ROCKY HILL, Conn. - Axsys Technologies, Inc., a global leader in the design, manufacture and distribution of precision optical solutions, today announced a revision to its annual financial guidance. This revision is largely due to the acquisition of Diversified Optical Products (DiOP) on May 2, 2005, a leading supplier of infrared surveillance camera solutions to military and homeland security customers, and a leading OEM supplier of military-grade thermal targeting and imaging lenses. As the DiOP acquisition closed on May 2, 2005, the updated guidance includes DiOP's projected financial results for the remaining eight months of 2005.
New Fiscal 2005 Guidance - versus prior fiscal 2005 guidance:
-- Revenue guidance revised upward by 15% to $131.0 million from $114.0 million
-- Operating income guidance revised upward by 24% to $13.6 million from $11.0 million
Revised operating income guidance for 2005 includes $700,000 of amortization expense related to intangible assets acquired. The amortization lives of these intangible assets range from one to eighteen years. Of the $700,000 in amortization expense, approximately $267,000 is associated with amortization of intangibles with lives of one year. In addition, operating income guidance for 2005 includes additional non-recurring costs of $423,000 as a result of recording the acquired inventory at fair market value.
Incremental interest expense resulting from the acquisition is expected to be $2.5 million during 2005.
Stephen W. Bershad, Chairman and CEO of Axsys Technologies said, "The integration process has progressed smoothly and the products are performing well. It is clear that this combination has established Axsys as a significant player in the thermal imaging surveillance industry. We look forward to participating in the growth opportunities resulting from our enhanced position in this fast-growing market."