E.F. Johnson project acceptance, product introductions pick up
As financial returns improve for Transcrypt International, Lincoln, NE, orders, project acceptance and new product introductions for the company’s E. F. Johnson subsidiary in Waseca, MN, show a quickened pace.
2001 results — Transcrypt posted a $1.5 million profit for the fourth quarter of 2001 compared to a loss of $18.1 million for the comparable period in 2000, a loss that included $12.4 million of income tax expense. The tax resulted from an increased valuation allowance for deferred tax assets. The fourth quarter’s revenue was $13.8 million, an increase of $6.6 million over the $7.3 million in revenue for the same period in 2000.
For all of 2001, Transcrypt’s net income was $544,000 on $44.2 million in revenue, compared to a loss of $25.4 million on $42.2 million in revenue the previous year.
The company ended the year with cash and cash equivalents of $11.6 million and chose to pay off and terminate its line of credit on Feb. 1, 2002, leaving an unencumbered cash balance of $6.1 million.
“The increase in our revenues was primarily the result of the company focusing its efforts on the public safety sector and governmental user segment of the market, as well as improvement in and introduction of new land mobile radio products,” said Michael E. Jalbert, Transcrypt’s chief executive. “With continued development and introduction of new Project 25 products and infrastructure equipment in 2002 and the public sector’s increasing demand for digital interoperable wireless communications solutions, we expect to see continued improvement in our financial performance in the year 2002.”
Orders — Johnson has logged multiple orders for radio communications equipment placed by agencies of the Department of Interior. One order includes 5300 series mobile radios and hand-held controllers for the Bureau of Indian Affairs for use in its nationwide law enforcement activities. In additional orders placed, agencies of the Bureau of Land Management will receive digital 5300 series mobiles. Collectively, the orders are valued at $1.6 million. Jalbert said that the DOI is expected to use the radio equipment in its transition to Project 25 digital communications.
Johnson also won a contract from the school board of Virginia Beach, VA, for combination SmartNet and SmartZone 7780 series portable radios for use by the Virginia Beach City Public Schools. The radio equipment will be used in school buses supporting 84 schools in Virginia’s most populous city. The contract was valued at $444,400.
Acceptance — Johnson is basking in the glow of completing an integration project involving its Multi-Net 800MHz trunked radio communications system installed in Chester County, PA. The company upgraded two existing sites to simulcast and added channels to three five-channel sites for a total of 11 channels. As the project was completed, Johnson received an order from Chester County for additional radio equipment valued at $577,000.
“This integration will make the system easier to use and will provide improvement in coverage areas throughout the county,” said Ed Atkins, director of emergency services for Chester County. “The quality of support that we receive from E. F. Johnson has been a crucial factor in maximizing the efficiency of our system.”
Another plus for Johnson is the successful completion of an interoperability test on its 5300 Project 25 trunked mobile radios. Officials from the cities of Phoenix and Mesa, AZ, which are constructing a joint Project 25 trunked radio system, conducted the test to evaluate the capability of the Johnson radios to work on their soon-to-be-installed Motorola system. According to a statement from Johnson, the test result means that Johnson is only the second supplier of radio equipment that operates on Project 25 trunking systems.
Multimode portable — In late February, Johnson introduced its 5100 portable radio series that supports multiple protocols, allowing numerous agencies the ability to communicate among themselves with the switch of a button.
Johnson, founded in 1923, provides wireless communications systems for public safety, commercial and government customers. It designs, manufactures, and markets conventional and trunked radio systems, land mobile radio repeaters and mobile and portable radios, including Project 25 digital radio products.
