HEI, INC. 
By Net sales for the first quarter were
HEI, Inc. designs, develops and manufactures ultra-miniature microelectronics, substrates, systems, and connectivity and software solutions for customers engaged in the medical, hearing, telecommunications, and industrial markets. HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional and cost effective product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities.
Headquarters & Microelectronics Division PO Box 5000, 1495 Steiger Lake
Lane, Victoria, MN 55386
-Advanced Medical Division 4801 North 63rd Street,
Boulder, CO 80301
-High Density Interconnect Division 610 South Rockford Drive,
Tempe, AZ 85281
FORWARD LOOKING INFORMATION
Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue," and similar words. Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and the estimated HEI revenue, cash flow and profits, are forward looking statements. All of such forward-looking statements involve risks and uncertainties including, without limitation, continuing adverse business and market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, our ability to satisfy financial or other obligations or covenants set forth in our financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI's ability to control fixed and variable operating expenses, and other risks detailed in previous HEI SEC filings. Since HEI is no longer reporting to the SEC, readers are cautioned to weigh the potential for additional risk factors based on ongoing business activities and the current economic conditions in the world economy. The information set forth herein should be read in light of such risks. We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results.
HEI, INC.
CONSOLIDATED BALANCE SHEETS
April 4, January 3,
2009 2009
---- ----
(Unaudited) (Audited)
(In thousands, except share
and per share data)
ASSETS
Current assets:
Cash and cash equivalents $7 $7
Accounts receivable, net of allowance
for doubtful accounts of $77 5,482 4,686
Inventories, net 3,619 3,474
Deferred income taxes 435 435
Other current assets 633 835
--- ---
Total current assets 10,176 9,437
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Property and equipment:
Land 216 216
Building and improvements 4,327 4,327
Fixtures and equipment 24,118 23,964
Accumulated depreciation (22,043) (21,590)
------- -------
Net property and equipment 6,618 6,917
----- -----
Security deposit 528 528
Other long-term assets 343 408
--- ---
Total assets $17,665 $17,290
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash in
bank $357 $509
Current maturities of long-term debt 1,093 1,026
Accounts payable 1,029 1,434
Customer deposit liabilities 444 73
Accrued liabilities 1,357 1,391
----- -----
Total current liabilities 4,280 4,433
----- -----
Deferred income taxes 435 435
Other long-term liabilities, less
current maturities 1,889 1,870
Long-term debt, less current
maturities 6,118 5,923
----- -----
Total other long-term liabilities,
less current maturities 8,442 8,228
----- -----
Total liabilities 12,722 12,661
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Shareholders' equity:
Undesignated stock; 5,000,000 shares
authorized; none issued - -
Convertible preferred stock, $.05
par; 167,000 shares authorized;
32,000 shares issued and outstanding;
liquidation preference at $26 per
share (total liquidation preference
$832,000) 2 2
Common stock, $.05 par; 20,000,000
shares authorized; 10,374,000 and
10,374,000 shares issued and
9,630,000 and 9,630,000 outstanding 481 482
Paid-in capital 27,999 27,952
Accumulated deficit (23,539) (23,807)
------- -------
Total shareholders' equity 4,943 4,629
----- -----
Total liabilities and shareholders'
equity $17,665 $17,290
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HEI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
------------------
April 4, March 29,
2009 2008
---- ----
(In thousands, except
share and per share data)
Net sales $8,883 $9,183
Cost of sales 6,952 7,861
----- -----
Gross profit 1,931 1,322
----- -----
Operating expenses:
Selling, general and administrative 1,303 1,275
Research, development and engineering 210 309
--- ---
Operating income (loss) 418 (262)
Interest expense (154) (164)
Other income (expense), net 4 (14)
--- ---
Net income (loss) $268 $(440)
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Net income (loss) per common share $0.03 $(0.05)
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Weighted average common shares outstanding 9,632,000 9,546,000
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SOURCE HEI, Inc.
