, $0.13 per diluted share, for the same period last year.

The backlog for the Company was $60.1 million at December 31, 2020, compared with last year's backlog of $58.4 million at December 31, 2019. New orders in the first six months of fiscal year 2021 were $19.4 million, compared with new orders in the first six months of fiscal year 2020 of $26 million.

Mr. Patrick Enright, President and CEO, commented,

The current quarter was a challenge with reduced sales and a product mix that netted overall lower margins, which were further exacerbated by a pandemic-related contract cancellation which resulted in us recognizing a loss for the quarter. Specific to the cancellation, we recognized an inventory write-off equivalent to fifty percent of the contracts capitalized inventory value. Product under this engineering design and production contract was intended to be used in the commercial airline industry, which continues to be significantly impacted by the Coronavirus. As we work with our customer on the terms of the contract cancellation, we will look for alternate uses for this technology. Looking ahead, we currently believe annual sales will likely be in-line with the prior year sales but earnings-per share will be lower than prior year, a decrease from the original plan. However, new order bookings are expected to remain on target to reach $40 million for the current fiscal year and our backlog remains strong at $60.1 million as of December 31, 2020.

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.

For further information, contact Mr. David ONeil (518)245-4400.

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.