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Elecsys Corp. (ESYS) Reports Strong Q3 FY2011 Performance

|Includes: Elecsys Corporation (ESYS)

Elecsys Corp., a developer and manufacturer of machine to machine (M2M) data acquisition, telemetry, analysis systems and custom electronic assemblies for critical industries, today announced its financial results for the third fiscal quarter ended January 31, 2011.

The company reported sales for the quarter at $6.10 million, a 29 percent increase over the $16.77 million reported for the third quarter of fiscal 2010.

Net income was $262,000, or $0.07 per diluted share, for the third quarter of fiscal 2011, as compared to net income of $64,000, or $0.02 per diluted share, for the comparable quarter of 2010.

Gross margin for the third quarter was approximately 34 percent of sales, or $2.04 million, compared to 32 percent of sales, or $1.51 million, for the prior year period.

Elecsys reported that total backlog as of January 31, 2011, grew by 60 percent, to $6.27 million compared to total backlog of $3.93 million from one year earlier.

The company said it expects continued sales growth in the upcoming quarters based on currently scheduled orders and strong demand for its existing and new products.

Karl B. Gemperli, CEO of Elecsys said the company is pleased with its quarterly figures, which reflected bottom-line improvement and substantial revenue growth. Gemperli contributed the strong performance to the company’s solutions and said the company anticipates further growth in the future.

“Demand for our proprietary industrial M2M solutions continued to grow and we were encouraged by the strong market demand for our latest remote monitoring product, the Watchdog VIP, introduced in December. In addition, Elecsys continued to reliably deliver innovative and dependable products to select original equipment manufacturers in diverse industrial markets and we believe that our specialized expertise in electronic design and manufacturing services, coupled with the growing trend towards domestic outsourcing, will accelerate the growth in this segment of our business,” Gemperli stated in the press release.

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