Click here to close now.


Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

TechPrecision Corporation Reports Fiscal Second Quarter of 2013

Sequential Quarterly Improvement Continues with 13% Revenue Growth

CENTER VALLEY, Pa., Nov. 14, 2012 /PRNewswire/ -- TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the alternative energy, cleantech, medical, nuclear, defense, aerospace and other commercial industries, today reported financial results for the second quarter and six month period of fiscal year 2013, the periods ended September 30, 2012.

Second Quarter 2013 Highlights

  • Net sales increased 13% to $8.1 million compared to $7.1 million in the year-ago quarter and increased 13% sequentially compared to $7.1 million in the first fiscal quarter of 2013.
  • Gross profit was $1.9 million, or 24.0% gross profit margin compared to gross profit of $1.9 million or 26.8% gross profit margin in the year-ago quarter and compared sequentially to gross profit of $1.1 million or 15.5% gross profit margin for the quarter ended June 30, 2012.
  • Operating income was $14,000 for the second quarter compared to an operating loss of ($39,000) in the prior year second quarter and compared sequentially with an operating loss of ($895,000) for the quarter ended June 30, 2012.
  • Net loss in the second quarter was ($45,000) or ($0.00) per basic and fully diluted share compared to a net loss of ($88,000) or ($0.01) per basic and fully diluted share in the prior year quarter. This compares sequentially to a net loss of ($706,000) or ($0.04) per basic and fully diluted share for the quarter ended June 30, 2012.
  • TechPrecision's backlog at the end of the fiscal second quarter of 2013 was $26.1 million, including $1.9 million in backlog contributed from the China subsidiary, compared with a $29.9 million backlog at September 30, 2011. The prior year backlog included $3.4 million of solar furnace orders for which the customer delayed delivery until the third quarter.

"We have been transitioning our Ranor division from its historic reliance on the solar sector to a more diversified customer and product base, while also positioning the division for sustained stability and profitability," said Mr. James Molinaro, CEO of TechPrecision Corporation. "With much of that transition now successfully behind us, we expect continued sequential improvements to our top and bottom lines moving forward. We delivered sequential improvement with the second quarter, and expect further improvement in the future. We continue to make progress toward enhancing our operational processes, management personnel and establishing key performance indicators at our Ranor division. I am very pleased with this progress, and even more importantly, our strategic customers have indicated that they are pleased with the improvements the division president and new management team have implemented at our Ranor division. Our WCMC-China division shipped initial production volumes of sapphire chambers during Q2 of fiscal 2013 and we expect to continue to expand sapphire shipments. On a consolidated basis, our transition efforts resulted in a 13% increase in revenues and positive income from operations for fiscal Q2. Both of these metrics represent an improvement compared to our first fiscal quarter. We look forward to continuing the sequential improvements throughout the remainder of this fiscal year."

Business Outlook

"We expect our Q3 fiscal 2013 revenues and operating income to be better than Q2, continuing our sequential quarterly improvement," added Mr. Molinaro. "This confidence is based on planned production volume increases for the proton beam cancer treatment units we produce for Mevion Systems, and also the isotope transport casks which we produce for Alpha Omega Systems. We also expect to recognize remaining contract revenue and project margins on our new PolySi customer order when the first units ship in the next few months. Additional orders from our new PolySi customer should follow as shifting dynamics within the semiconductor field create demand for larger-scale PolySi furnaces like those we are currently producing. The PolySi orders will support both our WCMC and Ranor divisions. Our WCMC-China division will also continue to increase sapphire chamber production and other industrial products as we continue to ramp order volume in China. We are optimistic with the sapphire outlook as the first mobile phone manufacturers have adopted sapphire to cover the camera. Several mobile phone manufacturers are looking to replace the front-screen of the mobile phone with sapphire. One of our strategic sapphire customers recently announced that a single-digit market adoption of sapphire for mobile phone covers and touch screens would require over 3,000 sapphire growth furnaces. This bolsters our confidence in this market."

Second Quarter 2013 Results

For the three months ended September 30, 2012, sales increased 13% or $931,000 to $8.1 million from $7.1 million in the year-ago period and increased 13% sequentially from $7.1 million in the first fiscal quarter of 2013. Gross margin was 24.0%, or $1.9 million gross profit, in the second fiscal quarter of 2013 compared to a gross margin of 26.8%, or $1.9 million gross profit, in same period last year. This sequentially compares with a gross profit of $1.1 million and 15.5% gross margin for the quarter ended June 30, 2012. Gross margin in any reporting period is impacted by the mix of services we provide on projects completed within that period. Selling, general and administrative expenses for the quarter ended September 30, 2012 were $1.9 million as compared to $1.9 million for the quarter ended September 30, 2011. Sequentially, selling general and administrative costs were 3.8% or $76,000 lower than selling, general and administrative expense reported for the quarter ended June 30, 2012.

Net loss was ($45,000) or ($0.00) per basic and fully diluted share for the quarter ended September 30, 2012 as compared to a net loss of ($88,000) or ($0.01) per basic and fully diluted share for the quarter ended September 30, 2011.

Six Months Year-to-Date Financial Results

For the six months ended September 30, 2012, revenue decreased 6.7% to $15.2 million from $16.3 million for the same period last year. The Company's China subsidiary, WCMC, contributed $1.6 million in net sales to alternative energy customers during first half of fiscal 2013. Gross margin was 20.0%, or $3.0 million gross profit, for the year-to-date period compared to a gross margin of 26.6%, or $4.3 million gross profit, in the same period in 2011. Selling, general and administrative expenses for first half fiscal 2013 were $3.9 million as compared to $3.7 million for the same period in 2011, reflecting an increase of $238,000 or 6.5% over the previous year. The majority of the increase in selling, general and administrative expenses was due to $218,000 of non-recurring severance and executive search fee costs. Net loss was ($0.75) million or ($0.04) per share basic and fully diluted for the year-to-date period as compared to a net income of $293,000 or $0.02 per share basic and $0.01 per fully diluted share for the same six month period last year.

The Company completed the first half of fiscal 2013 with a backlog of $26.1 million. The comparable backlog at September 30, 2011 was $29.9 million, including $3.4 million of solar furnace orders for which the customer delayed delivery until the third quarter of last year. The Company's backlog as of October 31, 2012 was approximately $26.5 million, including $0.5 million of open purchase orders issued under a $9.5 million Purchase Agreement, announced in February 2012. Cumulatively, the Company has received $2.4 million of purchase orders under the Purchase Agreement with delivery dates extending through December 2012 and management expects to receive additional purchase orders under the $9.5 million Purchase Agreement in January 2013.

Balance Sheet

At September 30, 2012, TechPrecision had working capital of $9.4 million as compared with working capital of $10.2 million at March 31, 2012, a decrease of $0.8 million. Cash provided by operations was $78,000 for the six months ended September 30, 2012 as compared to cash used by operations of ($0.96) million for the six months ended September 30, 2011. As of September 30, 2012, the Company had $2.14 million in cash and cash equivalents, down $0.68 million compared to the balance at March 31, 2012. Stockholders' equity decreased 4.3% to $11.7 million compared to $12.2 million at March 31, 2012.

Teleconference Information

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Wednesday, November 14, 2012. To participate in the live conference call, please dial 1-877-941-4775 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-480-629-9761. When prompted by the operator, mention Conference Passcode 4575304. A replay will be available for one week starting on Wednesday, November 14, 2012, at 7:30 p.m. Eastern Time. To access the replay, dial 1-877-870-5176 or 1-858-384-5517. When prompted, enter Conference Passcode 4575304.

The call will also be available live by webcast at TechPrecision Corporation's website,, and will also be available over the Internet and accessible at

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), cleantech, medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision's goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Company Contact:

Investor Relations Contact:

Mr. Richard F. Fitzgerald

Hayden IR

Chief Financial Officer

Brett Maas

TechPrecision Corporation

Phone: 1-646-536-7331

Tel: 1-484-693-1702

Email: [email protected]

Email: [email protected]



-- Financial tables follow --





Three months ended

Six months ended

September 30,

September 30,





Net sales









Cost of sales





Gross profit





Selling, general and administrative expenses





Income (loss) from operations





Other income (expenses):

 Other income





 Interest expense





 Interest income





Total other expense, net





(Loss) income before income taxes





Income tax (benefit) expense





Net (loss) income









Net (loss) income per share of common stock (basic)









Net (loss) income per share (fully diluted)









Weighted average number of shares outstanding (basic)





Weighted average number of shares outstanding (fully diluted)









September 30, 2012

March 31, 2012

Current assets

Cash and cash equivalents





Accounts receivable, less allowance for doubtful accounts of $25,010



Costs incurred on uncompleted contracts, in excess of progress billings



Inventories - raw materials



Income taxes receivable



Current deferred taxes



Other current assets



   Total current assets



Property, plant and equipment, net



Noncurrent deferred taxes



Other noncurrent assets



   Total assets






Current liabilities:

Accounts payable





Accrued expenses



Accrued taxes payable



Deferred revenues



Current maturity of long-term debt



   Total current liabilities



Long-term debt




Preferred stock- par value $.0001 per share, 10,000,000 shares authorized, of which 9,890,980 are designated as Series A Convertible Preferred Stock, with 6,337,998 and 7,035,982 shares issued and outstanding at September 30, 2012 and March 31, 2012, respectively (liquidation preference of $1,806,329 and $2,005,254 at September 30, 2012 and March 31, 2012, respectively)



Common stock -par value $.0001 per share, authorized, 90,000,000 shares, issued and outstanding, 18,904,577 shares at September 30, 2012 and 17,992,177 at March 31, 2012



Additional paid in capital



Accumulated other comprehensive (loss) income



Retained earnings



   Total stockholders' equity



   Total liabilities and stockholders' equity









Six Months Ended

September 30,




Net (loss) income





Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:

Depreciation and amortization



Share based compensation



Deferred income taxes



Changes in operating assets and liabilities:

Accounts receivable



Inventories – raw materials



Costs incurred on uncompleted contracts, in excess of progress billings



Taxes receivable



Other current assets



Other noncurrent assets



Accounts payable



Accrued expenses



Deferred revenues



  Net cash provided by (used in) operating activities




Purchases of property, plant and equipment



 Net cash used in investing activities




Proceeds from exercised stock options



Tax expense from share based compensation



Borrowings of long-term debt



Repayment of long-term debt, including capital leases



 Net cash (used in) provided by financing activities



Effect of exchange rate on cash and cash equivalents



Net (decrease) in cash and cash equivalents



Cash and cash equivalents, beginning of period



Cash and cash equivalents, end of period






SOURCE TechPrecision Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...