HSR Hi-Shear Technology Corp

Hi-Shear Technology Corporation (AMEX:HSR), Torrance, CA, today announced that net income for its third quarter ended February 29, 2008 is $769,000 or $0.11 per share, as compared to $844,000, or $0.12 per share, for the same period last year and reflects efficiencies in manufacturing processes that resulted in faster product cycle time. Higher general, selling and administrative expenses were incurred during the quarter compared to the same period last year due to additional legal costs. Revenues recognized during the quarter were $6,299,000 and 17% higher than the $5,383,000 for the same quarter last year. Product gross margins for the quarter were $2,624,000, or 42% of revenues, compared to $2,192,000, or 41% of revenues, in the same period last year. Net income for the nine months ended February 29, 2008 grew 37% to $3,225,000 or $0.47 per share as compared to $2,356,000, or $0.35 per share, for the same period last year. Revenues of $18,526,000 represent a 27% increase over the revenues of $14,575,000 for the same nine month period last year. Growth in product demand and manufacturing volume drove the increased revenue and net income. A dividend of $0.40 per share or approximately $2,725,600 was issued by the Company payable on April 11, 2008, to shareholders of record as of the close of business April 01, 2008. This dividend represents an increase of approximately 14% over the $0.35 per share dividend issued to shareholders of record on October 5, 2007. Hi-Shear Technology provides pyrotechnic, mechanical, and electronic products to the aerospace and defense market in applications where safety, performance and high reliability are essential. It develops and produces advanced systems and products that are primarily used worldwide in space satellites, launch vehicles, national defense, and government programs. This release, as it relates to product announcements and other Company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company�s products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights. The Company�s Form 10-QSB was filed with the Securities and Exchange Commission on April 14, 2008. The 10-QSB will be available through Edgar or can be downloaded through Hi-Shear�s website at www.hstc.com, or contact Linda A. Nespole at (310) 784-7821. FINANCIAL INFORMATION FINANCIAL STATEMENTS BALANCE SHEETS � � � February 29, � � May 31, 2008 2007 (Unaudited) � ASSETS: Current Assets: Cash and cash equivalents $ 2,019,000 $ 997,000 Accounts receivable, net 13,515,000 13,025,000 Inventories, net 1,647,000 1,569,000 Deferred income taxes 1,185,000 976,000 Prepaid expenses and other current assets 332,000 142,000 Total current assets $ 18,698,000 $ 16,709,000 � Land 846,000 846,000 Equipment, net 2,051,000 2,141,000 Total assets $ 21,595,000 $ 19,696,000 � LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Trade accounts payable 1,011,000 793,000 Accrued liabilities 2,454,000 2,253,000 Deferred revenue 760,000 206,000 Current portion of obligations under capital leases 40,000 40,000 Total current liabilities $ 4,265,000 $ 3,292,000 � Deferred income taxes 252,000 288,000 Obligation under capital leases (less current portion) 44,000 73,000 Total liabilities $ 4,561,000 $ 3,653,000 � Stockholders' Equity Preferred stock, $1.00 par value; 500,000 shares authorized; no shares issued 0 0 Common stock, $.001 par value - 25,000,000 shares authorized; 6,814,041 and 6,784,957 shares issued and outstanding at February 29, 2008 and May 31, 2007, respectively 7,000 7,000 Additional paid-in capital 7,716,000 7,567,000 Retained earnings 9,311,000 8,469,000 Total stockholders' equity $ 17,034,000 $ 16,043,000 � Total liabilities and stockholders' equity $ 21,595,000 $ 19,696,000 HI-SHEAR TECHNOLOGY CORPORATION STATEMENTS OF OPERATIONS (UNAUDITED) � � � � � � � � Nine-Month Period Ended Three-Month Period Ended February 29, February 28, February 29, February 28, 2008 2007 2008 2007 � Revenues $ 18,526,000 $ 14,575,000 $ 6,299,000 $ 5,383,000 � Cost of Revenues 10,045,000 8,233,000 � 3,675,000 3,191,000 � Gross Margin 8,481,000 6,342,000 2,624,000 2,192,000 � Selling, General and Administrative Expenses 3,395,000 2,467,000 1,548,000 834,000 � Operating Income 5,086,000 3,875,000 1,076,000 1,358,000 � Interest Income, Net 39,000 0 19,000 0 � Income before Income Tax Expense 5,125,000 3,875,000 1,095,000 1,358,000 � Income Tax Expense 1,900,000 1,519,000 326,000 514,000 � Net Income $ 3,225,000 $ 2,356,000 $ 769,000 $ 844,000 � � Earnings per Common Share - Basic $ 0.47 $ 0.35 $ 0.11 $ 0.12 Earnings per Common Share - Diluted $ 0.47 $ 0.35 $ 0.11 $ 0.12 � Weighted # Common Shares Outstanding: Basic 6,806,000 6,775,000 6,816,000 6,776,000 Diluted 6,822,000 6,796,000 6,837,000 6,796,000