02 Nov 06. ST Engineering posts Q3 profits increase. SINGAPORE Technologies Engineering (ST Engineering) has recorded a rise in third quarter (Q3) profits before tax of 11 per cent to SGD147.5m (USD94.6m) while turnover has grown by 43 per cent to SGD1.16bn.The company said net profit was up 10 per cent to SGD115m, while earnings per share (EPS) was SGD0.0392 for the period, up from SGD0.036 for Q3 2005. (Source: Jane’s Defence Industry)
08 Nov 06. Azure Dynamics reported revenue for the quarter ended June 30, 2006 was $1.2m compared to $1.5m in the same period a year ago and $2.4m year-to-date compared to $2.5m during the same period in 2005. The decrease in revenue is attributable to decreased activities in funded engineering contracts in the US operations as focus is shifted towards the Company’s core development programs. Revenue is mainly comprised of sales of components, customer engineering contracts, and after-sales service support. After considering direct and applicable indirect costs of sales, the gross margin contribution from revenue in the quarter was $0.1m compared to $0.3m in the first quarter in 2005 and $0.4m year-to-date compared to $0.6m in the same period in 2005. Gross margin as a percentage of sales was 6% for the quarter compared to 18% in the first quarter a year ago and 16% year-to-date compared to 22% in 2005. The decrease in gross margin is primarily attributable to a combination of program mix (less higher-margin engineering service work) and additional costs incurred on two development programs in the US operation. For the quarter ended June 30, 2006, the Company incurred a net loss of $4.9m ($0.03 per share) compared to a net loss of $5.6m ($0.04 per share) in the first quarter of 2005. The reduced net loss in the current quarter is primarily attributable to lower operating expenses, particularly engineering and product development costs, when compared to a period of high-activity spending on the G1 program in the second quarter of 2005. As the G1 program transitions from the development phase to pre-production and production phases, spending levels have decreased. For the six months ended June 30, 2006, the Company incurred a net loss of $9.4m compared to $10.5m in the corresponding period a year ago. Before contributions, the Company expended $2.7m on engineering, research and development operations in the quarter, including $1.3m in respect of product development costs, compared to $4.1m for the same period in 2005, including $2.4m in respect of product development costs. The expenses were reduced by $0.4m in respect of government and customer contributions compared to $0.8m in the corresponding period a year ago. For the first six months of 2006 the Company expended $5.4m compared to $7.2m during the same period in 2005, including $2.6m in respect of product development costs compared to $3.7m during the corresponding period in 2005. Contributions from the government and customers totalled $0.7m year-to-date compared to $1.2m in 2005. The Company had cash and cash equivalents of $10.7m at June 30, 2006, compared to $20.7m at December 31, 2005 and $12.8m at June 30, 2005. Net cash outflows were approximately $4.9m in the quarter compared to $5.9m in the second quarter of 2005. The current year quarter included proceeds from the exercise of stock options of $0.7m compared to $39,000 in the second quarter of 2005. Net cash outflows in respect of operations, working capital financing and capital expenditures were approximately $5.6m in the quarter compared to $5.9m in the second quarter of 2005. Azure has formed significant relationships with industry leaders to increase penetration into its target markets and advance its product development programs. The agreements with Ford and StarTrans provide access to product development support and established distribution networks throughout North America. During the quarter, Azure launched commercial production of its G1 series hybrid product, on t