Henry Bros. Electronics, Inc. Reports First Quarter 2010 Results

FAIR LAWN, N.J., May 12 /PRNewswire-FirstCall/ -- Henry Bros. Electronics, Inc. (Nasdaq: HBE), a turnkey provider of technology-based integrated electronic security solutions, today announced results for the first quarter ended March 31, 2010.

The Company reported revenue of $12.4 million for the first quarter of 2010, representing a 19% decrease over revenue of $15.3 million for the same period a year ago.  Revenue in the first quarter of 2010 includes a 59% increase in the Texas market offset by a revenue shortfall across the company's other U.S. markets as a number of larger projects included in the company's backlog had scheduled start dates beginning in the Company's second quarter.

The Company reported net income of $57,387 or $0.01 per diluted share for the first quarter ended March 31, 2010, compared to net income of $166,122, or $0.03 per diluted share in the comparable period of 2009. The Company's decrease in net income is principally the result of reduced revenues.  

The Company's backlog as of March 31, 2010 was $30,365,525, compared to $20,133,794 on March 31, 2009 representing a 51% increase over the prior year and $28,021,794 at December 31, 2009 representing an 8% increase sequentially.

Jim Henry, CEO of Henry Bros. Electronics, commented, "We are confident that the first quarter of 2010 is the trough in revenue and net income due to the difficult economic environment we experienced throughout 2009; and we believe our business is now on the upswing.  There are several factors that make us cautiously optimistic about 2010.  The first factor is that our base integration business revenues are inline with the fourth quarter of 2009.  While on the surface revenue in this segment appears to be flat, that is actually not the case when factoring in seasonality.  Normally we would see lower revenue in the first quarter in comparison to the fourth quarter.  Another key factor is our backlog execution schedule.  Our current backlog is up as compared with the fourth quarter and same period of the prior year.  Finally, we reduced our SG&A by $414k by reducing payroll and related costs allowing us to turn a small profit."  

Henry continued, "Looking ahead, we are expecting the second half of the year to be strong.  Our 2010 second quarter bookings are expected to exceed that of the first quarter as stimulus money begins to flow into the public sector and other enterprises start to release projects previously in the planning stage.  Having only completed one of the TVCS projects through 2009, we are planning to complete three to six in 2010 with most of the revenue being weighted to the second half of the year. For these reasons we are guiding towards a 4%-5% operating margin on consolidated revenue of $60 million-$65 million in 2010."

About Henry Bros. Electronics, Inc.

Henry Bros. Electronics (NASDAQ: HBE) provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies.  The Company has offices in Arizona, California, Colorado, Maryland, New Jersey, New York, Texas and Virginia.

For more information, visit http://www.hbe-inc.com.

Safe Harbor Statement: Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. In particular, there can be no assurance that the Company will achieve revenues of $60 million to $65 million or an operating profit in 2010. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed in the Company's filings with the U.S. Securities and Exchange Commission. Henry Bros. Electronics, Inc. does not assume any obligation to update the forward-looking information.

SOURCE Henry Bros. Electronics, Inc.

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