Elecsys Corp. (ESYS) Reports Strong Q3 FY2011 Performance

QualityStocks would like to highlight Elecsys Corporation (NASDAQ: ESYS). The company provides innovative machine to machine (M2M) communication technology solutions and custom electronic equipment for critical industrial applications worldwide. Elecsys proprietary equipment and services encompass rugged wireless remote monitoring, wireless industrial communication, mobile computing, and radio frequency identification (RFID) technologies that are deployed wherever high quality and reliability are essential.

In the company’s news yesterday,

Elecsys Corp. announced its financial results for the third fiscal quarter ended January 31, 2011.

The company reported sales for the quarter at $6.10 million, a 29 percent increase over the $16.77 million reported for the third quarter of fiscal 2010.

Net income was $262,000, or $0.07 per diluted share, for the third quarter of fiscal 2011, as compared to net income of $64,000, or $0.02 per diluted share, for the comparable quarter of 2010.

Gross margin for the third quarter was approximately 34 percent of sales, or $2.04 million, compared to 32 percent of sales, or $1.51 million, for the prior year period.

Elecsys reported that total backlog as of January 31, 2011, grew by 60 percent, to $6.27 million compared to total backlog of $3.93 million from one year earlier.

The company said it expects continued sales growth in the upcoming quarters based on currently scheduled orders and strong demand for its existing and new products.

Karl B. Gemperli, CEO of Elecsys said the company is pleased with its quarterly figures, which reflected bottom-line improvement and substantial revenue growth. Gemperli contributed the strong performance to the company’s solutions and said the company anticipates further growth in the future.

“Demand for our proprietary industrial M2M solutions continued to grow and we were encouraged by the strong market demand for our latest remote monitoring product, the Watchdog VIP, introduced in December. In addition, Elecsys continued to reliably deliver innovative and dependable products to select original equipment manufacturers in diverse industrial markets and we believe that our specialized expertise in electronic design and manufacturing services, coupled with the growing trend towards domestic outsourcing, will accelerate the growth in this segment of our business,” Gemperli stated in the press release.

About QualityStocks

QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.

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.