Environmental Tectonics Corp. (ETCC.OB) Posts Solid FY 2011 Results on Heavy Contract Bookings

QualityStocks would like to highlight Environmental Tectonics Corp. (OTCBB: ETCC). ETC was incorporated in 1969 in Pennsylvania. Its core technologies include the design, manufacture and sale of Training Services (TSG) which includes (1) software driven products and services used to create and monitor the physiological effects of flight; (2) high performance jet tactical flight simulation, and; (3) driving and disaster simulation systems, and Control Systems (CSG) which includes: (1) steam and gas sterilization; (2) testing and simulation devices for the automotive industry, and; (3) hyperbaric and hypobaric chambers. Product categories included in TSG are Aircrew Training Systems (ATS) and flight simulators, disaster management systems and entertainment applications. CSG includes sterilizers, environmental control devices and hyperbaric chambers along with parts and service support.

In the company’s news Friday,

Environmental Tectonics announced its fiscal 2011 results, reporting sales for the second quarter ended August 27, 2010, at $13.24 million, up 34.3 percent compared to $9.86 million for the second quarter of fiscal 2010. Sales for the first half of fiscal 2011 were $25.36 million, a 30.5 percent increase over $19.44 million reported for the first half of fiscal 2010.

Net income for the quarter was $1.66 million, or $0.12 per share (basic) and $0.08 (diluted), up 33.4 percent compared to net income of $1.24 million, or $0.09 per share (basic) and $0.06 (diluted), for the second quarter of fiscal 2010.

For fiscal year-to-date, the company reported net income of $3.60 million, or $0.27 per share (basic) and $0.17 (diluted) during the first half of fiscal 2011, compared to net income of $2.01 million, or $0.15 per share (basic) and $0.09 (diluted), for the comparable quarter of fiscal 2010, representing a 78.4 percent increase.

Environmental Tectonics’ sales backlog at August 27, 2010, and February 26, 2010, for work to be performed and revenue to be recognized under written agreements after such dates, was $122.11 million and $96.96 million, respectively.

William F. Mitchell, Environmental Tectonics’ president and chairman said the results reflect the “significant impact” of several major contracts that were booked in the last 12 months.

“The impact of our positive cash flow from operations and availability under our lines cannot be underestimated. Multi-year long-term contracts require significant cash outlays during certain phases of execution. A growing company requires cash to expand its operation. I am very encouraged that ETC is finally benefiting from our many years of product development and engineering innovation,” Mitchell stated in the press release.

The 34.3 percent increase in sales wasn’t enough to off-set gross profit for the second quarter of fiscal 2011, which decreased $162,000 or 3.3 percent from the second quarter of fiscal 2010. The company said the reduction resulted from a 14.1 percentage point reduction in the gross margin rate as a percentage of sales to 36.2 percent for the second quarter of fiscal 2011 from 50.3 percent for the same period a year ago.

About QualityStocks

QualityStocks, based in Scottsdale, Arizona is a free service that collects data from hundreds Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their advertising efforts and now has over 750,000+ subscribers that receive The Daily Stock Newsletters.

To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net

Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net

Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.