EFJ reports second quarter loss, anticipates turnaround
EFJ Inc. reported this week that consolidated revenues for the quarter were $10.7 million, an increase of 19 percent from the first quarter and 13 percent from the prior year. Gross margins remain strong at 43 percent. A planned acceleration in product development expense of $0.7 million during the quarter offset a $0.5 million gain in gross profit and resulted in an operating loss for the quarter. The Company also reported a net loss for the second quarter ended June 30, 2003, of $132,000 or $0.01 per share, compared to a net profit of $195,000 or $0.01 per share for the comparable quarter of 2002. Despite the quarterly loss, the Company re-affirmed its guidance for the full year of $0.13-0.16 earnings per share on revenues of $45-47 million due to the targeted growth in the Homeland Security market. Consolidated revenues increased year-to-year from $19.4 to $19.7 million. With gross margins holding steady at 44 percent, gross profit reached $8.6 million. Expenses rose from $8.4 million in 2002 to $9.3 million in the current year, accounted for by an increase of $0.9 million in R&D spending. For the six-month period ended June 30, 2003, EFJ reported a loss of $696,000 or $0.04 per share. The comparable prior year period saw a net profit of $293,000 or $0.02 per share. Unrestricted cash and cash available under the bank line of credit on June 30, 2003, remain strong at $11.4 million.